JM Family, Home Franchise Concepts (HFC) Franchisees Find Their Voice
State and Federal government officials are reportedly investigating the franchise practices of JM Family Enterprises and Home Franchise Concepts (HFC). So far, an estimated 51 complaints have been submitted to the Federal Trade Commission (FTC) by franchisees of Kitchen Tune-Up, Bath Tune-Up, and other HFC brands. Outspoken multi-unit franchisee Kay Sharaf airs franchisee issues and grievances in two dozen videos online. HFC had the opportunity to avoid the rising level of public complaints and criticism early on but, like too many franchisors, turned their franchisee relationship issues “over to the lawyers.” The First in a Series. by Sean Kelly, founder, Truth for Veterans, Truth for All Initiative
(Unhappy Franchisee.Com) It’s a mistake I see franchisors make over and over.
Rather than acknowledge and respond constructively to franchisees complaints, they fall back on using their financial and legal advantages to terminate and silence “franchise family” members they recruited, qualified and trained.
Once they “turn it over” to their franchise attorneys, there is little hope that they’ll change tactics or correct course.
Often, they just keep litigating and trying to destroy their former “family member,” even it is their brand and reputation is being irreparably damaged.
The Mini-Donut Meltdown of the DonutNV “Franchise Family” Provides a Dramatic Example
Mobile mini-donut franchisor DonutNV turned over its franchise sales function to the notorious Franchise Sales Organization (FSO) Franchise Fastlane. Deploying its vast broker network and aggressive sales force, Franchise Fastlane sold about 270 territories to 120 franchisees.
Rather than acknowledge and address the many problems franchisees were facing, DonutNV took a heavy-handed approach, prohibiting negative comments, using NDAs to silence departing franchisees, even suing Unhappy Franchisee for sharing their franchisees complaints.
Yesterday, I reported on how the overlawyered DonutNV appears to be suffering a death-by-a-thousand-law-firm-invoices.
Mini-Donut Meltdown: Franchisees Fight Back. DonutNV Loses Control. Parody Ensues.
The contrast between the cheery DonutNV public persona and the overlawyered dictatorship with three law firms terminating & gagging senior citizens and military Veterans prompted our DonutNDA franchise parody.
When “Victims” Push Back, Brands and Reputations Fall
Some of us don’t back down when bullied.
It energizes us.
In the 15 months since DonutNV filed a defamation suit against me and this site, I’ve published more than 50 blogs posts, 10+ videos, 100+ graphics and countless graphics.
Their franchise sales machine has ground to a halt – not because of me, but because of their bad decisions and misplaced priorities.
They could have called me at any time, but once a company turns matters over to their attorneys they rarely go back – even as their brand and reputation are burning down.
JM Family Enterprises and Home Franchise Concepts appear to be making the same self-destructive mistake.
Their franchisees aren’t backing down. They are finding their voices.
And it’s getting loud.
Meet Kay Sharaf, Franchisee & American Hero
The term “American Hero” and “Minnesota” are more likely to conjure images of flannel shirts and lumberjacks than a slight, soft-spoken Muslim woman in a hijab and modest Islamic attir
But watch a few of the 20+ videos on her Inside the Franchise Experience playlist, or read the detailed, 83-page report she and Khaled Sharafuddin submitted to the Federal Trade Commission (FTC), and you’ll realize that Kay Sharaf is a force to be reckoned with.
Intelligent.
Organized.
Thorough.
Disciplined.
Bold.
And Relentless are the adjectives that come to mind.
In the right franchise system, these qualities would make Kay Sharef and Khaled Sharafuddin top revenue-generating franchisees.
Assets – not adversaries.
Yet JM Family Enterprises, Home Franchise Concepts (HFC), Kitchen Tune-up and Bath Tune-up managed to turn them not only into formidable adversaries and outspoken whistleblowers, but an inspiration to every franchisee afraid to speak up for themselves.
This is How Franchisor Bullies Self-Destruct
Franchisor bullies and their highly paid law firms are experts at using their legal and financial advantages to inflict personal and financial distress on those who stand up for themselves.
When senior management and the legal team reads this part of Kay and Khaled’s FTC complaint, they may make the mistake of thinking their strategy is working.
This experience has taken an enormous emotional toll on us. We spent many nights unable to sleep, crying from fear, stress, and the feeling of being trapped in something we could not control. What was supposed to be a path to stability became a source of constant anxiety and hopelessness. The financial strain, the confusion, and the ongoing sense of loss have affected our home, our marriage, and our mental well-being in ways we are still struggling to recover from.
What they don’t realize is that personal and financial distress doesn’t break people like Kay and Khaled.. or me.
It strengthens our resolve.
As more and more of franchisees find their voices, JM Family Enterprises, Home Franchise Concepts, Kitchen Tune-Up, Bath Tune-up and their other brands may soon learn that turning franchise relationship matters over to the lawyers may be the fastest and surest way to destroy the brand (s ) and the reputation they sought to protect..
