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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gardener – Good luck to you dude!
Ben Scrood – not necessarily anomalies, I’ve posted here or on the Auctioning4u page, that I believe there is room for independents, as Chance puts it, just a power seller doing his/her own thing.
I’ve maintained that if you work hard, pay yourself the minimum, keep part time staff, start without a huge loan and don’t pay massive fee’s/percentages to the parent company, there is every chance you will do ok. Although I also think specialisation helps.
Re- ‘Exclusive territory’…If I get in my brumbrumauto and drive to a drop shop on the way to work, and take in my DVD player, because I want to upgrade (would never happen – but this is hypothetical!), is the store owner – upon taking my details – gonna say “Hay mate (English for dude!), your postcode (zip) is in another stores exclusive area, could you take it to them please”. No, of course he isn’t, he’s as desperate for my DVD player as all the other franchisees.
So this would seem to be a reason to get another £10,000 off the franchisee without needing to do anything at all to protect the ‘deal’. If there are no other ’same label’ stores in the area you don’t need to buy the exclusivity. If other stores in the area are from different enterprises it will be meaningless to have exclusivity, while customers will go where they like/it’s convenient. Anyone who’s handed over the extra $20/25k is beyond our trying to help/save them from themselves!!!
Chance – remember that I am not operating any longer under the assumptions I was given by the franchise, so my expectations are different than those empty promises. The business model had to change, as did my expectations of what I would get out of it and when. I never said I was profitable (cash-flow positive is different). I still have a lot of debt to pay off, but at least I see a realistic possibility of getting it paid off within what I consider a reasonable time-frame.
As I said in my post – I’m not where I want to / need to be yet. But having given up the unrealistic expectations that the franchisors set up, things are going much, much better. We just had our best month ever in July, which is traditionally one of eBay’s slower months. If our growth continues at this rate, Fall and the Holidays will be record-setting, too.
I do work full-time in my store (40-50 hours per week – nothing insane), but that’s my choice, because I love the work. It’s not a business to buy because you think you can hire a manager and be hands-off. Financially and operationally, that just doesn’t work. I know – I tried for the first several months to let a manager run the store, based on what corporate said. Another one of those assumptions you just have to let go of…
Chance – the key statement you make is “work free for 2 years”. That’s one of the main problems with the way the franchisors are selling these chains – profitability way sooner than is realistically possible. If they had told you it was going to take 2 years, you either would have figured out how to make it work, or not bought the franchise. Especially now, with all the data available, anyone who buys a franchise (yikes – why would you?) or starts as an independent has no excuse for not realizing this is in no way a quickly profitable business!
Well said Gardner! And you hit the nail on the head “It is NOT the way the franchisors are selling these chains” So WHY are they still allowed to sell this unproven concept as a turnkey franchise? Perhaps Sean can enlighten us. Here’s hoping we got thru to anyone thinking about doing this.
GET REAL II said “how can we get this site bumped up on Google so it shows up higher in the list?” I’m all for it. Encourage others to link to the site and posts. Reference it on other blogs/comment sections/bulletin boards. Email others & spread the word. Also, subscribe via the header link. These all help build our rank in GOOGLE and other search engines.
R: Here’s the post thread on QuikDrop: “Is QuikDrop a Great Franchise Opportunity?”
R: Franchise companies I’ve been on board with never approved franchisees, locations or lease terms that we weren’t absolutely sure would be successful. Of course we were wrong at times, but these were rare exceptions that were painful lessons.
Great dialogue…
First of all, Gardner…well said. My argument with everyone hasn’t necessarily been how anyone has been lied to, but what the realistic facts are.
Opened 27 months and starting to become cash flow positive…now the community is become more aware of the service and things are going well. That’s about what any new business owner should expect.
That sounds like a new business/concept is starting to work in your particular area. So, now that you have a handle on expenses and understanding how to get items in your store, it’s only up from there. Good luck.
Now, the fact that people think I’m from any corporate office is absolutely hilarious. This is not corporate crap I’m spitting up, rather common sense. My overall point is that one solid store in a high income area, maybe two, will do very well provided they have an idea how to run a business. Spread them out and 230 will go out of business. It’s not MacDonald’s.
In answer to the comment to my post about Asheville, NC Snappy.
I know because there is a sign in the window saying they are closed and a “for lease” sign on their space. BTW they no longer have any items listed.
The above are facts, the following is opinion.
This is not a practical franchise market opportunity. You must keep your overhead to a minimum and work you a$$ off 6-7 days a week (more than 8 hours a day).
“R: Opened 27 months and starting to become cash flow positive…now the community is become more aware of the service and things are going well. That’s about what any new business owner should expect.”
WRONG!
If you had started this business from scratch, (and I have started a business from scratch) I would agree with you. But you didn’t, you paid a large franchise fee AND had to wait 27 months to break even. That sounds like a double whammy. They should pay YOU for what they learned from your efforts.
My next question would be, why are you still working with the franchisor when you can get software just as good and not have to pay the franchisor anything?? You know how to do it now. Why pay them when they didn’t deliver? Terminate the contract, get the software and go on your own.
To quote R, “My overall point is that one solid store in a high income area, maybe two, will do very well provided they have an idea how to run a business. Spread them out and 230 will go out of business. It’s not MacDonald’s.”
Well-said! When I went for my franchise visit, the claim was that, based on corporate’s data, they saw eBay stores becoming as common as pack &
Very tough business in the best of circumstances. Nigh on impossible with franchise fees rolled in. Is there a franchisor out there that’s telling folks to start in low-rent space? That’s the biggest single bill I pay every month, and the hardest thing to change if I don’t want to take my business into bankruptcy.
Plenty of challenges still ahead, R, – plenty of challenges!
Oops – 2nd paragraph in that last post got truncated. Should have read, “…common as pack & ship stores. I was the 3rd store to open in my area 2 years ago, and the only one left. Obviously not enough business fast enough to sustain that many stores.”
New concept = New business. I don’t care if you bought a franchise or not, a new concept even with a franchise is still going to take a long time to get rolling.
R. Now I know you’re a company shill. By definition a franchise is a tried and true commodity not a work in process. You are paying for the knowledge and the reduced level of risk that a franchise is supposed to offer. The failure rate in a quality franchise is supposed to be 15% or less. ISoldit is already way over that and Snappy is on the way. 3 Snappy’s down in the last month.
What is their newest “concept de jour”? What does that tell you? They’re still developing it on your dime and you accept the idea that it’s a “new concept”. That’s corporate speak.
I’ve said before, I’m certainly not corporate from anywhere. I just know eBay and watch these stores.
R. Considering McDonalds, they have a true item to sell at heavy markups, which most Moms are willing to pay for. They sell a consumable product, which can keep you coming back for more, and they target specific areas, without competing with their other franchisees. Their “turnkey” system was profitable BEFORE they opened additional franchises, and if it took 27 months to breakeven, they would have died out years ago. Drop off stores are NOT in the same league at all!
We are not talking about getting a store going, we are talking about thousands and thousands of dollars that are dumped into the stores on a monthly basis – a money pit! Gardner has said he works the store for NO pay, and has NOT paid any startup fees back. The average business owner has to pay startup fees back every month-its called a loan! And living without a salary is NOT why people get into any business, and you are VERY WRONG if you believe the average store of any kind is worked without getting a salary (unless you have deep pockets)!
Gardner is not working the concept that these franchisors are promoting, he is doing many things different, and that is not tolerated by franchisors, and it is NOT a turnkey proven concept either. This only makes Gardner a powerseller like many others on eBay!
Interestly, many eBay powersellers are no more(evidenced by the low turn out at eBay Live this year)! The market just does NOT support them like it did three and four years ago, making it harder to make a dime on anything.
A normal business has 1/3 cost of sale (compared to the 65% less fees that we pay sellers), 1/3 cost of overhead (great if you are getting 33% on EVERY item to pay the bills), and 1/3 profit (non exisitant in this business). These are not new facts, nor take a rocket scientist (unless Hugh is explaining it). And most of the franchisees that have closed are as smart as you, with quite possibly more business experience. They did NOT do EVERYTHING WRONG, they did what they were told by the franchisor (without much choice). Yet they still closed! At close to 50% closure rate and higher if you count the bull#@%^ transfers, THIS CONCEPT DOES NOT WORK!
As for a high end districts, then why have countless stores closed in VERY high end areas? When you can show me and others the fiancials that you are “PROFITING” for three months in a row for even a dollar, I will believe your bull. Until that time, there is NO evidence to support your claims (Corporate or not)! But there are countless closed store owners who will support my facts. And if you are truly watching these stores, as you say, then you too know that NOONE is going to make it at an average gross sales per month of $23,000 (and that was the top 4 weeks in the last year, averaging 435 stores). That is less than $8000 to pay rent, taxes, utilities, salaries, fees (yep the bank and credit cards count too!), franchise fees, and MANY hidden and misc. costs to do business. Remember, to sell more items it takes more advertising, people to process it, and more overhead, more than the return on the item. The only way to be making money is to charge an upfront fee of aprox. $15.00 per item, as well as the %’s, or by buying overstock, liquidation, or direct from China (who is also selling on eBay). None of which is very profitable if at all!
And my friend, if you have been in this business for 27 months and haven’t figured all this out, then you are in serious denial, or a wealthy kid looking for a good tax writeoff!
oW! that smarted…I only know one way to crucify the mother lounge and will continue to use it!!
Agree with the comments thought, R. is taking little crumbs of evidence to back up the whole concept, what is know as “defending the indefensible”.
Also – getting back to ‘anomalies’ I suspect we will find that there is an element of fluke to the high end stores that have proven successful, after all high end stores are failing in roughly equivalent numbers to other stores, while some ‘normal’ stores keep trading. My own experience (of life in general) is that the rich are as less likely to sell their surplus stuff, as they are to give to charity or contribute to local causes.
Gardener is working hard, has been doing so for some time and is still not making a penny in clear profit, he is in fact a good advertisement for everything we have been trying to say, namely; The concept (as pushed by the cloud-sellers) does not, will not work and you are better off trying it as an independent one man band.
Mother tongue!
Chance said: “These are not new facts, nor take a rocket scientist (unless Hugh is explaining it).”
Hugh, this is a compliment in the U.S., where rocket scientists are held in high esteem. In fact, they are often the designated drivers who transport our drunken astronauts from bar to launch pad.
Hugh said: “oW! that smarted…I only know one way to crucify the mother lounge and will continue to use it!!”
Now you’ve got two ways! If you were a drop-off franchise salesman, you could brag 100% growth!
You crucify the “American” language quite eloquently. Keep it up.
I think the bottom line is that a majority of these stores may go out of business (based upon your argument), and the rest will stay around. So, will there be any more franchises?
What does “the rest” mean?
After it all falls out, I predict there will be 4-5 Snappy Auctions, 10-15 ISoldits and a smattering of other franchises. Which begs the question: how will they survive since the franchisors will most likely not be able to maintain any staff on what these stores make. Even the best of the Snappy stores was doing $40K a month (over the last 90 days) and that equates to roughly $1600-1800 a month in royalties (best case). Multiply that by 5-6 and you can’t afford much of a support staff.
What is the official store count now with all of the franchises, anyone know?
R – I asked a similar question the other day, it’s a figure we need. I think somewhere around 2,000 (chain/franchise) stores have opened with maybe 1,000 independents. Say 1,500 commercial and 800 indie’s in the U.S.of A. with another 100 in the U.K. (split 60/40) similar numbers in Germany and Italy? smaller numbers in the Low Countries, France and Australia? And…I think…at least two thirds of them have closed. Although, some of the commercial one’s may get ‘cut-loose’ to go it alone, or get bought out/bought back as in happened with two of the six that Auctioning4u have just off-loaded.
Indeed in the U.K. the picture seems particularly bad. Auctiong4u (as an example) have over the years bought the remains of companies who owned – at some point – around twenty stores (including 6? iSold It’s) , they’ve had 4 or 5 of their own and two (almost 3) franchises. They now have none. That kind of maths makes you ill! Still it will make the investors ‘iller’, hehehe.
Sean/Chance – I was joking, I know my use of English (whether American or not!) is rather tortuous to say the least!
Do you think that was the root of the problem on the A4U page? That daft old CB mistook my mildly humorous asides and genuine desire to share my experiences as a real desire to shove an H2 4×4 up his arse? side-ways! now that would smart!
Hugh: Despite your intricate, nuanced and ever-so-subtle comments on the Auctioning4U post, I’m fairly certain your viewpoint was clearly understood… as was your almost saintlike ability to forgive and forget, to bury the hatchet, to let bygones be bygones, and to turn the other cheek (albeit an “arse” cheek).
I could post a list of closed eBay drop-off stores if you all will provide contributions, corrections, insights and updates. I do not want to make it my life’s work, and I also don’t want to embarrass or cause any more pain to the ex-franchisees, so I’d reserve the right to pull the plug. However, I think it may be instructive… especially if listed by state/market. The lists of closed stores in the offering circulars could provide an initial list, but would obviously be incomplete. Worthwhile?
It’s worth trying something, just to get a better picture. It would be wrong of me to keep mutering two-thirds (I think) if it’s only a third, or four fifths!
Laughed long at you previous, the stage may be calling? we’re told not to use the ‘other’ spelling due to change of meaning in translation to American!
There used to be a list on http://www.amitheonlyone.org. There’s still a summary on the front page, so I’m sure they still have the data, even if it hasn’t been updated in a while.
I could post a list of closed eBay drop-off stores if you all will provide contributions, corrections, insights and updates.
……….
If I see my closed store on your list you will hear from me and many others.
Why can’t you people let things rest. What are you trying to prove. I know of many people who are still trying to make their business go, but your blogs are scaring customers from our stores.
Are you even thinking about other people other then self promotion to sell banner ads?
You’re worried about blogs scaring customers from your closed store? What am i missing?
By the way, how many customers lost their money/goods when you closed, No Go? Where was your store, so it can be left off the list?
Seems to me that the only people who benefit from “letting things rest” are those selling defective franchises, no?
BP
No from the open stores – DUH!
What is the purpose of continuing to create distrust in the consumers mind about drop off stores.
There are many who are still trying to make it go out here.
I was merely curious as to a number…certainly don’t want names and faces posted.
No Go: If you were truly a failed store owner, I’d think you’d be happy to see others warned so they didn’t make the same mistake you did. I can’t imagine you’d say “let things rest.”
If you hadn’t noticed, this is a website about purchasing a franchise – not deciding how to sell on eBay. Conversations here are about whether to invest in a store, not whether to use them.
Hugh, some of us have a sense of humor and enjoy yours, so hang in there!
Sean: Without names, the drop off stores are real close to a 50% closure rate for all the franchises and independents, and more are going down on a daily basis. There are less than 300 franchised stores left in the US, UK, and Canada. And before some one decides to debate this issue…take the time to pull up EVERY Snappy, Isoldit, and Quikdrop (oh yes A4U) by ebay id to see for yourself.
NO GO: No one is selling banner adds, and believe me these blogs have helped hundreds! Yes, I said hundreds, and I don’t see your name on the list helping. No one appreciates your threats, besides they get enough from the franchisors. If your store is closed, then it has been counted amongst the stats and you will have to face reality! Also, no one is trying to scare your sellers, check other blogs – they already have issues. Besides, what sellers are you worried about if your store is closed? If your franchisor really cared about you and your stores reputation, they would have dealt HONESTLY with ALL the stores from the beginning. Don’t you think the 300+ stores that have closed wanted to make the business work too? Learn from others, my friend, and you might save your home, family, and health. Otherwise, we wish you good luck, your gonna need it!
AIT 000
Are you blind, this blog is full of banner ads including the one below that offers people with zero experience to sell franchises
Looks like the franchisors are putting out a full court press. This blog must really be scaring them.
No Go, maybe you haven’t picked up on the fact that most of the people on this blog WERE store owners. Our goal is to let potential franchisees avoid the same mistakes we made. We have never said anything about the quality of the work the stores do.
Here’s my contribution. There are at least 12 Snappy Auctions that have closed that I know of. More on the way. ISoldit is up to 65 that I know of. In my area there were also 7 independants that have closed.
RE: Banner ads on this site
Here’s how this works. The site is owned and maintained by b5media, a 200+ blog network with sites ranging from genetic research to what Brad Pitt eats for breakfast. They sell ads across the network or for specific sites. They’ve got no ties to the industry and could care less about franchising. I’ve got no involvement in their ad program and they’ve got no input on my content.
I (Sean Kelly) provide the editorial content, posts, etc. as well as translate the comments from our British, Australian and Canadian visitors (like Hugh). I receive a small monthly fee that amounts to about 1/2 hour at my billable rate.
I am developing a franchise and marketing specific blog network (Franbest.com). I am selective about the companies I will allow to be sponsors of those sites, though I don’t endorse any particular franchise opportunity.
The message I’m passionate about is: Franchise with your eyes wide open. Assume that some who advertise here are honorable and others are scumbags. Don’t buy a franchise because Entrepreneur magazine – or FranchisePick.Com for that matter – says its the magic moneymachine of your dreams. Research. Investigate. And understand that, ultimately, building a successful business is your own responsibility… the franchise is just a set of (very expensive) tools.
If anyone wants to share their list of closed franchised drop-off stores, you can email me at info[at]ideafarm.net. It would be helpful to have the company name, franchise store number, city and state, dates opened and closed (if you have them), and eBay ID. Feel free to include any insight, but designate info not to be shared or posted.
There is already a list of independents both open and closed listed on auctionbytes.com.
Just to confirm that I’m of that lot from the ‘Old Country’ across the pond, not that Northern lot across the lakes, I’ve seen them on South Park…..their heads work like Pac-mans and come off…..they’re scary!
Actually my old friends Kim and Graham emigrated to Canada (or as I call it; Caniadia) to open a Bed & Brakfast in the west, I would put the link up so you could all book but I’ve lost it! Doh!
Oh….this is supposed to be about franchises isn’t it?……DON’T BUY A DROP-SHOP EbAY CONSIGNMENT MULTI-STORE CHAIN TYPE INTERNET AUCTION THING – You’ll live to regret it!
(did I get away with the digression Sean?)
You snuck it thru while I was deciphering the South Park reference
AITOOOOO you have a personal issue requiring an attitude adjustment. What will it take for you to really see whats going on in this industry?!? We could ship you to the UK where Hugh can show you the truth. Or better yet, maybe you could go to work for the crumbling franchisors (if you don’t already)!
Put well BenScrood! Some people are slow learners. And AITOOOOO you are missing the whole point. Perhaps you should re-read the whole blog to get the gist of what is going on here!
In numbers, far more than 65 Isoldit stores have closed, and more than 50 Quikdrops, and every NUMARKETS closed. The record progressively gets worse day by day. It is obvious that this concept does not work, as evidenced by this blog, Blu Mau Mau’s blog, Auctionbytes reviews, ripoff report, AmITheOnlyOne.Org, and countless other posts and articles. In fact, Entreprenuer Magazine deserves credit for taking some of these franchisors off their lists. And Sean, no justification is necessary, blogs like this and websites like AITOO, do alot of work for no pay, and we appreciate it! So, thanks!
And Sean, no justification is necessary
Thanks. But since we’re preaching skepticism, I’ll do it anyway:
Full Frontal Disclosure: How FranchisePick.Com Works
Chance: in your list, AITOO (amitheonlyone.org) deserves the lion’s share of credit for bringing the situation to light.
Sean, you don’t have to justify yourself here, but I’m glad you did. If they can’t effectively argue the points made here, attack the messenger. This validates what’s going on here. The message is getting out and some people are getting nervous about it’s effectiveness.
If the stores are worried we’ll affect their business, they only need to read these posts. I know a lot of current and ex-store owners. They are all working hard to make their businesses work. They are not at fault here. They were sold a faulty, unproven concept.
The reason for this blog is to highlight the problems with the faultering eBay drop off store franchisors.
I know I’ve discussed a ‘Class Action’ before, but that was in the context of ex-franchisees, How about a Class Action by existing franchisees in order to get out of contracts with enough money ‘back’ to re-invest/re-invent themselves as independents, where alot of them would stand a fighting chance. It’s the fee’s and percentages that are killing them stillborn!
I like the idea, but the real issue with many franchisors is their lease. If they could get out of that, many would terminate their contracts with the frachisors today. And then they could run their business the way they need to.
I’ve heard about possible action against more than one of the franchisors. More to come on this later.
Franchisors need to realize that this blog and others like it can be a great benefit if they’re willing to take positive action. Just as negative word spreads, so will positive. Fee reduction/suspension would be a good start.
Franchisees should also be asking for an accounting of their advertising/marketing contributions. This situation calls for clever and cost-effective local store marketing that is NOT geared toward selling franchises. Having worked in a multitude of industries, I find this one particularly poor at marketing a brand-new concept. I’m not sure the concept is understood.
If there is interest, my firm will provide some low-cost marketing ideas that can be implemented on the local level. Email us at info[at]ideafarm.net.
Sean, thanks for sharing the link telling us how franchise pick works! It was great!
As for positive action by franchisors, MOST feel they have not done anything wrong. You have to come out of denial and admit there is a problem – to fix one. I know that one of these franchisors was contacted by a reputable coaching firm, and was flatly told “no thanks”. In fact, an excellent software company also offered to help them when their whole system went down, and the franchisor got nasty and sent them a threatening legal letter. Gene Bowen of AmITheOnlyOne.org depicts the situation quite well in his article on “Egonomics”.
Hugh your class action idea is great, however the franchisees have little to no money left at this point. The attorneys aren’t pro bono, and franchisors go out of their way to keep franchisees from talking together (except on forums they censor). Also, these franchisees are threatened with losing their store, home, other jobs, etc. However, a group action can work, but there must be some money to go after-and it doesn’t look like any franchisor has $$ left!
That brings up another point Sean made-accounting. These stores haven’t been able to balance their books from the start, mainly because the Corporate HQ doesn’t have a grip on the finances. It is pitifull really!
Benscrood makes a nice point, but the franchisors aren’t going to payout except where the state or gov’t has slapped their hands,or they can gag someone. Even then it won’t be much. You know $10,000 wouldn’t dent the $150,000 of debt these folks have. And, many will bankrupt, or lose their entire life savings in the end! It is not easy to start over, especially at age 50!
So what is going to happen? I would guess that the majority of ebay drop off stores will close, and the rest will have a great tax writeoff. Who knows, my crystal ball stopped blinking eBay, eBay a year ago!
I know all about the system being down at one of the large franchisors. I was told it was down for over a month and that the franchisees had to sign away their rights to sue to get their “rebates” for the system down time.
I’m not surprised to hear that someone offered to help them out and got not only turned down, but threatened with legal action. From what I was told ,the franchisor ( I dare not name names for fear of legal action, sorry it happened to you GET REAL) had no disaster recovery plan and blamed it all on the hostng company. I can’t imagine any national corporation having their main system down for a MONTH!!! How did they get away with it?!?!
Sound familiar?
I’m so tired of these “lawsuits” and legal action by these companies that continue to try and sell a bad idea and not admitting there is a problem and still leave current stores hanging.. How can they sue? They don’t have money to keep software up and running, they fired their general counsel and staff has been cut by 50%. But they threaten with legal action? Give me a break. Oh, and it wasn’t three stores that closed from a given company at the end of July, it was 4 stores that closed. 4 a month closing, not selling any new stores recently, anyone else have a gut feeling this whole thing is about to come undone? Guess who’s going to be left holding the ball? The store owners, the franshor is going to “take” the money for a payout that week, and guess what, consigners aren’t going to get their check. What’s everyone else’s opinion on this? I am talking specifically talking about one brand NOT based out of California.
Number cruncher the software in many of these franchises is beyond shameful, with constant workarounds, shipping issues, and poor reporting capabilities. The franchisors are fully aware of this, yet continue to over promise and under deliver!
I understand Snappy is in the money since they presumably sold the franchise rights to Japan for $750K. (While in the US, store after store folds up. Anything wrong with this picture?!)
You know, if these franchisors had to sell these franchises on ebay, we would all get our money back from paypal, and the franchisors would be taken down for misrepresentation. Just an interesting thought!
Sounds like Snappy has money to give back to franchisees. Hmmmmmm
Do I hear group action?
…since they presumably sold the franchise rights to Japan for $750K.
Chance: is this from a reliable or verifiable source? If so, that’s amazing. Guess I’ll have to start up FranchisePickJapan.Com.
Just thought I’d mention, this is the 200th comment on this post… A FranchisePick.Com record.
You haven’t made money, but at least you’ve helped make history.