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Franchising
Business Pundit on franchising:
The primary plus, in my opinion, is that franchising takes care of the “minutia factor” – that is all the little stuff that you don’t think about when starting a business. You need accounting software, payroll services, utilities, business quality phone systems, and all that kind of stuff. It isn’t that you couldn’t do it yourself, but it saves you a lot of time (and sometimes money too) to use the franchisor’s vendors. They already have that set up. You also have a chance to be on your own but still have someone to turn to if you fail.That said, the biggest problem with franchising is that you risk just buying yourself a job. Believe me, running a business is NOT something you want to do unless you love it. Don’t think you want to “be your own boss” and then buy a franchise that nets 70K a year. Now you have the same salary and you are working more. You are also at the mercy of the franchisor for much of what you do, which can make you feel like you have a real job again.
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Scott Layer on December 1st, 2004 9:20 pm
I currently own a franchise and have gone just about bankrupt. I have invested more than 3 years and about $500,000 as per the business plan from the franchisor. My advice is be very careful, and only sign a franchise agreement after an attorney has approved it. If your attorney likes the contract as written fine, if he suggests changes just run for the hills. A franchise I would not recommend buying would be one called Pirtek…my experience has been terrible
Irma on September 12th, 2006 1:13 pm
Hello there,my husband is in the army so we move a lot. We opened a store about 1 year ago, but have to move in the next 9 months again, so I’m thinking of franchising instead of selling to keep my name. What kind of adices do you have? What all do I need to know. Pros and cons.
Thanks!
-Irma-
David Johnson on December 15th, 2008 2:21 pm
Mr. Layer’s experience may have been terrible, but the fact is, I am very happy to be a Pirtek Franchise owner in Plano, TX for 3+ years. I have struggled a little bit in this economy, like everyone else, but I am proud to report that my business has increased significantly over the last 12 months while I have watched several businesses close. Pirtek has over 300 Centers in operation around the world and is number 1 in the world and number 1 in the U.S. in mobile hose replacement.
The bottom line is that Scott failed and I believe he wants everyone else to fail just like he did.
The Pirtek System is not for everyone. It requires hard work and diligence, just like any business. However, if you follow the Pirtek System and grow your business like 300 other franchisees around the world have, the rewards can be very big! That’s why 6 of the Pirtek owners in the United States own more than 1 Center and some have signed on for a third Center. I am glad to be a Pirtek Center owner and have already signed on for another one too! -David Johnson, Owner Pirtek Plano
Scott layer on December 21st, 2008 9:37 am
Update on Pirtek. I wrote the above blog 4 years ago, before Mr. Johnson ever owned a Pirtek.
Mr. Johnson fails to tell you that a large majority of Pirteks make very little or no money. Mr. Johnson fails to disclose any details about his profit, but he does say he is struggling in this economy. I find it interesting that he has spammed the same article all over the web. Mr. Johnson fails to mention real financial information. No mention of his gross sales or info on his P&L’s. How about his tax returns? I find it even more interesting that he does not mention the NUMEROUS Pirtek bankruptcies and closures and failures AND the related number of almost broke locations for sale cheap. Mr Johnson is a very confused person, he was involved in litigation with PirtekUSA within the first year of his contract. The owner of PirtekUSA is buddy buddy with Ray Titus, owner of Sign-a-rama, just check out the stories concerning Sign-a-Rama and you will understand why I say, ” more pirtek locatoions have closed, gone bankrupt or been Terminated than have been successful” Its a high risk business with very little return, at best you end up “buying yourself a Job” . Make sure you talk to every franchisee before you get involved. Make sure you have in writing the OWNERSHIP HISTORY OF EVERY STORE AND LOCATION! Read Robert Purvins “the franchise fraud” before you deal with Pirtek. It will save you TONS of money. And finally, consider why Pirtek San Diego is for sale?, why Anahiem, Tucson, Miami, Mobile, Nashville, New Orleans, Boston, Pittsburg, Allentown, Houston, Dallas, Portland, and many many more have closed? Ontario was recently refranchised as was Nashville, and Nashville just filed for bankruptcy, can Ontario be far behind? Ask yourself why after 12 years of franchising does Pirtek have only 39 locations open?, with such a history of slow growth and so many failures you should be very careful and don’t believe the hype that Pirtek spews. If you need more information please call me 813-318-1258, email me at fixme@aol.com. Thanks, and have a great day!
Scott Layer on April 21st, 2009 3:32 pm
Summer 2009. As you know from reading my blogs I am not a fan of Pirtek. I have tried to warn prospective business owners of the risks associated with buying a Pirtek Franchise. You may recall that just four months ago Mr. Johnson, owner of Pirtek Plano (Dallas, TX), was very complimentary of his Pirtek Franchise. Mr. Johnson contradicted my statements regarding the value of Pirtek. David Johnson further stated that business was so good that he had signed up for his second Pirtek Location.
You will be interested to know that based on numerous calls to Pirtek Plano, 972-423-1111, and e-mails directed to me, that Mr. Johnson has closed the Pirtek Plano location. It looks like the mustard is coming off the Hot Dog.
If you have any questions regarding Pirtek or the many closures and Bankruptcies please call me, 813-318-1258, or e-mail me fixxme@aol.com Thanks to Ron and the many others that have contacted me. Kiwi, are we still having fun?
John on January 18th, 2010 2:39 pm
Having looked into the franchise scene in the UK where about 30% of Pirtek Franchises are in what they call the high dependency unit I can confirm it is not all roses here, Pirtek france I believe did go Bankrupt
http://www.youtube.com/watch?v=FMfMHJLRCQw an ammusing youtube video here about the Hydraulic Hose industry in the UK
hydraulic hose on August 16th, 2010 1:56 am
Great! that was so amaze information and i really like that thanks for sharing that to us…
Scott Layer on October 5th, 2010 1:51 pm
Update..Fall 2010. Pirtek flounders and braces for a terrible winter. Many Pirtek locations are struggling and the economy is not helping. The Master Franchise agreement runs out in less than eight years and it looks like Pirtek may take back or close more centers before the year is out. 2011 looks very bad for Pirtek, the audited financial statements from Pirtek show losses for 2009 and prior years show sharp declines in sales and income and profits. The simple answer is Pirtek makes no money for 90% of its franchisees and has proven that the Pirtek business model does not work. Any investigation of Pirtek needs to include data on all the closed, terminated and Failed locations. Past and present Franchisees should be interviewed and all conversations should be recorded. You will find the failure rate and lack of profits at Pirtek make it a bad investment in both time and money. If you have questions and would like more information please feel free to contact me at 813-318-1258 or email fixxme@aol.com. Thanks for your time. Scott layer
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