How I Lost $300k Owning A Franchise

[@ashwilbur706]

This should be titled "how I lost $300k thinking I was smarter then my lawyer"

[@black12212]

lol

[@joelambert7331]

*than, but your title as is still holds too.

[@monyana.kgomanyane]

😅😂

[@alistergray7035]

lmao, best comment

[@rightyouare2004]

@@joelambert7331you’re smart, dude.

[@EightiesMetalMania]

Used to be a franchisee in the auto repair industry. I gotta say the franchise did an excellent job with their sales pitch, but the moment they got my money that all changed instantly. They literally promised a turn key operation and it turned into me working there seven days a week "upholding the good name of the franchise and representing the brand". All while people within the franchise were working against me by trying to steal my customers, employees, commercial accounts, etc. After losing 300k I called it quits. The franchise responded by suing despite being the one responsible for the failure of this location. Whenever someone asks me getting into one, I tell them to run away or just hand me the money instead. Franchise is the real "F-Word"...

[@firdosvohra4315]

What was the name of the franchise?

[@EightiesMetalMania]

@@firdosvohra4315 AAMCO Transmission

[@kennedytabitha9978]

I don’t think it’s the franchise that caused this to fail but the fact that you didn’t listen to your lawyer. Thank you for your transparency. Moral of this story is trust the wise council in your life. Corporate was evil for what they did.

[@MrHamlet]

I think the lesson here is to turn off your emotions, LISTEN to the experts you hired to be on your side such as the lawyer. To give into blanket statements that defy reason and logic e.g. "finish the dance you started". Be data driven.

[@mmmmkay4773]

My exact sentiments

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate, this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

[@TariqJohnson]

That’s a crazy story. It’s so key to be with a Franchisor that actually cares about its franchisees. That’s one thing I can say about the 2 franchises I have- the franchisor has not been perfect, but they are incredibly supportive and they do the right thing. Great story. Cheers.

[@CorradoArangio]

Thank you for the comment Tariq! You are very lucky to have a franchisor that is supportive. If my franchisor was supportive I'm sure I would of still been in business!

[@markp3390]

I am looking into franchising as well, any suggestions and Tariq would you be willing to share what franchise you're with?

[@xzavierhaywood2578]

Which two do you have?

[@spencers410]

this is really late i know, but i hope you reply. i am thinking about it. is it worth it?

[@aaronhoward1066]

Learn from your failure and you will be closer to success!

[@CorradoArangio]

💯 Aaron!! thank you for the comment!!

[@michaelcruz928]

I’m a franchise owner and I love my franchise. They help me so much and are always there when I need them. You need to shout this franchise out and prevent future people from suffering this same tragedy. They screwed you bruh.

[@chrishustles94]

Do you mind sharing the franchise you have?

[@markogusic7923]

Way to bounce back! Love your hustle and inspiration, keep it coming!

[@CorradoArangio]

1LUV Marko! Failure is success if we learn from it!

[@jfkst1]

I can't understand how someone would pay a lot for a lawyer, then ignore said lawyer.

[@bugsywolfe]

Franchisors make their money from their franchisees but often carry little risk. Hence the lengthy legally binding contracts. And the bad Corporate Franchisors out there will often charge their franchisees more and more continually raising their prices. ( because you have to buy everything from them. ) to a pointe where you are really just a manager carrying all the risk working only for Corporate and their balance sheets. Start your own business. !

[@kaydens6964]

Lmao, if starting your own business and succeed is that easy and carry less risk than a franchise. The truth is the vast majority of the start ups fail. While most franchisees are doing well for themselves.

[@brettb4452]

@@kaydens6964 lots of franchises go out of business too. A smart entrepreneur with any business sense would almost never buy into a franchise. You're just paying a huge fee to work for someone else. Just paying for a name that's it.

[@IvansBikesBmws]

Omg this is just insane. Corrado I remember you telling me about this business. From what I remember, it was a hype about pita back in the day. I am not sure if these pita stores are still around st all. BTW I am Dragos' friend. He introduced me randomly when you were promoting night clubs with Eddie . Omg I am so pumped for finding your channel. Take care! I subscribed!

[@CorradoArangio]

Hi brother hope all is well! How did you find me lol?? Send me a DM on IG @corrado

[@Mav0585]

Pitas 🥙 are good kind of surprised they didn’t do well

[@ALCRAN2010]

Don't look down at this guy for it listening to his attorney, he was only trying to live up to his dad's advice. A noble effort none the less.

[@mohammedabufardeh7597]

this is the first time in my life to press "like" and comment on KZbin. You are so honest and every word is honorable and valuable. I was thinking about this Franchising concept as win-win, but I need to think more and consult a lawyer before I regret. Thanks again Corrado !

[@CorradoArangio]

Thank you Mohammed I don’t know who you are but this is the best comment I ever received on any of my KZbin videos so THANK YOU 🙏🏻!! My #1 goal when I am making videos has always been to provide value for each video I post to help minimum 1 person! This comment has just motivated me to make more videos like this where I share some of my personal experiences. I made this video so people don’t have to go through the same thing I did and lose all this money!

[@mahid9594]

@@CorradoArangio Personal experience videos from successful individuals are the best 💯💯 Share some realtor tips and how you got started in real estate too bro!

[@CorradoArangio]

@@mahid9594 Hey thanks for the advise I will make some for sure in the future!

[@topcheese2889]

Lol sure!

[@mkno25]

This is something everyone should watch. Thank you for posting.

[@CorradoArangio]

Hi Mike thank you for taking the to watch and leave such a nice comment! Means the world to me 🙏🏻

[@wunfoe]

I had a similar experience with purchasing a Quiznos in 2005. My CPA thankfully talked me out of it during the due diligence process. I would have lost my shirt.

[@CorradoArangio]

WOW You’re so lucky! Where was the location suppose to be in?

[@wunfoe]

@@CorradoArangio garner, nc

[@CorradoArangio]

@@wunfoe I was also looking into a Quizno here in Toronto before I opened the Extreme Pita.!

[@bryanho6830]

Man... thank you so much for sharing your story. Its takes alot for someone to share about a loss like that. This has helped me tremendously.

[@bertlarsen3202]

Thanks for the video, I just franchise my company and the relationship between the franchisee and the franchisor is the most important growth for both. So this just encourages me to go over and beyond to help my franchisees to be successful.

[@CorradoArangio]

Thank you for watching Bert. I wish you luck with your Franchise! I'm confident that you and your Franchisee's will do very well with that mindset!

[@americandream7517]

Unfortunately I had to give a thumbs up. I’ve failed at two franchises and succeeded in two of my own businesses (non franchises). I have no problem sharing my story and who i franchised with. His story about selling pitas directly to the school is very common. A LOT of franchises only want you to tap into the areas that are not lucrative enough for their corporate structure and basically make you a “soldier on the ground” or to put “boots in the ground”. It doesn’t pay to have marketing or a large corporate presence in that area so they franchise that area out, take a percentage of your sales and hard work, all while still making money in selling you the products in order to run your store. I will gladly help anyone looking to start a business or franchise at no cost. I want people to learn from my mistakes.

[@AzNwacko]

Any advice on opening a franchise with successful branches in my local area already?? I should be less concerned as the other locations are still doing good during pandemic, but I always have this gut feeling that something may go wrong.

[@americandream7517]

@@AzNwacko the fear of the unknown and no guarantee is what make people stay at their 9-5. If the franchise has successful businesses in your area, especially a more local franchise that’s originally from your state or a neighboring state, then yes it could successful. The problems lot of times is with the national franchises. Make sure you have a strong support systems behind you. Besides a financial support system, make sure you have family and friends that back you because the emotional support sometimes is just as important. Take into account your age and loss/gain ratio. If you’re young (under 35), take a chance and fail, you can still recover. If you’re 50 with three kids in high school and a $3000 mortgage over your head making 75k per year, you might want to think twice. Either way don’t let the statistics scare you. Yes 90% of businesses fail in the first year, but what they don’t tell you is how they come up with those statistics. 90% of new corporations filed in the US claim no income or negative income the first year. That includes businesses that people just start for the hell of it, or businesses that cost a lot of money to start and the owner hasn’t made back his initial investment yet. So forget statistics. The statistics don’t know YOU. You, your friends and family know what your capable of. When the community and customers see that you’re passionate about what you do, they not only take you serious but they take your product serious. They will continue to come to you because you know what you’re talking about, you’re a master of your craft. My first two businesses were successful because I knew the industry. I was and am a master of my craft. The last two I started with little effort I failed at because I didn’t know anything about it. A pizzeria and digital marketing business were my failures. Whatever you decide, I wish you the best of luck!

[@gonewiththewind001]

Just love your video. You are so sincere and kind enough to share your painful experience with others. You will be very successful.

[@seanwauchope]

I was going to buy a connaholic location and my lawyer advised it wasn't a good deal after reviewing the FDD so I didn't buy it. I'm still looking for an investment opportunity but I don't want to rush into anything.

[@dcai5785]

I'm thinking of buying a cinnaholic location, would you be willing to have a chat?

[@sagaroo8]

@@dcai5785 Thinking of buying cinnaholic. Did you had any luck moving forward with it?

[@sourishsaha8067]

try to own those franchises that give geographic control like Panera do. Although by this time Panera have most lucrative turf sold but similar structure helps and protects

[@CorradoArangio]

Hey Sourish, a lot of Franchises give you the geographic control but whats sucks is that if you don't want to open the location they will just give it to someone else and it can take away from your business.

[@avg123]

Corrado, thank you for this. Thank you for not bashing owning a franchise but making sure you pick the right one. I'm going to open one and I have done similar things so far but I do feel confident in the franchisor setting me up for success and the quality of the product for long term customer acquisition and retention. I am glad you have learned a lot about this process and that it has made you wiser.

[@DAVIDSMITH-kj8di]

Do a ton of research. Franchises are usually only good for the franchisor.

[@merlinphil]

This is the first video I find when decided to start my franchise 😜 🤞🏻 And TY

[@imhere11111]

Would be nice to know the name of the Franchise

[@CorradoArangio]

Extreme Pita

[@entirelypossible1038]

Came across your channel, this is great info. Thank you for sharing. Underrated channel

[@CorradoArangio]

Hi thank you for the comment!

[@joshuacolella6468]

Love the hustle man... keep it up!!! Inspiring story

[@CorradoArangio]

Thank you for the comment and the like brother!

[@derrekb4501]

What the HQ did was predatory practices. A lot of them use newbies to develop an area then company comes in steal the business

[@djblame8954]

Awesome story, I liked how you related that it was the best experience that happened. Usually, that's what life's challenges are.

[@patrica4307]

I'm thinking about franchising a beauty salon business but the fee is between 300-600k, should I just invest in my own nail/beauty salon?

[@welcometofiveguys]

Yes. Do your own thing!

[@lynn14921ify]

Your Own!!! Always!

[@everydayfun9531]

Better to do your own lol.

[@derrekb4501]

Fuck yes. No franchise

[@The-Opium-Den]

If anybody is interested you could check out a KZbin channel called Franchise City. The host provides all sorts of advice for what to do if you want to open a franchise and how to avoid the crappy ones or the ones you're not suited for. That channel reveals a lot about the dark side of franchising, which I think is an important consideration when getting into this sort of business.

[@boojay7076]

Once again you decided to listen to yourself over a professional specializing in this then you boo hoo when you’re wrong. . Am I missing something ?

[@enonomoss4925]

That's sounds awful! I am so sorry that happened to you. That is ridiculous.

[@benboyko6782]

Brother, every franchise is the same. We had the same nightmare with a Mowing franchise. Don't ever touch a franchise. If your feel something is weird, it's because it is!

[@CorradoArangio]

Ben Boyko great 👍 advice Ben and thank you for sharing your experience! It’s so true “if you feel something weird, it’s because it is!”

[@mustwatchthis50]

So owning a McDonald's,burger king,ups is a bad investment because of ?

[@catherineboccongelle7224]

I'm sorry you had this experience. As someone who works for a franchising company, I can tell you that not all franchisors are the same. First off, I’ve never recommended selling a franchise to an 18 year old. They just do not have the maturity or business experience to make a good franchise business owner or to make good business decisions. I want to see a pattern of logical, sound decision-making in a potential franchise candidate before I consider allowing them to join our system. Many franchises, if not most, provide a great opportunity to get into business for yourself with much of the heavy lifting done for you, and with great support available throughout your franchise term. Look for franchisors that are members of your national franchising organization, such as the CFA here in Canada or the IFA in the US. Do your homework. Talk to current and former franchisees. Ask them the all-important question: if you could do it over again, would you buy this franchise again? And for goodness sake, listen to your lawyer's and accountant's advice!

[@Vince-zp9my]

Awesome Attitude and Mentality!

[@CorradoArangio]

Thank you for the comment 🙏

[@rajpatel6632]

How do I figure out if the franchise supports its franchisees ? This is something I have trouble figuring out.

[@CorradoArangio]

Hey best is to ask franchisees. A lot of them will tell you the truth.

[@rajpatel6632]

@@CorradoArangio What is the best way to reach out to them? A lot of locations have employees at them most of the time. When I ask them to pass my message down it usually does not get to them because I don’t get many calls back.

[@danielvasquez5817]

Great content make 👍🏽

[@CorradoArangio]

Thank you Daniel!!

[@andybankz4112]

Corrado, thank you for this awesome heads up video! Subscribed! I’m young and have been saving very tightly my money and I’m close to having $50000. I’m just very clueless to know what to invest it in, I would like to open a firehouse subs franchise or a car wash, what advice other than in the video would you give me??

[@legacy2027]

terrible franchise. thank you for sharing your experience.

[@DeltaLou]

I am in the process of getting a Chicfilet Franchise. Should I go through with it?

[@CorradoArangio]

Hi George thank you for watching the video! My best advice is to find a really good lawyer that specializes in franchises and have her/him review the franchise agreement carefully. Please make sure that you're not personally signing on a lease try and put everything under a corporation so if things don't work out it will not affect your credit like what happened to me. Good Luck and let me know if you have any questions 💪

[@papacool6020]

Bro,thinking of going into business/franchise..which one do you recommend?...

[@CorradoArangio]

Papa Cool hey, there are some great franchises you just need a good lawyer to review the franchise agreement. Which franchises are you interested in?

[@papacool6020]

Corrado Arangio thinking of service business

[@BlastinRope]

Donuts, just opened up my 4th donut shot $$$$$

[@mrsjrenae4738]

@@BlastinRope dunkin? Or a smaller chain?

[@CorradoArangio]

Hi Papa, It depends your budget. If you don't have a big budget I would recommend not opening a franchise and doing your own thing or buying an existing location that is doing really well.

[@ladyqueen8387]

Why don’t you say the name of the r franchise? That would help a lot of us

[@dariusalexander9971]

Hey sir I am going through something similar and would like some advice if possible!

[@CorradoArangio]

Hey sure send me a DM on IG my handle is @corrado

[@LoperScott]

Many franchisors are awful people. I am going through a 300k lawsuit right now with one. I was much more successful with my prior non franchise business. Never again to franchising.

[@shamu987]

Informative video. You may share the name of the company, so other people will be aware of.

[@CorradoArangio]

Thank you the name of the company is called “Extreme Pita”

[@shamu987]

@@CorradoArangio Thank you for sharing

[@CorradoArangio]

@@shamu987 You're Welcome!

[@HaseebKhan-on5zk]

I am looking to maybe become a franchisee, do you have any videos of successful cooperation with a franchise and what the key difference was (between the good and bad).

[@CorradoArangio]

Hey where are you from?

[@HaseebKhan-on5zk]

@@CorradoArangio England, why do you ask?

[@angellover02171]

Next time listen to your lawyer and not your dad.

[@CorradoArangio]

I wish I did!

[@fieralba7315]

Hey Corrado, what do you think about opening a Midas car repair shop what should I know, also thanks for sharing your experience.

[@ballpython324]

Why would you not take your lawyers advice? Did you have any questions about the paragraphs he crossed out on the franchise agreement?

[@CorradoArangio]

Hi Kyle thank you for watching and asking this question. I didn't take my lawyers advice because I was only 18 years old with not enough experience and I was really stubborn. I have learned more from failure than from success.

[@hectorperez-xs2bu]

Thanks for the advice

[@fulfillingtv2918]

subbed good info.

[@IOI769]

I have a similar story as Nekter Juice Bar franchise. And this company, Steve Schulz, Jeff Barney and others there have made my life a living hell. Very bizarre behavior from them as I would get phone calls from bullies there literally screaming at me. These scammers had even tried stealing my store back from me starting a few days before the store opened and countless times while I owned it. They sent me countless, meritless legal letters and threatened me (verbally) countless times legally all while I had worked over 100 hours per week at times to help build their brand. And constantly they were sending Nekter representatives (thugs) to harass my employees and me. And their brand is really just glorified, high-sugar, expensive drinks that really are not even that healthy. Many of their recipes call for an insane amount of sweetener but people are fooled by the marketing. Steve Schulz is a snake oil salesman con artist fraudster as well and many don't know but he was caught labeling his products as organic when they were not. Many franchisees have lost a lot of money with these liars. Steve Schulz is a proven con-artist. What can you say about a guy who sleeps around behind his wife's back even with Nekter employees (even at a company event in front of everyone) and then show up on Christian podcasts talking about his strong faith. He uses the obese, Barney Rubble looking fat boy Jeff Barney as his thug. Run from Nekter Juice Bar if you are considering a franchise with them. Many people have lost money with them. It is hilarious listening to some of these Nekter owners profess positive sentiments for Nekter as I know many of them on these videos and they have extremely negative things to say about Nekter and Steve Schulz when in private. The reality is that only a very small percentage of owners make decent money. 10 years ago Steve Schulz would boast constantly that he would have close to several hundred stores by 2020 and they have been stuck at around 200 for the last several years. And I feel storry for many people who signed franchise agreements stating a short window where they must build there store otherwise they lose their $35,000 franchise fee. It is an easy scam for Steve Schulz to legally steal that money from many scammed, unsuspecting people.

[@Ninja79852]

Anyone heard of a franchise called round up or Mr. electric if so what do you think of them ???

[@dakel7]

Where do you get $350,000 to start the business?

[@jtothefx]

Grea video Bro!

[@CorradoArangio]

Thank you!

[@TruthDefender]

Thank you for your testimony

[@Azizzzee]

Great Video 🌟

[@CorradoArangio]

Thank you for the comment it really means the world to me 🙏

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate, this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

[@PDOWG]

Thanks for sharing

[@shawnben-amram311]

Hey Corrado, what do you think about opening a Dunkin Donuts franchise?

[@AJC4866]

Sounds like a shity franchisor!!

[@tmitch7449]

Would you speak with my privately? Want to share my story with you about my franchise experience.

[@shamelh7029]

So basically they turned down someone else willing to take over the business with the money in hand but decided to make you stay to hurt you personally 🤔it doesn’t sound like something a corporate office would do there in it for the business that’s it. I can tell you have a hard time accepting the truth hence the paid 10yr in college expert lawyer.

[@refinedzeta]

This is a cautionary tale to get a franchise lawyer

[@exexcalibur7140]

Omg dude such scam so sorry to hear that they are so bad

[@antwan1357]

I spent hours looking for the cons of owning a franchise

[@tattooadventures]

What happens to that pita franchise?

[@Ninja79852]

Which pita franchise was this ?

[@CorradoArangio]

Extreme Pita

[@angelawells4089]

Can you share you franchise lawyer please?

[@curtisdavis8594]

Thanks

[@lutfi1981]

Whats the name of the frenchaise?

[@rajchhasatia1573]

Thanks for video Could you tell Franchise name ?

[@mmmmkay4773]

"Extreme Pita"

[@albertovelasco8825]

grazie ..muy buen video...

[@bryangeorge258]

Lol. Good. I wish all franchise owners lost 300k on their garbage franchises

[@seanwauchope]

What did you learn?

[@bryangeorge258]

I wanna be a middle manager. - franchisees

[@eyetestsports9545]

Why would they purposely sabatoge you there has to be MORE to this story

[@snapper7277]

Bottom Line your dad gives bad advice

[@adamflaherty8586]

Did you see this response video? She is quite respectful and clearly knows what's up. kzbin.info/www/bejne/qGO0gpSspMitbac

[@nicks0alive]

Non cappiscu lu te sicilianu, chi dici tu??? Di uonni vinni?? What you said in Sicilian? Where from is your family?

[@90kapo]

Cool

[@AmadeusDelgado666]

It is a good story for persons who wants to buy a franchise.

[@bkayganich]

Pita Pit....

[@CorradoArangio]

It was called Extreme Pita

[@luckyc336]

Dang

[@NisargLakhmani]

#superlearning

[@CorradoArangio]

Thank you for watching Nisarg!

[@jeffwvu4602]

It's not the job of high school kids to "support you" but yes, Pita is a dirty company and did you wrong.

[@CorradoArangio]

💯 Jeff! Everything happens for a reason and I needed this beating 🤛 to make me a smarter Entrepreneur!

[@weirdgaming4628]

Life is life.