Is Snappy Auctions a Great Franchise Opportunity?
April 20, 2007 by Sean Kelly
Filed under Business
While the largest, most celebrated eBay drop-off store franchise concept , iSold It, has closed 60 stores, suspended domestic franchise sales and warned it may be on the verge of collapse, its next-largest competitor remains upbeat and continues to promote its franchise program.
In a company press release, Snappy Auctions celebrates inclusion on the list that made iSold It famous:
Snappy Auctions has been listed in Entrepreneur Magazine’s Franchise 500 list for the first time… With over 63 units open, Snappy Auctions ranked 309th in the survey, in only its 2nd full year of operation. The Nashville, Tenn. based franchise enables customers to make money off of items that are sold on eBay…
Snappy Auctions CEO Debby Gordon claims that Snappy Auctions is not suffering the same fate as competitor iSold It. In fact, snappy Auctions is doing phenomenally:
“We are poised for a phenomenal 2007, after an incredible 2006,” Gordon continued, “and this accolade is just the beginning.” In 2006, Snappy Auctions launched Snappy Sales Solutions, S3, which has contributed to its recent success. “S3 is yet another step toward our goal of changing the way businesses get value from retired equipment and inventory.”
Snappy Auction also boasts having been named one of Franchise Business Review’s Franchise 50, which honors franchise systems based on outstanding franchisee satisfaction through owner surveys and comments.
According to a Ina Steiner’s column on AuctionBytes.com, “Despite the challenges, Snappy Auctions CEO Debbie Gordon believes in the concept and says it’s all about execution.”
Can Snappy Auctions really be succeeding while iSold It, with much the same business model, is fighting for survival? Have they successfully overcome the challenges that eBay drop-off store critics contend make the concept unworkable? What do you think?
YOU’RE INVITED TO LEAVE A COMMENT ON WHETHER YOU THINK SNAPPY AUCTIONS IS A GREAT FRANCHISE OPPORTUNITY.
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Howdy2, if you’re interested in the law suits, contact Amitheonlyone.org, otherwise we’ll just assume you’re one of the last company shills.
As much as i realize your numbers are not based on fact, I would challenge a couple. The AM’s don’t make $36k/year. If they did, they wouldn’t have all left. They probably use Internet connectivity that costs less than $1k a month.
The Dev and support piece is most likely accurate for outsourcing.
If a CEO is only making $120k/year then someone needs to take that title away.
Just my opinion of course.
First off, the AMs need to get a reality check. Snappy is on the way down and if they’re taking pay cuts because they think there is a pay off down the line, the only light at the end of this tunnel is a train coming right at ya. Get another job and get paid what you’re worth.
If you’re supporting a number of stores, you better be paying $1K a month for Internet hosting and support or you’ll have a repeat of the summer Snappy’s systems went down and all Snappy could do was point fingers at the low bid hosting services they had.
There is no correlation of the title CEO and pay. I have business cards from “companies” where the staff is I, ME and MYSELF and the title on the card is CEO. OK, let’s say Debbie is a real CEO (cough, gag) and she’s getting “real” CEO pay. There goes your $20K a month so how can you say “$20k a month goes a long way with minimal expenses”? Oops….that’s the whole $20K, unless of course you use Snappy math.
Let’s face it, it’s amazing the whole thing has not imploded. The Comcycle and Vanderbilt sales are not bringin in the big bucks and with 2/3 of the Snappy stores selling $10k or less and Debbie pulling in “CEO” pay, it can’t go on forever. Especially if the lawsuits begin…..hint ;-)
That’s kind of my point. Real CEO’s don’t do what she does. None the less, we’ll see what comes of all this nonsense.
Actually Smart Snappy, real CEO’s in this business do DO what she’s done. Look at the CEO’s of Isoldit and Quickdrop. They are all snakes! As for 20k, they are all spending that much on legal problems a month. Besides most of the stores are doing less than $10k gross a month, with more closing each month-surprize! Pretty sad state (thats why they all have the legal problems, remember they have to pay people to gag them too). These companies are down to just a few in corporate staff, and dwindling! Even other countries are getting wise. AmITheOnlyOne.org has already been translated into other languages.
Snappy pay someone to gag them? Not likely. Their methodology is to threaten not to pay. Maybe Isoldit and Quickdrop do that, but I haven’t heard of Snappy doing that while I have heard of them sending their lawyers out to use our legal system to muscle franchisees.
It’s kinda funny how quiet the press has been on the whole eBay Dropoff situation.
It’s kinda funny how quiet the press has been on the whole eBay Dropoff situation.
I’ve always known but never realized the absolute lack of reporting on business closures or failures in the press. I regularly search Google, Google News, regional news, etc. and could fill this blog with all the happy business openings, yet it is nearly impossible to find any mention of store closings or struggling concepts, even in the business press.
Our exposure of the Entrepreneur magazine praise and awards for iSold It and Snappy Auctions while franchisees were struggling and failing was an extreme, even absurd, example… but it’s an example of something more pervasive.
So has anyone out there been paid NOT to talk about Snappy Auctions? Anyone?
Smart Snappy, you seem to have backed off your “$20k a month goes a long way with minimal expenses” comment. What exactly did you mean by it?
No. haven’t backed off. Just not worth arguing about frankly.
If you can’t back it up, why say it?
Argue amongst yourselves.
Oh great. Here we go again. Another Snappy-ite who comes in here, makes comments then acts wounded when we challenge them on what they are willing to put in print.
To SMART SNAPPY:
Let me ask you a question Smart Snappy; have you owned a store? Do you currently own a store?
Feel free to challenge what I type as you have already. That’s what this forum is for. I won’t get all passive aggresive on you.
Hey Not Smart, if they have been gagged-THEY CAN’T TELL YOU! And yes, all these major franchisors have gagged people! Threats are only the beginning of the dirt that has been slung. Bad franchisors are just that-BAD! (Beyond our imagination!)
I didn’t ask about franchisors who have been gagged, I asked about Snappy franchisors who had been paid NOT to talk. Theres a biiiig difference.
Also, if they’ve been gagged, why are they posting in the first place?? This is not someone who was gagged, this is someone who can’t back up what they say. Again theres a difference.
I quit it …
Yes, former owner if you can call it that, to this day I’m not sure what it was I actually “owned” OH that’s right that 25k franchise fee for the “right” to put that four thousand dollar sign over my door, you know the one that is now in the dumpster! I can still hear the conversation now, AK from Nashville “what do you mean your closing” IQI Uh yeah that is unless you guys want to do a corp. buy out? AK Uh well uh “we are not in the business of buying back stores” IQI “Well if it’s such a great concept, and I have such a great location, and such great potential, as your always telling me, then why not?” AK well let me discuss this with DG and we will get back to you. That never happened, store closed end of story. Well not quite I only lost 100k or so others lost everything and more.
So I read all this banter back and forth, and find it a little hard to understand how the concept has its defenders when people and families lost so much on such a scheme.
DG you’re great you didn’t come to me, I walked into your office and handed you the $$$ and you gave me … well I’m still trying to figure that out? In any event when it started to go south and you still kept trying to sell the concept that’s when you may have noticed the staff, what was left of it anyway, standing a few feet farther away from you.
Watch out for those lightning bolts Deb.
IQI, if you haven’t contacted AITOO, then please do to get your name on the “list”.
Best of luck to you.
Go here:
http://www.amitheonlyone.org/Features.html
And send them an email.
I heard from a couple of ex store owners that they thought snappy hq is working with anyone who is going after former store owners for money or legal reasons. While I can’t prove this, it sounds like something they would do.
I doubt it, they haven’t a leg to stand on, and lawyers fees are expensive! (Remember they laid off most the corp. staff – quite an indication they aren’t doing well!)
Sorry Chance I think you misunderstood. What’s happening is store owners who thought their battles were over are suddenly being hounded by a new group of people (not Snappy) and one of them slipped up and said they got the seller’s info from Snappy HQ. In other words, Snappy HQ or what’s left of it is supposedly assisting bill collectors and or outside lawyers in their efforts against former store owners. Since the contract between the franchise and Snappy is no longer in effect in these cases, I can’t understand Snappy’s position on providing assistance when these former store owners are already in extreme financial duress.
If this is true, it would just go to show how low they’ve sunk and to quote INTERERESTED PARTY “Her business tactics are suspect to say the least and I witnessed them firsthand. How sick to see disgusting behavior from a seemingly educated and sharp-minded person.”
What’s next?
Thanks BH, seems I did misunderstand! I suspect the franchisors are capable of just about anything rotten. Their track record doesn’t speak too well of them. But, I don’t see what they would gain other than frightening the franchisees!
“…Snappy HQ or what’s left of it is supposedly assisting bill collectors and or outside lawyers in their efforts against former store owners.”
Ex-franchisees, not current store owners. It looks like they are targeting certain people but I find it hard to imagine how they have the time since their empire is crumbling around them and they should be taking care of their last remaining stores or (cringe) helping them to shut down.
You know, the reason many stores are still open is that they can’t get out of their leases. Any money made is feeding leases and not the owners families.
How does Debbie sleep at night?
It’s time to take action. Anyone interested, contact the good folks at amitheonlyone.org.
OK….it’s official. Snappy is actvely selling franchises again and they are using former stores consignor lists to do it! Yes, I said they are using the lists stores built up on their own and paid for in blood to sell their franchises.
Time to ramp up our education efforts. Former store owners, make sure Snappy doesn’t have your list or are using it to sell franchises. If they are and you still have your list, you might want to look into sending out a counter email.
Also there is a potential issue of intellectual properties to consider: this was your list wasn’t it?
My friend in Nashville got an email on buying a franchise in Nashville. He had done business with the Brentwood Snappy Auctions store. I guess that confirms it: Snappy is now using closed store lists trying to sell franchises.
Really I’m not surprised. But I do wonder about how they got that list and what legal rights they have to use it.
Can somebody get me some info on this so I can do a post?
Anyone have an ad, email, letter of solicitation? News story? How are they using the closed stores… past customer lists? Why would they want to target customers of closed stores (who witnessed the failure)? Are they trying to sell those existing stores?
feel free to post or email me in confidence at info[at]ideafarm.net
Are you interested in helping to educate people about the realities of franchise ownership, especially the pitfalls of hot new franchise concepts like eBay drop-off stores?
Send a confidential inquiry unhappyfranchise.com
Unhappy franchisees, past & present, wanted: email unhappyfranchisee[at]gmail.com in confidence.
I am NOT trying to run up the comment numbers… but just wanted to point out that this Snappy Auction post is on its way to becoming the first 1000 Comment post on FranchisePick.com.
I don’t know where that ranks on the b5media all-time comment list, but it’s newsworthy and a testament to you eBay Drop-off, Snappy Auction & iSold It franchise owners who have spent a lot of time and energy educating and warning others, despite pressure and even threats to go away quietly.
I recently got a renewed appreciation for the contributors on this thread and at amitheonlyone.org after a rather nasty exchange with the franchisees of a certain shipping franchise that shall remain nameless (but rhymes with The Boo-Pee-Yes store). At least one individual among them could not understand why someone would bother to try to warn those about to make the same mistake they made.
Others see it as one of the few positives to come out of their expensive education.
I’m back! The surgery has kept me from walking around, (I can’t even get up) but left me with LOTS of time for the computer.
Regarding the Snappy solicitations, ISI solicited all of our clients for their other stores BEFORE we had shut down. Our customers were a bit pissed (not at us).
However, I will tell you that the franchise aggreement we had with ISI said they could solicit (boy can that be taken in more ways than one), providing they paid us a certain dollar amount for each one. Ya think we saw any money-NOOOOOO! Check your aggreements and see if they have the right to your client lists at any time. They are just getting desperate!!! Go ahead and send an email to your own clients letting them know you have closed and are still operating else where, or just thank them for the business they did with you. And you might want to mention they read AmITheOnlyOne.org, to see the REAL problems with these franchisors. You might also point out that ALL the franchisors of ebay drop shops are having problems, from bankruptcy (with NUmarkets and Quikdrop) to hundreds of closings such as ISI (etc.), and that there were even more stores that NEVER opened (600+). Only a fool would get into one of these franchises today.
There is plenty of great info out here on the internet, so give yourselves a hand for the good job your doing! Oh and by the way, AmITheOnlyOne.org has been translated into a few other languages by folks that DON’T want these franchisors operating in their countries.
Biggest concern right now is for those people trying to sell their stores to another unsuspecting soul. The orginal owners CAN be held liable if they don’t spell it ALL out (in RED ink of course).
And are you guys aware that the #1 Snappy store(s) in Atlanta are closing (one at a time). I love a sign that says “We have moved to XYZ” Their other location!!! Moved my #&%, they closed!
Best commercial on TV right now is the one that says “Life comes at you fast!” What an understatement! (The drugs have kicked in)
Sean, you should have the email that was sent out by Snappy using a store list as well as emails from former customers. I only sent the ones that were nice. Others were very upset that Snappy was using their email list when they didn’t agree to let Snappy use it.
Attorneys are reviewing the UFOC to see if Snappy has any claim to these email addresses. If not, let the fun begin!!!
Welcome back, Chance.
For those who missed it, years of intense prayer for iSold It and Snappy Auctions eBay Dropoff Franchise executives took a toll on Chance’s knees. But Chance has been rebuilt, stronger and more heavily medicated than ever before…
This is your last chance to get involved in any legal action against Snappy Sales LLC.
If you’re interested in participating in a group action against Snappy Sales LLC, send an email to:
snappydunmeyin@yahoo.com
You will be required to sign an NDA to participate and send proof that you were or are a Snappy Auctions franchisee.
Current Snappy Sales LLC employees are not eligible to participate.
Good luck…As store after store bites the dust! And remember that any litigation must be disclosed in the UFOC (cough, cough)!
Davidson County Chancery Court
Deborah J. Gordon and S3 Consulting LLC v. AERC.com Inc. and James Beckner. Filed May 20.
Nashville entrepreneur Debbie Gordon, founder of the Snappy Auctions eBay sales franchise, went to work for technology recycler AERC and licensed S3’s software to it last fall. The company dismissed her earlier this month. She claims AERC has violated her rights under the employment and software contracts. She also makes sexual harassment allegations against AERC board member Beckner.
Unspecified amount of damages sought. Plaintiff’s attorneys: Russell B. Morgan and Luther Wright Jr. of Boult, Cummings, Conners & Berry PLC.
Boswell, great reporting! This is a great one to give the franchisees attorneys, and some reporters as well! Ms Gordon is pitiful! LOL
Nice tip, Boswell.
Does anyone have a subscription to the Nashville Post?
http://www.nashvillepost.com/news/2008/5/28/snappy_auctions_founder_tech_recycler_former_nashville_attorney
Well, someone finally figured it out and did the right thing. She has a history of doing deals that go bad (Snappy Auctions, Snappy Japan, Vanderbilt Hospital/S3) and walking away unscathed. Of course, she going to claim it was someone else’s fault since that’s her MO and she is NEVER at fault. I wonder if her legal bills will put her in the poor house like many ex-Snappy owners.
Karma…..
Keep the info coming Boswell!
Sexual harrasment? Eww… Well I suppose some guys out there like the old fatties.
This info is interesting, considering this is the woman who used her sexuality to get the Vanderbilt deal in the first place. She’s got nothing.
I’m guessing Debbie used some “X% of vendors must be female” provision that many wrong minded universities still use, to get the Vanderbilt deal (the concept she stole from a store owner). However, she seems more than happy to play the sexual harrassment card whenever it suits her needs.
Let’s lay this out in no uncertain terms. Debbie is a liar, a cheat and will do ANYTHING to get what she wants. Just ask any of her ex-employees. The laughable thing about her sexual harrassment allegation is she’s gone through more boyfriends than a $20 prostitute. Once they learn what she’s really like, they run away. She can’t keep a man, so claiming that ANY man would make advances at her is a big joke. Plus, she’s got more _alls than most men out there so she can’t claim sexual harrassment: it was all between “the boys”!
It seems someone finally realized the truth: nothing she “develops” (stole) ever works. Her track record speaks for itself. She’s sold herself into these “deals” and they all crap out. I say we put together a legal fund for AERC to help them since thet have the guts to do what’s right.
While I have no delusions she will learn from this, I will enjoy watching this play out. I have no doubt she’ll get something out of it (our courts are a joke), but she won’t be able to sell her wares anymore. There will be too much info on the internet. The fall from grace continues unabated. Snappy employees, its time to dust off the resume.
All I can say is YIIIPPPPPEEEEEEEE!!!!!! Someone FINALLY gave her what she deserves.
Snappy Auctions founder sues tech recycler, former Nashville attorney
Debbie Gordon claims she was improperly fired by AERC, throws in sexual harassment charge against local board member to boot
Debbie Gordon, the entrepreneur behind eBay storefront business Snappy Auctions has filed a lawsuit in Davidson County Chancery Court alleging that she was improperly fired by technology recycler AERC Solutions. In addition to claims against AERC, she has also added sexual harassment claims against one of the Pennsylvania-based company’s local board members.
S3 Consulting, Gordon’s e-commerce software and marketing company, was contracted by AERC last October to license its asset management software.
To fully implement the software, Gordon was brought in as a salaried employee of AERC with the title of vice president of technology and consulting services. Her employment was to run 18 months, concurrent with the software licensing deal.
Last month, however, Gordon claims that AERC failed to pay her the salary and benefits outlined in the employment agreement. On May 2, the company informed her that it was terminating both her employment and the licensing agreement with S3.
In the filing, Gordon also lobs accusations of sexual harassment against AERC board member and former local attorney James Beckner. Beckner, she claims, made comments concerning her skirt length and – NashvillePost.com can only guess here – in what must have been taken as a nod to 1950s era gender politics, told Gordon to stand beside a vacuum cleaner.
Representing Gordon in the matter are Boult Cummings Conners & Berry attorneys Russ Morgan and Luther Wright.
Lindsey Landmesser, a vice president with AERC, issued the following statement in response to inquiries by NashvillePost.com:
We are aware of a complaint filed by a former employee. The allegations against our company and a company executive are baseless, not true and without merit. The facts will show that this is a groundless complaint and we will vigorously contest this.
As the vice president of AERC and the daughter of the founder, I can assure you that harassment of any nature is absolutely not tolerated. All of our employees are required to review policies and follow the guidelines in our handbook ensuring compliance. Providing a safe, tolerant and positive workplace has and will continue to be a priority in our company.
As policy we don’t discuss employee matters or legal complaints with the media so I will decline to go into any further detail. What I will tell you is this. There is absolutely no truth to these allegations. The claim is unwarranted and completely unjustified.
I can’t wait to hear how this case works out. I’ll bet AERC has a strong case and that Debbie is going down……..
Wasn’t Debbie dating someone at the Nashville Post?
How many Snappy retail locations are still open?
If anyone has additions to the ebay Drop-off Franchise Graveyard, post them here. It’s been a while.
See:
It would be valuable to count all of the franchised locations that opened and closed for all the different drop-off chains, estimate how much each cost the franchisees and also how much the bankruptcies cost creditors, lenders and the SBA in unrepaid debt and come up with a set of numbers of the economic cost to individuals, companies and taxpayers when an illusion is allowed to be sold as a proven business model.
Solid estimates like this could generate some press… think we could come up with a good estimate and an updated graveyard list by our 1000th comment?
I am a current Snappy owner and am drowning in debt. Trying to stay afloat and not lose the house. I’ll try to get a count on existing SA stores.
Drowning, contact the folks at AmIThenlyOne.org they deal with your issues daily. I am sure they can give you some ideas which will help.
Sean I will start woking on the Isoldit side for you. Any Quikdrop zees out there?
Where have all the flowers gone? Why are you guys so angry toward Snappy Auctions? They offer a premier franchising opportunity that is truly unique. Their business model is truly flawless.
If it didn’t work for you, well then, tough luck. But accusing Debbie, Deborah, of standing on a street corner, for a meezly $20 — well that’s just slander; and I hope she goes after you!
Losing your house huh? That’s just silly. Who would bet their house on a business?
I wouldn’t.
What else can I say?
I’m doing well, I’m netting well over 6.9 million/ quarterly. So don’t worry, be happy!
Rupert, Rupert, Rupert, you still don’t get it. 6.9 Million you say???? Is that rupees, pesos or pounds of BS?
You might want to brush up on grammar too:
http://en.wikipedia.org/wiki/Metaphor
Also, look this up too:
http://en.wikipedia.org/wiki/Slander
“…she’s gone through more boyfriends than a $20 prostitute…” with the metaphorical THAN in the sentence. Try listening to Dennis Miller. He’s the king of metaphors, but then again he uses big words and I’m not sure you can handle that.
Oh and whatever it is you’re smoking, give some to Debbie. It will take off the edge of the counter suit she’ll be most likely facing. She’s slandered more than one person in the press and they’re pissed.
And Rupert, we all know you’re a fictional character. Fictional characters have no substance, kinda like you. Say hello to Santa Claus and the Easter Bunny for me.
So what must it say to current Snappy franchise owners that their beloved CEO is trying to earn her own living (and benefits) by working for someone else? I guess she couldn’t afford the payments on her Lexus anymore by stealing from Peter to pay Paul?
I bet that AERC will not have to dig deep to find real, solid evidence to dismiss her claims. This is a person who will do whatever it takes to get what she wants, and she’s been sloppy along the way at the expense of others.
Hey, it’s not slander if it’s true.
Don’t really know what to say. I would love to hear something from a person at Com-Cycle, to see what they thought of her.
You’re right. It’s not slander if it’s true. Though, I highly doubt that Debbie was ever standing on a street corner asking for $20.
I believe she deserves an apology. And suggest you email it to her immediately.
Thx.
I think that’s the burning question. Who on earth was running the company since October that has 30+ stores?