Thursday, Chrysler released a list of 789 dealers that it was letting go. Today, G.M. will send the letters to 1100 dealers with the bad news that their franchises will not be renewed after October 2010.

According to the New York Times:

Over all, G.M. plans to eliminate 2,369, or 40 percent, of its 5,969 dealers by the end of 2010. G.M. on Friday revised its number of current stores down from 6,200. In addition to the cuts being revealed Friday, the company expects to shed about 500 dealers that sell only Pontiac, Saturn, Saab or Hummer, the brands it intends to sell off or close. The rest will be achieved through attrition and by consolidating multiple franchises… G.M. and Chrysler say they need drastically fewer dealerships to become more efficient and profitable, and so the remaining dealers can make enough money in what has become a much smaller industry. Even after the cuts, their dealership networks will still be several times larger than those of foreign competitors like Toyota and Honda.

Chrysler is in bankruptcy;  G.M. is not.

Chrysler is asking its bankruptcy judge to terminate the agreements with its unwanted dealers as of about June 9. Because G.M. has not filed for bankruptcy protection it has to wait for its dealer agreements to expire or else it will have to pay expensive buyouts of the dealer agreements.  The times article points out that may change:

…many analysts expect G.M. to file for bankruptcy by June 1, the Obama administration’s restructuring deadline, and at that point the company could start trying to cancel franchises and shorten the time frame for the cuts. As of now, G.M. plans to buy back inventory, parts and specialized tools from the dealers it has deemed “underperforming.” Chrysler has offered to help its castoffs resell their inventory to other stores but says bankruptcy absolves the company of any obligation to take back the 44,000 unsold vehicles filling their lots.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Pictured above:  The Folsom Lake Chrysler Jeep dealership in Folsom Auto Mall which closed it’s doors last week has no tresspassing and other signs representing the closure. Photo taken Thursday May 14, 2009. (Credit Image: © Sacramento Bee/ZUMA Press)

Ben & Jerry’s Free Cone Day is a tradition that goes all the way back to the legendary days when Ben & Jerry were a couple of happy hippies selling ice cream out of a converted gas station.  Despite the fact that Ben & Jerry’s is now an international brand owned by Unilever, B&J still hands out free cones one day per year.  Today’s the day.

According to my Ben & Jerry’s Chunkmail:

As a way to thank our customers for their support and to celebrate 31 years of scooping the chunkiest, funkiest ice cream, frozen yogurt and sorbet, Ben & Jerry’s scoop shops are happily giving it away!

Around the world, Scoop Shops are opening their doors from noon to 8:00 pm, to serve up a free scoop of your favorite flavor. Please check with your local Scoop Shop for more info! Grab a pal and come on down to have some good, ’scream fun on us!

Not long ago, Quiznos tried a product giveaway that backfired miserably and brought national attention to their franchisees’ discontent.

Hopefully, Ben & Jerry’s years of experience with Free Cone Day will provide a better experience for both scoop shop franchisees and customers.

DID YOU GET YOUR FREE CONE AT BEN & JERRY’S TODAY?  HOW WAS YOUR EXPERIENCE?

Graphics:  Ben & Jerry’s

Less than a year ago, Make & Take Gourmet founder Michele Bellso sent out a blast email announcing the closing of two franchise stores of the chain’s 16 locations. 

Bellso’s nonchalant, cheery tone and characterization of the lost investment of her franchise owners as  business-as-usual prompted the first (Make & Take Gourmet: Meal Prep Franchisor Takes Failures in Stride April 28, 2008) of 20+ posts  I’d write on the ill-conceived and ill-fated meal prep chain.

“Interest and excitement in the Make and Take Gourmet concept has never been greater!” wrote Bellso in her email last April.  “We anticipated that as this new industry evolved, stores would need to adapt to emerging trends. We expected that this would include some store closures, and unfortunately our Camillus and Baldwinsville stores have closed. However, our Cicero, Fayetteville and Auburn stores will continue to operate 7 days…”

Her email concludes:  “Interest in franchise stores is continuing…I can honestly say that Make and Take Gourmet’s future is looking very bright…”

Do you smell something burning?

The email came on the heels of other franchise failures.  Rather than halt franchise sales and figure out why her stores were failing, Bellso continued to market and open Make & Take Gourmet franchises.  In a July, 2008 interview she blamed the failures on the unrealistic expectations of her franchisees (”Too many people think they’ll make a million in the first year”) and said “The only thing that may have changed for us is to make a better selection of our owners.”

In August, 2008, Bellso closed the corporate-owned (MAKE & TAKE GOURMET: Bellsos Closing Company Store, Blame Economy).

They also were sued for fraud by their early franchise owners (MAKE & TAKE GOURMET: 3 Franchisee Groups Reportedly Suing), and it was announced another franchise was “de-branding” (MAKE & TAKE GOURMET: New Hartford MTG to Defranchise)

In December, 2008, we reported the Securities Division of the Office of the Attorney General of Maryland charged Bellso & Make & Take Gourmet with the registration, disclosure, and antifraud provisions of the Maryland Franchise Law (Make & Take Gourmet, Michele Bellso Accused of Franchise Fraud (AG)).

Corporate stores closing:  Commence grieving.

This month, UnhappyFranchisee.com reported that Bellso has closed the corporate Cicero, NY flagship store, which Bellso had boasted sold as many as 3,000 meals per day and grossed as much as $1.7M yearly (MAKE & TAKE GOURMET: Flagship Cicero Store Closes).

Not surprisingly, Bellso’s email regarding the closing of her own store is “with much sadness,” a sharp contrast to the upbeat tone regarding her franchisee’s losses:

Dear Friends,
It is with much sadness that I announce that the Make and Take Gourmet store in Cicero is closing. We have really enjoyed helping you feed your families.
Unfortunately, tough economic times and rising costs have made it impossible for us to continue doing business. It was a difficult decision and not one that we wanted to have to make.
Saturday, March 28th will be our last day. Stop by and fill up your freezers with our Buy 2 Get 1 Free Blowout Event.
Thank you for all of your support over the last three years. We will miss you!
Michele

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Logo:  Make & Take Gourmet

Newsweek states:  “Suddenly, it seems as though all the world’s a-twitter.”  The franchise world certainly is.  The online conversation is getting increasingly lively and useful as franchisors, franchisees, franchisee prospects, franchise vendors, pundits, pr firms, and franchise media interact 140 characters at a time.

Now FranchisePick.com and FranBest.com are compiling the Who’s Who in Franchising on Twitter in our directory of FranTwits.  See our list of franchise resources on Twitter below;  to be added to the list, leave your Twitter ID and a comment

To see the full list, visit FranTwits on FranBest: Twitter Franchise Directory .

FRANCHISE RESOURCES ON TWITTER

To access individual pages, use the format http://www.twitter.com/TWITTERID (no @ sign). For example, to see the tweets of @FranchisePick, visit http://www.twitter.com/FranchisePick

DO YOU TWITTER?  WHAT DO YOU THINK OF IT?  SHARE A COMMENT AND YOUR ID BELOW.

Twitter Graphic:  VincentAbry

Twitter is the Internet’s - and franchising’s - fastest-growing and most powerful social networking and communications tool.  Whether you’re a franchise buyer, seller, vendor or student, you’ll find a wealth of opportunity and information on Twitter.

Food and snack franchisors are early adopters in using Twitter to communicate and network.  We’ve put together the list below of ice cream, yogurt, pretzel, and coffee franchise companies actively using Twitter.

Also check out: FranTwits: Restaurant Franchises on TWITTER

To see the full list, visit FranTwits on FranBest: Twitter Franchise Directory

SNACK FRANCHISES ON TWITTER

To access individual pages, use the format http://www.twitter.com/TWITTERID (no @ sign). For example, to see the tweets of @FranchisePick, visit http://www.twitter.com/FranchisePick
DO YOU USE TWITTER? SHARE A COMMENT BELOW.

Follow us at @FranchisePick, @TopNewFranchise, and @FranTwits

Twitter Graphic:  VincentAbry

What’s Twitter?  The New York Times calls it “one of the fastest-growing phenomena on the Internet.”

TIME magazine says “Twitter is on its way to becoming the next killer app.”

Newsweek states:  “Suddenly, it seems as though all the world’s a-twitter.”

FranchisePick.com exclaims:  “Twitter is the Internet’s - and franchising’s - fastest-growing and most powerful social networking and communications tool.”

Now FranchisePick.com and FranBest.com are putting together the definitive list of franchise companies, vendors, and resources on TWITTER.  Below is a list of the most active restaurant and fast food franchises promoting via Twitter.

To access individual pages, use the format http://www.twitter.com/TWITTERID (no @ sign). For example, to see the tweets of @FranchisePick, visit http://www.twitter.com/FranchisePick

To see the full list, visit FranTwits on FranBest: Twitter Franchise Directory

RESTAURANT FRANCHISES ON TWITTER

DO YOU USE TWITTER? SHARE A COMMENT BELOW.
Follow us at @FranchisePick

Twitter Graphic:  VincentAbry

Do you Twitter?

Follow @FranchisePick on Twitter

If so, follow FranchisePick at @FranchisePick

Follow TopNewFranchises.com at @TopNewFranchise

Don’t Twitter yet?  Dive in, it’s easy.

Sign up at Twitter.com and “follow” us… we’ll follow you back.

Twitter Graphic:  VincentAbry

DO YOU TWITTER?  WANT MORE FOLLOWERS?  ADD YOUR TWITTER ID BELOW?

Franchise due diligence warning:  even the brightest, shiniest apple in the franchise orchard could be hosting this year’s Wormfest.

Franchisers are notorious for playing fast and loose with both general franchise “statistics” and representations of the growth of their specific franchise systems. Franchise attorney and blogger Michael Webster has posted a biting and informative piece on The BizOp News ( Taylor Bond growing the Children’s Orchard Franchise? ) on the importance of checking hyped statements before taking a bite into a juicy-looking franchise opportunity.

As a quick example, Webster quotes a past interview with Children’s Orchard CEO Taylor Bond that appeared on franchise advertising portal Franchise Gator.  Regarding the children’s goods consignment chain, the article states that “Under the leadership of new President and CEO Taylor Bond, who brings with him a strong background in franchising and resale, Children’s Orchard, with nearly 100 thriving locations in 23 states, is selling 5 million items to approximately 1 million customers each year.”  The “interview” with Bond (which, for some reason, is titled “Recent Interview With Russell Frith”) states that “Bond is well on his way to achieving his goal of having 300 locations open by 2007.”

Nearly 100 thriving locations?  Soon to triple in size? Sounds like a great system to join!

But it’s just like an attorney to kill the buzz by bringing up reality. Webster posts the required disclosure of unit numbers from the franchise disclosure document:

The disclosure document indicates that the “growth” of the Children’s Orchard franchise is what’s euphemistically known as “negative growth.”  Instead of “nearly 100″ locations, as the hype interview states, the chain had 82 locations by the end of 2005, then fell from 82 locations in 2006 to 73 in 2007, a net loss of 9 locations.  How gaining 0 units in 2005, adding 2 units in 2006, and closing 9 - or 11% - of total units in 2007 indicated that Bond was “well on his way” to achieving 300 units by 2007 is beyond my limited mathematical capabilities.

Then again, I never would have guessed “nearly 100 locations” actually meant 80 I mean 73 locations.

The franchise due diligence lesson for today, boys & girls?  Compare the publicly hyped representations of the franchise company, past and present, to the cold, hard facts.  The disparity between the two will tell you bushels about the company you’re dealing with.

And when “nearly 100 thriving locations” turns out to mean 73 locations and falling, you better scrutinize every representation the company makes.  In cases like this, it might be hard to find a core of truth in the whole orchard.

WHAT DO YOU THINK?  LEAVE A COMMENT BELOW.

Photo:  FranBest.com  used by permission

Chart: public document, The Bizop News

According to a story on Top New Franchises, Fairway Divorce Solutions has opened a new franchise…  Just in time for the bust January divorce season!

Established in 2006, Fairway Divorce Solutions offers a first-of-its-kind alternative to the traditional system of divorce by offering “a new divorce paradigm that saves money, time, stress and protects the children. Charging a flat fee, Fairway Divorce Solutions uses a common sense step-by-step proven approach called The Fairway Process™.”

The Canadian company is growing aggressively with franchises in Victoria, BC; Edmonton, AB; two in Calgary, AB; and one in Saskatoon, SK. Expansion plans into Eastern Canada and the United States will begin in 2009.

Read more here:  New Divorce Franchise Opportunity

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Graphic credit:  FranBest

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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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(Top New Franchises) Top New Franchises is the interactive scouting report for finding and promoting the best new and emerging franchise opportunities. If you have information about this franchise opportunity, or if you’d like to nominate or promote another new franchise opportunity, email us at info[at]ideafarm.net.

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.

__________________________

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.