January 6th, 2009
(FranchisePick.Com) Have you ever had a good friend or close relative join AMWAY (Mary Kay, Herbalife, Quixtar, Meleleuca, Shaklee, USANA, nuskin, or other mlm, multilevel or network marketing scheme) and suddenly become… ANNOYING?
Our post IS AMWAY A GREAT BUSINESS OPPORTUNITY? prompted thirstyfox to share what happened when her sister joined AMWAY/QUIXTAR:
My sis was in it once, wasted all her time and in the end made little or nothing.
She got back into it recently against everyones advice. It’s like a cult that turns you against your family so you don’t listen to them. Now she has no time for family, just scamming strangers and wasting her time away with unfullfilled dreams.
The constant meetings are to keep you brainwashed. It’s all a scam and she knows it herself now as she tries to get others in “under her.” Hard to see her as a Christian anymore when she does this, and it’s sad to see all the time she loses when she could be raising her kids.
I’ll never understand how she could be so stupid. I asked her why she got in it last time and she said of course money. Then I asked her what she got out of it and she replied defensivly “I met a lot of very interesting people!” I think that about says it all and if it didn’t work for my sis it won’t work for anyone.
All the BS they tell you about how well this that and the other person did or is doing is all lies so they can get your money. 98% of all Quixtar products are sold ONLY to stupid Quixtar members themselves, yet they go around saying they own a business???
Don’t give them a second of your time.
What do you think? Does Multi-level “Network” Marketing make people annoying? Is thirstyfox right that MLM consists of stupid members selling only to other stupid members? Share your MLM story below.
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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Tags: Amway, direct sales, Herbalife, MARY KAY, Meleleuca, MLM, multilevel marketing, network marketing, nuskin, quixtar, scam, Shaklee, USANA
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By Sean Kelly -- 0 comments
January 6th, 2009
Whistleblower Dan Baxter didn’t get heat, but he did get fired.
According to a report by King 5’s Jesse Jones, the Pizza Time employee who contacted the press about the owners forcing
employees to work without heat has been terminated. According to franchise owner and husband-of-the-boss Luke Benjamin, the firing was “amicable” (meaning that the Benjamins won’t contest Baxter’s unemployment compensation application).
While whistleblower stories make for great drama, don’t look for Russell Crowe to portray Dan Baxter any time soon. The employee, who was already suspended, not only initiated and starred in Jones’ initial story, he actively fanned the flames of outrage that ensued with aggressive posting of Internet comments against his employers. Once the story rose to fever pitch, Baxter seemingly tried to cash in on his 15 minutes of fame. In one comment left on the first Pizza Time post on FranchisePick.Com, Baxter wrote:
daniel baxter
Jan 3, 2009 at 5:33 pm
I am the manager of that store and the one seen on king 5 (go to king5.com) and was fired over this any donations (money, job offers, legal aid) would be appreciated contact king 5 or email me [deleted] I am not the only worker who has been suspended or fired over this.
Baxter was an active participant in the 300+ comment discussion that followed the original King 5 story. Many of the comments called for a boycott and picketing of the much-maligned pizza shop. In one comment, Dan Baxter posted his email address as P-O-P-E@[withheld].net. Coincidentally, an active commenter named POPE posted a humorously awkward extortion attempt on the King 5 site:
At this point our advice to the owners is to offer them employees especially Dan and John a settlement and don’t think that it will work unless it is in the 10s of thousands. Unlawful punishment of an employee for complaining about a safety hazard(cold) is against the law. Check the regulations. Harassing workplace is a class action lawsuit. On top of all that employee/employer confidentiallity was violated by the owner when she aired dirty laundry publicly that is now widespread on the internet. Lawsuit again and john has a liable/defamation of character suit because he has no criminal record. Not to mention a lawsuit for keeping employee tips. If you want to save your business settle this quickly before it ends up in the courts. Dan is an employee of 10 years. That is a career employee. Has anyone ever seen a lawsuit where an employer is ordered to pay an employee for the rest of his life. What a can of worms.
With phrases like “Harassing workplace is a class action lawsuit” and “a liable/defamation of character suit,” one would hope that POPE’s not planning a career impersonating attorneys.
With lines like “…offer them employees especially Dan and John a settlement and don’t think that it will work unless it is in the 10s of thousands” and “If you want to save your business settle this quickly…” a career as an extortionist is probably out, too.
Though prison does have one advantage: Free heat.
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Also read: Franchise Pick: Franchisee From Hell! Awards: Luke Benjamin, Pizza Time, Franchise Pick: Can the Lacey Pizza Time be Saved from Itself? What do you Think?, BizLevity: Dirty Franchising, The Sequel, They Had The (Pizza) Time Of Their Lives , Leadership Turn: Leaders From Hell Win Award, The Seattle Traveller: Lacey Pizza Time Feels the Heat but Employees Don’t, Small Business Boomers: Boss From Hell? Or Frustrated, Cost-Conscious Employer?, BrandCurve: Pizza Time, or Hypothermia Time?
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Tags: controversy, Dan Baxter, employee, franchisee, gretchen benjamin, Lacey, luke benjamin, pizza franchise, PIZZA TIME, sean kelly, WA
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By Sean Kelly -- 6 comments
January 6th, 2009
The story of the Lacey, WA Pizza Time franchise owner who supposedly made its employees work without heat has quickly become a case study in PR crisis management. The pizza shop owners have been vilified by hundreds of angry comments online, and threatened with boycotts and picket lines. Neither the franchisees nor the corporate office has issued a statement nor responded in any meaningful way.
The business guru bloggers of b5 Media’s Bizzia channel have been volunteering their tips and advice in comments and posts. In the BrandCurve post Pizza Time, or Hypothermia Time?, Katherine Liew discusses three options the owners can pursue to avert this crisis:
Pizza Time has a few options…
Remove the troublesome elements and try to keep it quiet. This is what the company HAS done, and many others have tried previously. However, this doesn’t work, especially today when negative word of mouth travels like wildfire.
Rebrand the company and hope that everyone forgets. Not a good way to treat your customers, and also expensive, but a rebrand with revised company policies could be something to think about in the future.
Reform the company - quickly issue an apology, compensate the employees and show that the company is actively working on solving the problem. This would be the smartest course of action for Pizza Time to take, like Nike did with their child labour scandal.
Rebrand? A name change to Stone Cold Pizza or Frost-Bites Pizza might be apropos. However, as a franchise, these owners they are contractually unable to change their name from Pizza Time. However, they could rebrand to a degree by bringing in new management, allowing Corporate to run the store for a period, sell to new owners, etc. Somehow create the perception of a new and improved Pizza Time.
[Or how about a sign: NOT Freezing our employees since 2009!]
In times of crisis like this, franchisees should be able to turn to the franchisor for help. Where is the Pizza Time franchisor? Why the silence? Hibernation?
Related Bizzia posts:
Franchise Pick: Franchisee From Hell! Awards: Luke Benjamin, Pizza Time
Franchise Pick: Can the Lacey Pizza Time be Saved from Itself? What do you Think?
BizLevity: Dirty Franchising, The Sequel, They Had The (Pizza) Time Of Their Lives
Leadership Turn: Leaders From Hell Win Award
The Seattle Traveller: Lacey Pizza Time Feels the Heat but Employees Don’t
Small Business Boomers: Boss From Hell? Or Frustrated, Cost-Conscious Employer?
BrandCurve: Pizza Time, or Hypothermia Time?
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Tags: crisis management, employee, franchise, franchise publicity, franchisee, Lacey, pizza, PIZZA TIME, sean kelly, WA
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By Sean Kelly -- 0 comments
January 5th, 2009
On the heels of Pizza Hut’s viral video effort, the 25-unit Pizza Time franchise chain has gone viral, too… much to their dismay. The King 5 video of the Pizza Time owners who allegedly forced their employees to work in sub-freezing temperatures as a punishment is being delivered across the net. Check it out:
The blogosphere weighs in:
Franchisee From Hell! Awards: Luke Benjamin, Pizza Time
Lacey, WA Pizza Time owners Luke & Gretchen Benjamin were immediately winners of our prestigious FFH! award, putting them in such distinguished company as Subway’s Cousin Vinny Agnello, Holiday Inn franchisee Charles Morais, and Quiznos’ sex offender and murder suspect Michael Mele.
* * * * *
Can the Lacey Pizza Time be Saved from Itself? What do you Think?
Pizza Pundits offer their advice for saving the Lacey Pizza Time. Best idea wins a large Pizza Time pizza. 2nd best wins an extra-large Pizza Time Pizza.
* * * * *
Dirty Franchising, The Sequel, They Had The (Pizza) Time Of Their Lives
Bizlevity’s Mark Jabo’s idea for saving the Lacey Pizza Time is to turn it into a musical. Good timing: Patrick Swayze should have time on his hands once his new TV series debuts this month.
* * * * *
Leaders From Hell Win Award
Miki Saxon at Leadership Turn bestows yet another title upon our Heroes, and also makes a good argument for the use of raping and pillaging as employee perks.
* * * * *
Lacey Pizza Time Feels the Heat but Employees Don’t
Our very own Bizzia channel editor Mary Jo Manzanares and blogger at The Seattle Traveller lives just a pepperoni’s throw from Lacey, WA. One wonders if her constant travelling is motivated by the quality of the local pizza.
* * * * *
Boss From Hell? Or Frustrated, Cost-Conscious Employer?
There always has to be a rational, nice person willing to consider both sides who just ruins it for the rest of the mob ;) Jean Murray at Small Business Boomers invites all comments, pro and con, and has set up a poll. After the poll results are in… we attack at dawn!
Other links:
King 5 story, Boss of the Year at No-Name247, BuzzFeed, Pizza Time on The Consumerist
Also check out: PIZZA HUT: Viral Video Appeals to Racist Moron Demographic
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Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
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Tags: employees, franchise, franchisee, franchisees, Lacey, luke benjamin, PIZZA TIME, sean kelly, WA
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By Sean Kelly -- 0 comments
January 4th, 2009
Can the Lacey, WA Pizza Time survive its self-induced crisis? Will the owners realize hypothermia is not an accepted management tool? Could YOUR advice help these owners get off the road to entrepreneurial self-destruction? Let’s find out… leave a comment below.
Yesterday I awarded the owners of the Lacey, WA Pizza Time the Franchisee From Hell! Award. Today I am feeling sorry for them. After initially shooting themselves in the foot by using threat of frostbite to motivate employees, they immediately reloaded and fired again with remarkable precision. It’s clear that they simply don’t get it. Perhaps you can help.
I am also going to ask some of my PR, Marketing, Branding, Accounting & Restaurant Guru colleagues here at Bizzia, the b5 Business Channel, to offer some professional advice to help these poor business owners survive this crisis. Readers are also invited to post their advice in the comment section below; the best will be featured in future posts.
Here’s the story:
How not to motivate employees: My initial Pizza Time post recounted how Pizza Time franchise owner Luke Benjamin was so upset that an employee forgot to shut off the furnace one night, he punished the crew by making them work without heat. He posted a handwritten, motivational note: “If you don’t want to work here quit, otherwise shut up and do your job. The next person I hear complaining is off for two weeks. We don’t have heat!! You guys screwed up, not us. You want to blame someone, look in the mirror.”
How not to speak to the media: King 5 news caught wind of the story and showed up with a video crew. Benjamin unashamedly defended his human resource policies on camera and allowed them unlimited access to video the store, including the thermostat showing the 55 degree temperature, the motivational note, and the office space heater to keep his accountant wife (who clearly wears the snow pants in the family) toasty while his nearby employees lose feeling in their extremities.
How not to respond to criticism: The King 5 story snowballed, so to say. As of this morning, nearly 300 angry comments had been posted against the owners. Local residents said they’d stop patronizing Pizza Time. Others called for a boycott not only of the pizza joint, but of the wife’s separate accounting business, Accurate Accounting. Riots ensued, cars were overturned and lit on fire, and Lacey City Hall was defaced with tomato sauce and molten mozzarella*.
Instead of defusing the situation, the Benjamins responded by suspending the whistleblower employees Daniel Baxter & John Francis, and posting personal attacks against them at King 5. Here’s an excerpt:
We hired Dan when we bought the store in 2006 and John a year or so ago….
Dan…who drove for you and gave you all the tips and commission when you got your DUI and lost your license?
…Everyone is singing Dan & John praises but they know nothing about Dan or John. Trust me…NO ONE ELSE WILL HIRE THEM WHEN THEY LOOK INTO THEIR BACKGROUNDS….
We are great boses!!! …We are not making anyone work here… Sure its cold in the store, It has always has been cold… being cold is nothing new to Dan or John… the HVAC system ineffective and very costly to run. In these tough economic times, we have to do everything we can to save money…
Hello Dan and John…you wouldn’t believe how many people have stopped by to pick up applications and want your jobs.
Can a small business survive this ill will? Just two years into their ownership of the Lacey Pizza Time, the Benjamins have managed to raise the ire of an entire community. Personally, I wouldn’t want to have a Pizza Time box sticking out of my trash can with the torch-carrying crowds roaming the streets.
With the competitive nature of the pizza industry, can they undo the fiercely negative image they’ve created?
What lessons should they learn, and what steps should they take to survive this crisis?
* OK, I may have imagined this part
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Tags: benjamin, Dan Baxter, dispute sean kelly, employees, franchise, franchisee, John Francis, king 5, Lacey, PIZZA TIME, WA
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By Sean Kelly -- 26 comments
January 3rd, 2009
(FranchisePick.Com) They say that good franchise companies don’t sell franchises, they award them. After all, franchisors are
trusting their franchise owners with their most valuable corporate assets: their brand names. Their reputations. The goodwill they’ve spent years and millions of ad dollars cultivating.
Sometimes that trust is severely misplaced, and the franchisor gets its very own Franchisee From Hell! By definition, the aggravation, bad press and brand-damage of a Franchisee From Hell! wreaks on a franchise system clearly outweighs and franchise fees, royalties or ad contributions the FFH! could ever contribute.
Of course, Franchisees From Hell! are much appreciated by the blogosphere, for they feed its insatiable appetite for stories of dysfunction ranging from clownish (like Subway Franchisee From Hell! Cousin Vinny Agnello) to the inexplicable (like Holiday Inn franchisee Charles Morais) to the tragically bizarre (like Quiznos’ sex offender and murder suspect Michael Mele).
Hypothermia Time Pizza… Now Hiring!
Today’s Franchisee From Hell! Award winner comes to us from Richard Chemiel’s hilarious No-Name247 whose blog post states “…Luke Benjamin, franchise owner of Pizza Time in Lacey WA, got upset when his employees left the furnace on all night. So Benjamin shut off the heat, and point blank told employees that if they don’t like working there, to find another job.”
Luke Benjamin, who obviously knows how to keep them good-fer-nothing employees in line, posted the following note:
“If you don’t want to work here quit, otherwise shut up and do your job. The next person I hear complaining is off for two weeks. We don’t have heat!! You guys screwed up, not us. You want to blame someone, look in the mirror.”
It’s All About the Benjamin’s, Baby…
Benjamin is a well-rounded Franchisee From Hell! in that his Human Resource skills are surpassed only by his Public Relations savvy. He not only unashamedly agreed to be interviewed by King 5 news, but gave the camera crew full run of the Ice Station Zebra:
The temperature was 55 degrees when we went in on Friday, but we saw something else. There’s a space heater in the office where Benjamin’s wife – the real boss – runs her accounting business.
Then we get to the real truth of the matter.
“It doesn’t look good, but she’s my wife and my boss and she tells me what she’s going to do and I’m not going to argue with her,” said Benjamin.
When asked about the chilly treatment of his workers, Pizza Time Franchisee From Hell! stated “If they can’t deal with it then there are plenty of other jobs out there.”
Unfortunately for both Benjamin and Pizza Time, there are plenty of other places to order pizza, too.
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Tags: dispute, employees, Lacey, luke benjamin, pizza franchise, PIZZA TIME, sean kelly, WA
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By Sean Kelly -- 36 comments
January 1st, 2009
When the ball dropped and America yelled Happy New Year! last night, Quiznos franchisees Ellen Blickman and Rich Piotrowski were giddy on more than champagne. They had just received, hours earlier, the judge’s ruling that ended their two year battle with franchisor Quiznos Franchising II, LLC. They had just read District Court Judge Morris B. Hoffman’s 36-page ruling that, effectively, gave them their lives back.
If you have not followed previous Quiznos vs. Quiznos franchisee stories, the husband-and-wife’s story of legal persecution at the hands of the corporate giant might sound both preposterous and exaggerated. How could (and why would?) a well-known company immediately terminate a compliant franchisee, rob them of their livelihood for (supposedly) improperly making a single sandwich on one, isolated occasion? Who would believe that a corporate attorney could commence litigation against them because he didn’t like the voice mail message left by a frustrated franchise owner whose previous 20 urgent calls had gone unreturned? As implausible as it sounds, the judge found that’s exactly what occured. The ruling states:
Defendant Zig Zag Restaurant Group, LLC (“Zig Zag”) is a Pennsylvania limited liability company formed by the individual Defendants, Richard Piotrowski and Ellen Blickman. Piotrowski and Blickman, who are husband and wife, are the only members of Zig Zag, which they formed for the purpose of owning and operating a Quiznos franchise…
As discussed in more detail below, Defendants entered into two franchise agreements with Quiznos, but ended up operating only a single store, in Coopersburg, Pennsylvania. They operated the Coopersburg store for only eight months, at the end of which their franchise agreement was purportedly terminated by Quiznos because Quiznos allegedly determined Defendants had intentionally under-portioned the meat on a single sandwich. Quiznos brought this action claiming, among other things, that Defendants breached both franchise agreements, and Defendants counterclaimed for breach of the Coopersburg agreement and rescission of the unused agreement.
As the result of a five-day bench trial in early December, 2008, the judge dismissed Quiznos charges and ruled in favor of the Defendants:
I conclude that Defendants have proved their entitlement to rescissional-type damages as a remedy for Quiznos’ wrongful termination of the 6309 Agreement, and that the proper amount of 30 those damages is $349,797.00, plus costs, fees, and post-judgment interest at the contract rate of 24%.
Of course, this is much more of a moral victory than a financial one - since the franchisees have debt and obligations that will eat up the damage award.
Of course, there is much more to this story - which I will explore in future posts.
I’ll conclude with both thanks and congratulations to Rich & Ellen: Congrats on your win, and thanks for a great David & Goliath story. What a great way to start the new year!
READ IT HERE: Judge Hoffman’s Ruling Against Quiznos Franchising II LLC (PDF)
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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Tags: blickman, franchise, franchisee, franchising, lawsuit, litigation, piotrowski, QUIZNOS, sean kelly, termination
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By Sean Kelly -- 12 comments
December 30th, 2008
(Franchise Pick) In order to increase share of mind (an oxymoron?) from the fickle but vast demographic of male morons* age 15 - 28, Pizza Hut engaged the services of the aptly named Mediocre Films to create a viral YouTube video. The video, creatively named and exclamated Kicked Out of Pizza Place! is a huge hit on YouTube, having been viewed by 300,000+ morons (Watch below to make it 300,001+) and being awarded a prestigious 4.5 out of 5 moronic stars from the 4000 who could figure out how to vote.
Call me a purist, but I prefer my obnoxious, juvenile behavior delivered by obnoxious juveniles, not multinational corporations.
The premise is simple: An aging Van Wilder imitator sits down in empty independent pizza places and orders a Pizza Hut pizza to be delivered to him at his table. Hilarity ensues as the offended pizza shop owners - all of whom are of middle eastern descent - endure Van’s obnoxiousness and insults while escorting him out the door. George Costanza’s retarded older brother Joey films it all on a flip camera, laughs moronically, and delivers such lines as “Yeah, ha-ha… he was about to get angry!”
The premise is amusing, but when framed in the context of a giant corporation sending 30-something pranksters to disrupt independent businesses and demean independent pizza operators, it seems meanspirited and lame. Like a Dad hurling racial epithets to impress his son’s teenage friends.
Call me a purist, but I prefer my obnoxious, juvenile behavior delivered by obnoxious juveniles, not multinational corporations. Then again, I’m not the target demographic.
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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
* No morons were harmed in the creation of this post
Tags: :-) Humor, franchise marketing, Kicked Out of Pizza Place!, mediocre films, PIZZA HUT, viral video
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By Sean Kelly -- 1 comment
December 30th, 2008
Despite the recent plunge into bankruptcy that left his Cork & Olive wine store franchise chain in turmoil, his newly-launched Cork & Olive franchisees stranded without the promised support, and employees without jobs or paychecks, C&O founder Michael Probst is launching his next entrepreneurial venture: Mergers & Acquisition Corp.
The story is here: CORK & OLIVE: Michael Probst Forms New Corporation
The whole story is here: CORK & OLIVE BLOGLIOGRAPHY
What do you think? Share a comment below.
Related posts: CORK & OLIVE: Ex-Employee Has no Sympathy for Franchisees, CORK & OLIVE: Overview & Blogliography, CORK & OLIVE: The Probst Method of Guilt Avoidance, Cork & Olive Files Chapter 11 Bankruptcy, What REALLY Uncorked Cork & Olive?
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Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Tags: bankruptcy, CORK & OLIVE, cork & olive franchise, merger and acquisition corp., michael probst, rainer appold, wine franchise, wine store franchises
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By Sean Kelly -- 0 comments
December 26th, 2008
(FranchisePick.Com) I guess when you’re already called geek, you don’t care if you’re known as a tattletale, too.
Geeks on Call franchisees kept up their attack on their own franchisor company by filing a formal complaint against it with the
Virginia Division of Securities and Retail Franchising. Their Geeks on Call franchisee press release indicates they believe that the squeaky geek gets the grease:
Concerned that Virginia Geeks On Call franchises would no longer be salable, [the franchisees' General Counsel] Mr. Blasz filed a formal complaint with the Virginia Division of Securities and Retail Franchising alleging Geeks On Call America, Inc. was entering into new franchise agreements while failing to comply with the registration requirement imposed on all franchisors by the Virginia State Corporation Commission. Mr. Blasz further drew the agency’s attention to the faltering financial condition of Geeks on Call America Inc.
United We Geek, the Independent Owners Association of Geeks on Call America, Inc., is so concerned about upholding a favorable Geeks on Call brand image that it immediately issued a press release to national newswires to alert the world that its own company was violating franchise disclosure laws. Attorney Blasz made sure to point out to the VA regulators that the company was in dire financial straits so that they could apply extra scrutiny to its registration or perhaps impose escrow or other additional requirements.
The complaint filing comes on the heels of 10 federal franchisee lawsuits filed against franchisor Geeks on Call Holdings (read: GEEKS ON CALL: Beware of Geeks Baring Rifts), despite reports GOCH is fighting for its own financial survival (read GEEKS ON CALL: A Geek Tragedy in the Making).
According to the press release, the United We Geek franchisee association has recruited more than 30% of all franchise owners representing roughly 50% of the active territories. United We Geek was incorporated this past September 2008 to “provide Association members with a voice and to address Geeks on Call America, Inc.’s ineffective advertising, inadequate systems, deteriorating business processes, and also a distinct lack of urgency in addressing the franchisee’s needs.”
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Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Tags: franchise, franchisee, franchisees, fraud, GEEKS ON CALL, lawsuit, suing, Ticker: GOCH, united we geek
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By Sean Kelly -- 4 comments
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