Minuteman Press International Inc Robert Titus Michael Jutt Peter Bauer Frederik Antonie van Niekerk Store Churn Rate in South Africa Farmingdale New York

The misleading and deceptive formal response from Minuteman Press International cannot be allowed to go unanswered and should be put into perspective. 

The Minuteman Press response is generally broad-brushed, deals fleetingly with major issues, avoids dealing with detail and substance, whilst it attempts to divert the attention from Minuteman’s serious misconduct and unlawful conduct towards its franchise owners. 

Importantly, note that the Minuteman Press response does not deny any of the information in the many complaints which have been posted about it on Ripoff Reports, nor does Minuteman Press provide any arguments or meaningful information in its response which may contradict the posts on any of the many Minuteman Press complaints on Ripoff Reports. 

Minuteman’s store closures / failures versus new store openings – 2005 to 2018 

Number of Store Closures / Terminations by Minuteman Press  -  465. 

Number of New Stores opened by Minuteman Press  -  517. 

Minuteman Press had 965 franchise stores as at 31 December 2018. 

Therefore, the store closure / new store opening rate is 90%, i.e. over the 14-year period Minuteman effectively closed one store for each new store it opened.  

Put another way, Minuteman Press closed about 50% of its stores during the past 14 years. 

Do we have an idea of the quantum of the losses when Minuteman Press closes a franchise store? 

The 2019 Minuteman Press Franchise Disclosure Documents (FDD) discloses the start-up cost of a new Minuteman Press Store is approximately $200,000 (including the cost of the print press). In addition: 

•  the franchisee must enter into a long-term premises lease agreement (Minuteman pressures the franchisee to sign a 5-year term premises lease agreement). 

• the franchisee is burdened with a 35-year term Minuteman Press franchise agreement which it cannot terminate (and yes, Minuteman Press does claim royalties from the franchisee at the maximum sales (sales cap) for the unexpired period of the 35-year franchise agreement, in the event of early termination or store closure). 

Therefore, the $200,000 setup cost is lost when Minuteman Press closes a store. In addition, the franchisee must pay the unexpired leases of the business, must settle outstanding creditors and it must settle Minuteman Press for royalties for the unexpired term of the franchise agreement. 

Understandably, most franchisees are financially ruined when his or her store closes. 

How much are the total losses of the closed stores? 

The setup cost losses of the 465 closed Minuteman Press stores are therefore $93,000,000 ($93 million). Accumulated operational losses, payments for unexpired leases, outstanding creditors and royalties must be added to the $93 million. 

How many existing stores did Minuteman Press sell to new owners? 

Minuteman sold 870 existing stores to new owners between 2005 and 2018. 

What is the Minuteman Press store churn rate? 

Number of stores closed between 2005 and 2018  -  465 

Number of stores sold to new owners between 2005 and 2018  -  870 

Minuteman Press store churn rate between 2005 and 2018  -  1,335 

How much does Minuteman Press receive for Initial Franchise fees? 

Minuteman opened 517 new stores between 2005 and 2018. 

Minuteman’s Initial Fees for store openings increased from USD45,500 per store in 2008, to USD47,500 per store in 2018. 

Minuteman received an estimated USD23,626,900 for initial fees for the period 2005 to 2018. 

How much does Minuteman Press receive for transfer fees when existing stores are sold to new owners? 

Minuteman sold and transferred 870 existing stores to new owners between 2005 and 2018. 

Minuteman’s Transfer Fees increased from USD19,500 per store in 2008, to USD23,000 per store in 2018. In 2019 Minuteman Press increased the transfer fee to USD32,500 per store. 

Minuteman received an estimated USD17,922,000 for store transfer fees for the period 2005 to 2018. 

Who pays the transfer fee? The seller, or the buyer, of the existing Minuteman Press store? 

During the sale of business negotiations, Minuteman advises the purchaser to reduce the price of the business by the transfer fee. Therefore, the seller (the existing franchisee) pays for the transfer fee. 

How much is the total fees Minuteman Press received from churning its stores? 

Estimated Initial Fees received for period 2005 to 2018  -  USD23,626,900 

Estimated Transfer Fees received for period 2005 to 2018  -  USD17,922,000 

Total Fees received from churning stores  -  USD41,548,900 

How much profit did Minuteman Press make? 

Minuteman’s audited accumulated Profit Before Tax for the period 2005 to 2018 was USD31,747,595. 

Is it true that the profitability of the Minuteman Press Franchise System is totally reliant on the fees it receives from churning its stores? 

From the above information all the Minuteman’s profit is generated from the fees it receives from churning its stores. Minuteman made USD31,747,595 profit for the period 2005 to 2018; whilst Minuteman received USD41,548,900 fees during the same period, from opening new stores and from transferring existing stores to new owners. 

Without these fees Minuteman will be making losses and the franchise system will not be sustainable! 

Is the information reliable? 

The information was taken from the Minuteman Press Disclosure Documents – it is Minuteman’s own information, summarized for the period 2005 to 2018.  

Why do so many Minuteman Press franchisees sell their businesses? (Not in the FDD’s) 

From experience, it is known that many Minuteman Press franchisees are desperately unhappy in their struggling and loss-making businesses. Most franchisees expressed the reasons for the unhappiness are rooted in the Minuteman Press misrepresentations before they invested in the franchise system: 

• the businesses do not make the sales and profits which Minuteman Press represented to the franchisees. 
• the businesses are very complex and demanding to manage.  

• most of these franchisees work extra-ordinary long hours in their struggle to survive financially. 
• the businesses do not reward the franchisees for their efforts and often the franchisees must finance operating losses. 
• the franchisees struggle with the dictatorial franchisor, realizing they are trapped in the franchise system whilst they have crippling contractual liabilities.  
• Minuteman Press dictates and controls the sale of business process, including the selling price as well as having to approve the buyer of the business. 

Eventually, the franchisee will accept any offer to sell the business and to exit the franchise system. In its desperation, the franchisees will accept any offer (often as little as $10,000 to $20,000) and will sign any documents Minuteman Press demands to be signed before the franchisee will be allowed to exit the system. 

What are the Minuteman Press selection criteria to become a franchisee? 

The prospective franchisee: 

• Must have enough funds, or must have access to enough funds, to pay Minuteman Press and to setup the new store. 

• Is NOT required to have any prior business experience. 
• Is NOT required to have any prior print industry experience. 

It is apparent that franchisees will most likely not have the means nor the legal acumen to challenge Minuteman Press in court should the need arise (Minuteman Press does have a fully staffed legal department with legal professionals to keep its franchisees in line). 

How does Minuteman Press maintain the confidentiality of its high churn rate? 

Every franchisee leaving the Minuteman Press Franchise System, MUST sign the Minuteman Press Deed of Surrender and Release. In the Deed, the departing franchisee undertakes to keep all information about the Minuteman Press system confidential. Once the departing franchisee signs the Deed, he / she cannot speak to prospective franchisees about his / her experience as a Minuteman Press franchisee. 

What can a franchisee or ex-franchisee do with the info in this Ripoff Report? 

Make a complaint to a regulatory authority, such as: 

• USA Federal Trade Commission (FTC). 
• Australian Consumer and Competition Commission (ACCC). 

• Regulatory authority or other appropriate authority in your state or in your country. 

Is more information available about the conduct of Minuteman Press? 

More information is available on the following Ripoff Reports website (if link does not work, please copy and paste URL into browser): 

 https://www.ripoffreport.com/reports/specific_search/minuteman%20press 

Who is the author of the “Formal Response from Minuteman Press International” on Ripoff Reports? 

On 29 April 2019, Bob Titus, President of Minuteman Press International, sent an email to all Minuteman owners (please see attached image). A comparison between the email and the “Formal Response from Minuteman Press International” reveals: 

• The introductory paragraph has been modified for the Ripoff Report. 

• The body of the email and the Ripoff Report are almost identical. 

• The closing paragraph has been modified for the Ripoff Report. 

It can be concluded that the author of the Ripoff Report is none other than Bob Titus, President of Minuteman Press International. 

Who is the whistle-blower? 

In his email on 29 April 2019, Bob Titus identified the whistle-blower as “originating from who we believe to be a suspected disgruntled and vindictive former franchisee”.  

In the Ripoff Report of 6 September 2019, Bob Titus identified the whistle-blower as “Due to the anonymity of the poster we cannot determine if this is a former franchisee, a vendor, a customer or even our competition trying to discredit our company”. 

Bob Titus, you have overlooked a further possibility of the identity of the whistle-blower. Bob Titus, have you considered: 

• That your email of 29 April 2019 was emailed to all Minuteman Press franchise owners? It is understood it was not emailed to people outside the franchise system. 

• That the information in the Ripoff Reports regarding the Minuteman Press Churn Rate for South Africa, as well as the second report regarding the Minuteman Churn Rate for the United Kingdom and Canada are available and known to most of your current Minuteman Press store owners? 

Therefore, it can be concluded that the most likely author and / or sender of the email, author(s) and / or poster(s) of the Ripoff Reports are current, unhappy and desperate Minuteman Press franchisees. 

See you in Las  Vegas 

Bob Titus concludes his email to franchisees on 29 April 2019 with “See you in Las Vegas”. 

The Minuteman Press franchisees have better chance playing roulette in the casino compared to making money investing in a Minuteman Press franchise store. Franchisees can bet their money on the roulette ball landing on even chance numbers or colours such as to bet on the ball landing on even or odd numbers, alternatively the ball landing on a black or red number. They will have an almost 50% chance to win – much better odds compared to opening a Minuteman Press store.  

Unashamed, continued misrepresentation of the Minuteman Press franchise system 

In conclusion the “Formal Response from Minuteman Press International” Ripoff Report provides a link to the Minuteman Press website. It is the same website Minuteman Press uses to market its franchise system to prospective franchisees. The website falsely projects a franchise system consisting of predominantly long term, multi-generational, successful and happy franchisees. This misleading and deceptive misrepresentation does not illustrate the experience of the majority Minuteman Press franchisees who are unhappy and struggling franchisees, who are desperate to leave the franchise system, but cannot because they are tied to the 35-year Minuteman Press franchise agreement (described above). 

The following is a formal response from Minuteman Press International:

We regret anyone having a negative experience within our franchise system. Due the anonymity of the poster we cannot determine if this is a former franchisee, a vendor, a customer or even our competition trying to discredit our company.

This post contains many allegations and statistics.  While some of the statements and numbers may be accurate, many are not.  The statistics are presented in a misleading manner to make what is considered routine and normal to look bad, i.e., store closures and store transfers. The author uses sensational buzz words like “churn rate” in an attempt to portray our franchise system in a negative light. 

One example is as follows:

As a mature franchise system with 960+ global franchisees, we have a small percentage of owners that sell and transfer their franchise for a variety of reasons. In any given year, approximately 75 centers are resold for an array of reasons ranging from retirement, simply wanting to do something different, business consolidations, personal issues and unfortunately even death. We are not like other franchisors that leave their owners to sell their business completely on their own. We assist our owners who want to sell their business or otherwise find an exit. This is a good thing for our system and our franchise owners. The author attempts to skew the data by claiming we greatly profit from reselling these franchises.  This is simply not true.  In fact, the revenue from transfers and new sales represents only a very small percentage, approximately 10%, of our overall annual revenue.

The author of this post lists locations that were sold trying to make this scenario seem very negative.  Many very successful owners on that list have sold their businesses quite successfully to retire and some were owners who were members of the President’s Million-Dollar Circle (stores that do over USD$1,000,000 in yearly gross sales).

A second example is the store closures/terminated numbers. Simple math, based on the author’s information tells you the average number of stores closed or terminated is about 3% of our system a year. Most people would find this low percentage as very positive and acceptable.

For more information about Minuteman Press and our franchise owners please visit
https://minutemanpressfranchise.com/news/

How does Minuteman Press rip-off its franchisees? 

Minuteman Press deceptively markets its franchise system to consist of predominantly successful and happy franchisees, who have been in the system for many years; Minuteman Press represents to prospective franchisees that many franchise stores remain in the system for generations. 

Once the franchisee signs the 35-year franchise agreement, he / she is trapped in the system. Thereafter the franchisee can only leave the system with the consent of Minuteman Press and on conditions dictated by Minuteman Press. 

The truth is that most Minuteman Press franchisees do not make the profits Minuteman represented, most franchisees are unhappy in the franchise system and are desperate to get out of the system. Many franchisees close their businesses and incur huge losses. Most of the remaining franchisees sell their businesses at substantial losses. Reported losses run into hundreds of thousands of dollars and / or pounds. 

This report illustrates the Minuteman Press churning of stores in Canada and United Kingdom. 

How many Minuteman Press franchise stores closed from 2005 to 2018?  

United Kingdom - 44; store closure rate of 40% 

Canada - 27; store closure rate of 26% 

How many existing stores did Minuteman Press sell to new store owners from 2005 to 2018?  

United Kingdom - 42; store transfer rate 38% 

Canada - 63; store transfer rate 60% 

What is the Minuteman Press store churn rate from 2005 to 2018? 

United Kingdom churn rate is 78% 

Canada churn rate is 86% 

Does Minuteman Press make money from churning stores? 

Yes. Minuteman Press charges its franchisees USD32,500 for each store transfer and USD47,500 for each store it opens. 

It is estimated Minuteman Press charged its United Kingdom and Canadian franchisees more than USD5,400,000 from 2005 to 2018 for store transfer fees and new store openings. 

Are Minuteman Press franchisees losing money? 

Yes. Many Minuteman Press franchisees report losses of between $300,000 and $500,000 as a consequence of joining the Minuteman Press franchise system. 

Can ex-Minuteman Press franchisees warn prospective franchisees? 

No. Before a franchisee may leave the Minuteman Press franchise system, he / she must sign the Minuteman Press Deed of Surrender and Release. The Deed contains a gag clause. 

Is the information reliable?  

Yes, it was taken from the Minuteman Press Disclosure Documents - it is a summary of Minuteman Press' own information.  

Individual Store Closures (2007 to 2018) & Individual Store Sales (2011 to 2018)  

United Kingdom  

Banbury, England, UK - Business Closed Down during 2011  

Bedford, Bedfordshire, England, UK - Business Closed Down during 2007  

Birmingham, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2015  

Blackburn, England, UK - Business Closed Down during 2014  

Blackpool, England, UK - Business Closed Down during 2014  

Bromley, England, UK - Business Closed Down during 2014  

Burton On Trent, England, UK - Business Closed Down during 2009  

Cambridge, England, UK - Business Closed Down during 2008  

Chorlton, England, UK - Business Closed Down during 2011  

Colchester, England, UK - Business Closed Down during 2008  

Crewe, Cheshire, England, UK - Business Closed Down during 2012  

Croydon, England, UK - Business Closed Down during 2018  

Enfield, England, UK - Business Closed Down during 2008  

Exeter, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Gloucester, England, UK - Business Closed Down during 2010  

Hampton, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2015  

Harrogate, England, UK - Business Closed Down during 2007  

Leeds, England, UK - Business Closed Down during 2008  

Leominster, England, UK - Business Closed Down during 2014  

Letchworth Garden City, England, UK - Business Closed Down during 2007  

Liverpool, England, UK - Business Closed Down during 2010  

Liverpool, England, UK - Business Closed Down during 2012  

London, England, UK - Business Closed Down during 2018  

Loughborough, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Milton Keynes, England, UK - Business Closed Down during 2008  

Milton Keynes, England, UK - Business Closed Down during 2009  

Milton Keynes, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Norwich, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Nottingham, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Peterborough, England, UK - Business Closed Down during 2018  

Preston, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Preston, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Reading, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Reading, England, UK - Business Closed Down during 2018  

Sheffeild, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Strood, England, UK - Business Closed Down during 2013  

Surbiton, England, UK - Business Closed Down during 2012  

Swindon, England, UK - Business Closed Down during 2008  

Telford, Shropshire, England, UK - Business Closed Down during 2007  

Tunbridge Wells, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2013  

Wakefield, England, UK - Business Closed Down during 2009  

Waltham Cross, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2013  

Waltham Cross, England, UK - Business Closed Down during 2014  

Ware, England, UK - Business Closed Down during 2014  

Warrington, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Warrington, England, UK - Business Closed Down during 2016  

Wembley, England, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Aberdeen, Scotland, UK - Business Closed Down during 2013  

Coatbridge, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

East Kilbride, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Edinburgh, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Edinburgh, Scotland, UK - Business Closed Down during 2015  

Edinburgh, Scotland, UK - Business Closed Down during 2016  

Falkirk, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2012  

Glasgow, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Glasgow, Scotland, UK - Business Closed Down during 2013  

Kilmarnock, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Kilmarnock, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Mount Florida, Scotland, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2013  

Wrexham, Wales, UK - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Canada  

Calgary, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Calgary, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Calgary, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2015  

Calgary, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Calgary, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Calgary, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Edmonton, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Edmonton, Alberta, Canada - Business Closed Down during 2017  

Edmonton, Alberta, Canada - Business Closed Down during 2017  

Lethbridge, Alberta, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2012  

Abbotsford, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2013  

Burnaby, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Burnaby, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2015  

Coquitlam, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Kelowna, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2012  

Kelowna, British Columbia, Canada - Business Closed Down during 2016  

New Westminster, British Columbia, Canada - Business Closed Down during 2017  

North Vancouver, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Penticton, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Penticton, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Surrey, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Vancouver, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2012  

Vancouver, British Columbia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Victoria, British Columbia, Canada - Business Closed Down during 2007  

Winnipeg, Manitoba, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Halifax, Nova Scotia, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2012  

Barrie, Ontario, Canada - Business Closed Down during 2010  

Barrie, Ontario, Canada - Business Closed Down during 2014  

Brampton, Ontario, Canada - Business Closed Down during 2017  

Concord, Ontario, Canada - Business Closed Down during 2011  

Downsview, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Etobicoke, Ontario, Canada - Business Closed Down during 2008  

Etobicoke, Ontario, Canada - Business Closed Down during 2017  

Fergus, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Fergus, Ontario, Canada - Business Closed Down during 2015  

Georgetown, Ontario, Canada - Business Closed Down during 2011  

Guelph, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016  

Kingston, Ontario, Canada - Business Closed Down during 2011  

Milton, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Mississauga, Ontario, Canada - Business Closed Down during 2007  

Mississauga, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Napean, Ontario, Canada - Business Closed Down during 2007  

Oakville, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2015  

Oakville, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Orangeville, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Orangeville, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2014  

Orangeville, Ontario, Canada - Business Closed Down during 2017  

Oshawa, Ontario, Canada - Business Closed Down during 2013  

Timmins, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2015  

Toronto, Ontario, Canada - Business Closed Down during 2008  

Toronto, Ontario, Canada - Business Closed Down during 2010  

Toronto, Ontario, Canada - Business Closed Down during 2011  

Toronto, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2013  

Toronto, Ontario, Canada - Business Closed Down during 2015  

Toronto, Ontario, Canada - Business Closed Down during 2015  

Vaughan, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2011  

Vaughan, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Waterloo, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2018  

Windsor, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2013  

Windsor, Ontario, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2017  

Regina, Saskatchewan, Canada - Store sold by MINUTEMAN PRESS & transferred to new owner during 2016