As you have read from the posts here, there are a few limited number of
success stories. If you look at the England franchisees, you will notice
many, many more success stories. The problem is that the creators of the
system took a legitimate and workable program, loaded it with so many
hidden costs, that they have the ability to decide whether they want to
make you "sink or swim". The last time I checked, franchise fees were
substancially lower in England than in the US.
Mr. Clewes laughed at how he got several wealthy people to invest in
multiple territories, accelerated the opening of each market, and watched
them go bankrupt. By doing this, he was able to collect franchise fees,
make money off equipment and supplies, and was then able to resell the
territories to the next victim. He reasoned to me that since these people
were very wealthy, he didn't feel bad about doing it. Mr. Clewes is a
very wealthy man too. Does this mean it is okay to take advantage of him
as well?
There are all kinds of little fees that Filta can hit you with too. You
have internet usage fees (which is really insane for their primitive
"corporate site"), overly inflated equipment and supplies that you have to
purchase from the company on a monthly basis, and fees that keep on
increasing even if your business volume doesn't.
I'm not saying the idea doesn't work, because I know it does. The few
operators in the US are proof that it works. But what these operators
don't realize is that by paying these insane overhead and franchise costs,
they are basicly working for someone else; or at least might as well since
they don't have any security but have all the risk.
Mr. Clewes is a very smart man. He has managed to attract people who are
affraid to go into business for themselves, and provides them with a very
small level of encouragementand false sense of security.
In our conversation, he told me how much he admired cleaning company
franchises that just give you a bucket and a mop and collect franchise
fees for doing so. He equated FiltaFry with this type of operation, and
in essence you are doing the same thing... cleaning fryers.
What I found amusing was that Mr. Clewes doesn't know the true power of
his filtration system. He told me his filters down to 10 microns. In
reality, they supposedly filter down to 1 micron... or so they tell their
franchisees. Competing filtrators that are available in the US and abroad
can filter to less than .5 microns. Therefore his oil cleaner is
inferior. And to top it off, you can buy cooking oil cleaners for 1/5 of
what he charges and that goes for the disposable filters too.
If you feel you are a true entrepreneur, do your market research in your
local area, buy the equipment yourself, and jump in on your own.
If you go the Filta way, I wish you the best, and know that if you are
crafty, tough skinned, and determined, it is possible you won't go
bankrupt. But you could have been much wealthier if you went it alone.
Remember, the CEO said it himself.... it is just like giving a franchisee
a bucket and a mop and saying get to work.
Good Luck.