LETTER FROM A GRATEFUL AUSSIE WHO GOT THE FACTS AND BOUGHT ANOTHER FRANCHISE

FROM A GRATEFUL READER -

"Because I was made redundant at my job earlier in the year, I had a good entitlement payout and thought a franchise type business was a good next step in my life. We are aware of several good products as consumers, and thought a Baskin Robbins Ice Creamery shop would be a fun atmosphere. We got in touch with an agent at Scan Business Brokers, who are apparently the representative of Baskin Robbins Ice Creamery and a company called Allied Brands.

The agent told a wonderful story about the brand history, the great product and the strong support system available to me. We decided on a likely location that is apparently going to be available soon, and began negotiating with them. The next day Scan called and said they could discount the shop over $80,000! They said the company was anxious to find a buyer for this great location so they could book the sale before the end of the year. This was already the first week of July however, so that made us suspicious. They also offered to give us a tax invoice for the full amount, which he said we could use with our financier and for the tax base. Alarm bells rang when we were told this.

They gave us a "Disclosure" document and other documents about what a great company this is. The "Disclosure" document is very long, filled with legal jargon, and didn't look particularly interesting to read.

My wife got on Google and started to look for information about Baskin Robbins and Allied Brands. We found Blue Mau Mau, and then your website, and we were shocked at the stories we were reading! While we know that things on the internet can be exaggerated, so we weren't sure that your stories are true. But it did get us to read the "Disclosure" document much more closely.

We noticed how many shops have opened and closed, some very quickly. This didn't seem right. We asked the Scan agent about it, and he said "many things in the disclosure are wrong". But the "Disclosure" was written by the company, isn't it?

We contacted our local ACCC office and they sent us some interesting information about franchising. We took their advice and contacted several of the shops owners listed in the "Disclosure". We only contacted shops that weren't for sale so that we could get a good picture. Some long owners, some short. They were very interesting conversations.

ALL advised against our investment in this company. ALL said they were making very little money despite their huge investment (compared to lots of other franchise businesses). ALL said they get NO help from the company. And ALL said their shops weren't worth anything like what they paid for them.

THANKS THANKS THANKS to the person writing this website. Without your suggestion we would have bought this franchise and probably already been angry like the other franchisees and former franchisees."

BOUGHT ANOTHER FRANCHISE

BRISBANE