Complaint Review: Minuteman Press International Inc - Farmingdale New York

MORE THAN 73%  MINUTEMAN PRESS INTERNATIONAL INC. (MPI) FRANCHISEES FAILED IN THEIR BUSINESSES IN THE AUSTRALIAN STATES OF NEW SOUTH WALES AND QUEENSLAND.

Over a period of more than 10 years, up to December 2011, a total of 22 franchisees invested in MPI franchise stores in New South Wales and Queensland; of these, 11 franchisees had to close down their failed businesses and a further 5 franchisees were forced to sell their loss making businesses.

SIXTEEN of the 22 MPI franchisees in New South Wales and Queensland have thus far failed in their businesses, giving a MPI franchisee failure rate of 73%. This is a best case scenario as we know of more struggling franchisees who will have to either close their businesses, or will be forced to sell their loss making businesses.

One store has its fourth owner in six years; the previous 3 owners all failed in the store and made losses.

Franchisees who failed in their MPI stores reported losses up to a staggering $700 000 in a single store; whilst MPI received an estimated $300 000 from the owners of that store.

MPI opened and closed a new MPI store in the Sydney area around 2007 / 2008. The franchisee commenced legal proceedings against MPI; MPI entered into a confidential settlement agreement with the franchisee and MPI paid settlement to the franchisee. MPI did not disclose the opening and / or closure of the store in its Australian Disclosure Document nor did it disclose the Legal proceedings (disclosure of both the opening and closure of the store as well as the legal prceedings is required by law).

MPI developed its brutal franchise system, whereby franchises are ruthlessly exploited, over a period of 40 years. MPI ruined many of its franchisees financially. The system is driven by greed.

During 1998 MPI, Sign-A-Rama and its founder, Roy Titus, were prosecuted by the USA Federal Trade Commission, convicted on all charges brought against it and was fined $3.47 million for their deceptive conduct. The Court made a Permanent Injunction Order against MPI, Sign-A-Rama and Roy Titus. The Permanent Injunction Order prevented MPI, Sign-A-Rama and Roy Titus to make unsubstantiated claims about how much sales and profits a prospective franchisee could expect from MPI store.

Amongst other charges, MPI was charged and convicted of falsely representing to prospective franchisees that, as owners of a MPI store, they could expect to earn 33,33% of the store sales as profit. The court found that most MPI stores do not make 33,33% of its sales as profit.

Shortly after the conviction MPI expanded its franchise system to other countries. Sixteen years later MPI expanded its brutal franchise system to Canada, Australia, South Africa and the United Kingdom. The unscrupulous management of MPI persistently practices its unconscionable conduct, unethical and immoral business practices against its franchisees.

MPI has skilfully modified its representation to prospective franchisees after the court case. However, in its slick and well-rehearsed presentation, MPI still falsely represents to prospective franchisees that they can expect to earn 33,33% of MPI store sales as profit. MPI consistently contravenes the Permanent Injunction Order.

Schedule of MPI store failures in the states of New South Wales (NSW) and Queensland (QLD), Australia: