RITA’S ITALIAN ICE Franchise Complaints

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• First thing is Rita's is great love it but the size keeps getting smaller just up the price you have a great product

• Does ANYONE have ANYTHING to say about the franchise on this thread, or it all customer complaints? I wanted to know about the franchise like the article said. Did anybody even read what this thread was FOR! Or is this just a soap box? Ugh

• If you think about getting into Rita's your committing financial suicide. Sales are down 6.45 this year. Right now is about 187 K. At company average your losing your pants off. Your chances of losing money is extremely extremely high. The company strategy is to pack them like subway or 7 eleven. 5 miles and you see 5 Rita's. Your built up is same as other franchise but none have as low average as Rita's. Example. Tropical Smoothie. 700K average. Rita's so far 187K this year. That is stinking bad. Ask the company., how many stores close. Now the number store is above 1100., yet there are 600 units. That tells you how many close. They tell you they won't open anymore in your area. Total 100% lies. They open around your edge., again and again. At 280K your making 30K net. Imagine if yours is 200K average. Your losing money. Why get into Rita's when you have 10% of actually making money. You been warn by a franchise owner. I hate to file for bankruptcy but I have no choice. My mistake warns others., not to make the same mistake.

• Signing up with Rita's is financial suicide. If you do Ok. They will built stores all around your territory until your way below average. They want your store to be family run. They come first. They hope you sell it so they get the resale fee. They are your worst enemy. Example of their inventory cost. Sugar. Outside you can buy 1.59 for 4 pounds. Rita's charge 2.39. Napkin. Outside is 22 bucks. Rita's is 59 bucks. Your inventory cost is 38-40 percent. They nickel and dime you to death. They brain wash you by telling you water ice is cheap to make. They inventory cost actually kills you. It is all a lie. If you have 3 stores around your edge of territory what good is your territory??? They destroy your wealth because you will lose all the money you put it to built it. 23% SBA default but a lot more when you consider they put store around you until you failed. Last year they had seventy six store closing and out of business. Do your research. Stay away at all cost. It is a road to losing all your investments. My friend had a heart attack and die due to stress from Rita's corp. They built a store in a mall near him. The mall store ending up given the store away for free. This is in Glen Burnie Maryland. Ask the Rita's Corp about that one. Because thats what your future will look like with Rita's.

• Rita's italian ice will make you a slave. Lies they tell you.
  1. Your territory is protected. We not looking to open store near your territory . Truth- They will built all around your edges. They wish you sell so they can get transfer fees.
  2. We care about your profit. More than half is losing money. Just month of September. 9 listed for sale. Just on month of september. There is 12 month. Owners are highly motivated to sale.
  3. Don't cost much to make ice. Your inventory level is 38. Napkins is 59 dollars a box. Restaurant supplier sales for 22. You are nickel and dime to death with their increases. And you have no say in what they increase. Sugar outside is 1.29 per 4 pound while Rita's is 2.39 per 4 pounds.
  4. Rita's sells average has not increase since 2007. While everything increases. Average is around 200k. Five guys average is 900K and Tropical smoothie 700K.
  Conclusion: Signing up with Rita's does make you a slave. And loses a lot of money. This is the truth.

• Highest failure rates. Looks like Rita's average are down 5% this year and won't make average pass 200K. Means only 20% of franchise are making a salary. Quizno's can't make it with average sales of 349K. Means this business to be profitable needs to be mom pop and son and daughter work for free. Sign up as a death sentence on your money.

• Do not trust Rita's sales numbers. They do a projected sale and not a actual sales. As a group of franchise owners believe the number is off by as much as 30%. If the actual sale for the week is 3500 they would listed as 5500. Many franchisees are shock by the number they put out. The average sales is around 170-180 per year. You immediately lose money because your per store cost averages 350K. Since your sale is 170-180K You can only sale your store for that much. Immediate lost of money. And you do work for free because the average sales loses money. If you want to be a slave. Go ahead and open a Rita. Only 30% actually have a profit.

• Looking to invest in a new ritas franchise. I have experience running other businesses and looking for something new. Should I look to purchase a franchise from an individual that is already up and running, or should I open a new franchise in an area that ritas want a new franchise?

• I would suggest running as far away from Rita's as possible...find something else. We're financially ruined as a result and trying to figure out how to get out of it. Stores around us just keep shutting down.

• John Truth, I own a Rita's and like you said, you will work as slave for them paying them royalty fees them doing nothing and signing your death sentence. Call me when you get a chance [redacted].