Our earlier post SIGNWORLD Complaints contained excerpts of comments (from complaint site Ripoff Report)
On the same forum, Jack Werner, a former Signworld operator, fired back at his anonymous critics. Werner defended Signworld’s claims that its business opportunity has an extremely low failure rate, stating:
I joined Signworld as an operator in 1995 after doing a lot of my own careful due diligence… I did honestly break even, cash on cash, my first month in business, and wrote my first paycheck to myself in my sixth month after letting the businesses cash reserves build up. I ran my business for 10 years before successfully selling it for many times what I paid for it and I then joined Signworld’s corporate staff because I strongly believed in the business model.
I do know of others that broke even, cash on cash, in their first month, some that broke even in their second, third, and fourth month, most broke even around their sixth or seventh month, and for some it took longer. Believe it or not, we actually did have an owner who did break even his first week in business. But that was a true testament to the hard work that owner put in securing a large order before his doors were even open. It is an owner driven business. Some people just “get it” sooner than others do.
It is impressive that Jack Werner has experience as an owner operator, and that he was willing to publicly address his critics in a professional manner. However, his claim that one owner “did break even his first week in business” is especially troublesome.
How could an owner making a $183,000 investment “break even” his first week in business? Did the owner secure this enormous order, collect the money, receive the materials and complete all of the necessary work in the first week? Jack Werner must surely know that that’s what would be necessary for the owner to recognize monies received as income.
Does that mean that this owner maintained profitability since the first week, or that he did well his first week? How many achieve profitability from Day 1?
Perhaps Mr. Werner – or someone else familiar with this claim – can provide the specifics.
ARE YOU FAMILIAR WITH THE SIGNWORLD OPPORTUNITY? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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I'm an advisor to clients wanting to own and operate successful businesses. Not every franchise or business opportunity owner is successful. Nearly always, they've not performed their due diligence investigations adequately and choose to invest in businesses for which they are just not suited. There are more than 5,000 franchise models and business opportunities in today's marketplace and SignWorld is among the very best models I can recommend to clients whose qualifications indicate they'll be successful in that kind of business.
I've known Jack Werner for many years and have met with or talked with more than a dozen very successful SignWorld operators who will gladly attest to Jack's integrity and the soundness of the business model. In Jack's loquacious style, he's not only broadened my understanding of his business and the franchise industry, but also has helped me improve my abilities to assist my clients. Foremost he believes in his company and the potential for owners to prosper. Beyond that he does everything he can to help other people in the industry, supporting franchise education and sharing sales techniques he's used successfully for many years.
The SignWorld opportunity isn't sign making like one of the ubiquitous sign shop you see in strip malls and on busy streets. It's a commercial vehicle in which successful owners become heavily involved in their communities which provides a never ending, always changing source of business opportunities.
While new owners aren't required to have previous experience, they are required to follow a proven sales and marketing program and be motivated to build their business. People who may not succeed in this business either don't follow the business guidelines or are just not motivated to succeed.
Jack and the folks at SignWorld are always complimented and are highly regarded by franchise professionals across the country. I continue to believe their business model is extremely sound and will continue to present the business to any client wanting to build very good equity while obtaining good margins in a business where networking is a key component.
David Sword
503.328.8683
David Sword writes: I’m an advisor to clients wanting to own and operate successful businesses.
David, you're not an advisor, you're a franchise broker who only earns a fee when someone invests in one of your represented client companies, like Signworld. Franchise and Biz Opp companies are your clients, not the opportunity seekers. That's why "There is never a fee or an obligation to work with Axxiom Franchise Adivsors." The fee is paid by Signworld.
Jack and the folks at SignWorld are always complimented and are highly regarded by franchise professionals across the country.
Who are these franchise professionals? Brokers? Ad sales reps? Why would they be highly regarded in the franchise industry when they aren't a franchise company?
I don't know whether these detractors have valid points or not, but there are some red flags here. One is the fact that Signworld is marketed like a franchise, on franchise sites, yet they do not follow the same marketing and sales guidelines franchises do. They freely make financial claims and have some very suspect claims about profitability, ROI and break even threshholds. While it's great you posted with your real name, it doesn't help that you are not forthcoming about being a salesman for the company. Copier salesmen advise. Suit salesmen advise. Car salesmen advise. They're still salesmen.
Obviously I've misjudged your forum. You aren't seeking information about worthwhile companies, rather your mission is to promote salacious remarks from disgruntled business owners and promote your own bias. Good luck on continuing your forum regarding sour grapes. There's no need for you to reply,
Thanks, David
David:
Yes, you misjudged but not in the way you describe. On this forum you need to be straight, honest and drop all the crap you get away with when talking to Entrepreneur-magazine-reading newbies dreaming of being their own boss and thinking they can dream their way to success.
Our audience includes people who have been there and learned the hard lessons of business ownership. Call this the no-spin zone.
In the newbie world, Jack can get away saying that people have recouped their investments in the first week, but you and I know that's BS.
In the newbie world, you can rename franchise salesmen as "advisors" but you and I know that's BS. Copier salesmen advise. Car salesmen advise. They're still commissioned salesmen, and so are you. Just be honest.
In the newbie world, you can get away with extolling the benefits of business opportunities over franchises, but here we ask real questions and know real answers from candy floss... and aren't afraid to say so.
So here are the real questions:
Does Signworld & its salespeople, brokers, etc. tell the truth, the whole truth and nothing but the truth during the sales process?
Does Signworld adequately qualify its prospects both financially and personally to make sure they have the requisite finances, knowledge & skills to be successful?
Is the basic Signworld business model sound and viable in the markets you approve?
Does Signworld provide a good value in terms of what it provides for the fees it charges? While it claims there are no royalties, how does it generate revenue after the biz is up and running? Is all of that disclosed?
If Signworld does all that right, then the "un-franchisees" probably have nothing to complain about.
I won't defend franchisees who don't follow a sound, honest system that they chose to join, nor franchisees who didn't do a shred of due diligence.
But I also can't abide franchise brokers who show up with smoke & mirrors & run when confronted with reasonable questions.
This is definitly an "opportunity" ha....to stay away from. Lots of money in ...very little if any out except for a few. I would estimate their failure rate as VERY VERY HIGH....not as claimed. They need to be sued on their claims. I am speaking as a person who has blown my entire retirementy money over 2 years getting into this business that is very crowded with competitors and ever changing. They don't realize the expertise this business takes these days. However....they still say you don't NEED EXPERIENCE!
Jack and Ken that was probably true 10 to 20 years ago. If it's so lucrative why are they selling them as opposed to building more sign companies themselves...they know why...
Trust me you'll lose money getting in to this business for at least 2 years and be lucky to make it after that. You have a 1 in 15 chance with no experience in the industry. I hope I save another desperate soul.
I am at the early stage of investigating the sign business as a potential for me. Regarding the comments about "break-even" in this article... whoever wrote it needs to go to an accounting class. Break-even in any business does not mean getting your whole investment back or sales in excess of the investment.
Perhaps Signworld can explain what they mean when they tell prospects that a Signworld owner reached break-even in their first week. What does that mean? That they had a single good week (on a cash, not accrual, basis) or does that mean they maintained profitability ever since they opened?
How many Signworld owners have achieved and maintained profitability from week 1?
It is always interesting on sites like this, how easy it is to take a shot at someone or something, and then it becomes the responsibilty of the attacked to defend.
Regarding consultants, coaches, or brokers that work in this field- the admin is right, there are some out in the field that will "sell anything to anyone" without regard to the individual. That is not true about David Sword who responded earlier. The world is full of good coaches that take the interests and skill of individuals and become a matchmaker. Most people without this coaching, enter business models that just don't fit them. The same can be true in buying a house or investing in the stock market. There are good individuals in those fields as there are in the business coaching field.
You cannot take aim at all of them and assume that they are all bad. It's just not a fair assessment and definitely not accurate.
We did have a SW owner that "broke-even" "cash on cash" first week in business due to a large order his first week, but then continued to have a good first month, second, third and on and as a result of his hard work. He never had a P& L statement with red ink. We have had others that have broken even in their first few months in business, but please understand that "breaking even" means that the business is supporting it's bills on a monthly basis, not that the investment has been recovered. That # is called the ROI, not break even. Before you can start paying yourself back and working on your ROI, the monies that it took to open the business, the business first has to support itself. Then the profits of the business can then start to work on ROI. We also explain to prospective owners that this is an owner driven business and that their expected breakeven may be longer, and for them to determine when their's might be expected, not from what we have told them it might be, but rather to do the due diligence of talking to as many owners as they care to, to determine based on comparing their talents to who they talk to, what their individual timelines might be. It is up to the individual to determine when they have reached their own level of confidence in the program and how it works.
I am willing to talk one on one with anyone that needs more clarification.
Jack Werner
Signworld 949-830-7446
Jack:
You toss out anecdotal cases of an unnamed owner who broke even from his first week and reference others who "others that have broken even in their first few months" You publish gross sales and profits from selected owners on your website and promise high returns with no substantiation.
On post like https://unhappyfranchisee.mystagingwebsite.com/signworld-complaints/ others claim "YOU WILL LOSE MONEY EACH MONTH FOR 2 TO 3 YEARS… it seems about 80% of new owners lose money for 2 or 3 years and they either close up or continue to work without a paycheck. This is true even though you do exactly what SIGNWORLD and Jack Werner said you should do…."
Of course you and Mr. Sword's opinions are going to be questioned because you make money selling the opportunity. Your critics are suspect since they are anonymous and could be competitors or ex-wives for all anybody knows.
So here's a solution: why not provide the actual facts, just as franchises do? How many actual Signworld businesses opened in each of the last three years? How many left the system? How many closed completely?
What is the average gross sales of Signworld businesses? How many are profitable? What's the average length of time it took for them to reach breakeven?
You state "It is always interesting on sites like this, how easy it is to take a shot at someone or something, and then it becomes the responsibilty of the attacked to defend." It goes both ways doesn't it - it's easy for you to make profitability claims without providing any substantiation other than "one guy broke even the first week."
Perhaps you can provide the facts and end the he said-she said debate once and for all.
Admin-
You are right on in your remarks to expose this company. Keep up the good work!
Ken Bernier- if your interested in getting in the sign business I may be able to point you to a few that would love to get out with part of their investment back and save you some huge money! Let me know what state your in...Signworld has failures in most.
Give me a break Jack!!!!!! I have a friend that bought a franchise from you and he was taken for alot of money... He is one of the best sales people I know and if he cant make it work no one can... You should be ashamed of yourself as you have caused him much stress and put a huge financial burden in his life. I am upset as well because we used to play alot of golf and my buddy can't because you took all his money!!!!! I work in the financial industry and I have watched him struggle with your product and the program you sold him does not work...
If you really believe in SignWorld than do him a favor and give him 50% of his original investment back!!! Take responsibility and take this nightmare away from my buddy!!!! Come on Jack how about it??????
According to its website, “Signworld is a national organization with more than 240 independently owned sign companies, which provide commercial custom signage and graphics… The ongoing support and training provided along with state-of-the-art equipment will leave the competition behind.
STATE OF THE ART EQUIPMENT...HA! THEY ARE LIVING IN THE PAST! THEY OFFER NOTHING ALL COMPETITORS HAVE IN REGARDS TO EQUIPMENT. AS A MATTER OF FACT IT IS REALLY JUST THE BARE MINIMUM...AND THE PRICE TAG IS RIDICULOUS!
Signworld owner - you didn't do your due diligence and won't own up to it.
Of course they're going to say they have state-of-the-art equipment. They're selling a business opportunity, what do you expect? The question is, how hard would it have been to ask around the industry and find out that it wasn't? How many industry magazines did you subscribe to before buying in? How many printing trade shows did you attend? Why didn't you compare the equipment with what the competitors have and research the cost?
Wow, a salesman didn't tell you his equipment was outdated and overpriced? Wow! Who would have guessed that could happen?!!
Now you're all experts and can criticize, but too bad you didn't do your homework BEFORE you jumped in to the printing business. Whose fault is that?