iSold It Dropped from Entrepreneur 500, Loses Top New Franchise Crown
June 24, 2007 by Sean Kelly
Filed under Business
(FranchisePick.com) Ever since the iSold It eBay drop-off store franchise was launched in 2003, the entrepreneurial press has hyped the unproven concept as franchising’s hottest new opportunity.
Earlier this year, Entrepreneur Magazine named iSold It as #110 in its influential Entrepreneur 500 ranking, and named iSold It the #1 Top New Franchise for 2007.
A few months after the Entrepreneur list was published, a letter appeared on the Internet in which iSold It CEO Ken Sully admitted that a significant number of iSold It stores were losing money, more than 60 stores had closed, and many of those who had invested in the iSold It franchise “lost sizable investments, including homes and retirement savings.” Sully added that, due to the claims of the failed and failing franchisees, “it is unclear if we will be able reach a conclusion without litigation, reorganization or insolvency.”
On the Internet, iSold It’s awards and top franchise designations began to be overtaken by the increasingly troubling reports about the struggling franchise company. The visitor traffic of eBay drop-off store complaint site amitheonlyone.org reportedly surpassed the traffic of the iSold It corporate webpage.
The Entrepreneur 500 499?
And then, within the past two weeks, iSold It mysteriously disappeared from its #110 spot in the 28th Entrepreneur 500 rankings. Since other companies in the listing have widely publicized their ranking numbers, Entrepreneur seems to have just eliminated the #110 position.
[Above: Screen capture from Entrepreneur.Com, Franchise 500 list]
Top 10 9 New Franchises for 2007?
The #1 position of the “Top New Franchises” for 2007 list seems to have disappeared as well. On another page, United Shipping Solutions had been granted the #1 spot.
[Left: Screen capture from Entrepreneur.Com, Top New Franchise list]
iSold It is still listed in the site’s franchise directory, but the franchise information has been replaced by the message:
iSold It is currently offering resales only. Contact the company for more information.
Entrepreneur Magazine has been criticized for its Entrepreneur 500 rankings before, but in recent years the criticism has become more angry and urgent.
The Entrepreneur franchise rankings have drawn increasing criticism as some of their top recommendations have become embroiled in controversy. Many of the franchises receiving high rankings and praise from Entrepreneur were receiving complaints and class action lawsuits from their franchise owners. In 2006, Quiznos suffered numerous franchisee lawsuits, a scandal in which a senior VP was arrested for “attempted sexual assault on a child,” and the tragic suicide of a failed franchise owner. Yet Quiznos was ranked as the #2 franchise opportunity in the country for 2006. (Quiznos reportedly did not turn in their paperwork for 2007). Another franchise embroiled in controversy, The UPS Store, was ranked #4.
Kudos to Entrepreneur Magazine for responding to the emerging information about iSold It and reacting accordingly.
WHAT’S YOUR TAKE? YOUR COMMENTS, OPINIONS & INSIGHTS ARE INVITED.
For more stories on iSold It.
Definetly kudos to Entrepreneur Magazine! Unfortunaetly, every dollar that has been lost with bad franchisors could have been spent on reputable ones, and not given franchising a bad name. Far too many franchisees have lost their homes, families, health, and life savings investing into misrepresented franchises. There should be a strong rating system for franchisors, making them show a PROVEN CONCEPT and REAL PROFITABILITY. So, thanks to Entrepreneur Magazine for taking a stand!
It is about time they looked at the true story. Entrepreneur Magazine was a great benefit to I-SOLDIT they milked their ranking to the hilt. If there would have been more honest representation of the concept there may have been fewer people who bought into this franchise and never would have lost their life’s savings.
In case your readers have not heard, while the franchisees were (and still are) losing their homes, the owners of ISI, Rick and Elise Wetzel went out and bought a new one – for 2.2 million dollars. Then they quietly walked away from the business, allowing the headquarters to be moved from Pasadena to San Diego. How nice of them.
Aaron,
Elise Wetzel,is listed as a franchise salesperson in the new UFOC. As well as Leslie Hawkes, Larry Simpson and Jay Castro. If this is not true, why would they put her name as such. Maybe she got laid off like Leslie Hawkes did a couple months ago. Perhaps the LA Times will do a money makeover on Elise and Rick?
At least I find some comfort in knowing that it wasn’t entirely my fault that my business failed. It looks as though many other i-Soldit franchises are failing as well. The company hyped itself up so much that I believed I was getting in on some type of ground floor opportunity. Unfortunately, I didn’t get in on any opportunity. In fact, the business cost me my home and my credit(bankruptcy). It was evident the first day I opened for business, that it never stood a chance. If even one person is spared the hellish experience that I had to endure this past year, I would be happy for them.
As the iSold It saga continues its death spiral more and more franchise owners will still pour money into their businesses to save them. Their reward will likely be that iSold It will be liquidated and the franchise owners will have vey little control over their futures – if any. I would encourage all current (and past) owners to collectively seek the counsel of a good franchise law attorney. This will be more economical and productive. Lesley Hawks popped up in a financial planning article on AOL yesterday, confirming she was let go from iSold It. The article also stated as head of franchise development/sales she earned $400,000 in either 2005 or 06. Owners need not wonder where their money went – better start chasing the $$$ before all the PIRATES get off the ship.
I’m glad Entrepreneur made a decision to remove them from the list. I’ve been a loyal reader for almost 3 years and every issue is filled with valuable information for any size business especially small.
I think their next step should be a monthly status report on the industry instead of just franchise sales information.
A lot of people believe strongly in the magazine and its advice so they have to know some bought into the ebay drop off store industry because of them.
Found that isoldit does not have a good reputation on rip off report:
http://www.ripoffreport.com/searchresults.asp?q5=isoldit&q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&Search=Search
Warner Oland – As we all know, Leslie has been “postitioned” by Ken Sully as an independent consultant. Jay Castro and Larry Simpson have been long gone for some time. Elise as a sales contact? Sure I buy that one. When donkeys fly. Your idea of a money make over for the Weasels, er, Wetzels is great. They need to be on the hot seat.
Be sure to read this blog http://www.franchisepick.com/is-isoldit-a-great-franchise-opportunity/ it shows what bull Sully is made of, and how much “positioning” one can do when they are broke, with a bad reputation, and half their franchisees closed and gagged! In fact they will even go to great lengths, such as, giving out a franchisees HOME address to customers telling them that they have abscouneded with the persons money and item, or reporting more than one store in a gross sales number (for a higher sales total), or listing former franchisees territories on their UFOC to make them look like a bigger company. At this point their only position is broke, limited employees, no formal offices-training center-or company store, and an experimental model that won’t work! Imagine that!
Why would Leslie Hawkes deliberately mislead the Los Angeles Times? It doesn’t make any sense. I am sure they requested all her financials, and for her to not be truthful is a disservice to the Times and its readership. Shame on you Leslie. If you are still employed by iSoldit even as an independent contractor, it should have been part of the story, especially if it came during the two months from when you were “let go” and the time the story broke.
I hadn’t heard about iSold It until this article, but I checked them out on Ripoff Report, and they do seem to have some issues. I’ll keep an eye out for them.
I recently saw Elise and her effeminate husband at a Lakers game. As one of the lucky people who bought a franchise and sold it immediately after seeing what a huge mistake it was I feel fortunate. Elise recognized me, I approached her and started to say hello and she did a double take and walked away briskly while whispering to her d0uche bag husband. I feel for the folks who lost fortunes, but it was clear to me they know they scammed people and avoid anyone associated with ISI like the plague. The ISI story is truly one of complete deception and white collar robbery at it’s best. Ken Sully is a moron who just took the heat. That poor guy couldn’t find his head with two hands as evidenced by his destruction of Mail Boxes Inc.
You mean “Ken Sully WAS…”
Ken Sully was killed in a motorcycle accident earlier this month.
iSOLD IT: CEO Ken Sully Killed in Crash
http://www.bizzia.com/franchisepick/isold-it-ceo-ken-sully-killed-in-crash/