Franchise Warning: Solera Distributors

train500Before you fall in love with that exciting new franchise concept, it pays to familiarize yourself with franchise regulations and see whether your new squeeze is cheating on you.

For instance, the FTC prohibits promises of success or profits in franchise marketing materials.  However, the Solera Distributors franchise website is filled with illegal earnings claims promising franchisee success & profitability.  Solera Distributors claims:

…Franchisees should be able to support their basic living requirements for 4-6 months while building the foundation of their business.  Franchisees will work in a defined territory.  The potential of each territory will allow the franchisee the opportunity to obtain at least 40 to 50 accounts out of approximately 100 to 120 identified in the territory…

Area Developers have investment options that range in accordance with the potential of the territory, with capital outlay ranging from $200,000.00 to $400,000.00.  We anticipate Area Developers will return investment within the first twelve to fourteen months of operation…

Franchisees will generate their profit from the mark up of wine products to the retailer.  Area Developers will generate their profit from the mark up of wine products to the franchisee and receive half of the initial and ongoing fees of their 40 – 60 Franchisees.  Because of the low costs to Solera, both the franchisee and the retailer will enjoy significant profits while maintaining a low price list at the retail level.

Could it be that the Solera Distributors are inexperienced franchisors making a rookie (but deadly) franchise marketing blunder?

Ben Franklin said “Plough deep while sluggards sleep.”  Plough into Solera Distributors and hear the alarm bells unhappybutt100really go off.  Check out who is behind the Solera Distributors franchise opportunity:  CORK & OLIVE Team Launches Solera Wine Franchise. Beware!

Then take a gander at the recent franchise track records of Michael Probst and Deborah Augenti: Cork & Olive’s Probst Abandons Franchisees June 5, 2008

Cork & Olive Franchise: $2.5 Million in Debt? June 16th, 2008

Cork & Olive Wine Franchise Co. Files for Bankruptcy June 10th, 2008

What REALLY Uncorked Cork & Olive? June 6, 2008

Cork & Olive Franchise Corp. Collapse: What’s the REAL Story? June 6th, 2008

And that, boys and girls, is why you want to do your homework before entering into a franchise relationship with an exciting new franchise.  And, for God’s sake, no smoochin’ on the tracks.

Have a great weekend.

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