Garth Snider, FranchiseOpportunities.com

2009 wrap-up, 2010 franchise predictions FranchiseOpportunities.com is one of the leading franchise advertising portals catering to individuals seeking franchise opportunities.

As President, Garth Snider has a unique view of the franchise marketplace and the shifting behaviors and interests of franchise buyers.

Garth shared the following observations, insights and predictions with FranBest.com.

FranBest:  What types of franchises attracted the most interest in 2009 ?

Snider: As far as categories, Food still receives the most inquiries.  But business services is coming on strong.  Senior care and in-home health care continue to do well and will probably for the foreseeable future.  Child related franchises and auto related franchises (products and services) seem to have given up some ground in 2009 vs. 2008.

In terms of investment level, franchises that have an “all-in” cost below 100k are far and away doing the best.   80% of our franchise inquiries are for concepts with an initial investment below $100,000.  These concepts are less likely to need financing and thus are more in demand.   Businesses that can be run from home and/or run as a second source of income are also doing very well.   Vending concepts are very popular right now as well as they fit both of these profiles.

FranBest:  Can you name a few FranchiseOpportunities.com advertisers are attracting strong interest?

Snider: The Drug Test Consultant and Yo Naturals vending.   As to the former, this company sold 10 deals from FranchiseOpportunities.com alone this month.  The owner is doing 15 deals a month.  Both companies have increased their advertising spending with FranchiseOpportunities.com recently as well- a good sign of profitability.

FranBest: How is the credit crunch affecting franchise selection?

Snider: There is still a lot of interest in the food franchises but the entry point is prohibitive for many given the credit crunch.  Coffee franchises continue to draw a lot of interest and new concepts continue to come on the scene.   This is an industry that I think is one to keep an eye on.  The bloom is off the rose a bit for Starbucks, I would argue, and I think the challengers (i.e. smaller coffee franchises) can make some good headway in the years to come.

FranBest: Is the aging baby boomer demographic still creating opportunities?

Snider: Definitely.  In-home senior care is doing very well.   They are mostly under 100k and they have a product that many people need, not just want.   There is demand for this product and the supply (number of concepts) has increased more than any other industry that we have in the last two years.  These too have increased their spending with us.  The best example is Right at Home.

FranBest: Thanks for sharing your observations.

Snider: Thanks for the opportunity.

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CUPPY’S: Dale & Natalie Nabors “have done nothing wrong”

On the Dale Nabors-Fraud thread in the Muscle Shoals forum, local parents keep the unhappy Cuppy’s Coffee franchisees, “depositers,” and creditors updated on the activities of the man they blame for their lost investments. 

A parent’s reporting of their attendance at their children’s kindergarten program prompted a rare message from what some forum members believe is Dale Nabors himself (referring to himself in the 3rd person).

Tuesday, December 15, Guest posted “THEY WERE AT KINDERGARTEN CHRISTMAS PROGRAM TONIGHT…”

Wednesday, December 16, 2009 commenter “Judgement” fired back:

Yes, they were at the Christmas program, you know why? Because they have done nothing wrong, and have nothing to hide. AND IF YOU’RE SO "CLOSE" TO THE SITUATION, then you would know:

a.) that the Nabors had a modestly comfortable life prior to Cuppy’s and like many (it would appear) lost a lot due to their involvement with Cuppy’s.

b.) that the ‘charges’ were/are really a ‘civil’ matter, and that the most probable outcome is that they will ultimately be handled as such. You’d also know that Natalie had little to nothing to do with the matter outside of having been a signatory on a contract and that she had little to no knowledge of the situation. Just as she had little to no involvement with the day-to-day operations of Cuppy’s.

c.) they have made every effort to be a good husband/wife to one another and good parents to their children. Natalie has always been very active in the school activities of the children, as has Dale to a lesser degree. They have also made every effort to protect the children, as much as possible, from all the stress and problems which have resulted from their involvement with Cuppy’s.

d.) as recently as just a few months back, Dale was still trying to find a way to salvage the Cuppy’s mess.

e.) few have fallen further or lost more than Dale and Natalie, as a result of the Cupppy’s fiasco. I know for a fact that Dale inherited/purchased the right to own the BIG MESS. He may have made mistakes which made the situation worse. However, his primary goal was to make a bad situation better. He is totally humiliated and embarrassed by his failure and the shame IT has brought to his family.

If you have a dog in the Cuppy’s fight and want to attack and judge Dale for his handling of the Cuppy’s situation, you certainly have that right. However, one should be ASHAMED of themselves for personally attacking his wife and/or children.

When you judge another, you do not define them, you define yourself. I hope that Dale knows that only men judge us by the success of our efforts. God looks at the efforts themselves. God Bless you and your family!

“Dale is Judgement” wrote:

Dale, we’ve read enough of your crap to identify your writing. Nice try. It is obvious you are "Judgement".

a) A comfortable lifestyle? What’s your credit rating? Do you even have a credit card? Is your furniture owned or rented? Do you have health insurance or on medicaid? Who are you conning these days to pay your bills?

b) Yes, we are aware that Natalie is not the brightest bulb on the tree.

c) Will not comment other than to say perhaps you can be pen pals when you’re both in jail.

d) Dale, the only thing you’re doing is making an effort to keep you smoking ass out of jail. You don’t fool anyone.

e) You didn’t invest anything, therefore, you didn’t have anything to lose. And for the record, did you even have any Fransynergy customers? Or was it all a front for the coffee cup. Oh, poor Dale… Tried to rescue all those coffee investors as you stayed up all night counting all their money for you to spend…

All I can say is "HO! Ho! Ho! It’s off to JAIL you GO!"

Seen the movie The Firm? Fasten you seatbelt, Robert Dale Nabors!(or shall I say handcuffs?)

“Survivors” from Ames, IA wrote:

Dale – Please do us survivors a favor. Please release us in writing from our contracts with the company. You do still have our records and didn’t violate our confidentiality by leaving them all in Florida, right?

Or – Better yet – disolve your private venture by issuing each one of us survivors 1 share of stock in our own company and let us get on with doing something with the shards of the company.

Maybe the survivors can reform on what little cash we have left and salvage something better than all of the "goodwill" that you are robbing our current brand of.

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OCTOCLEAN Janitorial Services Franchise

Janitorial franchises have created so many unhappy franchise owners, the FTC and the Maryland Attorney General’s Office issued the FTC Guide to Buying a Janitorial Services Franchise. 

One company, Octoclean, claims to be transforming the contentious janitorial segment of franchising.  OctoClean claims it currently has 150 unit franchise owners, and is dedicated to franchise owner success.

The OctoClean website claims:

OctoClean’s financial performance clearly demonstrates the viability of the business model and the services the Franchise Owners provide. Having doubled its gross sales between 2003 and 2008, OctoClean has positioned itself as an emerging leader in the janitorial services industry. OctoClean’s business plan calls for continued aggressive growth in both the number of active Franchise Owners and the markets in which OctoClean’s services are offered. Within the next five years, OctoClean will open Franchise Centers in the western United States. The total number of OctoClean Franchise Owners is slated to exceed 500 in California and Nevada.

It claims that “the heart of the company is its Charter which clearly defines OctoClean’s purpose, mission and core values…”

“OctoClean is an enterprise whose purpose is to transform the janitorial industry. We empower and enable people to be successful business owners. We create programs and services that thrill our customers. Our mission is to have the rewards and freedom of successful franchise ownership available to all people.”

However, an unhappy franchise owner (posting on complaint site RipoffReport) claims that OctoClean is guilty of the same tactics that have been levelled against many other companies offering low-cost “buy-a-job” janitorial franchises, including high fees, low profitability jobs and “churning” of janitorial accounts from one franchisee to another. 

Commenter “Esmeralda (Fontana California)” left this comment on RipoffReport:

Octoclean starts to tell you about how much money its going to help you make, it talks about you starting with 2,000 dollars minimum a month. How much its going cost you, thats about 22,000 dollars for the franchise, they don’t make this clear, they tell you that you have 4 years to pay it off.

Then you have to buy cleaning supplies only with them, they also make money off of your orders, they say they will have your back and how much they are there to help you, now that a lie.

First chance they get they will come a take the building from you and sell it to the next person. Each and every building is sold at 2.80% for sales and marketing fees, sounds good you might say, ok for example they give you a building that pays 2,000 dollars a month now you pay them 5,600 in payment over the next 11 months and after its yours, still sound like the perfect deal, well once you think about that alot of income right, wrong you have to have employees, pay workers comp. ins.

You have to go on your days off to see your so called clients to see if they are satisfied with your job. You can get a call about a restroom missing hand soap at 9 a.m. after working until 3 a.m. the night before and have to drive to the building to put soap in the restroom that has two dispenser and only one is empty, or pay them a fee to take care of it, they will tell you that they will handle all the complaints, not true thats how they control you, they will never go out to your building to check them out they only go when there is a complaint, and sometimes the complaint is that nail has been behind that desk for a week and they take pictures of it so they have proof when they decide to threaten to (fire you) remove you they claim but its fire.

You pay for supplies, employees, insurances, and guess what 15% administration fee and a extra 10% fee, plus what the building cost you end up working for less than minimum wages, or cut clients short to make up the money somewhere. Don’t think they will not remove you from a building, they will not hesitate to remove you, they promise to bring you back and they wont, they will make mistakes on your invoices and then turn around and dock it from your pocket, because they didn’t know that they were over billing for a office that moved out over a year ago and you notified them. They will let you order supplies from them a day before the call you to tell you that you have been removed from the building and turn over keys, and charge you for the supplies when you have no use for them.

They will make promises to you but beware they will screw you and everybody over. Where they make there real money is selling the same building over and over again for sale and marketing fees . If you try to sue them its is nearly impossible because they have a discloser on the contract that is like 80 pages full of words that is not for you and I to understand that state that if you want litigation it has to takes place in Sacramento… Its is to costly for you to pursue this so you end up leaving it alone and they end up with your money anyways. SO BEFORE YOU BUY INTO OCTOCLEAN TAKE THIS INTO CONSIDERATION……………

Janitorial and cleaning franchises that, in essence, sell franchise owners commercial cleaning contracts are one of the most troublesome areas of the franchise industry.  Before investing, be sure to read FTC Guide to Buying a Janitorial Services Franchise.

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FTC Guide to Buying a Janitorial Services Franchise

FTC’s Guide to Buying a Janitorial Services Franchise

Produced jointly with the Maryland Attorney General’s Office.

If you’re thinking about starting your own business and have only a small amount to invest, you may be considering buying a janitorial services franchise. For a fee, a janitorial service company (the "franchisor") typically provides you (the "franchisee") with customers and marketing, billing and collection services.

Every franchisor has success stories to share. Be cautious. While success in the janitorial service industry is possible, it’s not a guarantee.

A glossary of terms commonly used in the franchise industry is included at the end of this brochure.

How Janitorial Services Franchises Work

In a typical janitorial cleaning franchise, you pay the franchisor a fee for a "package" of cleaning accounts. The fee is based on the dollar value of cleaning accounts that the franchisor will make available. The fee usually is about half the gross income the accounts are supposed to generate in a year. For example, for a fee of $10,000, you’ll get accounts worth $20,000; for a fee of $15,000, you’ll get accounts worth $30,000. You also may have to pay ongoing royalty or management fees.

The franchisor may offer you financing. This may sound especially attractive if you have trouble getting credit from traditional lenders.

The franchisor is supposed to offer you cleaning accounts that will produce the level of income represented in the package you purchased. However, several factors can affect that level of income. For example, if you don’t accept an account, the franchisor may not have to offer you a substitute. Or, if you refuse an account because you feel it’s located too far away, you may lose your right to that income. Also, if you lose accounts because you did a poor cleaning job, the franchisor doesn’t have to replace those accounts.

Problems You May Face

The Federal Trade Commission and the Maryland Attorney General’s Office advise you to use caution when thinking about buying a janitorial services franchise, which often appeal to immigrants and others who speak limited English. The franchise agreement you’ll receive from the franchisor may be long and complex. It may be difficult to understand your legal rights and obligations, and the obligations of the franchisor. Consider getting professional advice. Ask a lawyer, accountant or business advisor to review the franchise agreement. The money and time you spend on professional help may save you from a bad investment.

Here are some of the problems you may face:

• Accounts offered versus accounts received. There may be a difference between the accounts the franchisor promises to offer you and the accounts you actually receive, as well as the revenue that comes with them. For example, the franchisor may promise to offer you accounts generating $1,000 in monthly billings for the first year. To meet its obligations, the franchisor may offer you more than one cleaning account. But given time conflicts, distance issues or other problems, you may not be able to accept all the accounts the franchisor offers. What’s more, the franchisor may offer the same accounts to several franchisees on a first-come, first-served basis. If you can’t accept an account because you can’t get to the location, or if another franchisee accepts the account first, the franchisor may have satisfied its obligation to offer you accounts. Because the franchisor may not tell you about this policy before you buy the ”package" of accounts, you should not count on receiving all the revenue that the franchisor promised at first.
• Rejected accounts. The franchisor may not have to replace an account that you reject.
• Franchisor-selected accounts. The franchisor usually selects accounts for you. The size, number and location of the accounts may not be what you expect. For example, the franchisor may require you to service more than one account at the same time, or the job sites may be far apart.
• Lost accounts. Most janitorial franchise agreements specify that if a customer cancels the cleaning contract, the franchisor doesn’t have to replace the account for you. In fact, you may have to pay an extra sales and marketing fee for a new account to make up for the lost income.
• Integration clauses. The franchise agreement you sign may contain a clause that limits the terms of your agreement to those specifically detailed in the written franchise agreement. This means that any oral claims or promises made by the franchisor are not part of your agreement. This is one reason why it’s so important to get all promises in writing in the franchise agreement. 
• First year time lag for receiving accounts. The package of accounts you buy will suggest a level of income within a year. But the franchisor may take several months to supply you with the promised accounts. That means you may not earn any income until several months after you’ve purchased the package, so you may not earn the estimated annual income. Therefore, it’s important to have other sources of income during your first few months of operation.
• Ongoing fees. The franchisor may charge you a monthly management or service fee. You’ll have to pay the fee even if you don’t have any income from your cleaning business that month. If you finance the franchise fee, you must make the monthly payment on that debt whether or not you’re receiving income from the cleaning business. And although you may find customers without the franchisor’s help, any income from a cleaning account you solicit will be included when the franchisor calculates the royalty and management fees you owe.
• Franchisor-owned accounts. The franchisor may own all the customer accounts, including those that you get on your own. This means that if your franchise agreement ends, you will not be able to service the accounts for which you paid a fee, and you won’t be able to service the accounts you got on your own, either.
• Training. Get information about the franchisor’s training program before you invest. The franchisor decides the type of training you’ll get. It may involve watching videos and reading books; it may not involve classroom or on-site training.
• Contract bidding procedures. The franchisor may not tell you how it bids for cleaning contracts or what specific services you must provide to the customers. The franchisor may only tell you that you should be able to earn $12 to $15 an hour doing janitorial work. However, when bidding for cleaning contracts, the franchisor may offer your services at a lower rate, and you may have no say in whether the amount charged is reasonable. So even though the account is represented as being worth a certain amount of money, it may not be worth that much to you, and you may not be able to make a profit once you pay for expenses like supplies and transportation costs.
• Short-term accounts. People who operate janitorial franchises often find that customers rarely maintain an account for more than a year. That’s because customers prefer short-term contracts so they can shop for the best deal. If the franchisor offers you replacement accounts, you may have to pay a new referral or marketing fee.
• Performance obligations. You may have to meet minimum monthly performance or growth requirements. If you don’t, you may lose the franchise. Worse yet, you may not have the right to a refund of your franchise fee.
• Payment for services. The franchisor collects payment from your customers. If the customer doesn’t pay, you don’t get paid. The franchisor may not be legally obligated to force the customer to pay, but if the franchisor sues for payment, you may have to pay the legal costs.
• Personal guarantees. Many franchisors require franchisees to personally guarantee the obligations of the franchise business. This means that if your business assets don’t cover your franchise obligations, you could lose personal assets, like your home or car.
• Anti-competition rules. You and your immediate family (your spouse and children) may not be allowed to have an ownership interest or perform services in another cleaning business, even if your family members don’t have an ownership interest in your janitorial franchise. This restriction may continue even after your franchise ends.

The FTC’s Franchise Rule

By law, a franchisor must give you a detailed disclosure document. The disclosure document should include:

• the total number of franchises, and the number of franchises terminated or not renewed during the previous year;
• the bases and assumptions for any claims about potential earnings or the earnings of existing franchisees;
• the cost of starting and maintaining the business;
• the names, addresses and telephone numbers of at least 10 franchisees who live closest to you (names, addresses and telephone numbers of at least 100 franchisees is required in some states, including Maryland) ;
• the background and experience of the franchisor’s key executives;
• a fully audited financial statement of the franchisor;
• any lawsuits against the franchisor or its directors by franchisees; and
• the responsibilities you and the franchisor have to each other once you’ve purchased the franchise.

You should receive the disclosure document at least 10 business days before you pay any money or legally commit yourself to buying a franchise. Ten business days should give you enough time to review the document, get answers to your questions, talk to franchisees and get advice from an attorney, accountant or business advisor.

Protect Yourself

Buying a franchise is a big decision. Before you commit, take the following precautions:

• Read the company’s disclosure document. Review it carefully to learn more about your obligations, the litigation history of the franchisor and failure rates. This information will help you decide whether franchisees are dissatisfied with the franchise.
• Talk to other franchisees. Don’t rely only on the information the franchisor gives you. Talk to current and former franchisees about their experiences with the franchisor. Their names, telephone numbers and addresses should be in the company’s disclosure document. The franchisor may refer you directly to franchisees who are known to be successful. Don’t rely on references the company selects.
• Contact your state franchise administrator. If you live in California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, South Dakota or Virginia, your state has an office that regulates the offer and sale of franchises. Contact your state franchise administrator before you invest. Ask if the franchise you’re considering is registered to offer franchises in your state. If you live in Maryland, call the Maryland Attorney General’s Office at (888) 743-0023, or visit www.oag.state.md.us. If you live outside of Maryland, you can find the name of your state franchise administrator, by calling the North American Securities Administrators Association at (202) 737-0900 or visit www.nasaa.org. You also may contact your state Attorney General (www.naag.org) or Better Business Bureau (www.bbb.org) for more information.
• Get all promises in writing. If a salesperson tells you that the franchisor will give you accounts near your home, but the written agreement defines the geographic area more broadly, it’s what’s in the written agreement that counts. If a provision in the agreement is different from anything you discussed with the salesperson, demand that the written agreement be changed. If a salesperson tells you that you should be able to make $12 to $15 an hour, make sure that prediction is included in the disclosure document. If the salesperson or franchisor won’t agree, walk away from the deal.
• Review the franchise agreement carefully. It’s important to understand all the conditions of the agreement. It controls your relationship with the franchisor. Make sure the agreement spells out the details so there are no surprises.
• Understand your obligations. As a franchisee, you may have to pay royalties and other fees. Find out exactly what types of fees you’ll have to pay, how much you’ll pay and how often.
• Investigate claims about potential earnings. The estimated value of the package of accounts you buy may not reflect the income you’ll earn from servicing those accounts. Find out how the company assigns a value to the accounts. Ask how many franchisees made the represented income and where those franchisees are located.
• Be cautious when financing. While financing your purchase through the franchisor may seem appealing, the terms of the financing agreement may not be the best deal for you. For example, you may have to sign a note to secure the debt and agree to terms that could make it tough for you to sue the company if you wanted to cancel your agreement. Before you agree to franchisor financing, be sure you understand all the terms of the deal.
• Consider getting professional advice. Ask a lawyer, accountant or business advisor to review the disclosure document and franchise agreement. The money and time you spend on professional help may save you from a bad investment.

For More Information

The FTC also publishes a series of consumer brochures on franchising and business opportunities. For free copies, contact the Consumer Response Center, Federal Trade Commission, Washington, DC 20580, 1-877-FTC-HELP (1-877-382-4357), TDD: (202) 326-2502, www.ftc.gov.

The State of Maryland also publishes investor brochures about franchises and business opportunities. For copies, or for more information about Maryland’s requirements regarding the sale of franchises and business opportunities, contact the Office of the Attorney General, Maryland Securities Division, 200 St. Paul Place, Baltimore, MD 21202, (410) 576-6360, www.oag.state.md.us, email: securities@oag.state.md.us.

Glossary of Terms

Disclosure Document – A written document that outlines the general franchise offering, including background information of the franchisor, a summary of the franchise agreement, and a list of current franchisees.

Franchise Agreement or Franchise Contract – The written document that spells out the legally binding obligations between the franchisor and the franchisee.

Franchise Fee – The purchase price for the franchise.

Franchisee – Any person who buys or invests in a franchise.

Franchisor – Any person who sells a franchise.

Management or Service Fee – A fee paid the franchisee for extra or ongoing support, such as providing additional or substitute accounts.

Royalty Fee – A specific payment made by the franchisee for the right to use the franchisor’s trademark. In most instances, the franchisee pays this fee throughout the term of the agreement, regardless of anything else the franchisor may or may not do.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Originally issued in 2001

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STEPS Tutoring TCYOnline Franchise Complaint

According to its website, Steps by TCYOnline offers a unique online tutoring opportunity featuring an exclusive territory and a licensing fee of just $2499. 

According to the website, “Students and tutors are logged in at their respective computers and tutoring is done through highly advanced Whiteboard technology. Both can text- chat and talk and listen to each other naturally through VOIP (Voice Over Internet Protocol).”

Sounds like a great idea.  However, commenter Alex ( District of Columbia), posting on RipoffReport, states investing in TCY is just a great way to lose money:

TCYonline aka TCY aka STEPS math tutoring. Offering 24/7 online math tutoring in the U.S. You buy a territory of 100,000 households and you do all the marketing. Expect negative cash flow.

Last Fall (2009) they asked franchisees to pay $5000 each into a "national marketing pool". Luckily no one did. Turns out TCY had no plan on how to spend the money and had not done any test marketing or pilot studies to show RIO. After their failure to convinece franchisees to send them $5000, TCY canceled the campaign. They were not going to spend one cent of their money. They like playing with yours. TCY promised to do a pilot study of online marketing (basically google ad words) and show franchisees the results so they could decide whether to participate in the marketing pool. TCY did not do that. 

TCY promised to share leads from the campaign (which never happened) from unassigned territories with their affiliates to help them out since they expected affiliates to pay for 100% of the cost. But then TCY changed their minds about sharing leads and then canceled the campaign when affiliates got disgusted with their attempted $5000 money grab.

Investing in TCY is a great way to lose money.

Basically, TCY gives ZERO support to franchisees. Not a good investment. If you are interested in tutoring, at the minimum go with a company that has a marketing plan that they can articulate to you, some level of marketing support, and has at least one employee based in the US. TCY has ZERO employees based in the US. They don’t really know what they’re doing in the U.S. market.

Good luck and buyer beware!

ARE YOU FAMILIAR WITH STEPS TUTORING OR TCYONLINE?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

LADY OF AMERICA: Members of Closed Franchise Forced to Pay

Members of the Woodlands, Texas LOA Lady of America women-only fitness club are outraged.  They claim franchisee Alex Valladares closed without notice, and they are being hounded to pay off the membership contract for a club they can’t use.

According to MyFox Houston, members found themselves locked out of the club on October 15th, 2009, a year and a half after opening.  They claim the LOA franchise owner Alex Valladares never posted a 30 day notice, as required by state law.  They also claim that they are being told by Lady of America that they must continue to pay on their contracts because they are being offered membership at the co-ed Gold’s Gym 7 miles away:

The women say they’re still bound by multi-year contracts and being hounded by debt collectors.

"They more or less imply they will destroy my credit if I don’t comply with their request. They have written me letters telling me since they’re no longer allowed to debit my credit card, I owe them the full amount which is about $500," said Holmes.

The women say Lady Of America is telling them they can’t cancel their contracts.

Under the Health Spa Act, Texas Occupations Code, a contract is still valid at a closed gym as long as the gym offers members equivalent facilities located not more than ten miles from the health spa. The women have been offered to attend a Gold’s Gym in Magnolia, seven miles away, but they argue it isn’t equivalent.

The Montgomery County District Attorney’s Office and the Texas Attorney General’s Office are both investigating.

Numerous complaints against Lady of America, National Fitness

According to article commenter DS:

LOA (LADY OF AMERICA FITNESS FOR WOMEN) doesn’t collect their debt directly. As soon as you sign their contract it is collected through a company called National Fitness located in Utah which has a D rating with the Utah BBB. National Fitness says they are a collection agency from the beginning and treats you as such from the start. Everytime you phone to inquire about your account you talk with a different person. It is all scripted and impersonal. Not a good situation for anyone – not a good way of doing business. I’d advise to find another gym.

Searches on consumer complaint site RipoffReport return 62 complaints for National Fitness and 77 complaints for Lady of America, many stemming from similar practices.

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Luxury Brands Cut Prices. Can They Go Back?

The most recent recession has been a boon for deal conscious shoppers looking for discounted deals. And even luxury goods have been seeing price cuts. Here is what CNN Money says about price cutting on luxury brands:

Step into Nordstrom a year ago for handmade Italian pumps and flats from designer Anyi Lu and you’d be shelling out as much as $595 a pair. This season, everything in the spring collection that hits stores next month goes for under $400. For CEO David Spatz, adjusting prices downward simply made sense: “The days of conspicuous consumption are over,” he says.

Of course, the real question is what happens when the tough economic times are over and prices start to creep higher. Will consumers be willing to pay nearly $200 more for the same item that was discounted before? And, of course, once a luxury brand starts discounting, it runs the risk of losing credibility.

So, instead of simply cutting prices on core brand offerings, some luxury brands are adding new, lower priced lines. This way, they can maintain credibility with their core items, and then expand their reach for the sake of boosting the bottom line.

But is conspicuous consumption really over, as David Spatz contended in the CNN article? I’m not so sure. It might be over for the time being, but once things start to get good again, and once the money starts flowing again, I’m sure that conspicuous consumption will make a comeback.

Image source: BrendelSignature via Wikipedia

Post from: EveryJoe

Luxury Brands Cut Prices. Can They Go Back?

Jobless Claims Rise, Stunt Economic Growth

Yesterday, Ben Bernanke talked about the fact that the jobs market appears to be stabilizing as part of the policy statement from the Federal Reserve Board. However, today the news isn’t so rosy. Initial jobless claims rose unexpectedly this past week. Initial claims are still below 500,000, and that is encouraging, but it underscores the fact that there is still quite a ways to go in terms of economic recovery.

Indeed, there are some that think that a double dip recession could be on the way, and that the current jobs market is one of the reasons for it. This is because many companies are holding off on making new hires until the economy shows marked improvement, which may not happen until the second half of 2010. This sets off something of a vicious cycle. Consumers can’t spend more, and foreclosures can’t slow the pace (two things that some consider vital for economic growth and recovery), until jobs are available, providing income for people. But if people won’t be hired until the economic recovery is well under way…Well, you see the paradox that could be brewing.

In any event, even though this week’s job numbers were an unpleasant surprise, the good news is that things aren’t as bad as they have been, and that a certain degree of improvement is, in fact, being made.

Image source: Daylife

Post from: EveryJoe

Jobless Claims Rise, Stunt Economic Growth

Stock Market Awaits Fed Policy Statement

The stock market is rather flat today as investors await the latest Fed policy statement. Members of the Federal Reserve will conclude a two-day policy meeting today. The interest rate is not expected to change, so investors are waiting to see what Ben Bernanke, the Chair of the Federal Reserve, has to say about the economy and the expectations of policy going forward.

Many expect Bernanke to acknowledge that the economy is showing improvement and that stimulus measures have been doing their job. However, there is also an expectation that he will drop hints of when interest rates might start to rise again as the Fed works to keep a lid on inflation.

Ben Bernanke has had a great deal of influence on the markets lately, since Fed policy and statements can impact how investors feel about what is happening in the economy, and sentiment going forward. This in turn affects their decisions, and how they invest. His influence is one of the reasons that Bernanke was named Person of the Year 2009 by Time magazine.

Image source: Board of Governors of the Federal Reserve System via Wikimedia Commons

Post from: EveryJoe

Stock Market Awaits Fed Policy Statement

CUPPY’S COFFEE: Dale & Natalie Nabors Arrested

It was Christmas in prison / And the food was real good / We had turkey and pistols / Carved out of wood –John Prine

Robert Dale Nabors’ financial and legal woes continue – and now his wife, Natalie, has been dragged into the spotlight (or searchlight, as it were).  This time, they could be facing jail time.  According to Shoals Insider, both Dale and Natalie Nabors were recently charged with theft:

Franklin County Arrests 12/20/2009

Robert Dale Nabors, Muscle Shoals, AL
Theft of service 1st degree

Natalie Nicole Nabors
Theft of service 1st degree

According to the Alabama Sentencing Commission website, Theft of Services 1^st Degree §13A-8-10.1, which constitutes a value of over $2,500, is a Class B Felony that can result in a jail sentence ranging from 2-20 years.

The Theft of Services charges are just the latest legal woes for Robert Dale Nabors, who was also arrested in Colbert County, AL back in September.  This appeared on Shoals Insider:

Colbert County Arrests 09/28/2009

Robert Dale Nabors
Worthless checks x 2

Over at the Sheffield, AL forum, former Cuppy’s franchisees discuss Nabor’s whereabouts with parents of the schoolmates of the Nabors children. 

Sunday, Dec. 6, 2009 “lulu Florence, AL wrote :

to my understanding – he was arrested at my (and his) child’s school during a Thanksgiving lunch for parents on November 19th.

Friday, Dec. 11, 2009 “guest, Florence, AL” wrote:

i really don’t know….but they took him out in handcuffs. i saw them escort him off the campus a few months back, but assumed it was a custody issue. it is a girl in the class. i do not want to post my email here, but that’s about all i know… i have no idea if he is behind bars or not, but i know he’s been on field trips and picks the child up…

Do you have information regarding the arrest or whereabouts of Dale Nabors?  Share a comment below.

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