- Report: #1029625
Complaint Review: Mr Transmission - Moran Industries - Midlothian Illinois
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Mr Transmission - Moran Industries
4444 147th St Midlothian, 60445 Illinois, U.S.A.
Phone:
708-389-5922
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Mr Transmission - Moran Industries Franchise Fraud is a dangerous investment ripoff Midlothian Illinois
Mr Transmission, Milex, and Alta Mere are units of Moran Industries. Each is controlled by Moran in the same operation. I believed the sales pitch of Mr Transmission (Moran Industries) and jumped in with both feet. Roll forward a few months and we clearly see that we have made a serious mistake listening to Moran representatives and Franchise Consultants.
The listed training was only partially provided. No follow-up training, no support visits, no visits to review financials, corporate marketing did not have a clue, operating cost (they approved) and working capital estimate wasnt even close to requirements. Roll forward to one year. We have lost money every month and not even close to break-even.
Moran refuses any assistance with the only suggestion to sell the business. Three different brokers could not sell the business at any price even $50,000 for a franchise that has a startup cost of $200,000. We have ceased operations and lost everything. We have lost in excess of $300,000, we lost our house, and we max-ed out our credit cards trying to save the business thinking break-even was just around the corner---it wasnt, and we will have to file bankruptcy.
Moran is guilty of fraud in several areas that I will not go into on this site to protect my identity. (I am still evaluating our options to sue for damages.)
I believed the Franchise Industry mantra that Franchises are the most secure way to own your own business. This thought process leads you to believe they are the professionals in their business and since they will get royalties from you, they have a vested interest in your success. DONT BELIEVE IT! Many players in this game are only paid by selling you the franchise and nothing more. The VP of Sales, any Business Development Reps, and last but not least are the Franchise Consultants.
The Franchise Consultant is an independent businessperson whose sole job is to help you find the right franchise for you. They are paid by the Franchisor once you pay your Franchise Fee. Their definition of the right franchise for you is the one they can talk you into buying the quickest.
You need to have a competent attorney skilled in franchise law review the contract before your sign it. Then you must listen to their advice, even if it means you have to walk away from that deal. Once you sign that contract, you are trapped and it will be too late to listen to your attorney. You need your accountant to evaluate all the financial projections you make for the business and let them challenge you on the basis for the data. The franchisor will likely provide you with outdated data on operating expenses.
In my case, the successful franchises were located on mature streets with great traffic volume and had building expense of 25% to 50% of mine and the other new franchisees.
The startup cost list many expenses. The equipment package information likely outdated and will cost you significantly more than stated.
The biggest pitfall is working capital. They qualify this figure with the notation that it is only an estimate and you may need more. Any reasonable businessperson will read this and think it means you may need a few thousand more. Moran knows this figure will lead you to believe that you should breakeven in 3 to 4 months. Once you are signed and paid all your franchise fees, you learn that the breakeven timetable is 1 to 2 YEARS. In reality, you will need 300% to 500% the amount listed in the working capital of startup expenses.
Moran provided a UFOC that showed great success of their franchisees. The document is a well-crafted marketing tool that meets the minimum requirements of the Federal Trade Commission. Be very skeptical of this document. The data can mislead you. It is written by attorneys and their executives to meet the FTC requirements while leading you think they are offering you a well-developed business machine. They arent. Marketing doesnt have a clue how to market your business. Local support is non-existent. Training is outdated and provides minimal value to you. You will not get any follow-up training or assistance.
Another major concern with Mr Transmission is their method of selling the transmission service will challenge your ethics. Moran claims to be a very ethical company but their dealings with their Franchisees and methods of operation do not support this claim.
Moran is not the franchise to buy unless you have $500,000 to invest and will use independent legal, financial, and site location experts to guide you. If you have less to invest, you are setting yourself up for financial disaster.
Moran wants everyone that fails to believe the Franchisee is at fault. If Moran had not commited fraud and mislead me in several key areas, I would not have bought the franshise. Moran has ex-franchisees that are experienced auto repair business people and successful executives. It would seem strange that those successful business people failed if Moran offered the great opportunity it claims.
Duped
st louis, Missouri
U.S.A.
Click here to read other Rip Off Reports on Mr. Transmission
The listed training was only partially provided. No follow-up training, no support visits, no visits to review financials, corporate marketing did not have a clue, operating cost (they approved) and working capital estimate wasnt even close to requirements. Roll forward to one year. We have lost money every month and not even close to break-even.
Moran refuses any assistance with the only suggestion to sell the business. Three different brokers could not sell the business at any price even $50,000 for a franchise that has a startup cost of $200,000. We have ceased operations and lost everything. We have lost in excess of $300,000, we lost our house, and we max-ed out our credit cards trying to save the business thinking break-even was just around the corner---it wasnt, and we will have to file bankruptcy.
Moran is guilty of fraud in several areas that I will not go into on this site to protect my identity. (I am still evaluating our options to sue for damages.)
I believed the Franchise Industry mantra that Franchises are the most secure way to own your own business. This thought process leads you to believe they are the professionals in their business and since they will get royalties from you, they have a vested interest in your success. DONT BELIEVE IT! Many players in this game are only paid by selling you the franchise and nothing more. The VP of Sales, any Business Development Reps, and last but not least are the Franchise Consultants.
The Franchise Consultant is an independent businessperson whose sole job is to help you find the right franchise for you. They are paid by the Franchisor once you pay your Franchise Fee. Their definition of the right franchise for you is the one they can talk you into buying the quickest.
You need to have a competent attorney skilled in franchise law review the contract before your sign it. Then you must listen to their advice, even if it means you have to walk away from that deal. Once you sign that contract, you are trapped and it will be too late to listen to your attorney. You need your accountant to evaluate all the financial projections you make for the business and let them challenge you on the basis for the data. The franchisor will likely provide you with outdated data on operating expenses.
In my case, the successful franchises were located on mature streets with great traffic volume and had building expense of 25% to 50% of mine and the other new franchisees.
The startup cost list many expenses. The equipment package information likely outdated and will cost you significantly more than stated.
The biggest pitfall is working capital. They qualify this figure with the notation that it is only an estimate and you may need more. Any reasonable businessperson will read this and think it means you may need a few thousand more. Moran knows this figure will lead you to believe that you should breakeven in 3 to 4 months. Once you are signed and paid all your franchise fees, you learn that the breakeven timetable is 1 to 2 YEARS. In reality, you will need 300% to 500% the amount listed in the working capital of startup expenses.
Moran provided a UFOC that showed great success of their franchisees. The document is a well-crafted marketing tool that meets the minimum requirements of the Federal Trade Commission. Be very skeptical of this document. The data can mislead you. It is written by attorneys and their executives to meet the FTC requirements while leading you think they are offering you a well-developed business machine. They arent. Marketing doesnt have a clue how to market your business. Local support is non-existent. Training is outdated and provides minimal value to you. You will not get any follow-up training or assistance.
Another major concern with Mr Transmission is their method of selling the transmission service will challenge your ethics. Moran claims to be a very ethical company but their dealings with their Franchisees and methods of operation do not support this claim.
Moran is not the franchise to buy unless you have $500,000 to invest and will use independent legal, financial, and site location experts to guide you. If you have less to invest, you are setting yourself up for financial disaster.
Moran wants everyone that fails to believe the Franchisee is at fault. If Moran had not commited fraud and mislead me in several key areas, I would not have bought the franshise. Moran has ex-franchisees that are experienced auto repair business people and successful executives. It would seem strange that those successful business people failed if Moran offered the great opportunity it claims.
Duped
st louis, Missouri
U.S.A.
Click here to read other Rip Off Reports on Mr. Transmission
1 Updates & Rebuttals
Thomas
Anderson,South Carolina,
U.S.A.
You never included YOUR transmission rebuilding credentials & experience....
#2Consumer Suggestion
Sat, June 23, 2007
The #1 predictor of 'be-your-own-boss' business success is that the new enterpeneur has PRIOR successful experience *directly related* to the proposed business. You are also correct about "...the successful franchises were located on mature streets with great traffic volume and had building expense of 25% to 50% of mine and the other new franchisees." But local successful transmission repair businesses MAY NOT be franchised, but rather they may be independent businesses owed by successful mechanics with good local reputations and a good business sense. Your experience is sad, but not in the least bit unheard-of. I hope you are young enough to have sufficient "make-up" time so that you can recover financially before old age and retirement catch up to you. Pearl Bailey once said "I been unhappy rich and I been unhappy poor, and unhappy rich is better". Believe me, retired with money is where you will want to be.
