Minuteman Press International Inc How MPI franchisees are deceived and conned Farmingdale New York

 To Fiona, Owner of successful MPI franchise store in Australia:

We are sincerely happy that you have a very successful Minuteman Press store. We wish you every success for the future in your business. It is common knowledge that MPI takes most, if not all, prospective franchisees to your store to show them a typical Minuteman Press Franchise store. MPI takes prospective franchisees from all over Australia (trips are fully paid for by MPI).  Considering the situation, your responsibility is not only to sell and market the Minuteman Press franchise, but you also have an ethical and moral responsibility to the prospective franchisee to give a fair and balanced introduction and overview of the MPI franchise system.

It is respectfully suggested that you consider the following information objectively before you do future presentations to prospective franchisees:

Thirty one percent (31%) MPI franchise stores closed in Australia over a period of 10 years. Worldwide 33% MPI franchise stores closed during the same 10 year period. This means one out of three MPI franchisees close the doors of their businesses. Many franchisees go personally bankrupt.

The table of franchisee failures in New South Wales and Queensland, Australia (see table in Ripoff Report above) described that all six owners who sold their franchise businesses were all struggling in their businesses and made substantial losses.

More than 73% franchisees failed in their businesses in New South Wales and Queensland, Australia. Information at hand suggests that worldwide about 75% MPI franchisees fail in their businesses. That means 3 out of 4 franchisees fail in their businesses.

It is compulsory for a franchisee to sign the MPI Deed of Surrender and Release before he is allowed to exit the MPI franchise system. The Deed of Surrender and Release is a brutal and extremely one sided agreement. Once the franchisee has signed the Deed he has been “silenced”, has waived all claims against MPI and has a restraint of trade imposed on him. In short, he is rendered powerless and cannot say or do anything against the all-powerful MPI. MPI representatives bully, intimidate and rush the franchisee into signing the Deed. The franchisee is not allowed to seek legal advice before signing the Deed.

MPI representatives do make representations to prospective franchisees that they can expect their profit to be at least 33.33% of the sales of their franchise store.

A court in the USA found that most MPI stores do not make 33.33% of its sales as profit. The court issued a Permanent Injunction Order against MPI ordering it not to make unsubstantiated claims in this regard. More information regarding the court case can be found on the website of the USA Federal Trade Commission (type “Minuteman Press” in the search box).

 Once again we recognize your financial success as a MPI franchisee. Available information suggests you are one of the exceptions to the rule. 

In the MPI Franchise system the 75% struggling and failed franchisees:

Pay 6% of their sales as royalties to MPI.

Have to pay AUD25,850 franchise transfer fee to MPI when the failed business is transferred to a new franchisee.

Have to “wear” all the losses incurred in their MPI stores.

Are “silenced” having to sign the Deed of Surrender and Release and may not, and cannot, share the MPI misconduct and scam franchise system with other franchisees and prospective franchisees.

In the MPI Franchise system the 25% successful franchisees:

Pay less than 6% Royalties to MPI; many pay less than 4% Royalties to MPI.

Work hand-in-hand with MPI with the deceptive marketing of the franchise system; feeding incomplete and misinformation to prospective franchisees.

MPI rewards Million Dollar store owners with an annual all-expenses-paid fishing and golf trip to an exotic location in the USA.

Openly promote and advertise the MPI system (as you have done in your Ripoff Report).

 The struggling and failed franchisees subsidise the successful and wealthy owners of the bigger MPI stores.

 In closing it is again highlighted that your success is an exception to the rule in the MPI franchise system. You have a major responsibility to provide prospective franchisees with a balanced presentation of the MPI franchise system.

Is it not your ethical and moral responsibility to do so?

Or is the protection of the re-sale value of your business of more importance to you?

To Keenan Archer, Million Dollar Store Owner and most successful MPI franchise store in Australia:

We are sincerely happy that you have a very successful Minuteman Press store. We wish you every success for the future in your business. It is common knowledge that MPI takes most, if not all, prospective franchisees to your store to show them a typical Minuteman Press Franchise store. MPI takes prospective franchisees from all over Australia (trips are fully paid for by MPI).  Considering the situation, your responsibility is not only to sell and market the Minuteman Press franchise, but you also have an ethical and moral responsibility to the prospective franchisee to give a fair and balanced introduction and overview of the MPI franchise system.

It is respectfully suggested that you consider the following information objectively before you do future presentations to prospective franchisees:

Thirty one percent (31%) MPI franchise stores closed in Australia over a period of 10 years. Worldwide 33% MPI franchise stores closed during the same 10 year period. This means one out of three MPI franchisees close the doors of their businesses. Many franchisees go personally bankrupt.

The table of franchisee failures in New South Wales and Queensland, Australia (see table in Ripoff Report above) described that all six owners who sold their franchise businesses were all struggling in their businesses and made substantial losses.

More than 73% franchisees failed in their businesses in New South Wales and Queensland, Australia. Information at hand suggests that worldwide about 75% MPI franchisees fail in their businesses. That means 3 out of 4 franchisees fail in their businesses.

It is compulsory for a franchisee to sign the MPI Deed of Surrender and Release before he is allowed to exit the MPI franchise system. The Deed of Surrender and Release is a brutal and extremely one sided agreement. Once the franchisee has signed the Deed he has been “silenced”, has waived all claims against MPI and has a restraint of trade imposed on him. In short, he is rendered powerless and cannot say or do anything against the all-powerful MPI. MPI representatives bully, intimidate and rush the franchisee into signing the Deed. The franchisee is not allowed to seek legal advice before signing the Deed.

MPI representatives do make representations to prospective franchisees that they can expect their profit to be at least 33.33% of the sales of their franchise store.

A court in the USA found that most MPI stores do not make 33.33% of its sales as profit. The court issued a Permanent Injunction Order against MPI ordering it not to make unsubstantiated claims in this regard. More information regarding the court case can be found on the website of the USA Federal Trade Commission (type “Minuteman Press” in the search box).

Once again we recognize your financial success as a MPI franchisee. Available information suggests you are one of the exceptions to the rule.

You refer to the MPI franchise system as “tried and tested across the world time and time again”.  “Tired and rusted” may be a more suitable description of the MPI franchise system.

In the MPI Franchise system the 75% struggling and failed franchisees:

Pay 6% of their sales as royalties to MPI.

Have to pay AUD25,850 franchise transfer fee to MPI when the failed business is transferred to a new franchisee.

Have to “wear” all the losses incurred in their MPI stores.

Are “silenced” having to sign the Deed of Surrender and Release and may not, and cannot, share the MPI misconduct and scam franchise system with other franchisees and prospective franchisees.

In the MPI Franchise system the 25% successful franchisees:

Pay less than 6% Royalties to MPI. As the owner of a Million Dollar store you actually pay less than 2% Royalties to MPI.

Work hand-in-hand with MPI with the deceptive marketing of the franchise system; feeding incomplete and misinformation to prospective franchisees.

MPI rewards Million Dollar store owners with an annual all-expenses-paid fishing and golf trip to an exotic location in the USA.

Openly promote and advertise the MPI system (as you have done in your Ripoff Report).

The struggling and failed franchisees subsidise the successful and wealthy owners of the bigger MPI stores.

Your acquisition of your second store is noted, especially the improvement in the monthly sales from $15000 to $50000. It does give rise to a few questions with regards to the previous MPI franchisee and the sale transaction:

Did he make monthly losses in the MPI franchise business?

Did he make a loss when he sold the business to you?

Did you buy a bargain when you bought the store?

Did MPI take him to your store as a prospective franchisee for an introduction to the MPI franchise system before he opened the store?

Did MPI assist you in any way to buy the store?

Did MPI encourage you to buy the store?

In closing it is again highlighted that your success is an exception to the rule in the MPI franchise system. You have a major responsibility to provide prospective franchisees with a balanced presentation of the MPI franchise system.

Is it not your ethical and moral responsibility to do so?

Or is the protection of the re-sale value of your business of more importance to you?

I must say l’m at a lost to what Minuteman Press system this disgruntled owner purchased and where he is coming from, the system is tried and tested across the world time and time again. We were the 8^th store to open in this country, some 14 years ago, and to date l have never once questioned Minuteman Press International or the local rep’s, they have always been professional, honest, supportive and ethical with sound business practices..... Bob Titus, Mike Jutt and the team of local rep’s have always taken my calls when l’ve needed support and have always listened to concerns and guided me along the way.

Our business has been profitable since our 3^rd month of opening the store as a Greenfield site. However we understand that not everyone that buys into a system will make it work – there’s no secret from me, l tell every prospect that tours my store, “if you are going to sit at your desk and not market yourself and your business, this may not be the business for you, you need to follow the system or atleast employee someone to do this for you.” I say this as we purchased our second store 6 years ago and turned that store from sales of $15,000 month to over $50,000 a month and yes with two people!

I thought l would touch on the first 6 points... I could write pages and pages in response to the claims made, however l’m always happy to meet a prospective franchisee looking to purchase into the system and l will answer any question you throw at me and tell you of my success, Minuteman Press never made a claim to me of what l could achieve from this business, the owners shared this information with me as l toured around doing my research.

Quote 1: 100% true, l had no print experience prior to owning my Minuteman Press store.

Quote 2: I worked in supermarkets as a grocery manager and never owned a business prior to opening my Minuteman Press store.

Quote 3: Our second store consistently achieves well over $30,000 a month with two employees.  

Quote 4: Our profits are more than a third of our monthly sales.

Quote 5: Minuteman Press have continued to researched premises, negotiate our leases even after 14 years of history, as l have moved my first store 4 times as we continue to grow and our second store twice with the full support and guidance of Minuteman Press.

Quote 6 & 7: I think this goes without saying, why would a franchisor want us to fail.

At the end of the day, the authors claim of Minuteman Press making millions of dollars in re-sales is fantastic news to me, it means that people want to buy into the system l have invested my heart and soul into. I have meet 100’s of owners at the conventions in the states over the years and it’s such a great group of very motivated franchise owners and l have never heard a bad word towards Bob Titus and his team.

In closing, l would agree with the last post, maybe this business isn’t for you, either focus your energy into building your business rather than wasting countless hours of facts and figures from the past or get out and get on with your life. Finally, a big thank you to Bob Titus and his team for allowing me to purchase into the system and having the faith in me at the young age of 25. Our life’s have been enriched beyond what we thought possible and we have meet a group of fantastic, motivated and energetic group of people over the years and we look forward to the future.

It is always very sad when any business fails and tragic for those involved. We have had our Minuteman Press Store for 9 years and we are very happy and proud to be a part of the brand.

The team at Minuteman Press are extremely well rehearsed and professional and that did help us to take the leap with Minuteman Press. They do say you don't need any prior Print Industry experience which is just as well as we don't have any prior printing experience.

We were never given any guideline by Minuteman Reps on what we could earn, but we are as store owners  happy to let prospective purchasers of Minuteman Stores know what we have done over the years in Sales/Profit. We would have liked this information when we were looking, but Minuteman Reps explicitly told us that they could not provide it . In case we were mislead.

They did find us premises, negotiate the lease and supply the equipment. We had hands on help to the point we were throwing them out after 21 days as we  couldn't wait to run it ourselves - they were too helpful.

Our team does work business hours and have all our weekends free. That is our choice we could make more money possibly doing longer hours, but we choose not too at this time.

Minuteman is not a "one size fits all" type of franchise it works for us fantastically and we are sad that you are not finding it the case.

Why not sell? the franshises are in high demand and you could go to do something you find more rewarding and suited to your skill set