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Report: #138603

Complaint Review: Midas Australia - Melbourne Other

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  • Reported By: Melbourne Australia
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  • Midas Australia 420 St Kilda Road, Melbourne Australia Melbourne, Other Australia

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The Midas Australia saga continues although it is rapidly nearing a finale. The victims are too numerous and now that escape from the clutches of Mr. Philip Bonney is too difficult due to the inability to sell a Midas shop, Franchisees are confronting the Franchisor en masse.

The American counterpart came into Australia and developed a franchising system that was corruptible, left its system in the hands of the morally weak and washed their hands of any moral responsibility. Does this ring a bell?

6 April 2005

This Response took almost 3 months to produce and clarification of mis-information and intent is bracketed.

TO ALL FRANCHISEES

Dear Franchisee

MFC Letter

The purpose of this letter is to address the identical letters (collectively the letter) (Highlighted to suggest potential litigation - Intimidation.) received from the MFC delegates in February. The letter contends that because at the 2004 conference it was suggested that it was the goal of Midas Asia Pacific Pty Ltd (Midas) to double franchisee store profit by 2007, that store profitability is a problem. Midas rejects this contention. (Perhaps Mr. Bonney is not aware that his company store program is projecting a loss in the vicinity of $2M) Many Midas stores across Australia are experiencing good profitability and good growth. (Midas has never performed any analysis of franchisee profitability and refutes Midas figures from 2002 that indicate the Bonney System is unprofitable, therefore, this suggestion has no basis.) A desire to improve profitability does not necessarily mean that there is a problem with profitability.

There were five specific questions raised in the letter;

1. Will Midas accept there is a problem?

As with all businesses in competitive markets, profitability is a constant focus. However, we do not believe that Midas faces any more significant profitability challenges than any other business in the automotive industry, or indeed any retail industry. (Midas franchisees have the highest level of franchisee financial failure of any network within Australia.)

2. Does Midas accept responsibility as a franchisor to provide a SYSTEM which is capable of producing profits acceptable to all stakeholders?

As a franchisor, Midas can only succeed if its franchisees are successful. Midas does not agree that there are any inherent flaws in the Midas system that prevent profitability for its franchisees. (Mr. Bonney confuses the Midas System with the Bonney System. The Midas System is proven to be one of the best in Franchising when those that support and train it understand the concept, however, the Bonney System of increasing and introducing costs for franchisees to generate Bonney System profit while failing to deliver the Franchise promise of Training, Support, Group Purchasing Power and Advertising is one that has and continues to cause declining profit, minimal return on investment and/or franchisee insolvency.)

The degree of each franchisee's success is influenced by many factors, the most important of which are:

adherence to the Midas Car Care System; (Agreed)
the individual franchisee's commitment to and passion for the business; (Agreed but negatively effected by the Franchisors business plan)
a commitment to establishing a relationship of trust with our customers; (Agreed)
adoption of all innovations required by Midas to maximize store success. (Conditionally agreed but negatively effected by the Franchisors obvious insistence that the innovations generally are structured to solely generate increased Franchisor revenue through markup and rebate)

The most common cause of a decline in store profitability is a poor operator who does not embrace the Midas system. (Traditional response from rogue franchisors)

(At this point it should be acknowledged that a successful liar is one that always includes an element of truth [EOT] that cannot be argued against.)

3. In the current environment of ever increasing rents, employment costs, charges from the franchisor, cost of goods and all other operating expense, can the SYSTEM still meet the needs of all parties?

First, we would like to repeat the response to Question 1 the Midas system faces the same challenges that are facing nearly all established retail business. Of course, our customers will expect increased prices for parts and labour over time as the costs of doing business rise in accordance with inflation and other external factors. (An obvious EOT however this does not confront the issue of what Midas should initiate to ensure franchisee profitability or to admit to internal factors and their role in destroying franchisee profitability.)

However, Midas is committed to achieving as much value for our customers as possible, so when appropriate it will continue to set maximum prices for certain products so as to ensure that our customers continue to receive value along with the first class quality of Midas car care they have come to expect. (EOT)

4. For how long does Midas expect the franchise system to operate with the current level of franchisee profitability?

The Midas franchise system has been operating in Australia for 29 years. Midas Asia Pacific Pty Ltd has every expectation, based on information to hand to date, that it will continue to operate into the foreseeable future. (The Midas franchise system has been operating in Australia for 29 years fails to acknowledge that in the last 5 years the level of franchisee financial failure and/or loss exit has increased thirty-fold when compared to the total of the previous 24 years and the level of dispute over the last 5 years is continuous and unprecedented. Based on information to hand to date and foreseeable future are an ominous play on words) Again, Midas does not agree that there is any systemic issue of franchise non-profitability. (Over 80% of Franchisees disagree.)

However, if any particular franchisee has concerns about ongoing profitability of their store(s), then they should approach us for confidential discussion about their franchised business performance and expectations. (Create division and assure the franchisee that he is the only one with problems - typical rogue response and a historical Midas response. If the franchisees expectations are outside what Midas have created as achievable then it is suggested that the franchisee exit and accept whatever loss befalls him.)

5. What value, if any, does Midas place on the system?

Midas places paramount value on the Midas System, the Midas brand and the goodwill associated with it. It will do anything it can to maximize, and protect, the value of this property. (This should keep Midas International at bay.)

Midas has significant experience in its industry in Australia and through its contacts with the many Midas businesses overseas. (Midas Australia have what? They have removed those with experience on moral grounds, the experienced mostly had morals and were either sacked or pushed. There is no experience, they have all gone and been replaced by would be thugs who cost less and do as they are told. Contacts with oversees business have only produced variations on those strategies to blend with the Bonney System of profit.) As a result is in the best position to determine what are the most successful strategies for the business as a whole. Midas will not implement any changes it does not believe in good faith will improve the success of the entire network. (Not even an EOT, Advertising/Marketing Fund failures, profiteering from Batteries and computer maintenance etc have proven that good faith is a flexible concept in the Bonney System.) As a responsible franchisor, it cannot be dictated to by disaffected franchisees or make decisions affecting the entire network based only on their concerns. (In excess of 80%?)

As for the interim measures that need to be implemented immediately Midas rejects them categorically, except to say that we always treat our franchisees who are true business partners (in the context of the franchisor/franchisee relationship) with the respect that they deserve. (Given this response the concept of respect is also obviously confused although they deserve' does suggest some versatile and selective wording.)

Finally, while the letters purported to have been sent on behalf of the franchisees listed at the foot of each of the letters, it is of some concern to us that when a number of the named franchisees were contacted as to their support of the letter, their level of support was something less than 100% for all matters raised. (Yes, franchisees were selectively contacted by Mr. Bonney and intimidated. Something less than a 100% is a vague play on words.) Please be assured that as a legally compliant and caring franchisor, Midas will take all steps to address the legitimate concerns of its franchisees on an individual basis. (No EOT here but another attempt to divide, conquer and ridicule.)

However, it is not appropriate to address particular store or individual franchisee concerns on a collective and non-confidential basis. (It is ludicrous to suggest that over 80% of Franchisees have individual franchisee concerns that should be dealt with on an individual basis when previous attempts have been met with false promise, insulting concepts and intimidation. Of course, a confidential basis does allow the Franchisor disproportionate power to influence the challenge of individual franchisees. The statement that franchisees responding as a group to the failure of Midas to address the profit issue is not appropriate, when all else has failed, is actually Mr. Bonney declaring that it too difficult to manipulate an outcome when confronted en masse.)

Yours faithfully,

Philip Bonney
Managing Director
Midas Asia Pacific Pty Ltd.

(Clearly Mr. Bonney has structured this Response to appease the ACCC and Midas International while inferring potential litigation should the challenge continue. The Call to Arms that is following this Response by Mr. Bonney will ensure that he reflects once again on his ability to underestimate his victims.)

Perry
Melbourne
Australia

Click here to read other Rip Off Reports on MIDAS

This report was posted on Ripoff Report on 04/12/2005 10:18 PM and is a permanent record located here: https://www.ripoffreport.com/reports/midas-australia/melbourne-other-3000/midas-australia-the-victims-fall-and-the-saga-continues-melbourne-australia-victoria-138603. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#9 UPDATE EX-employee responds

Ultrascrewed join the club

AUTHOR: Sean - (Australia)

POSTED: Monday, September 17, 2007

How do you keep the sheep in order without using those wolves.

Sean and Hamish are the worst operators ever! The only question is how can the independants walk and keep their Franchises?

You are not alone in your thoughts , i have had two from Vic and one from QLD already talking to me.

Ultratune is a house of cards, it won't take much to blow them down.

Sean ray and Hamish, do not bother me any more, you know how i get when i am angry!

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#8 UPDATE EX-employee responds

Ultra Screwed

AUTHOR: Ultrascrewed - (Australia)

POSTED: Saturday, September 15, 2007

As an ex employee of Ultratune i know that Sean Bucley and Hamish Murdoch are behind the Midascon site, they let it slip in a conversation. Hamish Murdoch is not above intimidation or blackmailing perople to keep quiet if you dont roll over and keep quiet he uses his goons aka tony sandler to enforce his will. Fraud well Ultratune will defraud within a blink of an eye, Hey Hamish remember the one you did recently, So be wary of Ultratune they are not squeaky clean as they like you to think they are

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#7 Author of original report

Naughty Naughty Ray, Sean and Hamish

AUTHOR: Perry - (Australia)

POSTED: Thursday, July 19, 2007

For years this report has stood against Midas, Why.

Sure the service has its uses, but did you think you can play with fire and not be burned?

Please read prior reports and consider this

Sean Buckley paid and directed the Midascon site,
Ray Borradale is Perrylichter@yahoo.com.au, the same Perry that wrote the Rip off reports,
Hamish Murdick is a dog.

All of these people are the direct competitor to Midas, being Ultratune.

Sean Buckley has a very shady past. He has ties to Tony Mokbel, drug dealer.

Be warned, throw s**t around, it will come back with interest.

J

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#6 Author of original report

Midas USA to shut down MidasCon.info ...you have to wonder about the ethics of a franchisor in the US when they can so deliberatley turn a blind eye to what has happened

AUTHOR: Perry - (Australia)

POSTED: Sunday, May 14, 2006

The new website that describes the dire financial predicament that dishonest franchising has now caused the Australian Midas franchisor is to be challenged by Midas International in US courts.

The website shows how many people have been ripped off by Midas Australia but Midas USA just want to close it down instead of doing something about it.

www.midascon.info is embarrassing them and you have to wonder about the ethics of a franchisor in the US when they can so deliberatley turn a blind eye to what has happened and in doing that, they are supporting and sponsoring the devastion of families caused by their franchising.

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#5 Author of original report

More Midas Franchisees Lose Everything

AUTHOR: Perry - (Australia)

POSTED: Wednesday, February 01, 2006

In just on 4 months before Christmas 2005 14 Midas franchisees walked away from their shops. In one state alone, their were 5 leading into Christmas.

They lost almost everything and in some cases they did lose everything.

Their lives and their families are devastated.

The franchisor reacted to this terrible news and bought himself a new $300,000 Mercedes.

Then he went and issued Notices that threatened to terminate over 20 more franchisees if they did not sign his new amended agreement that protects and introduces more revenue raisers from his franchisees.

The next wave of failed franchisees is underway.

He was recently reported in another scathing report in a national business magazine as saying that there was "no guarantee of profit" but what he should have said was that he guaranteed his profit at the expense of people he duped into buying a franchise.

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#4 Author of original report

Midas Fraud Creates Their Downfall

AUTHOR: Perry - (Australia)

POSTED: Tuesday, July 26, 2005

They are rare, those that continue to believe that owning a Midas franchise will allow them to operate profitably, or survive financially. Midas Australia recently had 129 shops, now there are 106.

Recently Brian Menzies in Victoria lost everything. Just on 2 years ago he bought into Midas and when he did he owned his home and his cars and was financially comfortable. He bought one shop and then two. Today he has lost everything in just 2 years and he is now destitute and his family has been destroyed.

Tony Lazzaro in Queensland once owned 2 shops and now he has lost both. If that was not bad enough, his health has been destroyed. While he was travelling between hospital and his shops Midas were busy putting in the screws while he tried to recover from a heart attack and just survive financially. There are a lot more and most of the single shop owners operate by juggling their GST until they have to pay the Tax Office.

So many that were noisy are now quiet. So many that were quiet found out it didn't help. Ray Borradale made a lot of noise but he is now destitute, and quiet, and the franchiser chases him still.

All but one multiple shop owner in Australia wants out. They are failing badly. They are all relatively new to franchising and were swayed by the sweet talk and the opportunity to own multiple shops but not have to operate in the daily grind. They are on the brink of failure and they are desperate.

The only one that seems unaware of what his future holds was just given an extra shop by the franchiser. Given you ask? Yes, the franchiser even knows you can't make a Midas shop profitable under his system so when the franchisee of 14 years went broke, he gave the shop to a fool that could carry the loss until he had to woke up broke and gave them back, for nothing, again. Apparently 81% of franchisees tried to explain it but the franchiser didn't understand until he had so many franchisees failing that he was loosing a fortune himself trying to run shops. He has now opted to leave them vacant and just pay the rent, unless he can find another fool again.

Midas in America are standing up for the franchisees in a big way and recently told Australia not to be caught out doing anything wrong. Thank you, you are a moral lot aren't you.

Where the franchiser in Australia once had an impressive and abusive team to administer the shops, he has now only got Paspas, the Operations Manager. He employed a General Legal Consul to throw his weight around but he resigned, like all the rest, within months, when he found out what was just about to happen, EVERYWHERE.

"And then the Lord spoke of his justice and the Lord smit him and the Lord sayith "you had this coming for a long, long time, b***h"

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#3 Author of original report

Midas Fraud Creates Their Downfall

AUTHOR: Perry - (Australia)

POSTED: Tuesday, July 26, 2005

They are rare, those that continue to believe that owning a Midas franchise will allow them to operate profitably, or survive financially. Midas Australia recently had 129 shops, now there are 106.

Recently Brian Menzies in Victoria lost everything. Just on 2 years ago he bought into Midas and when he did he owned his home and his cars and was financially comfortable. He bought one shop and then two. Today he has lost everything in just 2 years and he is now destitute and his family has been destroyed.

Tony Lazzaro in Queensland once owned 2 shops and now he has lost both. If that was not bad enough, his health has been destroyed. While he was travelling between hospital and his shops Midas were busy putting in the screws while he tried to recover from a heart attack and just survive financially. There are a lot more and most of the single shop owners operate by juggling their GST until they have to pay the Tax Office.

So many that were noisy are now quiet. So many that were quiet found out it didn't help. Ray Borradale made a lot of noise but he is now destitute, and quiet, and the franchiser chases him still.

All but one multiple shop owner in Australia wants out. They are failing badly. They are all relatively new to franchising and were swayed by the sweet talk and the opportunity to own multiple shops but not have to operate in the daily grind. They are on the brink of failure and they are desperate.

The only one that seems unaware of what his future holds was just given an extra shop by the franchiser. Given you ask? Yes, the franchiser even knows you can't make a Midas shop profitable under his system so when the franchisee of 14 years went broke, he gave the shop to a fool that could carry the loss until he had to woke up broke and gave them back, for nothing, again. Apparently 81% of franchisees tried to explain it but the franchiser didn't understand until he had so many franchisees failing that he was loosing a fortune himself trying to run shops. He has now opted to leave them vacant and just pay the rent, unless he can find another fool again.

Midas in America are standing up for the franchisees in a big way and recently told Australia not to be caught out doing anything wrong. Thank you, you are a moral lot aren't you.

Where the franchiser in Australia once had an impressive and abusive team to administer the shops, he has now only got Paspas, the Operations Manager. He employed a General Legal Consul to throw his weight around but he resigned, like all the rest, within months, when he found out what was just about to happen, EVERYWHERE.

"And then the Lord spoke of his justice and the Lord smit him and the Lord sayith "you had this coming for a long, long time, b***h"

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#2 Author of original report

Midas Fraud Creates Their Downfall

AUTHOR: Perry - (Australia)

POSTED: Tuesday, July 26, 2005

They are rare, those that continue to believe that owning a Midas franchise will allow them to operate profitably, or survive financially. Midas Australia recently had 129 shops, now there are 106.

Recently Brian Menzies in Victoria lost everything. Just on 2 years ago he bought into Midas and when he did he owned his home and his cars and was financially comfortable. He bought one shop and then two. Today he has lost everything in just 2 years and he is now destitute and his family has been destroyed.

Tony Lazzaro in Queensland once owned 2 shops and now he has lost both. If that was not bad enough, his health has been destroyed. While he was travelling between hospital and his shops Midas were busy putting in the screws while he tried to recover from a heart attack and just survive financially. There are a lot more and most of the single shop owners operate by juggling their GST until they have to pay the Tax Office.

So many that were noisy are now quiet. So many that were quiet found out it didn't help. Ray Borradale made a lot of noise but he is now destitute, and quiet, and the franchiser chases him still.

All but one multiple shop owner in Australia wants out. They are failing badly. They are all relatively new to franchising and were swayed by the sweet talk and the opportunity to own multiple shops but not have to operate in the daily grind. They are on the brink of failure and they are desperate.

The only one that seems unaware of what his future holds was just given an extra shop by the franchiser. Given you ask? Yes, the franchiser even knows you can't make a Midas shop profitable under his system so when the franchisee of 14 years went broke, he gave the shop to a fool that could carry the loss until he had to woke up broke and gave them back, for nothing, again. Apparently 81% of franchisees tried to explain it but the franchiser didn't understand until he had so many franchisees failing that he was loosing a fortune himself trying to run shops. He has now opted to leave them vacant and just pay the rent, unless he can find another fool again.

Midas in America are standing up for the franchisees in a big way and recently told Australia not to be caught out doing anything wrong. Thank you, you are a moral lot aren't you.

Where the franchiser in Australia once had an impressive and abusive team to administer the shops, he has now only got Paspas, the Operations Manager. He employed a General Legal Consul to throw his weight around but he resigned, like all the rest, within months, when he found out what was just about to happen, EVERYWHERE.

"And then the Lord spoke of his justice and the Lord smit him and the Lord sayith "you had this coming for a long, long time, b***h"

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#1 Author of original report

Midas Fraud Creates Their Downfall

AUTHOR: Perry - (Australia)

POSTED: Tuesday, July 26, 2005

They are rare, those that continue to believe that owning a Midas franchise will allow them to operate profitably, or survive financially. Midas Australia recently had 129 shops, now there are 106.

Recently Brian Menzies in Victoria lost everything. Just on 2 years ago he bought into Midas and when he did he owned his home and his cars and was financially comfortable. He bought one shop and then two. Today he has lost everything in just 2 years and he is now destitute and his family has been destroyed.

Tony Lazzaro in Queensland once owned 2 shops and now he has lost both. If that was not bad enough, his health has been destroyed. While he was travelling between hospital and his shops Midas were busy putting in the screws while he tried to recover from a heart attack and just survive financially. There are a lot more and most of the single shop owners operate by juggling their GST until they have to pay the Tax Office.

So many that were noisy are now quiet. So many that were quiet found out it didn't help. Ray Borradale made a lot of noise but he is now destitute, and quiet, and the franchiser chases him still.

All but one multiple shop owner in Australia wants out. They are failing badly. They are all relatively new to franchising and were swayed by the sweet talk and the opportunity to own multiple shops but not have to operate in the daily grind. They are on the brink of failure and they are desperate.

The only one that seems unaware of what his future holds was just given an extra shop by the franchiser. Given you ask? Yes, the franchiser even knows you can't make a Midas shop profitable under his system so when the franchisee of 14 years went broke, he gave the shop to a fool that could carry the loss until he had to woke up broke and gave them back, for nothing, again. Apparently 81% of franchisees tried to explain it but the franchiser didn't understand until he had so many franchisees failing that he was loosing a fortune himself trying to run shops. He has now opted to leave them vacant and just pay the rent, unless he can find another fool again.

Midas in America are standing up for the franchisees in a big way and recently told Australia not to be caught out doing anything wrong. Thank you, you are a moral lot aren't you.

Where the franchiser in Australia once had an impressive and abusive team to administer the shops, he has now only got Paspas, the Operations Manager. He employed a General Legal Consul to throw his weight around but he resigned, like all the rest, within months, when he found out what was just about to happen, EVERYWHERE.

"And then the Lord spoke of his justice and the Lord smit him and the Lord sayith "you had this coming for a long, long time, b***h"

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