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.
____________________________________
Know a great new franchise? Nominate them a TopNewFranchises.Com
Lawyers operate on the deep pockets process. If they can’t determine the depth of the pockets, they want the money up front and Snappy is not a public company. If anyone knows their net worth and its good, you might have better luck on getting a lawyer on a contigency basis.
Legal Action & Lone Texan, most lawyers will save you the dollars if there is NOTHING to go after, even the best case won’t get you $$$ from a bankrupt franchisor. Also, as you have found, lawyers DON’T work on contingency, and you can’t blame them-only ebay drop off owners are foolish enough to take things on contingency. Look where it got them!
Another issue is that most franchisees have been threatened by the franchisors and are afraid to work together with other franchisees (of course they are baseless threats, but enough to intimidate). The other reality is trying to get a group of people to all agree on the same things (not likely), but it has been done.
On the high note, some attorneys will help you find ways to pay the bill, keep the bill down, use the threats on your behalf, and actually get dollars out of the toad. So weigh your choices privately, and talk to AITOO or send Sean a private note asking for a contact.
And Smart Snappy, if you are bored with this blog, then move on. However, there are STILL a number of folks who have not closed, others who think this is a great opportunity, and franchisors who are still misrepresenting this concept. Any help on this front will be greatly appreciated!
So Chance, if you’re willing to take on the lead position on any legal action against Snappy, let us know how to contact you. I realize you’ll need to screen people, but there’s not much left at Snappy HQ to get involved.
Legal Action if you are truly a zee wanting action, I advise you to speak to AITOO (as I have said before), who can put you in touch with those already dealing with the legal issues.
Right, whatever. There is nobody dealing with it, there is nobody that will sue. AITOO doesn’t give a crap about suing people.
After catching up on the board, I thought I would post a Blog about the comments here. I just don’t understand the commentary about the lawsuits.
dropoffnews.com
Smart Snappy you have NEVER had a pleasant thing to say, and you really need to get our facts straight!
AITOO has helped ALOT of franchisees, perhaps not you, and I can understand why, after rereading your statements.
Those in law suits, or getting ready to sue are not going to discuss it out here with corporate pleasers lurking. So if you really have anything that might help those working through this nightmare, perhaps you can muster up the courage to contribute positively instead of trying to shut down this blog.(Kinda like a corporate ploy).
New website: your website does not exisit at this time, let us know when you are up and running. It takes alot of work to keep one running, hope its a success!
Might be good if I told you the correct URL
Good site, should be interesting to see how many people just say the they were duped and deserve their money back. Good luck.
What is the store count now? Let’s set a minimum requirement of 20 or more items at any time.
Get Real: Great idea, but any store with less than 100 items listed is dying (especially at $9.99, or $14.99). I have more than 100 items listed from home parttime, so I think the cutoff should be 100 auction items minimum.
As for the new website, it looks good but the facts aren’t right, sounds too much like a corporate take on things. Absolutely no substance! And interestingly NO comments that have been left have been posted.(Oh yes some have been left!) Are they having a little problem with the truth out there?! Worthless if they will only post comments that agree with them! Thanks Sean for the objectivity!
Maybe it is time to let the franchisees know how to close down, work out their leases, and debrand.
Get Real are you aware that the non-compete clause in most states is no good (even in the states that the franchisors come from). Imagine that!
Are you aware that all you have to do to terminate is to have an attorney draft a termination letter stating the date that you will debrand (take their signs down), that’s it!
And here is the best, anyone can work out a deal with their landlord. Talk to AITOO if you need help, they have helped hundreds do these three things.
And Auctionsound software is cheaper and works much better for drop off stores than the current software being used (it even cuts the checks!!!)
And it is illegal for Corp to sweep your account $$ when you are no longer a franchisee.
Oh and be sure to record your phone calls of the “threats” from Corp. They are illegal!
And NO a hundred $50 items won’t pay the bills!!
New Website:
The key reason that people comment here and feel comfortable contacting AITOO via their site is because we are not anonymous. I post under my real name as do Karen and Gene on their influential site, which really started this all.
People know who we are and we’ve built trust – even from those we disagree with. Being an administrator doesn’t tell us real identities, but it gives more info than the public sees. If you are a corporate employee or a shill, one comment could enable you to discern the identity of an anonymous poster.
Advice for New Site: if you want people to comment, be transparent with your identity, beliefs, opinions. You gotta show’m yours before they’ll.
Advice for those who visit: I wouldn’t post anything controversial on a blind site like that. If you do, use a different name that won’t tie you to controversial statements made here or elsewhere.
When in doubt, post as R. or Hugh Walter (just kidding)
Sean here is one posting to the new website that they didn’t disclosed……
“Actually you (the new website) are quite incorrect. There is basis for a lawsuit starting with misrepresentation, and the fact that the franchise is NOT turnkey. Add to that breach of contract on the software these companies charged for that was crap, and other issues pertaining to threats (by the franchisors), and slander,liable, and UFOC violations. (And the list goes on).
I am afraid that none of the franchisees in litigation can talk to you about this, because the franchisors have placed a gag order on those they have settled with, and the others are NOT about to reveal their complete posture.
As for repeating what has been said on the forums, it seems to be necessary, as evidenced here that some people just don’t seem to get it…THE CONCEPT DOES NOT WORK! And power selling on eBay is NOT the same thing (Even the powersellers are dwindling!)
So blog away and answer this:
Why have more than 70% of franchise and independant dropoff stores closed in the last 3 years?
Why have Numarkets, Auctiondrop, Quikdrop, and others BANKRUPTED?
And why are the CEO’s of the two remaining franchises working from home offices and trying to sell to other countries?
Why have other country’s translated AITOO into thier language?
And how much $$ did corporate pay you to blog bullshit?
And do you have the guts to allow this comment to really go out? (Obviously not!)
Your comments have NO merit or basis. These stores are money pits and dying and it is quite apparent!
Take the time to read
http://WWW.AmITheOnlyOne.org which has alot of information from these stores and the nightmares that these franchisees have endured.”
Sean here is one comment they didn’t feel they should disclose…………….
“Actually you (the new website) are quite incorrect. There is basis for a lawsuit starting with misrepresentation, and the fact that the franchise is NOT turnkey. Add to that breach of contract on the software these companies charged for that was crap, and other issues pertaining to threats (by the franchisors), and slander,liable, and UFOC violations. (And the list goes on).
I am afraid that none of the franchisees in litigation can talk to you about this, because the franchisors have placed a gag order on those they have settled with, and the others are NOT about to reveal their complete posture.
As for repeating what has been said on the forums, it seems to be necessary, as evidenced here that some people just don’t seem to get it…THE CONCEPT DOES NOT WORK! And power selling on eBay is NOT the same thing (Although the powersellers are dwindling as well!)
So blog away and answer this:
Why have more than 70% of franchise and independant dropoff stores closed in the last 3 years?
Why have Numarkets, Auctiondrop, Quikdrop, and others BANKRUPTED?
And why are the CEO’s of the two remaining franchises working from home offices and trying to sell to other countries?
Why have other country’s translated AITOO into thier language?
And how much $$ did corporate pay you to blog bullshit?
And do you have the guts to allow this comment to really go out? (Obviously not!)
Your comments have NO merit or basis. These stores are money pits and dying and it is quite apparent!
Take the time to read
http://WWW.AmITheOnlyOne.org which has alot of information from these stores and the nightmares that these franchisees have endured.”
Sean – Appreciate that advice. People can certainly be as descreet as they like.
We’re really trying to function as discussion for people in the industry. It was spawned from this blog, but people aren’t talking about the issues of the industry; just how bad Snappy and isoldit are.
At this point, all of the suing discussion is never going to come to fruition so it’s an interesting topic. But, nobody will talk about it because it seems that nobody is actually going to do anything about it.
We have experience in the industry, and are interested in helping the stores that are open to talk about how to make money other then in the stores. We’re also interested in talking about other auction sites other than eBay.
I tried the web site also and couldn’t post a comment. Things that make you go hmmmmm.
Judging from what New Website said above, it sounds like a combination or HQ-never ending-speak on finding new ways to generate revenue so the stores will stay open, the junk Scott Pooler tried to foist on us and and HQ’s spew on a law suit.
I’m going to avoid it until I find out whose site it is. I imagine with the number of Snappy store closing (2 in the last week) Snappy has some time on their hands so why not create a web site to try to gain some validity on some of their outlandish ideas. None of the other ideas worked so why should it be any different now???
New Website:
Intentionally or unintentionally, you missed my point. Let me be indelicate: It’s not about being discrete. It’s about not trusting you.
Let’s say, hypothetically, you are a failing drop-off franchisor whose demise is imminent. Several unhappy franchisees are making negative comments about you on the Internet, and are even discussing a lawsuit against you. You have a good idea of who they are, but have no proof. Let’s say, hypothetically, that you decide to sue them in order to:
A) Pre-empt their lawsuit,
B) Go after what little assets they have by holding them accountable for future royalties (which you know there is no future),
C) Intimidate them into shutting their pie-holes or
D) All of the above.
With your limited knowledge of blogging, you set up a blog on Blogger. You pay the extra few bucks to get “Private Registration” so no one can learn your identity.
You launch the blog with the stock template and invite the poor, the pissed off, the weary, the disgruntled to come conspire on your blog to trade ideas. You pretend to be one of the gang, but for some reason can’t disclose your secret identity.
As soon as someone leaves a single message, you have their IP address, which enables you to trace back their whereabouts to a state and maybe a city. As a franchisor, you now have a good indication of who this person is, and proof that they’ve been making damaging comments online.
Your comments sound remarkably like Scott’s pitch. However, Scott builds websites and I doubt he’d use the stock Blogger template. I also think he knows enough people to generate some comments.
I’ll tell you what: I’ll make you a guest poster. If you want to stimulate some ideas on how to boost sales I’ll post it here and on my upcoming marketing site: relentlessmarketer.com
Thanks Sean, I think the intention of the site is to talk about the industry. It doesn’t matter who we are or who moderates it.
The interest of the site is talk about the industry, I suppose by bringing up the lawsuit bitterness certainly looks fishy.
However the more that is posted here, everyone is talking about it; nobody will ever do anything. I will likely take those topics down and just attract people who want to talk about news and online selling.
My feelings towards a great deal of these franchisers is the same as everyone else. I just have no interest in getting deep into who we are, part of what we’d like to do is allow for discussion and just moderate…not get into too many opinions. Seeing as which we posted something about the lawsuit being laughable certainly contradicts that part.
You’re point about a franchiser trying to figure out who people are who be a good motivation to start a site like ours. But, that’s not the intention; to seem like that or go that direction.
I suppose the point of making fun of the lawsuit thing (in a sense anyway), is that there’s no basis and people keep bringing it up like it’s going to happen.
Thanks Sean, as much I enjoy your site; I thought creating something for people other than angry ex-snappy & isoldit owners would be beneficial. Making money online is hard, and eBay is becoming more difficult. So finding new ideas and sites to look into are part of the motivation.
If it doesn’t get traffic, we’ll take it down and be done with it…worth a shot anyway.
It’s quite interesting how Boult Cummings Conners & Berry pulled the Debbie Gordon lawsuit news from the In the News sections (both firm new and individual lawyer news) of their website. It must be bad publicity for them to be representing Debbie Gordon, or maybe they lost the case.
New Website says “I suppose the point of making fun of the lawsuit thing (in a sense anyway), is that there’s no basis and people keep bringing it up like it’s going to happen.”
NO BASIS???? So now you’re a legal expert too??
Just go ask some of the other franchisors how their “no basis” lawsuits panned out. Oops, they can’t. They settled out of court because their case was so strong and we know the attorneys who took on these cases. Do you think Snappy could learn from this and offer to settle now before it goes to court? One bad thing about this is that the last few Snappy employees will get laid off to pay for the legal costs.
And again, another claim that there is a suit that will happen.
Will someone publish some information about where and how people can get involved?!?!?!?!
Interesting is how “New Website” won’t post the comments that disagree with what he/she’s said. And the fact that they are one of the failing franchisors, does not give them any credibility.
Seems that “New Website” and “Smart Snappy” are desperate for information that they can’t seem get thru the channels the franchisees can.
However if you or anyone else wants to join the legal actions, or close down, then contact AITOO, and I am sure they will get you to the folks who can give you the best advice (who aren’t Corp). But “oops” if you are a franchisor, you wouldn’t be able contact them(and that is exactly why they aren’t aware of any lawsuits ie:”Smart Snappy”).
Amazing how dirty these franchisors have to be to justify their failing concept. And please remember folks that it is ILLEGAL for them to threaten or intimidate you, you DO have options!
By the way, there are less than 100 stores still open (and more closing each week), even after these same franchisors boosted over 900. Ya think there is a problem here?! LOL
Maybe Smart Snappy should get a virtual phishing pole since they are phishing like crazy.
So, corporate dweebs, if you want to learn more about the legal efforts…..TOO BAD!!!!!
Store owners, contact AITOO to learn more about the legal action. They will screen you and ask a lot of questions, but it’s worth it. Not only can they help you with your store, they can let you know more about the legal efforts.
We would be happy to aid any of the franchisees needing information, or a listening ear. We have seen and heard alot, and your information is kept confidential. It is important to realise that you are NOT the only one struggling in this business. You DO have options, and we would be glad to go over them with you.
Karen & Gene
http://www.AmITheOnlyOne.org
Quick spin through the iSold It website reveals:
- No franchise section (good thing)
- No new press articles since 2007
- 103 store locations listed
- 6 of those locations have 0 items for sale
- Several more have fewer than 10 items
- More than half have fewer than 100 items
Beloved millionaire Richard Quick, Esq. has announce the latest FranWorst franchise opportunity: iSTOLE It!
According to the iSTOLE IT press release, “iSTOLE It combines the selling power of eBay auctions with our unique, no-cost inventory acquisition system to unlock multiple window(s) of opportunity for YOU!”
Best yet, the iSTOLE It conversion program is available to failing franchisees and independents that can’t survive on the cumbersome revenue-share model.
It appears this blog is now crossing the line with false stories created by the owner of the blog to deflame a company.
It appears this blog is now crossing the line with false stories created by the owner of the blog to deflame a company
The Assistant Attorney General says that I am “deflaming” a company?
What are you Assistant Attorney General of, 6th grade?
I also don’t think it’s possible. iSold It done deflamed itself long ago.
Plus, Richard Quick, Esq. is doing the deflaming. He’s also a partner in a law firm, so I’d suggest you contact him at Quick, Duhk & Hyde. I think I saw an ad for them on FranWorst.
How many more stores have closed recently? It pains me to see these stores hang on and continue to lose money month after month after month.
does anyone know if Mark is still working for snappy?
RupertG is either:
Toby Compton
Mark Trushel
or
John Heacock
My guess is that it is Toby Compton
Nice try Rupert…..er….Expo, but no cigar. Toby and John were burned by Debbie. Why would they defend her?
Sad…….
I’m not Rupert ;-) i’m brand new.. didn’t know that happened to John or Toby.
I worked for Snappy myself. I was burned myself. I saw it coming and after 3 years of my life was nearly ruined by Snappy, I can say that I am very happy to hear this info.
So if you worked for corporate, maybe you can give us insight into what the hell happened there.
What was Debbie thinking when all the indicators pointed to a downward trend?
Expo’s not Rupert. He’s/She’s new here.
Welcome, Expo.
My relationship with Snappy was complex. I am not quite sure what I am allowed to legally say, so lets just say that I am extremely familiar with the software and that, despite my many warnings, Debbie made some horrible decisions throughout my involvement.
Say ‘Expo’ – Hillary and I were just sittin’ here wondering if you were around about this time 2 years ago when the Snappy software went south for the better part of 2 weeks? Later, we all got the ’spin’ on what happened from DG, but know there is more to that story that was swept under the rug…
I was pulled in after it happened to help fix it. Basically snappy had decided to hire their own developer who was less than competent and he changed their hosting solution for no good reason which in turn removed the disaster recovery and backup plan that was setup for the software. This guy didn’t last long, but he was replaced with another ‘less than competent’ person who moved them to yet another hosting solution with no decent disaster recovery plan and basically no backups at all. I was unaware of these decisions until after the software issues happened and came back to help them clean up and recoup months worth of work and data that was lost.
Had they not been so cheap and kept with the original setup, at most a weeks worth of data (more likely, only 1 day) would have been lost and the software would have been back up and running within a day and no more than a week to recover lost data. Also any of the changes made to the software would not have been lost at all.
This is the downside of running a business that is based 100% on technology and paying for the cheapest solutions, and hiring unqualified personnel to maintain it.
As I mentioned before. Debbie and Merrill both had a tendency to ask for the quickest solution as soon as possible for nearly everything dealing with the software. This leads to poorly documented, difficult to maintain code, that is written for the short term and not meant to hold up over time.
Gosh – that was a nightmare, indeed. Even corporate stores had ZERO support and had to regenerate everything manually by pulling receipts, etc. I’m sure that was how most stores ended up getting through that crisis. I remember having a conversation with someone high up at corporate at that time who actually mused at the fact that franchisees were about to figure out they could use Turbo Lister or Spoonfeeder for free and essentially do what they paid $25K for the Snappy software to do – or not do as it were.
Whatever happened to Merrill?
The funniest part about that was when they had a franchiser come on a con call and explain the crash.
Nobody trusted corporate at all.
when they had a franchiser come on a con call and explain the crash. Nobody trusted corporate at all.
Did they actually call it a “con call”?
Cuz that might explain it ;)
Merill got the boot too. Debbie has gotten rid of anyone who doesn’t worship her.
Or, you could look at it this way: Some people stayed with that company as long as they could, gave Debbie the benefit of the doubt, and left before they completely lost their shirts and souls. I applaud them for walking away from an extremely dysfunctional situation. Sometimes, you can’t make a bad apple good, no matter how much she smiles. It was easy to be fooled by her promises.
Snappy Software – ‘Working without a net’. Although the question came up several times during conference calls (’con’ calls – I like that!), never was there a document/procedure/policy regarding the safeguarding of data captured by the system made available to the Z’s to analyze. Looking back, that lengthy legal document generated by Snappy we all signed at the on set should have included very explicit parameter’s and specifics regarding software performance, security and backup/disaster recovery procedures. Afterall, to this day Snappy refers to itself as a ’sotware company’, if I’m not mistaken. Frankly, I’m surprised no one seized the moment 2 years ago to sue when no one competant was at the software wheelhouse and the good ship ‘Snappy’ ran aground.
I really meant to say Franchisee…but yes, it was a con call as funny as that is.
Merrill left for so many reasons, none of which need to be published here. Let’s just say that the software’s good qualities were because of her diligence with the developers.
That being said, these people are not a Software company. SW companies don’t outsource development work, and overpay for that type of work.
There are so many ways that they could have helped the zee’s with that SW, but chose to try and gain from it themselves through resellers and such. They have been fired due to lack of performance, Shocker.
Some stores were smart enough to have an SLA in their contracts, but it didn’t really matter since Snappy would threaten them if they tried to bring up the fact that Snappy dropped the ball big time. I know some people were.
Oh yeah, then they would “pay you” for your sales that they screwed up but only if you signed a piece of paper that said you could NEVER sue them. I still have mine….he he he
I got an email that said DG was getting married soon. Oh the humanity…….
Yikes, hope the poor sap has plenty of money…and a darn good lawyer.
Give me a break wrote: Yikes, hope the poor sap has plenty of money…and a darn good lawyer.
No need! As always, franchising will provide a better solution:
Fairway Divorce Solutions
What’s the store count now?