PIZZA HUT: Viral Video Appeals to Racist Moron Demographic
December 30, 2008 by Sean Kelly · Comments Off
(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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* 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
CORK & OLIVE: Michael Probst Launches Exciting New Venture
December 30, 2008 by Sean Kelly · Comments Off
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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Tags: bankruptcy, CORK & OLIVE, cork & olive franchise, merger and acquisition corp., michael probst, rainer appold, wine franchise, wine store franchises
GEEKS ON CALL: Franchisee Geeks Squeal on Papa Geek
December 26, 2008 by Sean Kelly · Comments Off
(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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Tags: franchise, franchisee, franchisees, fraud, GEEKS ON CALL, lawsuit, suing, Ticker: GOCH, united we geek
THE UPS STORE Franchisees: Drop-Offs Can Drop Dead
December 24, 2008 by Sean Kelly · Comments Off
Did you receive curt or downright rude service when dropping off packages at The UPS Store this holiday season?
It may be they were coping with the holiday rush.
Or it may be that The UPS Store franchise owner hates your guts. 
After all, you who drop off UPS packages without buying anything are freeloaders. Non-paying leeches. Bloodsucking parasites feeding off the host of their life savings.
Commenting at the post Is The UPS Store a Good Franchise Opportunity?, the manager writes:
The person printing saving the 5.00 label is UPS customer and not a customer of the TUPSS…
THIS IS NOT A CUSTOMER. THIS IS A FREELOADER THAT WANTS US TO KEEP OUR STORES OPEN PAY OUR RENT SO THAT HE CAN GET LOW RATES FROM UPS YET HAVE THE CONVENIENCE OF US SERVICING HIM, ANSWERING HIS QUESTIONS, TAPING HIS PACKAGES.
Francois writes:
A person that comes into a store with a dropoff is not a customer, they have spent no money in that establishment, they are not supporting that establishment. The owner is well within his rights to charge for any ancillary service (which might normally be gratis to a paying customer) which assists the non paying leach…
financials writes:
It’s unfortunate that UPS chose to put the owner in the middle, and out of frustration, the owner now takes it out on UPS’ customer. (notice it is NOT the stores customer).
UPS Store Owners are Rightfully Pissed Off…
You can’t blame The UPS Store franchisees for being pissed off. They were sold franchises under the promise of building a local shipping business with the power and brand name of shipping giant UPS. Once they had invested their life savings, they claim the shipping giant undermined them by going direct to their potential customers with cheaper pricing. Instead of paying The UPS Store, many customers pay UPS directly, print out their own labels and drop their packages off at The UPS Store.
The UPS Stores, which receive $1.00 or less per drop-off, claim they’ve become glorified drop-boxes for UPS. And they’ve got a point…
…But Why Blame the Customer?
Some The UPS Store franchisees have let their justifiable anger at UPS undermine the service philosophy of their stores. They think they’re justified in being nice to shipping customers and rude to drop-off customers. Yelp! reviews of one CA The UPS Store show how these attitudes are not lost on customers:
Rated: 2/5 stars Customer comments:
“Good attitude if you ship from this store. Bad attitude when you just drop off the package to ship.”
“The lady here is not nice… it’s the first time I’ve ever been to The UPS Store. =( But probably not to this one again.”
“…she gave me attitude and said ‘you didn’t give me the business, and bring me in the trouble.’”
“Did I really need to be lectured twice…?”
“the lady behind the counter was pretty angry.”
“I’m not fond of being verbally abused”
“She’s ONLY nice if you bring an UNPAID package… avoid this place.”
Customer Abuse is Self-Defeating
While their anger is understandable, it’s both misplaced and self-defeating. The commenters who defend maintaining a “caste system” of customers are operating under two dangerous misconceptions. The first is that all people who drop-off packages are not customers, and the second is that you can be selectively rude without negatively affecting the reputation of the entire business.
Drop-offs aren’t customers? Successful shop owners don’t perceive customers as single, isolated transactions. They perceive the lifetime value of customers and potential customers. Low shipping revenue means that the store owners must work to maximize non-shipping revenue, such as document imaging, photocopying, mailbox rental, notary services, etc. Today’s drop-off visitor is likely tomorrow’s (or yesterday’s) purchaser of other products and/or services. UPS Store owners are missing the concept of the loss leader, getting potential customers into the store to sell them on higher-margin purchases.
Rudeness is anti-branding. Word of mouth marketing is critical, especially when times are hard. Imagine how many people leave the store above unhappy. Imagine how many people they complain to. Imagine how much business they send to competitors. The UPS Store franchisees need to realize that even drop-off visitors still provide powerful word-of-mouth marketing and referrals. It’s up to them whether they get the referrals, or their competitor does.
Some of The UPS Stores Are Doing It Right
Some of The UPS Store franchisees have decided to take a healthier approach to running a service business. They keep their ongoing battle between themselves and UPS, and focus on what successful b2b service businesses do: help their customers succeed. Consider the reviews of this The UPS Store in the same state as the one cited earlier:
UPS Store, Portal Ave, San Francisco
Rated: 5/5 stars Customer comments:“I… had the opportunity to witness them service other customers. They were great to all of them too.”
“I’ll definitely ship through this store from now on
“I can tell you “ALL” of their staff are so helpful and great people. They treat all the customers that come there, even the crazy ones with kindness and professionalism.”
“I listen to them telling someone information that they probably repeat hundreds of time and just think, how they always say it in an informal nice way? I don’t know how they train or pick their people but it empresses me.”
“They win the award for best businesses in San Francisco for me.”
Which of these stores do you think does better financially? Which of these franchisees is happier (or less miserable)? And which has more credibility in building a case against UPS?
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Tags: franchise, franchisee, franchisees, reviews, service, The UPS Store, UPS
GEEKS ON CALL: A Geek Tragedy in the Making
December 23, 2008 by Sean Kelly · Comments Off
(FranchisePick.com) 10 Geek warriors have donned legal armor and challenged their franchisor to engage them on the battlefield of the Norfolk Circuit Court.
These bold Geeks on Call franchisees claim their franchisor, Geeks On Call Holdings, has impuned the integrity of their noble 
brand. They claim GOCH is competing with its own franchises via its remote CalltheGeeks.com service. They accuse Geeks On Call Holdings of overall mismanagement, and implementing a call routing system that negatively affects their sales.
These bold 10 are suing for $1M to $5M each.
Geeks On Call Holdings is striking back. The company denies these claims and contends it is the treasonous plaintiffs who seek to build a competing business model. GOCH points out that many of these franchisee’s sales are, in fact, up over last year. Instead of working constructively with the franchisor to help seize opportunities, the plaintiffs are waging a campaign of disparagement that is harming the entire Geeks on Call franchise community.
Will these franchisees topple the Geek Empire?
There’s no doubt that the Geek Empire is on shaky ground. A Geeks on Call franchisee website estimates that the number of franchise locations has declined from 350 in 2005 to approximately 260 in 2008. As we pointed out in yesterday’s post (GEEKS ON CALL: Beware of Geeks Baring Rifts), Geeks On Call Holdings Inc. reported a net loss of $4.96 million on revenue of $5.24 million for the fiscal year ended Aug. 31. Part of the financial strain was the cost of the Geeks On Call reverse merger earlier this year to become a publicly traded company (GOCH). Its financial report contains the ominous caveat: “These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.”
The franchisee lawsuits put additional strain on the already troubled company. So why would a group of franchisees sue at this vulnerable moment and risk toppling their own chain? The answer may lie in the franchisor’s contention that some of the plaintiffs, on behalf of the group, “approached a former employee to assist them in building a competitive business model in violation of the franchise agreement.”
At least Greek tragedies had a hero
Could it be that these plaintiff franchisees true motives are to get out of their franchise and non-compete agreements, with a mil or two seed money, so that they can compete with their ailing former chain with their own concept?
Are they leading the charge and championing accountability on behalf of their fellow Geek franchisees, or are they intentionally sabotaging the system from within?
It’s hard to tell, at this point. But two things are clear:
This is franchising at its ugliest.
Like many tragedies, the stage will be strewn with bodies when the final curtain goes down.
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GEEKS ON CALL: Beware of Geeks Baring Rifts
December 21, 2008 by Sean Kelly · Comments Off
Hell hath no fury like a geek scorned. According to a post on Unhappy Franchisee (Geeks on Call Franchisees Sue Struggling Franchisor), 10 Geeks on Call franchisees have launched a salvo of lawsuits against their franchisor in federal court.
7 Geek plaintiffs are suing for $1 million for damages and the other three want $1.4 million, $4 million and $5 million, plus, assumedly, new tape for their glasses.
The franchisee Geeks allege that franchisor Geeks On Call America Inc. company breached its contracts and engaged in fraud.
Geeks Prepare for Battle
A news report by The Virginian-Pilot states the suits contends that “Geeks On Call took business away from franchisees by operating a competing online repair service. Meanwhile, the installation of a new system for routing customers to specific franchisees has hampered their customer service and ability to communicate with Geeks On Call, the plaintiffs said.”
Geeks Suing to Protect Their Brand Image. Seriously.
The Geeks On Call franchisees also contend that the company abandoned its Geeks On Call trademark for the brand 1 800 905 GEEK, creating brand confusion and deflating the value of their franchises.
Yes, it’s true. The Geeks are suing protect their ultra-cool image as Geeks on Call.
It’s all Geek to Me.
General counsel for defendant Geeks On Call Holdings Inc., Mark Baumgartner, denied the allegations and claimed the franchisees were blaming their own financial troubles on the franchisor. He claims:
- Some of those who have filed suit are in financial trouble & owe money to the franchisor
- The company didn’t abandon the Geeks On Call brand, just expanded it
- The company-owned repair service is only offered where there’re no franchisees, so is not a competitor
- Concerns about call center cutbacks are unfounded, as there has been no reduction in the staff
A Classic Geek Tragedy in the Making?
Earlier this month, Geeks On Call Holdings Inc. reported a net loss of $4.96 million on revenue of $5.24 million for the fiscal year ended Aug. 31. The company has reported it has enough working capital to sustain itself for another six months. The question is: Can it survive this attack from within?
What do you think about the Revenge of the Geeks? Share a comment below.
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Tags: 1 800 905 GEEKS, computer services, franchise, franchisee, franchisees, fraud, GEEKS ON CALL, lawsuit, litigation
CURVES FRANCHISE FAILURE: Is Economy REALLY To Blame?
December 21, 2008 by Sean Kelly · Comments Off
According to a post on Unhappy Franchisee (Curves Franchisee Blames Economy for Closing), the Albany, MN Curves shut its doors for good, and franchise owner Carol Smith blames the recession.
Smith also owns another nearby Curves. The Albany Curves had been open for six years; Smith had owned it for two years. According to the post, Smith contends the economy was to blame for the membership decreasing from more than 100 two years ago to about 45 at the time of closing.
Is the recession really to blame? Or the club doomed from the start?
A frequent complaint of struggling Curves owners is that the territories they were sold were too small to be viable long term. A quick search reveals that the population of Albany, MN is 2,095, and the female population is 1,124
If you subtract 25% for those under 18 or too old to join, you get a 843 total potential members.
Is this really enough population to support not one – but two – Curves clubs? Is this economy to blame – or just the last inevitable nail in the coffin?
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Make & Take Gourmet, Bellso Serve Up Franchise Fraud To Go
December 18, 2008 by Sean Kelly · Comments Off
Michele Bellso and her ill-fated Make and Take Gourmet meal assembly kitchen franchise chain continue to provide compelling examples of how NOT to start and run a franchise chain. Their newest lesson plan includes a special guest appearance by, pound for pound, the hardest working franchise enforcement agency: the Maryland Attorney General.
According to this post on Unhappy Franchisee, the Securities Division of the Office of the Attorney General of Maryland “finds grounds to allege that Respondents Make and Take Holding, LLC and Michele Bellso violated the registration, disclosure, and antifraud provisions of the Maryland Franchise Law, in relation to the offer and sale of a Make and Take Gourmet franchise in Maryland.” The Maryland AG has issued an Order to Show Cause, giving Bellso and Make & Take Gourmet an opportunity to “show cause” why a final order should not be entered against them.
The article Make & Take Gourmet, Michele Bellso Accused of Franchise Fraud (AG) states that there are three main allegations against Bellso and the Make & Take Gourmet franchisor:
- Make & Take Gourmet Sold Unregistered Franchises
- Make & Take Gourmet Violated Franchise Disclosure Laws
- Make & Take Gourmet Skirted MD Escrow Requirements
- Make & Take Gourmet Made Illegal Earnings Claims
Interestingly enough, FranchisePick.com has been making 3 of the 4 allegations since April of this year based solely on information printed in the media. Check it out:
April 28th, 2008 Make & Take Gourmet: Meal Prep Franchisor Takes Failures in Stride
May 5th, 2008 Patrons of Failed Franchise Blast Make and Take Gourmet Franchisor Bellso
June 4th, 2008 There’s Truth Within the Franchise Spin. Here’s How to Find It.
July 9th, 2008 Bellso Definitely a Leader in the Meal Dissembly Kitchen Franchising
August 13th, 2008 MAKE & TAKE GOURMET FRANCHISE LAWSUIT: Failed Franchise Owners Allege Fraud
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Rave Reviews for Village Coffee
December 17, 2008 by Top New Franchises · Comments Off
Customers. Employees. Associates. Friends. What do you love about Village Coffee? Why makes it a Top New Franchise? Share a comment, insight, experience or positive message below.
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Pure Weight Loss Members to Receive $700,000 in Refunds
December 14, 2008 by Sean Kelly · Comments Off
PA Attorney General Tom Corbett has really come through for the former Pure Weight Loss (formerly LA Weight Loss) members. In a recent press release, Corbett’s office announced it has reached a consent decree that requires the Horsham, PA based company to pay $500,000 to the Pennsylvania Office of Attorney General, for distribution to consumers who pre-paid for products and services that were not delivered, and another $200,000 to provide restitution to consumers who filed claims against Pure Weight Loss in the U.S. Bankruptcy Court.
Additionally, the Pennsylvania Office of Attorney General is also working with authorities from the states of New York and Maryland to recover additional funds for consumers from the states.
[Read full press release here: Pure Weight Loss to Pay $700,000 to Former Members (Weight Loss Complaints)]
Both New York and Maryland require weight loss centers to post security bonds intended to protect consumers against losses, and all complaints involving consumers from those states will be turned over to authorities in New York and Maryland as claims against those security bonds – allowing the remaining funds to be distributed to consumers from Pennsylvania and other states.
When the much-maligned Pure Weight Loss (formerly LA Weight Loss) chain abruptly closed its 400 locations nationwide in January, 2008, it left thousands of members owed hundreds of thousands in prepaid products and services.
In another story, the EEOC has won a $20 Million award against Pure Weight Loss for hiring discrimination. Read more here: The EEOC Celebrates $20M Victory Over Non-Existent Company (about Pure Weight Loss)
Related posts:
> PURE WEIGHT LOSS INFORMATION CENTER
HOW MUCH DOES PURE WEIGHT LOSS OWE YOU?
Pure Weight Loss (L.A. Weight Loss) to Close All 400 Locations
PURE WEIGHT LOSS CUSTOMERS: SHARE NEWS & OPINIONS HERE
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Tags: L.A. weight loss bankruptcy, L.A. Weight Loss refund, pa attorney general, pure weight loss bankruptcy, pure weight loss refund, Vahan Karabajakian, vahan karian
