Happy Independence Day from FranchisePick.com!

According to the Unhappy Franchisee post CHRYSLER: Dealers to Fight Back, the Chrysler National Dealer Council has said that Chrysler dealers will soon launch their legal opposition to the company’s plan to revoke 789 franchise agreements.

Chrysler dealers to fight back

Chrysler is seeking the court’s permission to revoke 789 dealers’ franchises as part of its Chapter 11 restructuring. Chrysler is seeking to revoke dealer agreements on June 9, and to emerge within 6 weeks as a “new” Chrysler alliance with Italy’s Fiat.

According  CHRYSLER: Dealers to Fight Back, “Car dealers have long assumed that they are protected by the state franchise laws, many drawn up with the help of the dealers themselves… But Chrysler has asked the court to rule that the US bankruptcy code takes precedence over the state laws.”

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Photo credit:  Larry He’s So Fine License:  Creative Commons

In a tale of passion, poultry, and murder, Gerardus Heijne is being tried for choking his chicken franchise partner.

In a high profile Australian murder trial,  Gerardus Heijne, 45, is on trial accused of murdering Frank Cianciosi, 51, at the couple’s luxury East Perth penthouse last year. The two had been together for 25 years and were the master franchisees of the Lenard’s chicken chain.

Last week a work colleague, Jason Mitchell, testified that the day after the alleged murder Mr Heijne had remorsefully told him that he was responsible for the strangling of Mr. Cianciosi, and had re-enacted the killing for him.

According to news reports, prosecutors contend that “Mr Heijne committed the murder because he was obsessed with a 19-year-old man and Mr. Cianciosi was an obstacle to the life he wanted.”

According to the Lenard’s website, “Lenard’s is a multi-award winning company, considered to be one of Australia’s leading fresh food retailers and a pioneer in the kitchen-ready meal market…. [with] 180 stores throughout Australia. The majority of these stores are owned and operated by independent Franchise Owners.”

Also read:  Lenard’s Chicken mogul strangled lover in penthouse, court told

WHAT DO YOU THINK?  SHARE A COMMENT.

logo:  Lenard’s

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)

Franchisee Andie Turner, Phoenix North

At their franchise convention in Scottsdale, Ariz., on March 6-8, MaidPro had the opportunity to recognize the outstanding performers among their MaidPro franchise owners, managers and home office staff. The winners of MaidPro’s annual recognition awards were announced at the Radisson Fort McDowell Resort and Casino on March 7 by MaidPro President, Richard Sparacio. The winners are:

• Marketing Achievement Award – Janet Sklar, Carrollton, TX
• Customer Acquisition Award –Dan McGowan, Lake Elmo, MN / Brent Ashley, Maple Grove, MN
• Freshman Award – Kathy Ward, Phoenix – Central, AZ
• Right-Hand Award – Modesta Mejia, Carrollton, TX
• Mentor Award – Greg Ford, Tulsa, OK and Lee’s Summit, MO
• Woman-Owned Business Award – Maxine Kenefsky, Bellevue/Seattle, WA
• Male-Owned Business Award – Matt Sherman, Denver, CO
• Partnership-Owned Business Award – Rhonda Peege and Carla Stone, Louisville KY

With over 28 new offices open since last MaidPro’s last convention in San Juan, Puerto Rico in 2007, this was a

Matt Turner, Richard Sparacio

new experience for a lot of the audience in Arizona. New owner, Michelle Hunter (MaidPro in Gaylord, MI) said “I love the small company feel. All the home office employees know us like we’ve been around forever.” Hunter states MaidPro is “very welcoming to newbies.” More than half of the MaidPro offices enjoyed the warm weather, networked, participated in roundtable discussions including profitability, management principles, social media and training among other topics.

MaidPro is a Boston-based franchisor of housecleaning services with more than 100 offices in 33 states, in addition to the District of Columbia and Canada. The company, which began franchising in 1997, takes pride in its strong owner community, cutting-edge technology and creative marketing.

Congratulations to all the winners from FranchisePick.com

Modesta Mejia, Carrollton, TX

ARE YOU FAMILIAR WITH MAIDPRO?  SHARE A COMMENT BELOW.

Images:  MaidPro

I’m a fan of the Franchise Times magazine and the people who publish it.  I consider it essential reading for franchisors, franchisees and, perhaps especially, prospective franchisees.  Franchise Times is an inside-the-industry publication and, as such, gives a much truer picture of what’s really happening in franchising.  You won’t find Franchise Times on the newsstand, but it’s readily available by subscription or by accessing the Franchise Times website.

Newsstand Entrepreneurial Press:  Hype, Fluff… or Fraud?

Tuesday I was quoted in the Wall Street Journal about my motivation for creating the controversial UnhappyFranchisee.com blog:

Mr. Kelly says he was put off by the promotional hype he had read in the franchise trade press about numerous concepts. “Almost nobody was writing anything bad,” he says, “and I wanted to give those with negative experiences a voice.”

Actually, “franchise trade press” was a poor choice of words.

Some interpreted that as a slam on FT, which it wasn’t.  I was actually referring to the newsstand entrepreneurial and small business opportunities magazines that target prospective first-time business owners.  These magazines portray a small business fantasyland where lovely, energetic entrepreneurs all enjoy  personal fulfillment and reap huge financial rewards as owners of their very own pooper scooper,  chewing gum removal, home mailbox decorating and mobile pet repair franchises.

As a marketing guy, I don’t mind a bit of fluff or some well-crafted spin now and then. And I’m certainly sensitive to the need to create an editorial environment that’s conducive to the needs of ones advertisers.  But these newsstand entrepreneurial publications & their much-touted Hottest Franchise! rankings push - if not cross - the line between spin and fraud.

These magazines portray a small business fantasyland where lovely, energetic entrepreneurs all enjoy  personal fulfillment and reap huge financial rewards as owners of their very own pooper scooper,  chewing gum removal, home mailbox decorating and mobile pet repair franchises.

The Dangers of Newsstand Hype

For example, a couple of years ago these publications hyped the ebay drop-off store concept as the hot new franchise opportunity.  Entrepreneur magazine named the largest, iSold It, as the #1 new franchise opportunity of 2007.  At the same time, iSold It franchise owners sent us proof that more than 60 franchisees had already failed, that many had defaulted on their $200,000 loans and were losing their homes, and the franchisor itself was teetering on the verge of bankruptcy.  Yet the printing presses were still pumping out the exciting success story for people ready to dream the impossible dream. (Read: Is iSoldit a Great Franchise Opportunity?)

iSold ceased franchising shortly after we (or rather their franchisees) broke the story.  Most of the stores have closed. The owner is reportedly enjoying his $2M house.  The only press the ex-franchisees are getting is their nameless inclusion in the loan default and home foreclosure statistics on CNN.  (Read:  iSold It Dropped from Entrepreneur 500, Loses Top New Franchise Crown)

Entrepreneur magazine is a useful publication with a lot of good content and a large franchise directory.  However, they sometimes hype both unproven, questionable, and often doomed “hot new concepts” and praise huge, heavily litigated and contentious franchise giants with nary a mention of the controversies and downsides of these undoubtedly large advertisers.

Why Franchise Times Couldn’t Get Away with That Nonsense.

Franchise Times serves the same basic advertiser base, but they couldn’t get away with such nonsense for a couple of reasons.  The first is that they are based in Minnesota.  Anyone who has watched Fargo knows that Minnesotans (think Marge Gunderson) are not wired for deception  and, if they try, they are not good at it (think Jerry Lundegaard).  In fact, part of new employee orientation at Franchise Times involves repeatedly watching Fargo, outdoor fishing and snowmobiling DVDs, and memorizing the best News From Lake Woebegone segments.

Anyone who has watched Fargo knows that Minnesotans (think Marge Gunderson) are not wired for deception  and, if they try, they are not good at it (think Jerry Lundegaard).

The second reason is that Franchise Times is read by real life franchise professionals, franchisors, franchisees and service providers.  While Franchise Times maintains a pleasant and upbeat tone, and is not above fluff (or, in some cases, fluffy) stories about their own pets, they also cover controversies, disputes, litigation and other challenges in franchising.

Their cover story on Quiznos a couple of years back was one of the first and most comprehensive accounts of that embattled company.  They have kept tabs on the story, and updated the woes of Quiznos franchisees as recently as the current issue (Quiznos update, Quiznos weighs in).  They are still the only major publication that has touched the Cuppy’s Coffee debacle (Franchise Times Recounts Cuppy’s Coffee’s “Blog Attacks,” Scoble Incident, Attacks from the blogosphere).

These are pretty bold editorial moves for a publication supported by franchisor advertising dollars.  Franchise Times should be applauded [insert applause here] for being willing to cover controversial and relevant topics.  Readers should encourage them to do more of it in the future.

Two Recommended Industry Events

Franchise Times also hosts two major industry events.

The Franchise Finance & Development Conference
May 4-6, 2009—The Palms, Las Vegas, NV

“The Conference is a proven educational and networking forum designed specifically for owners and executives of franchise companies who want to expand the rate of growth in their franchise systems.”

The Restaurant Finance & Development Conference
November 9-11, 2009—Bellagio Hotel, Las Vegas, NV

“The Restaurant Finance & Development Conference is the largest industry event that is exclusively focused on the finance side of the restaurant business. Designed for multi-unit restaurant operators and senior executives…”

WHAT DO YOU THINK?  LEAVE A COMMENT BELOW.

Images: Franchise Times

Full professional disclosure: I sometimes write for Franchise Times, they sometimes write about me, I am a regular listener of A Prairie Home Companion and am part-owner of a mobile pet repair franchise.

Blogs and blogging is transforming the way franchise opportunities are researched, marketed and selected by franchise buyers.  Blogs are also giving franchise owners a chance to interact as they never have before.  And the mainstream business media is starting to take notice.

Today, the Wall Street Journal published Richard Gibson’s story Blogs Provide Insight to Would-Be Franchisee. While FranchisePick.com escaped mention (undoubtedly because the Wall Street Journal is nervous we’re eclipsing them ;)), Gibson featured one of my other blogs, Unhappy Franchisee.  Here’s my 84 words of WSJ fame:

Unhappy Franchisee (www.unhappyfranchisee.com). Franchisees with gripes about their business can post them at this Web site, run by multisite blogger Sean Kelly. The site sorts anonymous concerns and complaints by brand. Mr. Kelly says he was put off by the promotional hype he had read in the franchise trade press about numerous concepts. “Almost nobody was writing anything bad,” he says, “and I wanted to give those with negative experiences a voice.” The site encourages visitors to post closures of franchises in their communities.

Like FranchisePick.com, the purpose of UnhappyFranchisee.com is not to be “gripe site,” but to have frank and honest discussions about the real nature of the sometimes turbulent franchise relationship.

Other sites featured in the article include Blue MauMau (www.bluemaumau.com), Franchise-Chat (www.franchise-chat.com), The Franchise Pundit (franchisepundit.com), & Rush On Business (www.rushonbusiness.com).

Notable sites that escaped mention include FranchisePick.Com, FranBest.com, TopNewFranchises.com, Michael Webster’s The BizOpp News, and Joel Libava’s The Franchise King blog. While not a blog, Richard Solomon’s Franchise Remedies also includes a wealth of information and insights.

Thanks to Richard Gibson for including our humble site, and thanks to all you who have contributed through your comments, information and insights.

WHAT DO YOU THINK? HOW IS BLOGGING IMPACTING FRANCHISING?  SHARE A COMMENT BELOW.

graphic:  unhappy franchisee

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