EXPERIMAC Franchise Complaints
Experimac is a franchise offered United Franchise Group (UFG) whose other brands include Signarama, EmbroidMe (aka Fully Promoted), Transworld Business Advisors, SuperGreen Solutions, Jon Smith Subs and Venture X Franchising. While UFG only started selling Experimac retail franchises in 2014, the franchise chain is already showing a distressing turnover rate of 26% and numerous franchisee bankruptcies. by Sean Kelly
(UnhappyFranchisee.Com) United Franchise Group (UFG), franchisor of the fledgling Experimac retail electronics franchise, knows how to sell franchises.
(Be sure to also read
EXPERIMAC Franchise Complaints – Part 2)
In fact, the company’s deceptive and unlawful hard-sell tactics back in the nineties earned it and founder Roy Titus an FTC injunction and a consent order from the Securities Commissioner of Maryland that are disclosed in its 2018 Experimac Franchise Disclosure Document (FDD).
Our post UNITED FRANCHISE GROUP (UFG) Franchise Complaints casts doubt on whether things have changed much since current CEO Ray Titus took over from his dad, Roy. We quoted numerous disturbing online reviews from former UFG corporate employees:
…former corporate employees use terms like “Ponzi Scheme” “Cult,” and “Opportunistic Swindler Culture,” to describe an organization that puts closing sales and collecting franchise fees ahead of honesty and franchise owner success.
The question is: Does United Franchise Group provide the sound business concept, the systems and the support to keep franchise investors in ventures like Experimac in business?
Are you familiar with United Franchise Group? Please share your experience – positive or negative – with a comment below… or email in confidence to UnhappyFranchisee[at]Gmail.com
From 2015 – 2017, 29 Experimac Franchises Closed or Were Resold
The Experimac 2018 FDD states that Experimac® franchisees operate “a retail business buying, selling, repairing and refurbishing used cell phones, computers, tablets and other electronic equipment.”
It states: “The total investment necessary to begin operation of an Experimac® store is from $142,010 to $321,140. These amounts include $64,500 to $92,000 that must be paid to the franchisor or an affiliate if you obtain financing for the purchase of your equipment to $159,400 to $186,900 that must be paid to the franchisor or an affiliate if you purchase your equipment.”
Item 20 of the 2018 Experimac Franchise Disclosure Document (FDD) indicates that a rising number of Experimac franchisees are losing their investments and exiting the system either by closing their locations, having their franchises taken back by the franchisor, or by having their franchises transferred to other owners.
According to Experimac Franchising, LLC., Experimac opened 120 franchises from 2015-2017.
Of the 120 Experimac franchises opened, 5 were terminated, 2 were reacquired by the franchisor, and 19 “Ceased Operations – Other Reasons.”
Additionally, 8 Experimac franchises were reassigned to other owners, putting the franchise turnover rate at 26% in just its 4th year of franchising.
Are you aware of other Experimac franchise closures or transfers and the reason for the high Experimac turnover? Please share a comment below or email in confidence to UnhappyFranchisee[at]Gmail.com
SBA Loan Data Reveals Rising EXPERIMAC Franchise Failures & Defaults
The 2018 Franchise Coleman Report of SBA 7(a) and 504 Loan Failure and Charge-Off Data states that as of December 31, 2017, 62 SBA-guaranteed loans had been approved for Experimac franchises. 13% of the Experimac franchise loans were listed as being in Charge-Off (Default) Status, which is significantly higher than the franchise average charge-off rate of 4.8%
SBA loan data obtained from the SBA website as of November, 2018 listed data for 55 Experimac franchise loans.
Of the 57, 37 were ongoing, 4 were paid-in-full, 2 were cancelled, 1 had no status listed, and 13 (24%) were in Charge-off Default Status.
The 13 Experimac franchises listed as being in Charge-off (Default) Status were in the following locations:
- FL HILLSBOROUGH
- FL PINELLAS
- GA FULTON
- GA GWINNETT
- NV CLARK
- NH ROCKINGHAM
- NC MECKLENBURG
- TX MONTGOMERY
- TX BRAZORIA
- TX HARRIS
- UT WASHINGTON
- WA PIERCE
- WA KING
The overwhelming number (47) of the SBA-guaranteed loans were granted by Celtic Bank Corporation.
All but one of the Experimac franchise loans in default were issued by Celtic Bank Corporation.
Are you aware of other Experimac SBA-Guaranteed franchise loans that are in default? Please share a comment below or email in confidence to UnhappyFranchisee[at]Gmail.com
Experimac Franchise Bankruptcies
Experimac-named bankruptcies that currently show up in a Pacer search included:
- Experimac – Brian A. Troyk – Wisconsin Eastern Bankruptcy Court
- Experimac Joplin – Timothy Lee Holder – Missouri Western Bankruptcy Court
- Experimac of Addison – Philltronix LLC – Texas Northern Bankruptcy Court
- Experimac of Copperfield – Pedro Jesus Gamboa – Texas Southern Bankruptcy Court
- Experimac of Lexington – Donald Dean Dixon, Jr. – Kentucky Eastern Bankruptcy Court
Are you aware of other Experimac franchise bankruptcies? Please share a comment below or email in confidence to UnhappyFranchisee[at]Gmail.com
Experimac Franchise Owners Weigh In
“Former Owner” posted this comment on Glassdoor 10/18/18:
They only want your money. United Franchise Group sells a dream that can never come true. The fees, kickbacks, royalties, loans and leases are not sustainable. Store failure rates are misrepresented because non-profitable stores are transferred to someone else that fell for the sales pitch. This company nets 70k on transferring ownership.
More than 50 Experimac stores have closed and many more failed and sold. The lavish lifestyle of the owner is supported off the backs of hard working men and women who are losing everything they own in these endeavors.
Does a good model have a failure rate of <50% in the first year? This franchise is fraudulent and deceptive. There is currently a federal lawsuit pending against UFG and the crooks that run this operation. Run fast and far!
Advice to Management
Stop ripping people off. Judgement day comes for everyone Ray.
ALSO READ:
EXPERIMAC Franchise Complaints – Part 2
FRANCHISE DISCUSSIONS by Company
UNITED FRANCHISE GROUP (UFG) Franchise Complaints
SIGNARAMA Franchise Complaints
EMBROIDME, SIGNARAMA: United Franchise Group Responds to UnhappyFranchisee.com
Dr. John Hayes & His 12 Amazingly Deceptive Franchises
BIZCOM ASSOCIATES: Franchise PR Firm or Troll Farm?
6 AMAZING Franchise Deceptions of Dr. John Hayes
ARE YOU AN EXPERIMAC FRANCHISE OWNER OR FRANCHISEE OF A UNITED FRANCHISE GROUP BRAND?
DO YOU KNOW WHY EXPERIMAC FRANCHISES ARE FAILING? PLEASE SHARE A COMMENT BELOW.
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