Public Audit: Home Franchise Concepts (HFC) Veterans Franchise Program

The Franchise Truth for Veterans initiative includes both public and private (paid) audits of franchise offerings specifically targeting Veterans and promoted as “Veteran-Friendly” and/or “Best Franchises for Veteran.”  Private audits are available for franchisors genuinely interested in providing real, substantive benefits to Veteran franchisees beyond a standard discount.  Our in-depth, confidential analysis of their current program and practices, recommendations for improvement and implementation & promotional support provides Veterans with an increased chance of success and franchisors with a competitive advantage in recruiting the best and most qualified Veteran franchisees.

We are conducting an ongoing audit of Home Franchise Concepts (HFC) franchise offerings and their widely advertised claims that their organization is “Veteran-Friendly” and offers “Top Franchises for Veterans.”

So far, neither executives of the individual franchise companies discussed, Home Franchise concepts nor ultimate parent company JM Family Enterprises has addressed the issues or the questions posed to them.

Turnover Rates of All Home Franchise Concepts (HFC) Franchises (19% – 73%)

We posted turnover rates, litigation and transparency policies (whether they prohibit franchisees from sharing their opinions with prospective franchisees) of each HFC brand here:

Are Home Franchise Concepts (HFC) Franchises Veteran-Friendly? Turnover Rates Compared

Lawsuits & Closures of Kitchen Tune-Up & Bath Tune-Up Franchisees

We asked CEO Brent Burns of JM Family Ent. & Andrew Skellen, CEO of HFC, about their lawsuit against Army Ranger Veteran and their former franchisee PK Kelley.  Their litigation against the Veteran seemed to be pushing Kelley into bankruptcy and would result in the loss of the security clearance he’d need to rebuild.

We found that a number of Veteran franchisees featured in Kitchen Tune-Up and Bath Tune-Up ads in 2020 and 2021 had since ceased doing business (Brian Whitfield, PK Kelley (2), Garth Mathews  AZ, Colin McCarthy OR,  Jason Krueger NE,  Kevin Nemelka, UT & Patrick Frye NC).  Two of the terminated Veteran franchisees have been sued by the franchisor (Brian Whitfield, PK Kelley (2))

That’s a 62% Attrition Rate of Veteran franchisees in just a few years.

Is KITCHEN TUNE-UP a Veteran-Friendly Franchise if it Sues & Gags Franchisees?

Kitchen Tune-Up & Bath Tune-Up Franchise Dream Ends in Bankruptcy for Army Ranger Veteran & His Father

We had contacted JM Family Enterprises CEO Brent Burns on February 9, 2023 asking that he look into the high-pressure litigation against PK Kelley and his father that appeared to be pushing the former Army Ranger into bankruptcy.

We received no response from Mr. Burns.  Evidently, he passed my message on to HFC CEO Andrew Skehan who initially said he would be available to talk, but then unlinked from me on LinkedIn and has not yet responded to invitations to respond to our posts or questions.

On 2/19/23, 10 days after my unanswered request that JME Brent Burns look into the litigation of an Army Ranger Veteran by “Veteran-Friendly” HFC, former Kitchen Tune-Up and Bath Tune-Up franchisee PK Kelley and his 63-year-old father, John Mark Kelley, each filed for bankruptcy, as I reported here:

JM Family, Home Franchise Concepts (HFC) Drives Army Ranger PK Kelley & Father into Bankruptcy

We Will Continue to Seek Input from JM Family Enterprises, Home Franchise Concepts (HFC), Current & Former Owners of “Veteran-Friendly” HFC Brands

This Franchise Truth for Veterans Public Audit will continue with additional research & open dialogue on the questions our initial posts have raised, such as:

• If a franchise agreement allows the franchisor to sue a Veteran, who they approved as financially qualified, for running out of money with their franchise program, should it be advertised as “Veteran-Friendly”?
• If a franchisor contractually forbids former franchise owners from sharing their opinions with prospective Veteran franchisees, keeping them from making a fully informed investment decision, should it be promoted as a “Great Franchise for Veterans”?
• If a franchisor then strips that partially informed Veteran franchisee from his or her freedom to share honest opinions and experiences with Veterans (and other American citizens) considering the franchise investment, should it be promoted a good opportunity for Veterans?
• As a major automotive retailer, does JM Family force car buyers to sign confidentiality agreements that prohibit them from sharing negative opinions with prospective car buyers?  Why of why not?  Why do they require this restriction on those who invested their family’s futures in their franchises?
• At what point should a 3-year franchisee turnover rate be considered too high to ethically offer it as a viable investment to Veterans and military families?  30% ?  40%?  50%?  What about to non-Veterans?
• Is it ethical for JM Family Enterprises & Home Franchise Concepts (HFC) to be promoting the Concrete Crafts franchise – with a 73% 3-year franchise turnover rate – as a safe investment for Veterans?  Can JME or HFC explain why 5 Concrete Craft franchises did not survive their first year in business – and what improvements have been made to fix the cause before another franchise is sold to a new Veteran or non-Veteran franchisee?
• Should JM Family be promoting its dedication to transparency when it refuses to address these tough, but important, questions?
• Why shouldn’t Veterans and organizations that inform and protect Veterans interprete  Andrew Skehan’s and HFC’s unwillingness to discuss these questions as disrespect and lack of concern over the well-being of Veterans they are targeting through their aggressive recruitment campaigns?

At this point, we have generated a lot of questions and few definite answers regarding JM Family Enterprises and Home Franchise Concepts (HFC) true commitment to living up to its claims of providing Veteran-friendly franchise opportunities.

They are invited to address these questions, as well as those raised in future posts, in the spirit of open and constructive dialogue which we will be happy to post, or discuss with them directly.

ARE YOU FAMILIAR WITH THESE COMPANIES & INDIVIDUALS?  WHAT DO YOU THINK? 

PLEASE SHARE YOUR COMMENTS BELOW OR VIA CONFIDENTIAL EMAIL.

Email the author, in confidence, at UnhappyFranchisee[at]Gmai[dot]com

Tags:  Andrew Skehan HFC, Brent Burns JM Family, Army Ranger PK Kelley, Bath Tune-Up, Bath Tune-Up franchise, Best Veteran Franchises, CEO Brent Burns, Budget Blinds, franchise confidentiality, franchise litigation, franchise NDAs, Franchise Truth for Veterans, HFC, Home Franchise Concepts, JM Family Enterprises, Kitchen Tune-Up, Kitchen Tune-Up franchise, Kitchen Tune-Up franchise for veterans, PK Kelley, Veteran-Friendly Franchises, veterans in franchising, Vetfran