Complaint Review: Minuteman Press International Inc - Farmingdale New York

Minuteman Press Inc. (MPI) has a slick and well-rehearsed marketing presentation to con prospective franchisees to buy into its scam franchise system. During the presentation MPI represents to prospective franchisees that they do not need any prior print industry experience or any prior business experience in order to operate a MPI franchise store. MPI represents it would provide all the required training and support to the prospective franchisee to successfully run the franchise business. MPI claims that 97% of its franchisees did not have any prior print industry or prior business experience.

The Franchise Agreement has a 35 years term. The franchisee cannot terminate the agreement, however the agreement provides MPI with many opportunities to terminate the agreement.

As at December 2004 MPI had 728 franchise stores in the USA. Since then MPI closed more than 247 of its franchise stores in the USA. This represents the closure of more than 34% MPI franchise stores in the USA between January 2005 and September 2014.

Many ex-franchisees go bankrupt. Many ex-franchisees see bankruptcy as the only way to escape as MPI unscrupulously pursue ex-franchisees for royalty fees for the unexpired period of the 35 years of the franchise agreement.

Furthermore, many franchisees fail in their businesses and have to sell their loss making businesses. When a franchisee sells a MPI franchise business, MPI forces the franchisee to sign its Deed of Surrender and Release. The Deed of Surrender and Release is a brutal and one sided agreement. Once signed the franchisee has been “silenced”, may not say or do ANYTHING against MPI, the franchisee has WAIVED all its claims against MPI and the franchisee has a Restraint of Trade restriction and cannot trade or work in a business which is competing with a MPI store. The franchisee is rendered powerless against the all mighty MPI.

During the period between January 2005 and December 2009 a total of 285 MPI franchisees in the USA sold their businesses. This represents a franchisee business sales rate of 39%. MPI demands $19,500 for each store transfer to a new franchisee. MPI received $5,557,500 for franchisee transfer fees during the period January 2005 to December 2009.

The extrapolated sale of franchise stores for the period January 2005 to September 2014 therefore amounts to the sale of 556 franchise stores during this period. This represents a MPI franchisee store sales rate of 76%. Again,MPI demands $19,500 for each transfer to a new franchisee. MPI therefore received an estimated $10,842,000 for franchisee store transfer fees from January 2005 to September 2014.

Between January 2005 and September 2014 an estimated total of 803 MPI franchise stores either closed down or transferred to new owners. This represents 110% of MPI stores either closed or were sold between January 2005 and September 2014.

MPI store closures in USA since January 2005:

2005 – 24 stores.

2006 – 16 stores.

2007 – 22 stores.

2008 – 38 stores.

2009 – 51 stores.

January 2010 to December 2011 - more than 54 stores.

January 2012 to February 2013 - more than 15 stores.

March 2013 to September 2014 - more than 27 stores.

Behind each of these MPI store failures there is a father and / or a mother, probably with dependent children and an extended family. MPI ruthlessly rob these vulnerable people of their hard earned wealth and their dignity. Often the MPI store owners suffer health problems caused by the stress of trying to survive in the scam MPI franchise system.

The MPI franchise system has been carefully constructed and the franchisee is set-up for failure. MPI profitability is reliant on the frequent re-sales of franchise stores.

The new franchisee, who buys a failed franchise store, has to sign a new 35 year franchise agreement.

There is only one winner in the MPI franchise system – that is MPI.

The franchisee is the loser in the MPI franchise scam.

MPI shamelessly preys like parasites on vulnerable families.