BUDGET BLINDS Franchise Complaints

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• Let's get this straight. 75 SBA loans over 11 years of which 27 failed? That works out to be 2.5 failed franchises out of a system of 750-900? While I'm sure the good folks at Budget Blinds would like that to be 0, considering the economic conditions this country has experienced over the past few years I would say that those numbers are a tribute to their system as opposed to a disgrace.

  • Anonymous:

    Thanks for posting your comment.

    In the spirit of getting things straight, here are the numbers provided by Budget Blinds in their 2012 Franchise Disclosure Document (FDD):

    Number of Budget Blinds franchises open at start or 2009: 895
    Number of new Budget Blinds franchises added 2009-2011: 90
    Total # Budget Blinds franchises open 2009-2011: 985
    Total # Budget Blinds franchises terminated 2009-2011: 284 (29%)
    Total # Budget Blinds franchises ceased operation for other reasons 2009-2011: 17 (2%)
    Percentage of Budget Blinds franchises terminated/ceased operation 2009-2011: 31%
    Percentage of Budget Blinds franchises with SBA loans that defaulted: 37%

    Looking at these numbers, it seems likely that in a three year period, about a third of Budget Blinds franchisees are terminated or cease operation.
    Whether that's high or an acceptable amount is up to prospective franchisees to decide, but that's the data that Budget Blinds discloses in their FDD.
    Also, the 2012 FDD states that there are 687 U.S. Budget Blinds franchises, not 750-900 as you state.
    That's down from 895 at the end of 2008.
    I agree that "2.5 failed franchises out of a system of 750-900" would deserve a tribute, but that just doesn't seem to be the case.

    If we are missing something, please set us straight.

• As a former Budget Blinds franchise owner for 5 years I can add some insight to this discussion. One thing to be aware of is that Budget Blinds (parent company is Home Franchise Concepts) tends to play loose with the numbers. They consistently have stated that they have "900" or so franchises, when in fact it is "franchise territories" that the number actually represents. They tend to interchange these two rather liberally. There may be 900 franchise territories, with one franchise owning more than one territory, but only 6 - 700 actual franchises...something to keep in mind. Likewise, they started another franchise operation called "Closet Tailors" which is now called "Tailored Living". It sells garage cabinets, closet makeover stuff and the like. Something to ask, do they include those numbers in the total franchise number since many "Tailored Living" units are owned by Budget Blind franchisees? The failure rate for these things is high, no getting around that. The support is non-exsistent especially if another franchisee "poaches" in your territory. You're pretty much left to fend for yourself. The NAF (National Advertising Fee) is over the top considering the amount of leads it generates. The franchises have been litterally screaming for more regional advertising for years always falling on deaf ears. I could go on and on but those doing due dilligence should keep one thing in mind: the owners target is 1500 franchises then they want to sell out. During the heyday, 2003 thru 2008 or so the most franchises they had were around 1100 more or less. Many financed those purchases with loans against their homes, retirements, banks and so on. Two questions: there are now half or so of those franchises left, how many lost their shirts because of this (with Budget Blinds refusing to lower fees to assist some to stay in business); and two, if they couldn't make it to 1500 during those "wild and crazy days" how will they make it now when everything has tightended up?

• I have been in the window covering business for over 20 years. it is not an easy business, like all businesses. It can be a good business, you wont get rich but you can make a good living .
  Do your due diligence, there are people in your area now, that have been selling all types of window coverings for years. You could simply get in touch with a few suppliers negotiate your pricing and your in business ! If you are serious they will work with you. Start small , do a few good jobs and your business will grow. No need to pay a franchise fee ! what do you really get for $75k . Suppliers reps can teach you all you need to know, if you are the right person for this, you have to have a good balance of business savvy, decorating and be a handy to install and repair.
  Be warned, mistakes , bad measurements etc.. can be costly , fussy customers, etc.. every window covering company in the world has them. Custom blinds can't be returned they are basically worthless . All companies have piles of them. Keep this to a minimum. Good luck to all !!!

• As a current owner of 2 Budget Blinds franchises for close to 10 years I would just like to add a few comments. First, as in any inustry there are people who probably have no business running their own company regardless of what products are involved and of course, people who have taken loans to start a new venture face the same reality of economic conditions that everyone faces. Does this mean this should be an indictment on Budget Blinds.....NO. The comments above from a previous owner are no doubt representative of a person who perhaps should not have undertaken this type of business regardless of the franchise. We run a very strong business with a repeat/referral rate of 68% YTD in 2012. I feel corporate does an outstanding job of presenting the franchise owners with the support, pricing and products to enable us to be sucessful. How the owners chooses to implement/use these tools is what separates the sucessful franchise owners from the unsucessful ones. Big difference we have compared to starting your own business is brand recognition and web presence...something that would take months/years to acquire by starting on your own. When I started I actually made a profit my first month and now with annual sales of app. 750k at a 24% net margin I think we have a real good thing going making over $160k per year...after all expenses including franchise fees. Hope this might be insightful to folks.

• TO: Anonymous says:

  from November 11, 2012 at 9:06 pm

  Can you email me? Would like to pick your brain, thanks Dawn and Tom

• I called a few days ago to inquire about the Budget Blinds franchise opportunity, and after two days, I have received no phone call back! I talked with an operator for about three-minutes who directed me to another phone extension that I left a very clear message, and to date, nothing.

  I have noticed in my area (Cleveland, OH) there are many Budget Blinds franchise owners already in business, but this should not justify the corporate office not having the decency to get back (in a timely manner) with a interested prospect (RED FLAG…

• as a former franchisee let me just give you this warning. when you purchase a Budget Blinds franchise you are purchasing a job and working for home franchise concepts, the parent company of budget blinds. just remember Budget Blinds is in business for itself not for the franchisee. support is very hard to get to usually just by a phone call in which they only have three or four people answering the phones and most the time they are not there. your product lines although marketed as specific to Budget Blinds, are made by the large companies that manufacture the same thing for everyone else and the only difference is the sticker on the bottom of the window covering. national advertising is very poor and really only benefit's the east and northeast territories. Budget Blinds itself will send you fake leads just to pad the numbers. Budget Blinds won't admit to it but I sent them back more bad leads than they sent me good, threefold. in my 12 months as a franchisee I only received 9 good leads from national advertising. that means approximately 1000 dollars per lead with an average sale at three to four hundred dollars.
  ease of entry into this type of business is extremely easy and the need for Budget Blinds is not there. do yourself a favor and save franchise fees and the advertising budget for yourself and contact the manufactures directly. set up accounts with the manufacturer's directly and pay as you go, make sure not to build any type of credit situation because it will soon come to haunt you with this type of business. also remember your competition is everyone, big box stores, little stores specialty stores, everyone sells blinds.
  I also want to add your support will come from the manufacturer reps for the majority of your needs, making Budget Blinds itself obsolete.

• I have to agree with Mario. I am a former Closet Tailors franchisee with Home Franchise Concepts. There was very little help and practically no help with advertising. When a family tragedy hit our family, they canceled our franchise agreement after taking $65,000 from me. My advice is save your money. If you're looking for a good franchise opportunity, contact The Cleaning Authority where advertising, training, support is the very best! I've been with The Cleaning Authority now for 10 years and we are a $2,000,000/year business.

• Another note, when I tried to save our Closet Tailors franchise, corporate said "this is a business decision" which I can understand but it was just when they were transitioning to Tailored Living and there was someone from Premier Garage that wanted my 2 territories so they got $65,000 from me and more from the new franchisee. That seems a little crooked!

• Ms. Baker paid $249 for blinds for her home. She paid in full and has not received her blinds. Ms. Baker is 91 years old and when she calls the number it has been disconnected.

  She has contacted us, Morning Star Publications, Inc ( the local newspaper) to try and get some help.

  Please contact Ms. Baker to resolve her problem asap. If she does not hear from Budget Blinds with 10 days, we will contact the Better Business Bureau and our local police.