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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Who has been running the stores? What is there to run? They offer little to no support, the stores are doing anything they can to survive (without Snappy) and there’s only 1.5 people left to support the stores.
Snappy’s just been taking these poor people’s money. Keep in mind the vast majority of the stores still open are open for one main reason: they have leases they cannot get out of. You can thank Snappy for not helping with leases.
RupertG….now what was that 6.9 million for? You can net $1 billion, but what is your profit?
….Though, I highly doubt that Debbie was ever standing on a street corner asking for $20…..
You’re right …..she’s more in the Elliot Spitzer range. Just think of all the franchisors she’s…..you get the idea….. ;-)
I am willing to bet this whole is settled out of court.
Settled out of court? I doubt these guys are going to fold like the others.
This is a REAL company this time and they play by a different set of rules.
…comes around. Now, everything is coming out. I knew it would, eventually.
“Drowning in Debt”, any update on the active store list?
I think it’s time to educate the press on the number of stores now that the lawsuit with AERC is getting press.
Look, I’m gonna be honest here, it’s not my fault none of you chose to do any research before opening a business. Location is important, and you failed at that key factory when opening your store. Nothing is wrong with the Snappy concept, NOTHING! Stop even thinking about a law-suit, because it won’t work, you signed the agreement with Snappy — your loss, not theirs!
Get a new job.
… Get a life.
… …. Stop blaming Debbie (and Adrienne, one of my dearest buds) for your failures.
… …. … And Give up, just like you did on yourself when you gave up on your store.
Rupert, I now believe that there is a missing link and you’re it. I can’t say this any more simply: you’re a nimrod.
Only an idiot can ignore this:
1) Over 60% failure rate of stores including corporately owned stores
2) The majority of Snappy’s competitors who had almost exactly the same model as Snappy have closed or gone backrupt, so its the model.
3) The leading eBay drop off store franchisors has been successfully sued…and Snappy’s next..contract or not…state laws trump contracts
4) Debbie had to get another job to get by and even then they fired her
5) Snappy laid almost all their staff and these poor people have told stories
6) The main reason any stores are open at all is that Snappy did a crummy job assisting the stores with their leases and the stores have to stay open to service their lease.
7) The “wonder stores” in Atlanta have closed or are closing
I guess Debbie has a lot of time on her hands now since AERC figured it out and fired her. If you think about it, over 60 frachisee/owners also “fired” Debbie when they closed their stores. If she really cared, she would help the existing stores shut down.
There is one thing you said that seems to be true: its not your fault, unless you’re really Debbie Gordon.
The rest of us have have jobs, we continue to struggle with the debt Snappy’s failed model inflicted on us, but we will continue to hold Debbie responsible for the situation she created.
Say hello to Adrienne and tell her while we admire her loyalty, its misplaced. Its only a matter of time before she has to ge another job.
I am outraged that this RupertG person claimed we quit insinuating that we were not suitable to run a store. Per Snappy’s own press releases, Snappy franchisors were very specifically reviewed then chosen and included former CEOs and professionals from upper management of major companies who knew how to run a business. These kind of people don’t quit, but they know when to walk away and cut their losses. I guess this only further proves “It’s Time’s” claim that the founder of Snappy Auctions was to blame since she handpicked these people.
How dare you RupertG and shame on you!!
Outraged:
Quoting from Snappy Auctions press releases is a dangerous practice (one that started this discussion nearly 1000 comments ago, actually).
According to a press release just two years ago, satisfaction among Snappy Auctions franchise owners was so high Snappy snapped up a Top 50 award by Franchise Business Review in March 2006:
Snappy Auctions announced today that it has been ranked among the top 50 North American franchises for owner satisfaction in the Franchise 50 awards just released by Franchise Business Review, a national franchise market research firm. In just 18 months of franchising Snappy Auctions is the leading franchisor of eBay drop off stores with 52 locations in 23 states.
…the Franchise 50 awards are based on an exhaustive franchise ownership satisfaction survey that included 250 franchise systems and approximately 45,000 franchise owners making it one of the largest surveys of its kind ever conducted. The survey covered issues related to franchisee training and support, system quality, the franchisor relationship, financial opportunity and overall satisfaction. Companies were then ranked based on survey scores, system size and rate of participation.
“We went straight to the experts, the franchise owners themselves, and got their feedback and advice,” said Eric Stites, founder and president of Franchise Business Review. “To be voted among the best of the best by their own franchisees speaks volumes about these franchise companies.”
“We are honored to be included on this exclusive list,” said Debbie Gordon, founder and CEO of Snappy Auctions. “Our priority has always been helping our franchisees be successful and this award reflects the continued hard work and commitment our team has for our franchisees.”
“Without a doubt, Snappy Auctions is putting their franchisees first and their business opportunity ranks among the best in franchising today,” Stites concluded.
Shouldn’t Snappy Auctions franchise owners be ashamed that a short while ago you all praised this woman, practically erecting a statue to her on Eric Stites’ front lawn? And now you disparage this woman whose “priority has always been helping [her] franchisees be successful”?
Debbie Gordon not only travelled across the world to sell a Japanese master franchise so she could continue to provide a high level of support for her cherished franchise owners, but she even took a 2nd job and subjected herself to discrimination, sexual harrassment and boardroom lechery so she could “continue to put her franchisees first.”
Who feels ashamed now?
;)
Not Me.
I’m good!
How about yourself?
Outraged,
Good thing you’re a CEO or Upper Level mgmt, you should have no trouble finding a new job!
Looking at your recent business decisions however, you may want to check your local McDonalds for employment. Eventually, you can move up to Sr. Fry Maker, and with enough effort, maybe even a McFlurry maker!
Lata mates!
RupertG.
Sean I can tell you I didn’t give Snappy high marks on that survey and you have to consider that the vast majority of stores were less than year old causing what’s known as the “honeymoon syndrome” or more accurately in this case the Stockholm Syndrome. Plus there was a fair share of arm twisting on that survery. But we all know better now. Heck they said the Edsel was the car of the future and that by 1980 we would all be in flying cars. But I do love your sarcasm.
Joy oh joy! We got Rupert back and she’s in fine form and using the same old tired tricks: all sophmoric fluff and no form. Rupert don’t you ever get tired of the same old tripe? It’s the same “attack the person, not the facts” crap over and over ad naseum. I noticed you didn’t even reply to any of the facts ITS TIME laid out. And you can’t because ITS TIME is right: you’re a nimrod.
McDonalds….oh….funny….snicker…snicker…. chortle…..gufaw. What’s next? Are you gonna call us all buttheads and tell you’re rubber and we’re glue? How about a new strategy? Act like an adult and debate the facts. I challenge you to reply to the facts laid out by ITS TIME….point by point using facts.
This should be interesting. Rupert might actually be as smart as a 5th grader…..nah.
I’m gonna go get a McFlurry now, wonder if I’ll see one of you suckah’s there!?!?!?
hahaha
I’m rubber and you’re glue, whatever you say bounces off of me and sticks to you, so stick that in your back pocket!
POINT/FACT: Did you or did you not sign a franchise agreement at your own free will?
POINT/FACT: Did you or did you not believe in the vision when it was presented to you?
POINT/FACT: Did you do any research prior to opening your store?
POINT/FACT: It is your business. The primary goal of a franchise, is to offer a branded name, support, and in some cases the use of software. How can you blame someone else for your own misfortune.
Your like the people that say “Well it’s the credit card company’s fault I am in debt” No, it’s not the credit card company’s fault you’re in debt. You applied for the card, they gave you a credit limit, but you chose to abuse it.
POINT AND FACT.
Rupert, Rupert, Rupert, all I can say is this is really disappointing You failed…again.
Here are the points on which you were challenged:
1) Over 60% failure rate of stores including corporately owned stores
2) The majority of Snappy’s competitors who had almost exactly the same model as Snappy have closed or gone backrupt, so its the model.
3) The leading eBay drop off store franchisors has been successfully sued…and Snappy’s next..contract or not…state laws trump contracts
4) Debbie had to get another job to get by and even then they fired her
5) Snappy laid almost all their staff and these poor people have told stories
6) The main reason any stores are open at all is that Snappy did a crummy job assisting the stores with their leases and the stores have to stay open to service their lease.
7) The “wonder stores” in Atlanta have closed or are closing
But, since you obviously can’t follow instructions or just don’t have a clue, I will reply to your claims to show you how its done.
POINT/FACT: Did you or did you not sign a franchise agreement at your own free will?
RETORT: The fact that we signed it does not negate the fact that we were sold defective merchandise. Just because we signed it doesn’t change the fact that what we were sold turned out not what was represented to us. Lets say you, RupertG, buy a car and when you get it home, it does not do what you were told it would do or what the manufacturers specs (re: contract) said it would do. Are you out of luck? No, there are laws regarding this. People make decisions every day that are based on bad information and that is why we have laws to protect us. So, your question is meaningless.
POINT/FACT: Did you or did you not believe in the vision when it was presented to you?
The people of Germany believed in a vision before WWII. The people in Jonestown believed in a vision. Does that make the vision right? We too were mislead. We know that now. I won’t argue Debbie is a good salesperon. She sold those poor saps in Japan another load of manure. All you’ve proven is that we were taken in by a slick presentation. So again, your point is moot.
POINT/FACT: Did you do any research prior to opening your store?
RETORT: Yes we did. We read what the other eBay drop off companies were saying as well as what the magazines said. We looked for similar franchises. They all said it was a sound model, there was great growth potential and the chances for success were very good. Also, Snappy provided what they claimed was a turn key solution and said we would break even in 6-8 weeks (its in print). What are you trying to prove with this question??
POINT/FACT: It is your business. The primary goal of a franchise, is to offer a branded name, support, and in some cases the use of software. How can you blame someone else for your own misfortune.
RETORT: Where did you go so school? Any good business school will tell you the reason for buying a franchise is “buy” the knowledge a good franchisor has built up in order to lessen the chances of failure. You also get the name recognition (which was nill for my area), a business model and support. A good franchisor has done the homework for you. You can buy software from anyone, but you buy a franchise from someone who has supposedly vetted and proven the concept. You are paying to reduce your chances of failure: kinda like insurance. A good franchise will have a failure rate of 15%, a bad one 40%, an awful, what the hell did you think you were selling, one: >60%. That would be Snappy. Remember, Debbie sold 100 franchises (again in print) and 30 something are still around….barely. Our misfortune is a direct result of Snappy selling a flawed model.
So there you go.
Now, RupertG, I throw down the gauntlet again. Reply to these questions:
1) Why is the failure rate so high? You said the concept is sound.
2) Why are all the other competitors also failing?
3) Why did Snappy close their own stores? They should be able to run a successful store.
4) Why did Snappy lay off most of their staff?
5) Why are the flagship stores in Atlanta closing?
6) Why is Debbie having to work other jobs if Snappy is doing so well?
7) Why didn’t Snappy buy back any stores if the concept is so sound? Many owners asked them to buy back their stores and Snappy said no.
8) What are you smoking and will you drink the Kool-Aid?
So, let me repeat this and I’llllll tttttaallllkkk slllloowwlllyyy sooo yooouu cannnn uuunnnddeerrsttannndd: the challege is: ANSWER MY QUESTIONS if you can. So far, you’re batting ZERO.
Hey Rupertg, I was one of those “CEO or Upper Level mgmt” people and I’ve survived and have actually done better than before I owned and closed a Snappy store. It just proves what Friedrich Nietzsche said: “That which does not kill us makes us stronger.” And I came out stronger and wiser, but in deep debt. I can thank DG for that (the debt)!
I survived is someone you all should look up to.
Move forward, not back. I survived is smart, has intelligence, the rest of you, well your simply dumb.
I have had just about as much of this idiot RupertG as I will take. She (?) is obviously someone working for or with Snappy, obviously not the sharpest knife in the drawer and can’t follow simple instructions. She claims to know Adrienne and is in a constant defensive posture but can’t defend her position.
So my guess is its someone from what’s left of Snappy HQ
Why??
- She can’t face the facts
- Pushes blame back to store owner
- Thinks contracts insulate Snappy from blame
- Is condescending and snotty: that’s their MO, always has been
- Thinks former store owners are all losers
- Incapable of understanding the big picture and that Snappy sold an ineffective product
- Who else would say “suckah’s”?
- Cannot take direction
- Cannot defend herself out of a hole in the ground
So that leaves Adrienne or Kay.
Cast your ballot for:
___ Adrienne
___ Kay
Here are the locations listed as open on the Snappy Auctions website. In addition to the corporate office, there are 32 locations listed. However, 2 have no addresses and are listed as “Free Pickup” So there are appear to be 30 storefronts open… Correct?
Any input on this list is appreciated, as I was planning to post it. Also, if any of these stores are in the process of closing or debranding, please let me know. Thanks.
Alabama
Greystone, AL
Huntsville, AL
Arizona
Phoenix, AZ (Scottsdale)
Ahwatukee, AZ
Arkansas
North Little Rock, AR
Little Rock, AR
Colorado
Parker, CO
Delaware
Newark, DE
Hockessin, DE
Florida
Coral Springs, FL
St. Augustine, FL
Merritt Island, FL
Plantation, FL
Sarasota, FL
Georgia
Atlanta, GA
Columbus, GA
Kansas
Leavenworth, KS
New Jersey
Belmar, NJ
Ohio
Dublin, OH
*Aurora, OH – Pick-up Only; no store?
Pennsylvania
West Chester, PA
Dallas, PA
Paoli, PA
Tennessee
Green Hills, TN
Mt. Juliet, TN
Chattanooga, TN
Texas
El Paso TX
Webster, TX
Virginia
*Alexandria, VA Pick-up only; no store?
Virginia Beach, VA
Chesapeake, VA
Ashburn, VA
So Rupert, what makes you think I SURVIVED is the ONLY person like that? Most of us (those not in financial ruin, divorced because of Snappy or even committed suicide) have moved on and are moving forward. We have gotten on with our lives. We’re just not letting Snappy and DG off the hook. We’re holding you accountable. We’re making sure you can’t do this again and hurt as many people as you did.
WE ARE THE CHAMPIONS, WE ARE THE CHAMPIONS…no time for Snappy cause we are the Champions….and Snappy’s not!
No Storefront on the pick up stores.
YIPPEE,
Did someone actually commit suicide?
YIPPEE.
Who committed suicide? Is my first ?. The next question is, you are going to blame suicide on Debbie? Whatever. The person obviously needed psychological assistance and failed to seek it.
And if you got divorced because of the store, well then it was a failed marriage to begin with. The store may have made the issues regarding the marriage be brought up sooner, but in the end it failed as it would’ve, just not as soon. Or who knows, maybe it could’ve survived, you know their are marriage counselors out there.
You’re wrong.
I AM THE CHAMPION. I AM THE CHAMPION.
YIPPEE, you’re not.
The person obviously needed psychological assistance…
The store may have made the issues regarding the marriage be brought up sooner, but in the end it failed as it would’ve, just not as soon.
Based on the fact that RupertG has been able to decisively diagnose the untimely death of one hypothetical franchisee and the marital strife and imaginary divorce of a nonexistent franchisee couple – and could do so without a hint of uncertainty – I believe we’ve the identity mystery has been solved:
___ Adrienne
___ Kay
_X_ Dr. Phil
I finally figured it out. RupertG is a SOCIOPATH:
Manipulative and Conning
They never recognize the rights of others and see their self-serving behaviors as permissible. They appear to be charming, yet are covertly hostile and domineering, seeing their victim as merely an instrument to be used. They may dominate and humiliate their victims.
Grandiose Sense of Self
Feels entitled to certain things as “their right.”
Pathological Lying
Has no problem lying coolly and easily and it is almost impossible for them to be truthful on a consistent basis. Can create, and get caught up in, a complex belief about their own powers and abilities. Extremely convincing and even able to pass lie detector tests.
Lack of Remorse, Shame or Guilt
A deep seated rage, which is split off and repressed, is at their core. Does not see others around them as people, but only as targets and opportunities. Instead of friends, they have victims and accomplices who end up as victims. The end always justifies the means and they let nothing stand in their way.
Shallow Emotions
When they show what seems to be warmth, joy, love and compassion it is more feigned than experienced and serves an ulterior motive. Outraged by insignificant matters, yet remaining unmoved and cold by what would upset a normal person. Since they are not genuine, neither are their promises.
Callousness/Lack of Empathy
Unable to empathize with the pain of their victims, having only contempt for others’ feelings of distress and readily taking advantage of them.
Poor Behavioral Controls/Impulsive Nature
Rage and abuse, alternating with small expressions of love and approval produce an addictive cycle for abuser and abused, as well as creating hopelessness in the victim. Believe they are all-powerful, all-knowing, entitled to every wish, no sense of personal boundaries, no concern for their impact on others.
Irresponsibility/Unreliability
Not concerned about wrecking others’ lives and dreams. Oblivious or indifferent to the devastation they cause. Does not accept blame themselves, but blames others, even for acts they obviously committed.
And she can’t spell……..
Maybe you’re right about RupertG being a sociopath and maybe not. But you’re right that RupertG knows she can’t argue the claims made by Get Real. She’s all fluff. I vote her off the island.
Well, I see RupertG, the mole, is back! I Believe we have explained most of this MORE than once to this idiot! Most folks did extensive research, but between the “misreprentations”, egos, and outright lies, it is not that surprising to find that 60 to 80% of the stores failed! In fact the FRANCHISORS failed, all are bankrupt but the two nastiest…ISI and Snappy! Place your bets for who’s ego holds out the longest!
As for Ms. Debbie and her charges, well since she sold a misrepresented product (otherwise known as fraud), and she operates on a high sense of greed and ego, I doubt she could get more than a nickel a nite, or dime a time anymore. Is it any surprise that she was fired, and it wasn’t her fault?! Right?! No loss there!
YIPEE, there were suicuide attempts and a couple nervous breakdowns, heart attacks, alot of antidepressents, all amongst the myrid of divorces and backruptcy’s (Yep to the credit of unscrupulous franchisors-take a bow Deb & Ken)! In fact, think of it this way…RupertG gets to help pay for it all with his taxes, while you and I write off our losses for one more year.
Now Sean, I always liked the Easter Bunny, so I vote for Dr. Phil, or his alter ego RupertG. And where is the chocolate cake for #1000?! LOL
So, here’s a question for RupertG:
If you say signing the contract releases Snappy from owning up the to crap they sold, hows does Debbie Gordon get off suing AERC since she signed a contract with them? Shouldn’t she just walk away like you’re telling us to do?
We’re not using some lame excuse like “…he said something about my skirt….waaaaahhhh!!”
Did Snappy Auctions require owners to work in their business full time? I wonder if that goes both ways… If franchisors are not precluded from being “absentee franchisors” while taking other jobs. Also, wouldn’t DG have a noncompete agreement with Snappy that she couldn’t take employment with for a competing company. One would think corporate execs couldn’t hold jobs with other eBay sales companies.
What’s the situation with SA franchisees? Are they receiving any service or support? Is there any marketing support? Are they still paying royalties and ad fees? Has anyone debranded?
So where is RupertG? Maybe Get Real called her to task when they “outed” her as a sociopath. No matter since we all know she was a mole, a sociopath and dumb.
If there are any stores reading this, let us know what’s going on. Snappy can’t hurt you any more than you’ve already been hurt. Speak out!
As a completely outside opinion on the subject, if Snappy Auctions was my business I’d be *scared* to show my face in this discussion.
If anyone was this mad with me or my company I’d be tempted to stick my head as far down in the sand as possible.
Especially if it’s true. This string of comments sure stands as some serious social proof that it is very true for some, and probably somewhat true for many, many more.
Best of luck to those who have been left destitute in the wake of a bad business model. It’s so difficult to start over.
That’s why I’m a freelancer. No investment. That investment stuff scares me.
Seems to fit Einstein’s comment that insanity was doing the same thing over and over and expecting a different result.
Sean: Your recent post (http://www.franchisepick.com/franchise-autopsy-ebay-dropoff-stores-scott-pooler/) sums up the essential problem. People don’t realize that the franchiser is not going to help them run the business. They have to figure the thing out for themselves, for their local market. I wondered about the concept of Ebay drop-off stores when they started – why would someone pay someone else to do what they could do themselves so easily? But I do admore the optimism and entrepreneurial spirit of these people.
My opinion
RupertG is Adrianne. No question about it! She has tried to “analyze” me on a few occasions during my store closing and it sounds like her therapy. “ Just suck up the loss, It’s not Snappy just a bad franchisee who must move on with out causing a stink”. Also, she has nothing invested but time with the Snappy Franchise. That is why her remarks are empty and less than sympathetic when it comes to the issues of the money lost by the franchisees.
SEAN: I’ve been reading since the beginning. This post was a welcome to read and a wealth of “information”. By “information” I mean; nothing to help owners survive. Just like Snappy. You just provided a place to help people make an informed decision before getting involved with any franchise regarding this “business model”. That is priceless. Or better yet worth about $100,000 plus medical and legal fees. You have let me know that getting out was the best plan.
Last thought: Between the changing of eBay fees, Powerseller requirements, bad economy, and a less than full time staff at corporate I see doom in the near future. One Question: Does the franchise have to report to the franchisees about its financial status?
If so that would be a good read. Don’t you think???
“By “information” I mean; nothing to help owners survive.”
There have been mentions of how to help open stores, but since the basic premise if flawed it wouldn’t do much good. I’m more interested in helping the ones who need to shut down first.
Regardless. here’s some examples:
http://www.franchisepick.com/is-snappy-auctions-a-great-franchise-opportunity/#comment-10924
or this:
http://www.franchisepick.com/is-snappy-auctions-a-great-franchise-opportunity/#comment-3227
or this:
http://www.franchisepick.com/is-snappy-auctions-a-great-franchise-opportunity/#comment-4714
or this:
http://www.franchisepick.com/is-snappy-auctions-a-great-franchise-opportunity/#comment-10933
However, keep in mind the basis for this forum is:
“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?”
Many people have been helped by AITOO and DEATH BY FRANCHISE while none were helped by Snappy.
I agree. It’s Adrienne.
To add to what MYTHOUGHTS said, she also has a tendency to get involved and then become disinterested. I heard from more than one ex-owner that she told them that everything was the owner’s fault and that no facts could dissuade her. She’s loyal to a fault and even in her email correspondence, she couldn’t spell.
It’s Adrienne. Darn, I was hoping for someone who could really challenge this forum and maybe come up with some facts or figures instead of mental vomit.
Been There:
I agree.
Get Real:
Yes, I’m upset it is Adrienne also. We won’t get anything out of the RupertG comments but the usual “It’s not the model it’s the franchisee.
To all other franchisees: I wonder where the AD money has been spent in the last year? I bet it was never spent to promote your store or area. I do think it was spent in the Nashville area for the “Company” stores though.
Clearly that ad fund is a joke. See what should have happened is that when there were a few stores in major areas, there should have been advertising done. But if you used the ad fund for that, what’s the point?
Any word on the AERC.COM law suit? I’ll bet AERC will fight this all the way. We should all stand next to our vacumn cleaners as a sign of solidarity.
Smart Snappy has a good point. Why don’t you open stores ask for your ad fund back. It’s being wasted or not being used at all.
And by the way, we’d love to hear from some of the open stores so we can get yor perspective.
CHALLENGE TO RUPERTG (aka Adrienne)
You never answered these questions:
I throw down the gauntlet again. Reply to these questions:
1) Why is the failure rate so high? You said the concept is sound.
2) Why are all the other competitors also failing?
3) Why did Snappy close their own stores? They should be able to run a successful store.
4) Why did Snappy lay off most of their staff?
5) Why are the flagship stores in Atlanta closing?
6) Why is Debbie having to work other jobs if Snappy is doing so well?
7) Why didn’t Snappy buy back any stores if the concept is so sound?
We’re waaaaaaiting!!!!
I counted 18 stores tonight. Eighteen, 18. That does not include a few that are pick-up only.
Things could be worse, Debbie could win that lawsuit.
THIS IS THE 1000th COMMENT ON THIS POST.
THANKS FOR YOU PARTICIPATION.
Smart Snappy said: I counted 18 stores tonight. Eighteen, 18. That does not include a few that are pick-up only.
Smart Snappy: The website has 30 storefronts and 2 p/u locations listed (see chart below). Which are the 18 you count as open? What about the others? Do they have ghost stores still listed on the website? Which ones?
Alabama
Greystone, AL
Huntsville, AL
Arizona
Phoenix, AZ (Scottsdale)
Ahwatukee, AZ
Arkansas
North Little Rock, AR
Little Rock, AR
Colorado
Parker, CO
Delaware
Newark, DE
Hockessin, DE
Florida
Coral Springs, FL
St. Augustine, FL
Merritt Island, FL
Plantation, FL
Sarasota, FL
Georgia
Atlanta, GA
Columbus, GA
Kansas
Leavenworth, KS
New Jersey
Belmar, NJ
Ohio
Dublin, OH
*Aurora, OH – Pick-up Only; no store?
Pennsylvania
West Chester, PA
Dallas, PA
Paoli, PA
Tennessee
Green Hills, TN
Mt. Juliet, TN
Chattanooga, TN
Texas
El Paso TX
Webster, TX
Virginia
*Alexandria, VA Pick-up only; no store?
Virginia Beach, VA
Chesapeake, VA
Ashburn, VA
MYTHOUGHTS:
I can tell you with 1000% certainty that the Ad money was NOT spent on the Nashville area stores, or STORE, as there is only one left standing, the original Green Hills store. In fact, Nashville area franchisees were not allowed to advertise in their own market areas because DG said it would take away from the corporate ad and PR message. They weren’t even allowed to promote their own stores or send out press releases without her advance approval.
I can recall many occasions where she was asked where the Ad money was going and the questions were evaded every time. DG ran prime time TV ads in Nashville at over $1K a pop (for several weeks), ValPak coupons (that did not work) and a mobile ad truck (that only drove around downtown Nashville) – and she approved all of this up front and later expected the Nashville-area franchisees to pony up for their third of the cost when her Green Hills store would have been the only to benefit. Later when the stores started to tank she said in public forums and weekly conference calls that is was a marketing issue. How can you market your business when your franchise HQ will not allow you to do so?
Everything she did in Nashville was to boost her own ego and image. I remember when Snappy was named one of Nashville’s Future 50 companies we had a good laugh because we knew the truth. There was a reporter in the process of composing a very favorable piece on Snappy the very week that two area stores were shut down and half the corporate staff was let go.
The press in Nashville is easily swayed by money, influence or promises of favors. Now that’s old news.
“The press in Nashville is easily swayed by money, influence or promises of favors. Now that’s old news.”
Probably the Press in Nashville is no different than the Press anywhere. Under the FTC Rule, franchisors are allowed to use the Press and to utilize Press Releases to advertise their franchises as valuable investments as long as they are in compliance with The FTC Rule and the State FDD in the actual sale of the franchise to a new buyer.
Franchisors are NOT subject to Truth in Advertising Laws that protect the American Consumers and are not liable for all of their prior statements, etc.. as long as they “disclose”
in compliance with the FTC Rule and State FDD.
Prospective franchise buyers are not considered to be “consumers” in the legal sense. It is not surprising that the Business Press doesn’t know this and since “stories” are “product” and since they need “product” to put in their newspapers, they are only too happy to accommodate enterprising franchisors who use them to sell their franchises and who perhaps advertise with them, as well.
This, of course, amounts to “open season” on prospective franchisees who are influenced by what they read in the newspapers and especially in the business press.
Apparently, if the franchisors aren’t liable to anyone for their statements to the reporters, the reporters aren’t liable for reporting the statements of the franchisors. Catch 22!
Well, I’ll bet we’ll see another batch of stores closing in the next month or so. Despite Snappy’s assurance that sales would occur consistently continue year ’round, every summer sales take a big dip and the stores who are on the edge will drop off.
My advise to them is to contact amitheonlyone.org. You can talk to them and ask the kinds of questions you really need answers to, like “How do I get out of my lease?” or ” How do I end my contract with Snappy?”.
They’ve helped countless ISoldit and Snappy franchisors. Please contact them.
Sean, If you dig a little deeper into those stores you would find some have 0 items up and others have 2-8. This indicates the storefront is closed.
I ran the numbers last night. The top store sold $6K in the last month and the bottom of the list did $0. The average (when you take out the $0 stores) was $9.5K for the last 30 days and that was skewed by the #1 store: Green Hills TN or the Snappy corporate store (there’s where your ad money seems to have gone).
I also got an email from someone advising people to contact AITOO. Whoever that was, you are embracing the perspective that stores need information and not belittling as Snappy support seems to do to store owners. Kudos to you for trying to help the remaining stores.
CORRECTION: the top store did $46K
if RupertG is Adrienne, then one thing is for sure.
She’s a hottie :-)
That was my only good experience with Snappy. She’s a total dern cutie.