• Report: #94836

Complaint Review: The Entrepreneur's Source

  • Submitted: Mon, June 14, 2004
  • Updated: Wed, May 17, 2006

  • Reported By:Washington District of Columbia
The Entrepreneur's Source
900 Main Street South Southbury, Connecticut U.S.A.

The Entrepreneur's Source and Terry Powell Rip-off! They set up franchisees to fail, then terminate franchise owners unjustly! Southbury Connecticut

*Consumer Comment: A simple, but not easy business

*Consumer Comment: I do not share the experience of Ms. X

*Consumer Comment: Stop Complaining and Take Responsibility

*Consumer Comment: I Disagree

*Consumer Comment: Rip Off....Are You Kidding?

*Consumer Comment: Happy TES Consultant

*Consumer Comment: Happy TES Consultant

*Consumer Comment: Happy TES Consultant

*Consumer Comment: Looking Inward

*Consumer Comment: The Entrepreneur's Source - Great Company - Negative Reports are WRONG

*Consumer Comment: The Entrepreneur's Source - Great Company - Negative Reports are WRONG

*Consumer Comment: The Entrepreneur's Source - Great Company - Negative Reports are WRONG

*Consumer Comment: The Entrepreneur's Source - Great Company - Negative Reports are WRONG

*Consumer Comment: Positive

*Consumer Comment: Positive

*Consumer Comment: How's This For A Testimony!

*Consumer Comment: Following the TES System-Positive Experience!

*Consumer Comment: Ms X Anonymous? You must be joking

*UPDATE Employee: The Entrepreneur's Source works if you work

*Consumer Comment: TES is a great Franchise

*Consumer Comment: Rebuttal to the TES reports

*Consumer Comment: This Concept works if you work it the way it is supposed to be

*Consumer Comment: I disagree

*Author of original report: TES Rebuttal is More Lies, Smoke and Mirrors and Deception!!!

*UPDATE Employee: TES Statement...happy, productive and living their lifestyle

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I agree with Bob 100%!!

I have a very similar experience as a franchisee of The Entrepreneur's Source. I am losing everything - my entire investment. That is my franchise fee of $45,000 and over $10,000 worth of supplies and marketing materials. I also lost over $15,000 that I was required to pay in monthly - $750 (per month) advertising fees over the period of 24 months. I have been trying to sell my consulting franchise for over a year and the franchisor has made every effort to block and impede a sale.

I blame the CEO, Terry Powell, directly because it is not in his interest to help sell existing consultant franchises when they can just sell a brand new franchise for more money. I know if a TES consultant in Florida who I cannot name but who was able to sell his franchise and he received only $4,000 and Terry Powell received $32,000! What is so ironic is that Terry Powell keeps sending out emails to us saying how the value of our franchise keeps going up whenever he raises the franchisee free. What a SCAM!

My husband and I went up to Southbury, CT to meet personally with Terry Powell before investing in this franchise. We sat right across from him and he looked us straight in the eye and told us one lie after another. Basically, everything he told us was misrepresented! We asked him what the failure rate was in TES and he told us it was only about 10% and that most of those people didn't follow the system. We have since learned that the actually failure rate is closer to 50% and may even be higher.

And not following the system is the same BS that all franchisors use to justify why franchisees fail. If that's the case maybe they need to look more closely at their franchise models. Terry Powell also assured us that we could sell our franchise if we wanted to get out, and that he would even help us sell it -- another bold face lie!!

I heard the same lies as Bob when I was checking out this franchise as Bob did. The people I was working with, Tom Wolf (regional director) and Chris Otter kept telling me this was a "Dream Business." They kept telling me about other consultants who were making 10-20 placements a year with the average placement fee of $9,000. Right now there are about 300+ consultants and I don't think more than 3 or 4 are making that many placements. Most of us are failing and losing money every month. Everyone of the 9 people in my training academy are struggling and several have already dropped out losing their entire investment!

Now Terry Powell has made the postcard mailing program mandatory so that I am forced to send postcards out to all the leads I receive each month. This is an additional expense of $400 per month in addition to my $750 advertising fee. As franchisees we have no option. If we didn't agree to this we could be terminated. Before, I could decide who I wanted to send a mailer. Many consultants who were negative and complained about this additional expense were threatened by Terry Powell with lawsuits. Several were actually terminated from TES for sending out emails to other consultants who didn't agree with this.

Terry Powell even had all the email addresses of the consultants removed from our intranet site! The thing that pisses me off is that most of the 30 or so leads we receive each month suck! You call these people and they don't know who you are or how you got their name. Most are not in the least interested in buying a franchise and now we have to send out over a dozen post cards to every lead we receive.

Even if you find a client who wants to work with you to find a franchise, many of the franchisors we work with are terrible. We are telling our clients that franchises have a 90% success rate. This is an outright, boldface lie!!! Franchises really don't have any better success rate than do independent businesses. That's because franchisors don't count the franchisees who sell or close down their business as a failure. As a matter of fact, when I was validating the TES franchise and I checked through the UFOC there were only about 10-15 TES consultants who had left the system. In reality there were more 50 and maybe even 100. That's because people who were considered inactive or who had just closed down were not counted as terminated. This is a very common practice with all franchisors not only TES.

The bottom-line is The Entrepreneur's Source is a fraud. There is currently a huge lawsuit involving about 20 former consultants with damages over 1 million dollars. Complaints have also been filed with the Federal Trade Commission and the Connecticut Attorney General against TES.

I would advise anyone thinking of investing in a TES franchise to forget it! And, I would advise anyone working with a TES consultant to be very cautious before investing in a franchise. Do yourself a favor read The Franchise Fraud by Robert Purvin and Franchise Dreams by Peter M. Birkeland. You will find that owning a franchise, especially a TES franchise, is your worst nightmare!!!!

Ms. X Anonymous TES Consultant
Washington, District of Columbia
U.S.A.

This report was posted on Ripoff Report on 06/14/2004 01:13 PM and is a permanent record located here: http://www.ripoffreport.com/r/The-Entrepreneurs-Source/Southbury-Connecticut-06488/The-Entrepreneurs-Source-and-Terry-Powell-Rip-off-They-set-up-franchisees-to-fail-then-94836. 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.

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#1 Consumer Comment

A simple, but not easy business

AUTHOR: Randy - (U.S.A.)

I am a Consultant and independent franchise owner of The Entrepreneur's Source.

I've concluded that this is a simple business - helping people explore new career options. But it is not easy. To be successful in this business you have to run it as, well - a business! A consultant in The Entrepreneur's Source needs to take ownership for marketing and managing their business, just as any other franchisee would need to do. When owners take responsibility for developing their business, generating referrals, managing their expenses, then they will experience a higher likelihood of success.
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#2 Consumer Comment

I do not share the experience of Ms. X

AUTHOR: Judy - (U.S.A.)

I have been a franchisee of TES for the past six plus years. I was a professional business person when I joined TES and today I run a professional business as a franchisee of TES.

I understood when I joined TES that my success was up to me. I was promised an operating system, support, and on going training. I was not promised that someone else would make me successful. I have been very successful (meeting or exceeding all of my expectations)and I have recieved support from the Franchisor, on going training and an excellent operating system. Over the past six years the system and the technology have been consistently updated and improved. The training and the support are known through out the Franchise community as being the best! I have experienced open communicatins with the Franchisor. They listen to me and I listen to them. In the end, however, I am the one who was willing to follow the system, grow personally, work hard and reep the result of personal and financial success!

Obviously, Ms. X did not want to take personal responsibility for her success. So, she did not succeed!

My strongest disagreement with Ms. X is her assertion that our services do not benefit our clients. I wish she could read the hundreds of letters I have read from clients who have succeeded at their dreams of being in business for themselves and who have thanked us for helping them discover what was important to them!

I am sorry Ms. X created a negative experience for herself but it is simply not the experience I created.
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#3 Consumer Comment

Stop Complaining and Take Responsibility

AUTHOR: Jack - (U.S.A.)

STOP COMPLAINING AND TAKE RESPONSIBILITY

One of the most pervasive myths in the American culture today is that we are entitled to a great life -- that is somehow, somewhere, someone (certainly not us) is responsible for filling our lives with continual happiness, exciting career options, nurturing family time, and blissful personal relationships simply because we exist.

But the real truthis that there is only one person responsible for the quality of the life you live. That person is YOU! ..Jack Canfield

I have been a TES consultant for five years this month. No, it has not been easy. Neither was traveling eighty (80%) percent of my time in my corporate job. Is there any easy way to be successful? I don't think so. If you want to be successful, you have to take 100% responsibility for everything you experience.

I have worked hard over the last five years in this business and have had successes and failures, but that is life! Overall my experience has been a positive one. I have helped people discover things that change their lives, usually for the better. I always try to stay focused on what is in their best interest and put this ahead of my monetary gain.

It is not my right to judge anyone, only God has that right. However, I believe that this business (The Entrepreneur's Source) is no different than any other business. It is a great business for many of us, but you have to work at it. How long depends on your commitment!! For the most part, I believe that most fail because they lack the commitment. That is not always the case, but usually is for those that are Complainers.

This company is growing and learning. It provides a valuable service to many people and is valued by both clients and franchisors. Is it right for everyone?----- No. So do your homework before you enter into any business model. Make your decision on facts, not emotions!

Finally, I am writing this because I am tired of sitting on the sidelines and listening to complainers. If they would only spend the same energy in a positive way, they would be successful.

Jack Cincinnati, Ohio
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#4 Consumer Comment

I Disagree

AUTHOR: Donald - (U.S.A.)

I have been a franchise and Regional Developer with TES since March of 2000. I persoally have been a very happy with my financial rewards, and both my personal and professional growth. Since I am one of the more tenured franchisees at TES, I would dare to bet I knew the naysayers and have probably coached some of them (note they refrain from identifying themselves).

I whole heartedly believe if they had spent one half of their energy into following our system and creating the right type discipline and work ethic they too would have succeeded.

Unforturnately, they only see "others" as the problem because these individuals refuse to accept responsiblity for their own inaction, incompentence and refusal to follow the TES system. Now they are trying to damage the lifes of hundreds of happy and successful people.

I personally exceeded my 5 year goals in less than 3 years with TES. I was able to so because I followed the system, took responsiblity for myself, was a freqeunt request for coaching and did the work that is required of any new business. The strenghth of TES remains the same as it was back in 2000 when I first joined; training and on-going support. If you can't cut it here, leave us happy, successful, people alone!
D2, Nashua, NH
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#5 Consumer Comment

Rip Off....Are You Kidding?

AUTHOR: Cedric - (U.S.A.)

I bought the rights to two TES Licenses almost three years ago. I was not promised anything other than a system that would meet my financial goals and needs as long as I followed the system.

What I have experienced is the closer I follow the system and use tools provided the more success I have. This business clearly requires work; however there is more than enough support to make anyone willing to allow themselves to follow a process the opportunity to have success.

The Management team and the Franchisees in TES provide a service that is unique from any other business service that I have come across. Numerous clients will testify that our Franchisees have made a significant positive impact on their lives.

Anyone that thinks what we do or those that support us are ripping them off has got to be kidding.
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#6 Consumer Comment

Happy TES Consultant

AUTHOR: Susan - (U.S.A.)

I have been with TES for five years. I love what I do and enjoy the support and training received from our Performance Enhancement Center. We had our National Conference in Palm Springs, CA last week and the training was fantastic. New products and services were introduced to help us in our business. They were several franchisees that thought this was for party purposes only and did not take advantage of all the choices and events. This would not be the Franchisor's fault since we are all adults and are responsible for ourselves. It seems to me that all the people who complained about TES did not take responsibilty for their results. I have followed the system, participate in all the trainings, and continue to help others who request coaching. These people will succeed. If you do not ask for help, who is to know. TES is wonderful and like any business, it is up to you to be successful.

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#7 Consumer Comment

Happy TES Consultant

AUTHOR: Susan - (U.S.A.)

I have been with TES for five years. I love what I do and enjoy the support and training received from our Performance Enhancement Center. We had our National Conference in Palm Springs, CA last week and the training was fantastic. New products and services were introduced to help us in our business. They were several franchisees that thought this was for party purposes only and did not take advantage of all the choices and events. This would not be the Franchisor's fault since we are all adults and are responsible for ourselves. It seems to me that all the people who complained about TES did not take responsibilty for their results. I have followed the system, participate in all the trainings, and continue to help others who request coaching. These people will succeed. If you do not ask for help, who is to know. TES is wonderful and like any business, it is up to you to be successful.

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#8 Consumer Comment

Happy TES Consultant

AUTHOR: Susan - (U.S.A.)

I have been with TES for five years. I love what I do and enjoy the support and training received from our Performance Enhancement Center. We had our National Conference in Palm Springs, CA last week and the training was fantastic. New products and services were introduced to help us in our business. They were several franchisees that thought this was for party purposes only and did not take advantage of all the choices and events. This would not be the Franchisor's fault since we are all adults and are responsible for ourselves. It seems to me that all the people who complained about TES did not take responsibilty for their results. I have followed the system, participate in all the trainings, and continue to help others who request coaching. These people will succeed. If you do not ask for help, who is to know. TES is wonderful and like any business, it is up to you to be successful.

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#9 Consumer Comment

Looking Inward

AUTHOR: Ron - (U.S.A.)

I am a relatively new Regional Developer with The Entrepreneur's Source, having now been on board for 9 months. I have the privilege of working with 7 Consultants who work hard, follow the system and are doing quite well in their practices.

As with any organization, there tends to be a "bell-shaped curve" when looking at results; 10-15% are excellent performers, 10-15% are poor performers, and 70-80% are in the average range. Whether we're talking employees, or franchisees, this curve is universal.

What I find interesting is that it is always that 10-15% of poor performers who want to point fingers rather than look inward. Think of all the employees that you have known who have been fired. How many of them would admit that they're poor performers? The same is undoubedtly true with the secretive Ms. X and her friends. It couldn't possibly be them, it must be someone else who caused their failure.

One of the most important reasons for anyone to consider a franchise in the first place is the system that is already in place. We, in fact, counsel our clients who don't think they can follow a system to consider starting an independent business as opposed to going into a franchise.

There are two things that will determine the success or failure of a Consultant in The Entrepreneur's Source. First, are you willing to follow the system. Second, are you willing to work hard, because starting out in any business requires hard work. If your answers to either of these is no, you will not likely be successful.

My final thought to anyone who has spent the time to read this "rebuttal" is, if we have approximately 285 Consultants in our company, and her group represents 20 or so unhappy people, what is the message here? Ms. X, which was it, failure to follow the system or lack of hard work that caused you to fail?
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#10 Consumer Comment

The Entrepreneur's Source - Great Company - Negative Reports are WRONG

AUTHOR: Edward - (U.S.A.)

I am currently a consultant franchisee)of The Entrepreneur's Source (TES) ad have been for 4 years. I have read the reports with interest. Ms X from Wahington DC must have a vendetta of some sort and seemingly can't take responsibility for her failings. I strongly echo the thoughs and comments brought forward by Jim, Bruce, August and David.

From the time I began validating TES as a career option I have been treated fairly, openly and honestly. TES was careful to identify ALL aspects of the business, my responsibilities and TES' responsibilities. They ensured I spoke to any and all existing and former consultants I desired.

Since jooning TES 4 years ago I feel the company has been responsive to my needs, has exceeded my expectations in terms of training and support and acted in a manner that gives me confidence they will be there for me in the future.

My experience with the staff and management team at TES has been positive and they have proven that if you ask for support or assistance with a problem, they will be more than willing to assist. I am even aware of consultants who chose to leave the business for their own personal reasons and were assisted bt TES in an open and fair manner.

There is no reason a dedicated, hard working individual who follows the system and becomes a student in the business should not succeed. TES gives us the tools, support and training we need. One thing to remember is you have to make it work -you have to take responsibility for your business. this is a business not a game or hobby and you have to treat it as a business. It requires hard work, investments and risk, but the system works if you let it.

I have almost 40 years of business expereince as a senior level executive of a major corporation, owner of another franchise and President and Managing Partner of an independent consulting and training firm that worked with hundreds of companies both large and small. In my informed opinion, The Entrepreneur's Source is one of the the most professional, communicative and supportive companies with whom I have worked. I am proud to be associated with them.
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#11 Consumer Comment

The Entrepreneur's Source - Great Company - Negative Reports are WRONG

AUTHOR: Edward - (U.S.A.)

I am currently a consultant franchisee)of The Entrepreneur's Source (TES) ad have been for 4 years. I have read the reports with interest. Ms X from Wahington DC must have a vendetta of some sort and seemingly can't take responsibility for her failings. I strongly echo the thoughs and comments brought forward by Jim, Bruce, August and David.

From the time I began validating TES as a career option I have been treated fairly, openly and honestly. TES was careful to identify ALL aspects of the business, my responsibilities and TES' responsibilities. They ensured I spoke to any and all existing and former consultants I desired.

Since jooning TES 4 years ago I feel the company has been responsive to my needs, has exceeded my expectations in terms of training and support and acted in a manner that gives me confidence they will be there for me in the future.

My experience with the staff and management team at TES has been positive and they have proven that if you ask for support or assistance with a problem, they will be more than willing to assist. I am even aware of consultants who chose to leave the business for their own personal reasons and were assisted bt TES in an open and fair manner.

There is no reason a dedicated, hard working individual who follows the system and becomes a student in the business should not succeed. TES gives us the tools, support and training we need. One thing to remember is you have to make it work -you have to take responsibility for your business. this is a business not a game or hobby and you have to treat it as a business. It requires hard work, investments and risk, but the system works if you let it.

I have almost 40 years of business expereince as a senior level executive of a major corporation, owner of another franchise and President and Managing Partner of an independent consulting and training firm that worked with hundreds of companies both large and small. In my informed opinion, The Entrepreneur's Source is one of the the most professional, communicative and supportive companies with whom I have worked. I am proud to be associated with them.
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#12 Consumer Comment

The Entrepreneur's Source - Great Company - Negative Reports are WRONG

AUTHOR: Edward - (U.S.A.)

I am currently a consultant franchisee)of The Entrepreneur's Source (TES) ad have been for 4 years. I have read the reports with interest. Ms X from Wahington DC must have a vendetta of some sort and seemingly can't take responsibility for her failings. I strongly echo the thoughs and comments brought forward by Jim, Bruce, August and David.

From the time I began validating TES as a career option I have been treated fairly, openly and honestly. TES was careful to identify ALL aspects of the business, my responsibilities and TES' responsibilities. They ensured I spoke to any and all existing and former consultants I desired.

Since jooning TES 4 years ago I feel the company has been responsive to my needs, has exceeded my expectations in terms of training and support and acted in a manner that gives me confidence they will be there for me in the future.

My experience with the staff and management team at TES has been positive and they have proven that if you ask for support or assistance with a problem, they will be more than willing to assist. I am even aware of consultants who chose to leave the business for their own personal reasons and were assisted bt TES in an open and fair manner.

There is no reason a dedicated, hard working individual who follows the system and becomes a student in the business should not succeed. TES gives us the tools, support and training we need. One thing to remember is you have to make it work -you have to take responsibility for your business. this is a business not a game or hobby and you have to treat it as a business. It requires hard work, investments and risk, but the system works if you let it.

I have almost 40 years of business expereince as a senior level executive of a major corporation, owner of another franchise and President and Managing Partner of an independent consulting and training firm that worked with hundreds of companies both large and small. In my informed opinion, The Entrepreneur's Source is one of the the most professional, communicative and supportive companies with whom I have worked. I am proud to be associated with them.
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#13 Consumer Comment

The Entrepreneur's Source - Great Company - Negative Reports are WRONG

AUTHOR: Edward - (U.S.A.)

I am currently a consultant franchisee)of The Entrepreneur's Source (TES) ad have been for 4 years. I have read the reports with interest. Ms X from Wahington DC must have a vendetta of some sort and seemingly can't take responsibility for her failings. I strongly echo the thoughs and comments brought forward by Jim, Bruce, August and David.

From the time I began validating TES as a career option I have been treated fairly, openly and honestly. TES was careful to identify ALL aspects of the business, my responsibilities and TES' responsibilities. They ensured I spoke to any and all existing and former consultants I desired.

Since jooning TES 4 years ago I feel the company has been responsive to my needs, has exceeded my expectations in terms of training and support and acted in a manner that gives me confidence they will be there for me in the future.

My experience with the staff and management team at TES has been positive and they have proven that if you ask for support or assistance with a problem, they will be more than willing to assist. I am even aware of consultants who chose to leave the business for their own personal reasons and were assisted bt TES in an open and fair manner.

There is no reason a dedicated, hard working individual who follows the system and becomes a student in the business should not succeed. TES gives us the tools, support and training we need. One thing to remember is you have to make it work -you have to take responsibility for your business. this is a business not a game or hobby and you have to treat it as a business. It requires hard work, investments and risk, but the system works if you let it.

I have almost 40 years of business expereince as a senior level executive of a major corporation, owner of another franchise and President and Managing Partner of an independent consulting and training firm that worked with hundreds of companies both large and small. In my informed opinion, The Entrepreneur's Source is one of the the most professional, communicative and supportive companies with whom I have worked. I am proud to be associated with them.
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#14 Consumer Comment

Positive

AUTHOR: Les - (U.S.A.)

As a Regional Developer with The Entrepreneur's Source for this past 13 months I must say that my experience has been exactly what I expected.

As a franchise, this is a great business investment if you are willing to work a business from start up to thriving.

Terry Powell created a unique business model that provides a much needed and valuable service to people that have a dream about business ownership.

Unfortunately some people get into a lifestyle business and only dream of being successful by looking for excuses to not work thier business opportunity rather than rolling up their sleeves and working the business so that they can enjoyed the lifestyle afterwards
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#15 Consumer Comment

Positive

AUTHOR: Les - (U.S.A.)

As a Regional Developer with The Entrepreneur's Source for this past 13 months I must say that my experience has been exactly what I expected.

As a franchise, this is a great business investment if you are willing to work a business from start up to thriving.

Terry Powell created a unique business model that provides a much needed and valuable service to people that have a dream about business ownership.

Unfortunately some people get into a lifestyle business and only dream of being successful by looking for excuses to not work thier business opportunity rather than rolling up their sleeves and working the business so that they can enjoyed the lifestyle afterwards
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#16 Consumer Comment

How's This For A Testimony!

AUTHOR: Dave - (U.S.A.)

I was a typical corporate world employee for over 18 years and I seeked out the assistance of TES to help me learn more about my career options. My TES coach helped me tremendously and I was so very fortunate to find an extremely successful franchise business that I never would have otherwise found by myself. I operated this franchise quite successfully for almost three years, and ultimately decided that I wanted another challenge.

Having stayed friends with my TES coach, I approached him about the possibility of becoming a TES consultant. I felt that the process that I went through was so very valuable, and I was excited about the possibility of helping others just like I was helped.

Long story short, I sold my original franchise (at a wonderful rate of appreciation I may add) and have now been a TES coach for 15 months now. I love it. The support and training have been fantastic. Thank about it..if TES was all the bad things that the nay sayers claim it is, why would I have 1) used their services to begin with and 2) ultimately decided to be a part of this fantastic team?

I appreciate that starting a business is not easy, but at the same time, TES like so many other wonderful franchise opportunities provides a great foundation for you to succeed - the rest is up to you. If they give you the paint, the canvas, and the brush and all you do is stare at the picture, it is still going to be blank at the end of the day! Our company is filled with many happy, enthusiastic, and successful "painters" who are happy with TES, franchising, and the quality of life it provides us.

As for all of the changes in the system that the nay sayers refer to, I think that is just a reflection of the forward thinking of the company and continuous effort to improve. I am excited to be a part of a company that is willing to move forward and take the chance to be successful. Isn't that what entrepreneurs do?

Dave - Upstate South Carolina
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#17 Consumer Comment

Following the TES System-Positive Experience!

AUTHOR: Steven - (U.S.A.)

I have been a Consultant with TES for almost 5 years now, and have enjoyed the financial success, lifestyle rewards, and general feeling of accomplishment and making a difference in many people's lives! I am not the most intelligent Consultant, lack advanced computer skills, and not as analytical as others. I love what I do..Coaching Clients re career change. I simply have always followed the TES System, and Training is an ongoing reality in our System! The vision of Terry Powell and TES I bought into 5 years ago has come true for me..by followng the system. That's why I bought a Franchise to begin with..to have opportunity to tap into the resources of a growing brand.

I am bewildered by the negative postings by unhappy people. I get the same quality leads and education to succeed in this business as these folks did. So..why have I been so successful? Again, I simply follow the System set up for me and fellow Franchisees. I have been thrilled with the results. Terry Powell and others at the Support Center have always been available for feedback. This includes late nights and weekends if needed! I must agree with other recent positive postings..negative people seem to talk the most and loudest, and I must conclude didn't follow the system set up for them. My success has been consistent since my initial training, and every year has been part of my learning curve..getting better and better. I wish these negative people had put half their energy into following the System..instead of rediculous comments like: "The Leads suck"! I get exactly the same Leads from the same sources, and have helped so many people across the country and world! I applaud the vision of Terry Powell and TES, and continue to be a proud productive Franchisee!

The "group" of negative former Franchisees of TES that had banded together..has apparently shrunk in size. I am not surprised. I recall receiving a phone call 2 years ago from the gentleman who organized a Job Fair. He told me that a fellow TES Consultant had signed up for a TES Table at his Job Fair held..but then never paid the Invoice..and never even showed up for the Job Fair! This behavior negatively reflects on my whole Franchise! I was sickened over this lack of courtesy,professionalism, and total disregard by the Franchisee. I later was informed that this TES Consultant had joined the "group" making negative claims against TES! For me, that speaks volumes about the credbility of these negative people.
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#18 Consumer Comment

Ms X Anonymous? You must be joking

AUTHOR: Kim - (U.S.A.)

Ms X agrees with Bob, but is afraid to give her real name. Doesn't that tell you something? Allow me to respond to just a few of her points:

"The drop-out rate is 50% or may be higher"? What is it? You don't know, do you? Fact is, we still have 285 consultants... at 50% we would only have 150.

"I don't think more than 3-4" consultants are making placements. You don't THINK? Obviously, you don't know. I've been tracking placements for 2 years, and very few people AREN'T making placements; a majority are making 10 or more a year.

"30 leads and they suck"? How many businesses do you know deliver leads straight to your computer every day? Most successful entrepreneurs have to go out and GET business.

"90% of franchises succeed is a bold-face lie"? Those statistics came from the Dept. of Commerce, not from Terry Powell.

Why are so many people succeeding in this franchise? Why are so many people succeeding in any franchise? And then, why do some fail? It's the same system, so the difference has to be the individual.

Here are some real stats for you: Approximately one in 12 retail establishments is a franchise in the U.S. Franchising accounts for $1 trillion is annual U.S. retail sales--an astonishing 40% of all retail sales in this country. (See PricewaterhouseCoopers study, "The Economic Impact of Franchised Buisness" published in March 2004.
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#19 UPDATE Employee

The Entrepreneur's Source works if you work

AUTHOR: Robin - (U.S.A.)

I have been a The Entrepreneur's Source franchisee for over 3 years. I have found the company to be nothing but responsive to me and aiding me in growing my business.

This is a business that requires work; and a much of what stands between and individual and their success is their own actions and perceptions. Which is why it's so much easier to blame someone else for your failure? For those pointing their fingers at Terry Powell and The Entrepreneur's Source support team, I would suggest they look in the mirror for their own contributions to their failure. Others are succeeding so what have they done differently than those who have failed?

For one, have worked the system. Why invest in a recipe if you aren't going to follow it? Successful TES franchisees have followed the system and have seen the results.

Secondly, people who are successful in this system have asked for help when they needed it. Not by going to sites like this and whining and complaining. But by going to Terry and team as a partner and asking for help. Everyone I know within the system who has approached the support center with respect, genuinely looking for assistenance to improve their business has gotten total support. I know that I have.

Finally, successful TES franchisees (like successful people in life) have a positive outlook. They believe they can do it, they believe in the people around them.
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#20 Consumer Comment

TES is a great Franchise

AUTHOR: Jim - (U.S.A.)

I have been a Regional Developer with TES for five years and Have made a very nice income from consulting to coaching consultants. TES is a valuable service that lets people self-discover the right franchise for them. I stay close to many of the people that I helped find the right model and they are successful owners doing quite well.

The vast majority of the consultants I coach in the Carolinas are doing very well and are successful. Can and do people fail in this Franchise, yes but that is ture with all Franchises. The main reason the very small percentage fail, they will simply not follow the system and work the business as a business. The few people I have coached who have failed, always want to do it their way, not follow the TES system and their work ethic is terrible.

Bottom line you should not join TES or any other Franchise if you are unwilling to follow their proven system or put in the time necessary for success. TES is an outstanding Franchise that offers a very valuable service.
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#21 Consumer Comment

Rebuttal to the TES reports

AUTHOR: Bruce - (U.S.A.)

I have been a TES consultant for four years and have been extremely happy with the franchisor and my franchise.I have exceeded my goals from a lifestyle and income perspective.
The service we provide is very valuable to our clients.

When I speak to a consultant that isn't meeting their expectations,I usually find out that they aren't working or won't admit that they are the problem as they aren't or won't do what needs to be done to be successful in this business.

If someone is not doing well in any business they rarely will look in the mirror and be honest with themselves as to what the problem really is. It's much easier to blame the franchisor or someone else.

I love being in this business.
Bruce
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#22 Consumer Comment

This Concept works if you work it the way it is supposed to be

AUTHOR: August - (U.S.A.)

My experience with TES over the past 4 years as a franchise owner has been a positive one. It has met or exceeded all my expectations.

It is not a business for everyone, like any other franchise, and some people will achieve higher performance than others. It is a shame however that some people will place the blame squarely on the franchisor when there are many successful people in the system achieving the results they want or deserve. In this business, what you put in, in terms of time and effort, you will produce the corresponding results, if you follow the system.

I have never felt coreced or unsupported; in fact, my experience has been the opposite in that the franchisor has gone out of their way to help me and my colleagues with any issue we've encountered.

I can't speak to the people who have left the system or why they're saying what they are but my experience has been entirely different.

I believe this franchise provides an invaluable service to the public and is a great business for the right person. Do your homework for yourself and determine if it's a good business for you.
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#23 Consumer Comment

I disagree

AUTHOR: David - (U.S.A.)

It seems that these comments are quite dated at this point, so perhaps my reply as a satisfied franchisee is not necessary.

First of all, there is a top 10% and a bottom 10% of performers in any human endeavor. This includes the Olympics. It is unfortunate, but there will always be a bottom 10%. Further, the bottom 10% will usually be amongst the loudest in their complaints. My experience as a coach and just in working with people in general is that folks who are not performing are likely to look outside of themselves and to blame others for their own lack of success. It is this very lack of responsibility that is part and parcel of the lack of success.

I will not attempt to rebut Ms. X's long tirade here. I suspect that would be pointless as her ego demands that "it is someone else's fault" anyway.

Several points:
1) The average placement fee, in my experience, is just as reported.
2) The postcard mailings replaced a similar mailing system that was done by hand, took more time, more administration, and cost at least as much. This had been part of the franchise system, to my knowledge, from day one. So anyone that has a complaint about the easier, cheaper program was obviously not working the system to begin with. (FYI, this marketing is in the process of being shifted to an email format so this does not apply at this point anyway.)
3) I do not want my email address posted to the world. Thank you TES for keeping such diatribe and drivel out of my email box. What Ms. X does not mention is the very effective communication tool provided by TES for internal email. Outside email addresses are redundant and simply not needed.
4) "The leads suck." Really? Are these the same leads that successful folks are getting or was she being singled out for special treatment? I would venture to say that just that attitude alone can be a huge impediment for making this business work. We are not selling franchises, we are coaches helping folks learn about alternative options that can be vehicles for achieving their dreams. If Ms. X was waiting for folks to cry out her name in their sleep and come to her waving their checkbooks, she was clearly in the wrong business.
5) Does it surprise anyone that she could not sell? What did she have to sell to anyone? Did she have receivables, a pipeline, relationships with referral sources? And would you buy anything from someone as bitter as she apparently is?
6) If the average placement fee is $9,000 net to the franchisee, how long would it take to earn back the initial investment or the $9,000 annual advertising expense? How many businesses do you know that spend less than $9,000 a year in advertising. This is a business, not a hobby.

Overall, I have been very happy with TES as a franchisee. The business is work, no question, perhaps more that Ms. X was prepared to put in. As your momma told you, "There is no free lunch". TES is not a free lunch, it is work, but rewarding work for both our clients and ourselves as franchisees.

I do agree with Ms. X on one thing. Anyone considering joining a franchise should do their homework and know what it is that they are getting into. They should know what it is and what it is not. That is why the TES model works for so many people, clients and franchisees. Yes, we are paid by the franchisor, but the key is that we can put our clients interests first as we do not care WHICH franchise works for them.

You may find this strange, but in most cases we do not even know what we will be paid for a specific franchise. If we put our client's interests first we will grow our business by referrals many fold. We would be extremely short-sighted to do anything less.

It is sad, but if Ms. X had put as much effort and attention into her TES business as she apparently has into making everyone else wrong, she would likely be in a very different place.
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#24 Author of original report

TES Rebuttal is More Lies, Smoke and Mirrors and Deception!!!

AUTHOR: Ms. X - (U.S.A.)

Please note that the rebuttal to my ripoff report above is made by a PAID EMPLOYEE or should I say henchmen for Terry Powell. It is not a rebuttal to my ripoff report or Consultant Bob's ripoff report disputing our claims. They never address the real issues we have raised. Brian is not a franchisee in TES,or has he made any investment of $70,000 to $100,000 as all of us failing franchisees have. Nor, I should add, he is not an individual losing his investment, retirement, or life savings in this franchise SCAM! Brian's JOB may be happy, productive and living (his) lifestyle but this is not the case with 80% of the 300 TES consultants who are losing money every month in this ponzi scheme.

Gee, where are all the happy, productive TES consultants? They don't exist except for maybe 10 out of 300 who are making a living. I'm sure Terry Powell is happy and productive and living his lifestyle because he is the only one who has become wealthy by ripping off hundreds of gullible people. Many of whom had very successful careers and businesses before we were lured into this franchise and failed. Is it possible that over 100+ franchisees didn't follow the operating system - I think not. That's the same old worn out excuse you hear from every franchisor about why people fail in their system. Since we're all that dumb - why did they try so hard to get us to sign the franchise agreements in the first place?

Let me present some REAL facts about how this TES franchise system really operates. The very first sentence of their rebuttal states: "We believe that open communication is the best policy..." This is a complete joke. Mr. Powell, had all of the TES franchise consultants' email addresses removed from our intranet site so that we could not communicate with each other. This was done because TES had implemented some policies which many franchisees didn't agree with and were never even given the option of approving. This was going to cost every franchisee an additional $400.00 every month in a stupid postcard mailing program on top of the current $750.00 monthly advertising/lead generation fee. When a few franchisees started to complain about this they were very quickly terminated along with our 1st amendment right to free speech. Very vindictive people are running this franchise.

Here you will see some of the great lies and myths about franchising in action. If you are a potential franchisee in any company but especially The Entrepreneur's Source - BUYER BEWARE! You have NO RIGHTS as a FRANCHISEE!!! You have NO PROTECTION UNDER THE LAW AS A FRANCHISEE!
Everything is about protecting the Franchise Company at all costs.

ALL franchise agreements are written to protect the franchisor at the expense of the franchisee! The Entrepreneur's Source promotes these lies about the franchise industry - luring people to invest their life savings not only in TES but in many of the lousy franchises we represent. WE (notice I include myself) never disclose the true risks and failures that franchisees face everyday in all franchise companies. Franchisors, franchise reps, and franchise consultants will lie, misrepresent, and deceive you in order to get you to sign that franchise agreement. The stakes are very high in franchise fees and placement fees and commissions. The average franchise consultant in TES and other companies such as Frannet and Fran Choice make 40% of the franchise fee or about $9,000. We are trained to tell our clients that we're impartial and that our fees cannot be added to their investment. Well, not exactly true. Sure, it's not an additional fee added to their franchise fee, but our clients never know that such a huge portion of their franchisee fee goes into our pocket.

Here look at this paragraph: "We are happy to report that we did prevail and AAA, American Arbitration Association found in our favor preventing the claimants from filing a group claim." Another words, TES franchisees cannot sue TES even if they have a good cause, and we do have a legitimate cause. So, you have to go to arbitration. And then you cannot even go to arbitration as a group. And believe me the 20 or so claimants had a good reason to file because they all lost between $70,000-$100,000 each. The claim against Terry Powell and TES was for a million dollars in damages alleging fraudulent, misleading, and deceptive business practices.

In addition, complaints against Terry Powell and The Entrepreneur's Source have been filed with the Federal Trade Commission and the Connecticut Attorney General. Here is a copy of the actual letter that many present and former TES franchisees have signed to the FTC.

Dear Sirs-
A conference call was held on Wednesday, April 7, 2004 at 2pm EST, with 36 franchisees of The Entrepreneur's Source (TES). All of the participants were current or past franchisees of TES that believe they were misled, deceived, and/or financially hurt by TES. Each of these franchisees was failing or had failed in their TES business. We discussed what we will be able to do to recover our lost investments. An experienced franchise attorney, was present on this call.

We read with interest your reply to Does a high failure rate in a franchise business, in and of itself, justify an investigation by the FTC.
A very significant attrition rate has been consistent since TES's inception in 1998. This business is not a fad business' and the failure rate is not related to market competition. In their dealings with prospective franchisees, TES has consistently made gross misrepresentation of the number of failed and terminated franchises, has deceived and omitted material facts, and has been involved in unfair trade practices. It is our belief that these practices constitutes a violation of Section 5 of FTC Act, 15 U.S.C. 41-58.

Regional developers and consultants with TES can, and will, attest to the fact that every prospective franchisee is carefully manipulated throughout his/her validation process. These regional developers and consultants also were manipulated by TES, as the TES scheme was not readily apparent to them. The UFOC is not supplied to TES prospects in a timely fashion. It is not until late in the validation process that the prospect receives his/her UFOC. When the UFOC disclosure document is received, it does not contain the actual failure rate within the TES franchise system. The number of failures reported in the UFOC has been repeatedly manipulated to favor TES. This misrepresentation is due to the fact the many of the currently known closed or terminated franchises are called inactive' and are not listed in the updated UFOC for the prospect to evaluate. By the time a prospect receives the UFOC, he/she has been carefully led down a path and directed into conversation with
select franchisees. From these conversations, the prospect is led to believe that TES has a very high rate of success.

If a franchisee ever says anything negative about TES to a prospect, he/she is chastised by the corporate office and accused of not being a team player. They are called crabs in the basket' for the entire organization to take note of.
Franchisees are treated with intimidation and threats. A failing franchisee that wishes to leave the TES system is threatened to be held responsible for the $750/month ad fee and for future royalties typically totaling more than $130,000. None of this is obvious in the UFOC or the franchise agreement. This prevents a franchisee from leaving his/her failing business. This franchisee is unable to sell his/her franchise since he/she would be obligated to disclose these TES practices to any prospective buyer. The threat looms, that if this exiting franchisee tries to collect monies due, or recapture any of his/her investment, or if he/she says anything to past, current or future franchisees of TES that sheds a negative light on the company or its owner, then he/she will then be sued for future royalties and ad fees.

We request that the Federal Trade Commission investigate TES of being in violation of Section 5 of FTC Act, 15 U.S.C. 41-58, specifically citing deceptive and unfair practices, misrepresentations and omissions that have caused and continue to cause substantial injury to consumers. Currently there are over 250 franchisees listed as active in the most recent TES UFOC. Based on TES's past track record, a substantial number of these franchisees will fail over the next 3 years. A tremendous financial hardship will be the result for many of these franchisees.

I am one of the many franchisees that believe they have been adversely affected by an investment with TES. My personal losses have been over $50,000. In a recent correspondence with Mr. Terry Powell, I was threatened with the following action when I told him that I intended to file a complaint with the FTC:
We do have the option of holding you responsible for the entire 10 year agreement to include all minimum placements, processing fees,and ad funds, that would total approximately 13K per year times the number of years left.

According to the franchise attorney, these threats to franchisees, like myself, are merely attempts at intimidation and coercion on the part of Mr. Powell and have no basis in law.
I believe that there are over 50 -100 such franchisees who have lost their entire investments over the past 5 years, and there are many more TES franchisees listed as active that will be harmed in a similar fashion.

Sincerely,
TES Consultant


Now at the TES convention in Orlando this February, almost every consultant I spoke with was struggling, failing and losing money in this franchise. Everyone was very negative despite the hype. But no one is willing to say or do anything for fear of reprisals, intimidation, and termination from Terry Powell - all of which is ILLEGAL! I believe we have all been victims of lies, misrepresentations, breach of contract, and fraud by Terry Powell and the TES Regional Directors. My RD has lied and deceived me from the very first day and continues to do so even now. My RD who is suppose to be my "coach" is even struggling in TES. Many of the RD's have failed and left the system too.

Before she left, I was told by the former TES Vice President of Training & Support that the true reason for TES to exist is not to provide franchise consulting services to the public but to sell consultant franchises for Terry Powell and the RD's! Afterall, the very first thing we learn in the academy is the "GOLDEN QUESTION"!

What is the "golden question"? When we first contact a lead we are trained to ask the following: "I was wondering; were you interested in our services or in becoming an Entrepreneur's Source Consultant? (This is the Golden Question) It's all about "GOLD" for Mr. Powell. Why does The Entrepreneur's Source need 300-500 franchise consultants when Frannet only has about 50-60. The reason is that TES couldn't survive with so few franchisees because they couldn't make enough placements or generate enough advertising fees each month to remain in business. You see folks, 25% of our placement fees goes into Mr. Powell's pocket.

This franchise is no more than an illegal pryamid scheme to recruit unsuspecting entrepreneurial prospects and clients into investing $50K+ under the guise of a "dream business" opportunity.

Unfortunately, the very foundation on which TES is built is a pack of lies and
misrepresentations. We are deceiving our clients when we tell them that franchises have a "90% success rate" and that franchises are more likely to succeed than independent businesses. This is a total fabrication and myth based on faulty statistics compiled and promoted by the Franchise Industry. And folks, please don't believe the bold face lies that franchisors tell you about it being against the law to disclose income claims and financials. The real truth is that franchise companies can make income claims as long as they provide audited documentation. But why should they - afterall, the less you know about their franchise the better off they are. I can guarantee you without a doubt that if TES were to disclose the average income of their franchisees (most consultants are losing money) they would be long gone. And this is true of many of the most popular franchise operations in this county. They hide behind the FTC regulations which are very generous and benevolent to the Franchise Companies.

As franchise consultants we are luring people into investing their life savings into franchises (TES included)that in reality have failure rates of 50-80% or higher. For many of us who have validated some of the franchises we represent at TES you know what I am talking about. How many of you have had a good feeling about some of the placements you have made? Come on TES consultants you know very well what I am talking about. We promote the promises that franchising can offer but what about the perils, abuses, frauds, and victimization that is rampant in the industry - in our very own franchise.

As far as I'm concerned no placement fee is worth it - we should be ashamed. Our average placement fee is $9,000. But when you only make 2-4 placements a year as do the majority of TES consultants you're going to do whatever it takes to get that client (with whom you've been working with for several months) to sign a franchise agreement - even if it's not in their best interest because you have to survive. That is why the TES business model is flawed and doomed to failure!

Finally, Brian and Terry, it is not the goal of the TES franchisees who have taken the above actions to hurt the existing franchisees. It is the only resource available to us to recoup the loss of hundreds of thousands of dollars. And, it is the only means available to us to prevent this franchise from destroying the lives of more and more people who may seek to invest in this "dream business" and with the so called "dream team" that in reality has become our worst NIGHTMARE!

My husband and I worked for many years to save up enough money to invest in the "American Dream of business ownership" only to become victims of The Entrepreneur's Source. My hope is that I can prevent this from happening to others before it's too late.
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#25 UPDATE Employee

TES Statement...happy, productive and living their lifestyle

AUTHOR: Brian - (U.S.A.)

We believe that open communication is the best policy, so we wanted to share with you our thoughts on this posting. First, TES has many franchisees that are happy, productive and living their lifestyle dreams.

There are, however, a few franchisees that did not follow the operating system and attempted to breach their agreement and exit outside of the parameters of their franchise agreement. A few attempted to form a group to arbitrate their grievances with TES.

We are happy to report that we did prevail and AAA, American Arbitration Association found in our favor preventing the claimants from filing a group claim. The integrity of our franchise agreement was maintained.

Moreover, while a few may choose to move forward on an individual basis, it is highly unlikely that all will move forward. TES will evaluate how it handles these situations on the basis of the facts in each individual matter.

We have a fantastic system, wonderful franchisees, and satisfied clients. Our Client of the Year is just one example. She is a remarkable woman who for 35 years has been the primary provider for her family. Today she is an entrepreneur having being placed with a franchisor with whom TES works.

It was heartwarming to hear her story and how she described the impact her TES Coach had as she helped guide her through the process. TES continues to graduate Academy attendees who have a genuine desire to help our clients through the Journey of Discovery to show them a way out of corporate stagnation and a path toward personal growth.

Contrary to what is outlined here, only about 10% of our Clients choose to become a TES franchisee. Our franchisees have placed thousands of Clients with many franchisors. Collectively, our franchisees are appalled by this unethical group who are attempting to hurt our company name.

This has only made the existing team of franchisees stronger and more determined to join with us to protect their investment. It's sad that this unethical group wishes to hurt the existing franchisees through their actions.

Please feel free to contact our CEO and founder, Terry Powell or our Executive Vice President, Brian Miller directly at any time to discuss any of these matters. You may learn more about TES, as well as contact information, by viewing our website, www.theEsource.com You may reach us at 1-800-289-0086, ext 2120 for Brian and 2127 for Terry. Thank you!
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