June 13, 2007
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I purchased and opened an I Sold It On Ebay Franchise which was forced to close 10 months later. The UFOC grossly misrepresented the start up costs, operational costs and the potential for income. Their business model and proprietary software made the concept impossible to turn a profit or even sustain the costs of doing business.
This combined with the total lack of direction from the franchisor forced myself and many others into financial ruin. To this date they are still selling franchises while the current stores are dropping like flies. Action needs to be taken now to prevent other unsuspecting entrepreneurs from the same fate.
As a franchisee this concept does not work. In fact none of the four business models work from walkin traffic, selling cars, charity,to B2B. The only money making idea that works is selling franchises to hard working individuals, who will lose their home and life savings over time.
Virtually these stores are money pits. Labor intensive, with NO supporting software that works, or national branding(except to SELL franchises, oh yes and coupons). Both versions of the software they tout to be so good, have gone down this month with their ‘workarounds’.
The Corp. accounting has lead to lost checks and lost customers, as well as NON itemized or integrated accounting systems. And, we have had five District managers in 7 months. The Corp forum has only what makes them look good for new franchisees and investors. They don’t like their franchisees to speak openly, especially with each other, and definetly not on the forum.
My advice is to do your homework before investing in any franchise. If you go over to Franchise Gator they will give you free inside information on any franchise.