Franchisee Marketing

(FranchiseeMarketing.Com) Source: PR Newswire

Denver UPS/MBE Franchisee Blames UPS for Destroying Her Business Plan With Inferior Model

DENVER, March 25 /PRNewswire/ — Suzy Meadows had a plan. After a successful career in the oil and gas industry, Meadows and her husband, Joel, in 1991 chose Mail Boxes Etc. as their future, and over the next decade it worked. In fact, it worked so well that the couple once owned and operated a chain of five Mail Boxes Etc. (MBE) stores in the Denver area.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080325/LATU506A)

Then in 2001, Suzy and Joel Meadows’ plan received a near-fatal blow when Atlanta-based United Parcel Service purchased Mail Boxes Etc. and replaced the successful MBE business plan with an unprofitable system under which, as Suzy Meadows said, “only UPS makes any money.”

“And the reason I can say that is we have one of each — an MBE store in Cherry Creek that still makes money under the old Mail Boxes identity, and a converted The UPS Store® in Denver that does not,” Suzy said. In an orchestrated presentation rolled out across the country in February 2003, UPS told franchisees the MBE model was broken and could only be fixed by converting to the UPS Store model.

As this program spread, the Meadows had three stores in Denver, and were forced by UPS to immediately convert two of the stores to the UPS identity. A potential sale of one fell through and for a time the couple ran two UPS units and the Cherry Creek MBE store. “UPS coerced us into converting the other stores, even though we later learned their demand was unjustified,” Suzy added.

“The bottom line, so to speak, is that we have been able to compare the two business models side by side, for almost five years, and believe us, the Mail Boxes Etc. system UPS said was broken beats the UPS store in every respect,” Meadows declared.

Across the U.S., many former MBE franchisees were given the same 2003 ultimatum by UPS: Convert to the UPS Store format within 30 days or risk paying a steep bill for later conversion. Furthermore, MBE was a dying brand. In order to sell a store or renew a franchise agreement, the store owner had to sign the UPS Store® agreement, which relinquished most of the owner’s control — most significantly retail pricing — to UPS and become a The UPS Store®.

“We had no real idea about the new business model,” she added, “and while UPS ran some market tests in St. Louis and Seattle, we franchisees never got any detailed reports on how those tests turned out and why their system was better than MBE’s. All we had was UPS’ constant claim that their system was better. Well, if that was true, why does UPS have a flat growth record (in stores opened) the last couple of years and a falling ranking in the U.S. franchise industry?”

The contrast between MBE, which the Meadows had chosen for its strong but flexible business model, and UPS was evident from the outset, they said. “We very seldom, if ever, hear from regional UPS representatives,” Suzy Meadows noted, “and there is no opportunity to suggest changes in our franchise businesses. For a time after the conversion, they asked me to be a member of the Franchise Advisory Committee, but that turned out to be a powerless group, as UPS clearly did not want any input from us franchisees and eventually stopped communicating with us and cancelled the advisory committee meetings. Basically, when UPS purchased Mail Boxes Etc., they bought 4,000 mom-and-pop franchises and turned them into staffed UPS package drop off counters. They commandeered the investments of small business men and women, most of whom had financed their franchises with their pensions or by borrowing on the equity in their homes.”

Today, the Meadows still have two stores, Mail Boxes Etc. of Cherry Creek, at 191 University Boulevard, and the UPS Store at 820 S. Monaco Parkway, both in Denver.

“We’re still open and taking good care of our customers,” Suzy said, “but our store profitability has dropped significantly since UPS eliminated shipping discounts for MBE stores and surrounded our territory with UPS stores.”

The anger and frustration shared by the Meadows and their MBE associates in a group called the Platinum Shield Association (PSA) led to these franchisees filing a lawsuit against UPS in 2003. That suit, one of four brought by various UPS franchisee groups, is now in Los Angeles Superior Court. Last October a California appellate court certified a national class action on behalf of the UPS Store franchisees.

“Our primary goal is to get our day in court and make UPS answer for the way they have treated their franchisees since the acquisition;” Suzy declared, “many of our people have lost their savings, their homes and even their health just to stay in business since we started this legal action five years ago. It’s been a very tough time.”

Suzy Meadows added that many of her customers still ask whether her Cherry Creek store is a UPS store, and she always replies with a firm, “No. Last holiday season, we probably shipped a total of over 2,000 packages, and only about 20 of them went via UPS. I guess that says we think UPS needs to change its ways.”

READ ALL

The UPS Store®, AIM Mail Centers, Parcel Plus,

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

(FranchiseeMarketing.Com) Here’s a story about how disgruntled franchise owners are taking their grievances online; in this case a Cold Stone Creamery franchisee.

(FranchisePick.Com) In franchising, the Internet has changed everything. It used to be that angry franchise owners just went away quietly. Even those who sued the franchisor did not get the added leverage of press coverage.

But franchisors beware; these days vengeful franchisees spread the word across the Internet… which also happens to be where franchise buyers are doing their research.

The Dissed ‘n Franchised don’t need much of an opening to blast out their message. NJ Star Ledger’s sports writer Dan Graziano casually mentioned in his blog that while visiting the Yankees Spring Training Camp, there was a Cold Stone Creamery next to his hotel. That was all that was needed for frosted ex-Cold Stone Creamery franchise owner Cecil Rolle to leave this icy comment:

READ ON:

Cold Stone Creamery Franchise: Hell Hath no Fury Like a Franchisee Scorned

WHAT DO YOU THINK? LEAVE A COMMENT BELOW.

Photo credit: yanec Licensed under Creative Commons

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(FranchiseeMarketing.Com) Think you could run the chain better than your franchisor? Buy’m out. That’s what a franchisee of Mama Fu’s Noodle House did recently:

Source: BizJournals

Murphy Adams Restaurant Group, the largest franchisee of Mama Fu’s Noodle House, has bought the Mama Fu’s brand in the United States and Mexico for an undisclosed sum.

“We have seen the potential of Mama Fu’s firsthand and look forward to building on the existing brand equity and creating a successful franchise system in the United States and Mexico to replicate our success,” says Randy Murphy, president and CEO of Murphy Adams.

Mama Fu’s has 17 restaurants in the United States, and Austin-based Murphy Adams owns five with a sixth restaurant in development. READ ON

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

(FranchiseeMarketing.Com) Source: St. Petersburg Times

Subway franchisee builds an equity empire

Signs have been cropping up of late announcing shopping developments from European Equities.

It’s not the invasion of the strong euro buying up undervalued American real estate. It’s the outgrowth of a Subway franchisee’s quest to build a fully vertical enterprise.

David McComas is the man behind European Equities, which has done $148-million in area developments in seven years. He also owns 23 Subway franchises on his way to 50. He builds equity for his mostly non-European partners through finding land, constructing buildings and leasing their space, including to his own Subway stores.

“I’m not a developer who depends on deals to support the organization,” said McComas, 39, who lives and works on a $50,000-per-Subway-per-year income. “You think more clearly when the only goal is to build equity.”

European Equities has about 30 projects under way or recently completed in the Tampa Bay area, Miami and Georgia. Of those, a third include one of his Subway stores, but the work involves many retail uses and tenants. READ ON

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

(FranchiseeMarketing.Com)  Source:  Reporter Times

Big O donates to pediatric cancer foundation

David Doyle, franchisee of the Big O Tires stores in Mooresville, Muncie and Plainfield, along with Big O Tires franchisees and the corporate office, have donated $50,000 to Alex’s Lemonade Stand Foundation each of the past two years. The company and its franchises are committed to doing the same again later this year. Big O Tires stores are also providing opportunities for their customers to donate directly to the ALS Foundation.

Alex’s Lemonade Stand (ALS) was started by a young girl named Alexander "Alex" Scott at age four, who while suffering from neuroblastoma, a form of aggressive childhood cancer, began raising funds for research with her own lemonade stand.   READ ON

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

(Franchisee Marketing) Starbucks decision to pull out of a retail space in New Philadelphia, OH near Canton has left developers looking for a franchisee to take over the space.

(Excerpt Source: Canton Repository)

NEW PHILADELPHIA Starbucks is not coming to the city after all.
The coffee giant had planned to locate in a new building near New Towne Mall.
“We were notified recently by Starbucks that they will not be opening at New Philadelphia,” said Mark Jablonski, president of Great Lakes Resources at Cleveland, developer for the site.
“As part of their business plan, they’re going to continue to focus on major metro, urban locations,” Jablonski said.

* * * * *

“We’ve reinvigorated our leasing efforts and have received plenty of feedback from national name-brand retailers,” Jablonski said.
Among them are Dunkin Donuts, Fantastic Sams hair salon, Robeks Juice, Jimmy John’s subs, Tryz Wireless Toys and restaurants Marco’s Pizza, Little Caesar’s Pizza, Mr. Hero and Dairy Queen or one of its Orange Julius operations.
“Those are some of the ones we’ve talked directly with who have expressed an interest,” he said. “One challenge is that in all those instances, they need a qualified franchisee.”

* * * * *
“We’re trying to play matchmaker for a retailer and a franchisee,” Jablonski said. “It’s important to us to select a concept that adds to the center (New Towne Mall) and doesn’t duplicate. Many of those names are new to Tuscarawas County. If we can secure a franchisee, that would set us in the right direction.”
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(FranchiseeMarketing.Com)  Marketing Guru Benjamin Franklin said:  "Necessity is the Mother of Invention."  So when you necessity dictates that you get the word out about your business without a big budget, it’s time to get inventive. 

That’s exactly what sub franchise Erbert & Gerbert’s Subs & Clubs has been doing with low-cost, wildly inventive videos and traffic vortex YouTube.  Their little videos have racked up more than 1 million views.  Take a look at how they turned a potentially "who cares" press release non-event - their 20th birthday - into a clever, offbeat promotion that gained them both awareness and positive branding among the important younger demographic.

Silly, definitely.  But there’s nothing silly about the exposure they’re getting. Views as of 11:20 am EST:   261,634.

 Erbert & Gerbert’s Subs Candle Cannon descripton from YouTube.com

See the world’s largest and most powerful air vortex cannon in action - www.candlecannon.com
Erbert & Gerbert’s has been making Subs Worth Discovering for 20 years. To help them celebrate, we decided to have more than just a party. So we built the world’s largest and most powerful air vortex cannon and had ourselves a Blowout.
Visit candlecannon.com for a coupon to Erbert & Gerbert’s!
See our previous shenanigans at:  humanflipbook.com (less)

 WHAT DO YOU THINK?  SHARE A COMMENT OR BIRTHDAY MESSAGE FOR ERBERT & GERBERT’S SUBS & CLUBS.

Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

 Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

Information provided by the franchise company.  FranBest has not verified every statement or claim, and does not endorse any specific franchises, franchise companies or specific franchise opportunities.  We recommend thorough investigation before investing.

(FranchisePick.Com) When an owner launches their new business, their are generally enthusiastic, upbeat, hopeful, and appreciative of every customer that honors them with a purchase or membership.  However, the strain of surviving tough times can lead to long hours, fatigue, frustration and stress for the owner.  This can result in indifference, impatience and even animosity toward their once-precious customers.   That attitude ends up being picked up by employees and permeates  their business.  Working long hours results in doing domestic tasks or making personal calls during business hours.  Across town, another new, enthusiastic business is opening and the precious customers are never seen again. 

A recent comment exchange on a popular FranchisePick.com about the struggling Butterfly Life fitness franchise illustrated the self-defeating attitudes that creep into struggling businesses (or even non-struggling businesses)… attitudes that can hasten the small business’s demise.

A Butterfly Life customer left a comment (off-topic) expressing her dissatisfaction with her club and the Butterfly Life franchise owner in Minnesota:

Jen
Mar 5, 2008 at 6:01 pm

I don’t have a franchise but I did join a club. I would not recommend it to anyone. I was promised great weight loss results. Instead I gained weight by taking the owners advice. She rather look up things on the internet about buying dogs than help people with equipment issues. I am in the process of trying to get my money back. I tried to cancel but she wouldn’t let me. There is nothing in the contract that states I can’t. The club is in Shakopee, MN. The owners name is Rachel. She is very rude.

A different Butterfly Life owner responded sharply:

confused
Mar 6, 2008 at 7:12 am

I dont feel that comments from customers who had a bad exerience with 1 owner should be allowed on this site. All of my members showed great improvement after their 4 week evaluation, but I don’t sit around & look things up on the web. The title of this site is: “is butterfly life a great FRANCHISE”. That is called slander lady-get a life.

An ex-franchise Butterfly Life franchise owner was able to provide a less emotional, positive response - perhaps because her club is closed and she’s no longer on the front line, dealing with members daily: 

• Butterfly flying
  Mar 6, 2008 at 9:03 am

  …obviously Jen had a bad experience and she’s frustrated. She was voicing her opinion about what happened and in a sense warning others about that particular club. That is not slander it’s merely a statement about what happened. Jen, I’m sorry that you had an unpleasant experience with your particular club. The owner should have coached you about your eating habits and your workout program. There is no possible way that the “equipment” caused your weight gain unless you increased muscle mass ~~ that will give a spike in weight on the scale but that’s because muscle weighs more than fat AND that’s exactly what you want to happen. You may want to re-think that one.
  This site is about Butterfly Life being a good franchise option or not. Our club is now closed and it isn’t because of the product, it’s due (in a nutshell) to Corporates’ lack of doing what it promised. We are involved in the class action so I won’t say more than that.
  Jen, you did sign a binding contract so I’m going to suggest that you try to talk with Rachel and tell her that you aren’t happy with the program and ask her to go through it with you again and set up a better workout plan for you…

I have no doubt that "Confused" was every bit as customer service oriented when she first opened her club… but her words indicate things have changed.  
An owner publicly telling a customer that she should not be allowed to express her dissatisfaction and to “get a life,” rather than showing concern for her situation, does a lot more damage than her complaint, IMHO.

Does "Confused" have 100% member retention from all of those successful members? If not, did those who left openly share with her why they were leaving? It’s not likely.  I’m sure they each eventually told 10-20 others why they quit, if even for indifference.  That compounds the struggles and makes a difficult situation worse.

It’s hard to keep up the cheerful enthusiasm and customer service you had when you first opened. But owners have to be careful not to let their own frustrations make their situations even worse. Your customers are paying a monthly fee for services promised to them. Your profitability, sales levels and frustrations are not their problem. If you tell them to take their opinions elsewhere, their business, referral power and your good name with go with them.

Hopefully, Jen will share her dissatisfaction with the owner and give her a second chance to make things right.  If that doesn’t work, she’d be wise to start shopping for another club, because Rachel’s isn’t likely to be there much longer.

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(FranchiseeMarketing.Com)  Here’s info on the multi-unit franchising conference coming up in Scottsdale this April:

JUST 4 DAYS LEFT TO SAVE! SAVE $220

Time is running out for you to save $220 off registration for the 7th annual Multi-Unit Franchising Conference, April 23-25, in Scottsdale. Register by this Friday, 2/29, to take advantage of the early bird registration rates.

Top 5 Reasons to Attend

1. One of a Kind. Be a part of the only conference focused exclusively on multi-unit franchising.
2. Networking. Build relationships with like minded multi-unit franchising insiders.
3. Knowledge. Hear insights from industry experts in information packed sessions.
4. Opportunities. Discover franchise opportunities, services, and solutions to grow your business.
5. Leadership.  Sharpen your management skills and accelerate your career growth.

Conference Highlights

• Expanded and Targeted Agenda - New for this year, an entire day of educational sessions!
• Learn from the Masters - 4 Keynotes and over 30 franchising expert speakers in 23 sessions.
• 5 Star Venue - Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch
• More Networking Opportunities - Expo hall, cocktail receptions, dinner, and a golf tournament. There’s no better place to reaffirm relationships or start new ones.

You’ve Got Just 4 Days Left to Save
Register before 2/29/08 and save $220 off the regular registration rate. Group discounts are also available for groups of 3 or more.

full conference details available at
www.areadeveloper.us and www.multiunitfranchisingconference.com

Visit FRANBEST: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and and business opportunities.

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Hello all!

Having that kind of a week!

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