UFG CEO Ray Titus: STOP Promoting the Failed Experimax Franchise!

Open letter from UnhappyFranchisee publisher Sean Kelly to United Franchise Group (UFG) CEO Ray Titus demanding that UFG stop promoting and selling the failed Experimac Experimax franchise opportunity IMMEDIATELY.

(UnhappyFranchisee.Com)

Open Letter to Ray Titus, CEO United Franchise Group (PDF)

Raymond Titus, CEO

United Franchise Group

2121 Vista Parkway

West Palm Beach, FL 33411

June 4, 2021

Dear Ray Titus:

In your video professing your Servant Leadership philosophy, you state:

“In 26 years in business, I’ve never lost a night of sleep.”

Unfortunately, a good night’s sleep is a foreign concept to those who trusted UFG’s finely crafted Experimac / Experimax marketing and sales presentations, the undisclosed paid endorsements of seemingly unbiased 3^rd parties who sang its praises, and the presentations of your franchise sales staff and legions of brokers working from scripts reminiscent of those that earned you a permanent injunction from the FTC some 20 years ago.

More than 80% of those who put their trust in you and the sales numbers they allege you, Jim Muir, your regional Vice Presidents, Tim Phillips and your SBA loan wrangler Paul Bosley provided to them, the SBA and banks lie awake grappling with their recent bankruptcies, lost retirement savings, emptied college funds, dismal credit scores, unpaid family loans, and lost peace of mind. I have listed some of their names, bankruptcy filings and SBA loan default information with this letter.

Others are also grappling with the legal threats, lawsuits, and rising legal bills that UFG is imposing on them for having ceased operation of a deeply flawed and deceptively marketed franchise concept.

As you know, at least 169 Experimac / Experimax franchise agreements were signed and opened since 2015.

The Experimax website currently lists just 48 open locations.

Data from your Franchise Disclosure Documents and website indicate that of those 169 franchises (which include transfers), an estimated 142 (84%) have failed and lost their investments.

While it is apparent that most of those who open an Experimax store will almost certainly lose their investments – and just as apparent that your promises of $600,000 first-year gross sales and more than $1M each year thereafter bore no resemblance to actual franchise store sales – you continue to register, promote and pitch the Experimax franchise to trusting individuals and families.

Thanks to the inclusion of Experimac / Experimax and two other UFG brands in Senator Cortez Masto’s 87-page report on predatory franchise practices, Congress, the FTC, the franchise industry and the public are now watching for your next move.

If only for your own reputation and the survival of UFG, I urge you:

· Stop Promoting and Selling Experimax Franchises IMMEDIATELY

· Stop the bullying legal attack, lawsuits and pursuit of judgements against the franchisee-victims of your non-viable Experimac franchise concept

· Assure your franchisee/victims that they can openly share their experiences and opinions without fear of legal repercussions, a freedom the FTC intended when enacting The Franchise Rule

· Put your energy and UFG’s considerable resources into helping to ease the financial burdens of all those who were guilty of no more than trusting you, your staff, and your enablers

· Withdraw your concepts from the SBA Franchise Registry and stop draining taxpayer money with UFG’s high-turnover franchise concepts

There is no grey area here – Experimax is clearly not a viable franchise concept and, in my opinion, anyone who now sells an Experimax franchise as a safe investment is engaging in the worst kind of deceptive and illegal business practices.

I Am Urging Your Industry Supporters to Help You Do the Right Thing

I understand that a CEO accustomed to having his way, who has a staff of 200 and 1500 adults contractually required to do what he tells them might resist being publicly questioned, taken to task and told what to do – even if it is in his best interest.

For that reason, I am going to ask your friends and supporters in the franchise industry to help motivate you to do the right thing.

International Franchise Association (IFA)

I urge your friends and supporters at the IFA and at the IFE Franchise Expo to stop promoting, endorsing and advertising the Experimax franchise opportunity. I also urge them to remind you of the IFA Code of Ethics.

Small Business Administration (SBA)

I am asking the SBA to drop Experimax from the SBA Franchise Registry and to disallow it from receiving taxpayer-funded loan guarantees. I would also urge them to look into the documented allegations of fraud possibly involving UFG’s Tim Phillips and Business Finance Depot’s Paul Bosley.

Titus Center Advisory Board

I am urging to 60+ members of this advisory board to demand that you cease selling and promoting Experimax franchises and any other franchise with a turnover rate exceeding 25% for the past ten years.

Franchise Ad Portals:

I am urging every franchise advertising portal to cease advertising the Experimax franchise, unless it is positioned as a money-losing tax-write-off rather than an opportunity.

Franchise Brokers Organizations:

I’m urging each franchise broker group to drop Experimax from their roster, and teach them how to calculate franchise turnover for previous years before recommending a franchise. I am asking each broker to forward an amount equal to their commission to any client who bought an Experimac or Experimax franchise.

Franchise & Business Publications

I am urging each franchise publication and entrepreneurial magazine to issue a warning about the high turnover (failure) rates of Experimax and other UFG brands, including those that have closed or are in the process of quietly disappearing (like SuperGreen Solutions).

Federal Trade Commission (FTC):

I am urging the FTC to look into the many of Franchise Rule violations being reported in the marketing and sale of Experimac Experimax franchise opportunities as well as other UFG brands. I am urging the FTC to investigate whether you and your organization have been complying with the mandates of the 1998 Permanent Injunction. I am also urging the FTC to investigate the deceptive use of undisclosed paid endorsements by 3^rd parties like John Hayes who receive financial compensation for endorsements positioned as unbiased expert recommendations.

There are Nearly 1500 UFG Franchisees Worldwide. Yet More than 1600 Franchises’ Agreements Terminated Early… in the U.S. Alone

I would also urge you to stop claiming that United Franchise Group (UFG) has “nearly 1500 franchisees in almost 80 countries” without also acknowledging that a greater number (an estimated 1600+) exited their franchise agreements prematurely through termination, ceased operations or ownership transfers… presumably with the loss of their investments.

Our analysis of publicly available Franchise Disclosure Documents for individual UFG brands going back ten or more year reflect that 1,620 franchises exited the systems prematurely through terminations, ceased operations, reacquisition or transfer to other owners.

TABLE 1: Premature Franchise Exits, Turnover (Failure) Rates & Investments Potentially Lost for UFG Brands 2009-2020.

U.S. Franchises	Franchise EXITs:	Turnover Rate	Initial Investments x Exits
Jon Smith Subs	9	37%	– $3M – $6M
Fully Promoted	470	71%	– $58M – $134.5M
Experimax	142	84%	– $21M – $50M
Signarama	655	65%	– $156M to $206M
Supergreen Solutions	59	81%	– $3M to $4.5M to $4M to $6M
Transworld Business Advisors	155	32%	– $12M to $15.5M
Venture X	2	5%	– $1M to $7.5M
Billboard Connection	45	38%/ 100%	– $1.5M to $3M to $3.5M to 8M
Paramount Tax	6	100%	– .5M to $1M
Plan Ahead Events	96	69%/100%	– $4.5M to $6.5M / – $6.5M to $9.5M
TOTAL	1,620		– $265M to $444M

Absent accurate information to the contrary, and absent the communication from those who have left the system (some of whom are contractually prevented from sharing their experiences, or who fear reprisal from UFG), we believe it is fair to assume these early exits constitute failures and a loss of the franchise investment.

Ray, in 21 days UFG will be celebrating its “biggest and best” World Expo at the Palm Beach County Convention Center – June 26 – 30, 2021. You will also be celebrating 35 years in business for United Franchise Group.

It’s not too late to change the theme of the convention to Openness, Honesty & Transparency.

Imagine starting the next 35 years by committing to actually following the principles and living up to the honest and ethical image that you portray in your marketing. Imagine actually acting with the dedication and concern you so expertly communicate. A good place to start would be honoring your commitment to those listed in the pages that follow and showing them the concern expressed before their franchise fee was deposited.

The first step in launching that new era of Truth and Integrity would be to:

>

Stop selling Experimax franchises TODAY!

> Drop the legal terrorism against victims whose only mistake was trusting UFG

> Discontinue confidentiality agreements, NDAs and non-disparagement clauses except for TRUE trade secrets. Your franchisees are your customers and prospective franchisees have a right to hear their experiences and opinions

> Stop selling franchises with a turnover rate greater than 25% (see chart)

> Commit your organization and resources to succeeding on the unit level with stable, profitable franchisees rather than a revolving door that transforms the creditworthy into the destitute.

I look forward to your response – as do many others.

All the best,

Sean Kelly, Publisher

UnhappyFranchisee.com

UnhappyFranchisee@Gmail.com

Relentless, Inc. P.O. Box 10232 Lancaster, PA 17605 UnhappyFranchisee@Gmail.Com

 

 

Experimac / Experimax Franchisees That Ceased Operation (Partial List)

Abul Ahmed Carrollton TX Samia Ahmed Carrollton TX Bryce Avallone Boulder CO Oscar Bautista Overland Park KS James Bennett Arlington TX Gustav Bone Greenville NC Daniel Boisse Fayetteville NC Kimberly Bottemiller Tacoma WA Chris Burneko Bethesda MD Rochelle Cavaretta N. Las Vegas NV Atulanand Choudhary Coppell, TX Leslie Clendenin Madison TN Leslie Cole Highland Village TX Chris Cole Highland Village TX Matthew Davis Athens GA Julie Davis Athens GA Reynart De Beer Sandton South Africa Aroon Desai Dallas TX Vashka Desai Dallas TX David Elliott St. George UT Stacey Flowers Akron OH Michelle Foley Garland TX Colette Gabriel Chicago IL Pedro Gamboa Houston TX Roberto Garcia San Diego CA Gordon Geddins Covington, WA Georgie George San Jose CA Sandra Gonzalez Pearland TX C. Scott Higginbotham Tallahassee FL Tim Holder Joplin MO Travis Howe Cumming GA Rebecca Howe Cumming GA Stephen Hyde Longview TX David Ifill, Jr. Indian Land SC Bruce James Salt Lake City UT Lori James Salt Lake City UT Robert Jefferson Suwanee GA Rene Jefferson Suwanee GA Walid Kaakoush Chandler AZ Priyanka Kalra Scottsdale AZ Percy Kennedy Humble TX Dean Kilton Pickerington OH Andrew King Temecula CA Chris Knight North Charleston SC Rex Lallmang South Riding VA Judy Lallmang South Riding VA Timothy Larkins Longview TX Janice Lee Santa Ana CA George Leonis Highlands Ranch CO	Juliano Lima Hialeah Gardens FL Testi de Lima Hialeah Gardens FL Lisa Little Edgewood PA Diontay Little Edgewood PA Gary Lundquist Orland Park IL Satheesh Madhathil San Jose CA Eliza Mallue Dayton OH Jeffrey Mallue Dayton OH David Mehalick North Pittsburgh PA Scott Maulsby Mt. Juliet TN Fonda McCarty Jacksonville FL Leroy McCarty Jacksonville FL David McCollister Gainesville FL Amit Mehta Glen Ellyn IL Bernadette Morales Pearland TX Lee Morgenstein Fair Lawn NJ Daniel Morgenstein Fair Lawn NJ Matt Morrissey San Luis Obispo CA Melissa Morrissey San Luis Obispo CA Ronald Mosley Manassas VA Benita Mosley Manassas VA Syed Mustafa Anahiem CA Kevin Myers Severna Park MD Robert Newell Smithtown NY Tony Ngugi Aurora CO Julian Nieuwoudt & William Nieuwoudt Cape Town South Africa Okechukwu Nwanna West Hempstead NY Gerald Odum Frisco TX Mark Parent Livonia MI Kurt Peterson Pueblo CO Colleen Peterson Pueblo CO Phuc “Henry” Pham Middleton MA Amit Phillaura Addison, TX Jana Phillaura Addison, TX Lisa Piatt Huntersville NC Jeffery Prainito Charlotte NC Wesley Prince Magnolia TX Deborah Puglielli Hialeah Gardens FL Cody Ramsey Duluth MN Taylor Rash Gilbert AZ Bismarck ND Alicia Rash Gilbert AZ Bismarck ND Lynette Ray Scottsdale AZ Laetitia Rohfritsch Strasbourg France Craig Ruzicki Guilford CT Melissa Ruzicki Guilford CT	Francis Rentz Tallahassee Douglas Robinson St. Charles IL Ricardo Salinas Arvada CO Zachary Salinas Arvada CO David Scarbrough Houston TX Christophe Sevin Orlando FL Hemanth Sehgal Dallas TX Rina Sehgal Dallas TX Athar Sheikh Arlington TX Marc Shor Las Vegas NV Mark Simmons Smyrna GA Charles Small Fort Myers Andrea Small Fort Myers Michael Small Fort Myers Michael Snell Southport QLD Australia Eric Sosa Columbia SC James Spisak Plano TX Allison Stahl Akron OH Charles Stuller, Jr. Spring TX Eddie Sutton Saint Petersburg Joe Tairi Brookfield WI Michael Taylor Houston TX Chris Thomas Chico CA Jeff Thwing McKinney, TX Brian Town East Lansing MI Hollie Town East Lansing MI Glenn Trommer Cherry Hill, NJ Brian Troyk Brookfield WI Adam Tuzza Bohemia, NY Marie Umberger Suwanee GA Jeff Van Horne Portland ME Frank Vinyard Jr. Lafayette LA Michael Voss San Antonio TX Katherine Voss San Antonio TX Karl Vrba Draper UT James Wang Santa Ana CA Patrick Wentland Colorado Springs CO Travis Weaver & Ling Weaver Seattle WA Matthew White Spring TX Christine Witte Fenton MO Gary Wolf Peoria IL Kevin Wright Chicago IL Natalie Young Duluth MN Brando Younger North Las Vegas NV Pamela Zama Bethesda MD

 

Experimac / Experimax Franchisees With SBA Loan Chargeoffs to Date

Morrissey Enterprises,SAN LUIS OBISPO CA Salinas Holdings Corp. ARVADA CO CMR Consulting LLC GUILFORD CT A Cord Of Three LLC TAMPA FL WEB MERCHANTS, LLC. CLEARWATER FL MCCOLLISTER MERCHANDISING INC. GAINESVILLE FL A Cord Of Three LLC dba Experi TAMPA FL FIDELITY CAPSTONE, LLC ATLANTA GA Emumby, Inc. SUWANEE GA Ramsey LLC dba Experimac Duluth DOUGLASVILLE GA SRH Group, LLC SMYRNA GA KC CYGNET LIMITED LIABILITY CO CHICAGO IL Dixon Ventures Mechanic Inc. LEXINGTON KY The Holder Group LLC JOPLIN MO BEIJAFLOR LLC FAIR LAWN NJ EMES TECHNOLOGIES LLC HENDERSON NV YOUNGERLIFE LLC NORTH LAS VEGAS NV OKEYAMERICA INTERNATIONAL Inc. WEST HEMPSTEAD NY Amicus Technology Inc Amherst NY	Wildmacflowers LLC dba Experim HEATH OH ABBOTTAZ ENTERPRISES LLC BEND OR Knightvision Productions, LLC NORTH CHARLESTON SC DIFILL Repairs, Inc. INDIAN LAND SC CHELLE Corporation MADISON TN DFS FRANCHISE INC HOUSTON TX PHILLTRONIX LLC ADDISON TX Pinkie Toes Investments, LLC Highland Village TX OWO Designs LLC GARLAND TX ComPhablet LLC CARROLLTON TX MarMor Investments LLC PEARLAND TX WezPrin, LLC MAGNOLIA TX Thwing Technology Group, Inc. MCKINNEY TX QUALITY ELECTRONICS AND REPAIR WEST JORDAN UT The Tech Store PWCN, LLC MANASSAS VA KAB Enterprises, Inc. dba Expe FEDERAL WAY WA G-TECH DIGITAL SERVICES, INC. FEDERAL WAY WA T & L Enterprise SEATTLE WA KAB Enterprises, Inc. FEDERAL WAY WA

Experimac / Experimac Franchisee Bankruptcy Filings (Partial)

Luminate Images, LLC and Bryce Avallone Boulder CO

Glenn Trommer & Avivah Digital Commerce Cherry Hill NJ

Roseann M. Mattocks Smyrna GA

Brian A. Troyk Wisconsin

Joseph J. Fiorentino and Stephanie J. Fiorentino, Amherst NY

Adam F Tuzza, Experimac Bohemia, Bohemia NY

Timothy Lee Holder, Experimac Joplin, Joplin, MO

Pedro Jesus Gamboa, Copperfield, TX

Donald Dean Dixon, Jr., Lexington, KY

Travis Chariff Weaver and Ling Yung Weaver, Seattle, WA

Jeffrey Thwing & Kimberly Thwing, McKinney, TX

Experimac Highland Village, Pinkie Toes Investments, LLC

Lundo Enterprises, Inc. IL

GYG Electronics, La Mesa, CA

Experimac NW Fields Enterprises, LLC South Carolina

Experimac NW Fields Enterprises, LLC South Carolina

Experimac of Addison Philltronix, LLC

ALSO READ:

FRANCHISE DISCUSSIONS by Company

EXPERIMAX EXPERIMAC Franchise Expose: Behind the Curtain Web Series

ARE YOU A UFG FRANCHISE OWNER OR FRANCHISEE?  ARE YOU FAMILIAR WITH EXPERIMAX, UNITED FRANCHISE GROUP OR RAY TITUS?  SHARE A COMMENT BELOW.

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Tags: Experimax, Experimax franchise, Experimac, Experimac franchise, UFG, United Franchise Group, UFG Expose, Ray titus expose, franchise expose, Ray Titus, John Hayes, SBA guaranteed loans, franchise loans, franchise funding, Paul Bosley, Business Finance Depot, Tim Phillips, Titus Center, Palm Beach Atlantic University, Catherine Cortez Masto, Cortez Masto Franchise Report, Unhappy Franchisee, Sean Kelly