PRIMOHOAGIES Franchise Complaints [REVISED]
PRIMOHOAGIES Franchise Complaints: PrimoHoagies franchisor and owner of PrimoHoagies’ food supplier Nellie’s Provisions, served prison time and house arrest for tax fraud last year.
(UnhappyFranchisee.Com) Nicholas Papanier, Sr.* PrimoHoagies franchisor and owner of PrimoHoagies’ food supplier Nellie’s Provisions, served prison time and house arrest for tax fraud last year. Hopefully, Papanier, Sr.’s federal conviction for fraud and his current probation is being disclosed to prospective franchisees in the PrimoHoagies Franchise Disclosure Document (FDD).
We also hope that the financial arrangement between PrimoHoagies and Nellie’s Provisions are fully disclosed, as the relationship between the franchisor and required source of supplies is important to consider while performing due diligence.
(Note that PrimoHoagie’s attorney Craig Tractenberg disputes the U.S. Attorney’s characterization of the role PrimoHoagies played in Nick Papanier Sr.’s tax fraud conviction. See PRIMOHOAGIES Owner of Nellie’s Provisions Pleads Guilty to Tax Fraud [Updated])
Are you familiar with PrimoHoagies, Nick Papanier, Sr. and Nellie’s Provisions? Please share your experience with them – positive or negative – below.
PrimoHoagies and Nick Papanier, Sr. are also invited to share their views… and a copy of their FDD for our review.
We first learned of the PrimoHoagies and Nick Papanier Sr.’s malfeasance on the BlueMauMau.org published the story Primo Hoagies Franchisor Goes to Prison last March.
We read the Press release on the US Department of Justice website: PRIMOHOAGIES Owner of Nellie’s Provisions Pleads Guilty to Tax Fraud.
When we read about franchisor Nick Papanier, Sr. being convicted of tax fraud, we weren’t so much concerned about Uncle Sam not getting his cut of the booty.
No, our alarm bells were ringing because of
1) the fact that the franchisor and the required supplier had the same owner,
2) Mr. Papanier, Sr. allegedly “caused” franchisees to buy from his own supply company, and
3) Mr. Papanier, Sr.’s admission to tax fraud raises some, shall we say, ethical concerns.
These three factors can be a deadly combination for franchisees, as evidenced by the many franchise failures and ultimate collapse of Quiznos, mostly due to a franchisor who double-dipped by selling required supplies and food items to franchisees, and charged royalties on sales.
We are not saying that Papanier, Sr.’s tax fraud case contained evidence that PrimoHoagies franchisees were adversely affected by PrimoHoagie’s relationship with Nellie’s Provisions. We did not see any allegations of overcharging or unreasonable purchase requirements. We are just saying that, in general, franchisor ownership of a required source of supply has been the source of much tension and litigation with franchisees in the past, and is a factor prospective franchisees should consider when performing their due diligence.
This June 30, 2013 story from the Philadelphia Inquirer states Nick Papanier, Sr. made more than a million dollars in just three years, and tried to avoid paying taxes on half of it:
Prison for tax evasion for Primo Hoagie franchiser
The owner of Primo Hoagie’s franchising business will spend four months in prison for tax evasion, a Camden federal judge ruled Friday.
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In a plea bargain designed in part to avoid prosecution of his wife and save his son’s house, Nicholas Papanier Sr., 57, of Sewell, admitted that he avoided paying taxes totaling $189,656 in 2006, 2007, and 2008.
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Papanier, Sr. who also owned Nellie’s Provisions in Gloucester City, often received cash payments from Primo Hoagie’s franchisees when they bought salami, provolone, and other deli items from him.
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Over three years, he made more than a million dollars, but paid taxes on only about half of it, according to court documents.
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After Papanier, Sr. gets out of prison, he must serve four months of house arrest, followed by 20 months of probation, the judge said.
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U.S. District Judge Noel L. Hillman also ordered Papanier, Sr. to forfeit $484,010 the federal government seized from his bank accounts as part of its investigation.
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In banking that money in his personal accounts, Papanier, Sr. made small deposits designed to avoid reporting requirements, the government said.
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Papanier, Sr. pleaded guilty to one count of tax evasion March 22. His lawyer was Ronald Warren of Haddonfield. Assistant U.S. Attorneys Jason M. Richardson and Jordan Anger prosecuted the case.
* All references to Primohoagies is regarding Nick Papanier, Sr., not Jr. We’ve been informed that Nick Papanier, Sr. is no longer involved with Primohoagies.
ALSO READ:
FRANCHISE DISCUSSIONS by Company
PRIMOHOAGIES Owner of Nellie’s Provisions Pleads Guilty to Tax Fraud [Updated]
PRIMOHOAGIES & Nick Papanier, Sr. Tax Evasion: A Clarification
ARE YOU FAMILIAR WITH THE PRIMOHOAGIES FRANCHISE, NICK PAPANIER, SR. OR NELLIE’S PROVISIONS? SHARE A COMMENT BELOW.
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I spent some time in the Food business in Philadelphia and South Jersey .
The money is made in forcing you to buy from the company owned by the same .
This is the scam of all scams .
After reading this article is proof of when a scam is revealed what attacks almost always occur .
I visited primos on south 11 street in center city on 3-1-2025.
My order came to 20.00 , I wanted to use a gift card and debit card to pay for my order. I had 10.32 left on gift card.
When the cashier tried to input gift card it said no balance. I asked for a manager who came to front and he tried to input gift card no balance available. Instead of the manager referring me to contact corporate about gift card he rudely ask me to leave store. All I said was I am suppose to take the loss?
I got home and looked at back of gift card and saw that the card expired on 2-29-2025. The manager could have defused problem by looking on back of card. But he chose to act rudely towards me . I could have paid the balance with my debit card but he asked me to leave store .no hollering or arguing took place.
If this is how managers treat customers than how do you think the employees are going to treat customers by this example ?
I haven’t been involved with managing gift cards for many years, but when I was there something called “eschete laws” (sp.) that said that issuers were not allowed to keep unredeemed funds on either expired, lost or unused gift cards. Unredeemed gift card funds can be significant, as a huge percentage of gift card funds are never redeemed. The law stated that unredeemed funds must be submitted to the state – after all, they were paid but didn’t deliver the goods.
Again, I haven’t researched this topic but if anyone is up on this, please share. At that time, fast food franchisors were adding like a $2.50 per month fee to be counted against expired cards for the sole purpose of claiming they had earned or depleted the unused funds and get the liability off the books.
You may want to check the card and the terms for Primohoagie’s policy and write to HQ. If they’re smart, they’ll send you a generous voucher or card for sharing your experience.