EMBROIDME Franchise Complaints
EmbroidMe franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
EmbroidMe claims to be “the World’s largest Embroidery, Garment Printing, Custom Apparel, Promotional Product, screenprinting and Personalized Gifts franchise with a strong presence in the USA, Canada and Australia. Our products include fashion apparel, embroidered garments, personalized promotional products and monogrammed gift items.”
The EmbroidMe franchise brand is part of the United Franchise Group (UFG).
According to the United Franchise Group website: “The experts at UFG have used their over 25 years of franchising experience to grow the franchising giant into a $500 million dollar success story with approx. 1400 franchise locations in 50 countries.
“The company includes franchise industry giants SIGNARAMA, the world’s largest sign franchise; EmbroidMe, the world’s largest embroidery franchise; Billboard Connection, an incredibly successful out-of-home advertising franchise; Transworld Business Advisors, for people to research business opportunities before investing and Plan Ahead Events, a home-based corporate event planning franchise.”
While company size is impressive, data released by the Small Business Administration (SBA) indicates that EmbroidMe franchise owners who qualified for SBA-backed franchise loans have an outrageously high loan failure rate of 40%.
That earns EmbroidMe a spot in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
EmbroidMe franchise owners have an outrageous 40% SBA default rate.
The apparent drop in EmbroidMe franchises in recent years is also a franchise red flag.
| EmbroidMe Franchise | |
| EmbroidMe U.S. franchises in 2008: | 375 |
| EmbroidMe U.S. franchises in 2012: | 250 |
| Growth in franchise units 2008 – 2012 (#) | -125 |
| Growth in franchise units 2008 – 2012 (%): | -33% |
| SBA loans granted since 2001: | 45 |
| SBA loan failure rate: | 40% |
| Sources: Entrepreneur (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that EmbroidMe franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the EmbroidMe franchise opportunity?
What do you think accounts for the SBA loan failure rate of EmbroidMe franchise owners?
What steps should EmbroidMe and United Franchise Group (UFG) be taking to stop further franchise failures?
Has EmbroidMe and United Franchise Group (UFG) taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
If you are a EmbroidMe franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE EMBROIDME FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER EMBROIDME FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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We opened an embroidme and straight from the off were shocked and disappointed at the way things progressed. Training in the states was fine but once we entered our shop for two week sethup and training it was a shock . We could not believe the attitude of certain ufg employees. Their knowledge of the industry was very poor to say the least, it was a real life nightmare but it was too late for us to go back. We persevered for five years and built a succesful business with no help from the franchise. We built the business to get out, we sold a good business because we built it. …….warning……. Do not buy into this franchise model. It is effectively a ponzi scheme. Franchise systems are only as good as the people working for them. We would now be able to succeed in any business, franchise or otherwise. Warning again , do it yourself and persevere.this franchise is not one of the better systems.
I purchased an Embroidme Franchise several years ago. It wasn’t long I could see that the business model for Embroidme was all about making Money for the Embroidme Franchise and not for the store owner. Within the first year I learned how over priced the Equipment and apparel package was they sold me. They want you in a high exposure location not to help your business grow but to gain more exposure for the Franchise. You get 2 weeks of training and then your back in your store learning the hard way to use your embroidery machines. You will pay a percentage of your store volume not from the profit back to Embroidme Franchise. And you will have a high volume of errors and damaged product so your profit margin is impacted. We keep our business going by working long hours and on going marketing. This is not a bad business but Would not ever recommend an Embroidme Franchise. Most owners either sell out early our worse loose most of their 401k money and life savings. Their are some locations that have had some success but the location may be a 2nd or 3rd owner. With the amount of upfront investment and overhead involved and weak support you should look at other opportunities.
Why is the franchise fee so high? Their website has $49,500. Just call it $50,000. There are only four of these stores in the entire state where I live. That’s my clue that they don’t survive.
The level of corruption and lack of ethics at the management level is so perverse , is it any wonder many of the franchisees fail. The past president was caught having an affair with a franchisee wife and had to resign…these are the types of people they employ…from the CEO down!…run, get away…the business model is also a big loser!
I was just recently informed of this a post about Embroidme that used my name but was not Brian Dawson. I have no problems with EmbroidMe the Corporate team, leadership or the business model.
Brian Dawson
I do not recommend anyone looking into purchasing a franchise purchase a EmbroidMe (or whatever they call it now). Their interests is only making the corporate look good and get all the money they can from your business. We were given awards at annual gatherings for marketing but the marketing did nothing for our business. When we filed bankruptcy and informed them we were closing the business they took the equipment, supplies, apparel and had us sign a agreement that we wouldn’t sue them. They sold the equipment and supplies from our store to a new owner of an Emboridme store in another location and called our business as being sold, just to not have it on the books as a failed business. We lost our home to short sale and hit rock bottom, never to hear from them again. Stay away from United Franchise Group and their franchises. I have read all the comments from the corporate representative, all to make it look like they are not at fault at all, not true.
If you’re looking at a Fully Promoted STAY AWAY!! This is the most corrupt organization I have ever been involved with. They will take your money, encourage you to rent space in a high rent area and then open a cheap “office model” down the street.
This organization is NOT looking out for their franchisees. The only successful stores are the old stores who were Embroidme and they haven’t even changed to the new name.
Walk away! Don’t buy a franchise!!!! You can do this business from your home. They don’t have buying power like they claim and most owners would NOT DO THIS AGAIN If THEY HAD THE CHOICE.
Learn from our mistakes.