I stopped to read this press release because I’ve never heard of a retail radiator franchise before…1-800 Radiators looks interesting for those who enjoy autos and cold-calling sales. But, is it too narrow of a niche?
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Have they renewed their franchise licenses yet?
There is a Higher Court check link http://www.youtube.com/watch?v=eJlN9jdQFSc
No dog in this fight, but most of the negative comments don’t pass the smell test. A vendor does not continually supply product to a customer who can’t pay the bills.
Also, this franchisor, like any franchisor has royalty fees.
To say that you are at a 10+% disadvantage because of royalties is in itself misleading. You are buying a turn-key operation. When you are an independent auto parts salesperson, who builds your Ordering, Purchasing, Inventory, and Accounting systems? What is the cost of doing so? When you are a parts chain, there is overhead for these types of systems that are a shared-cost across the network. These costs still exist, no matter the business. They just aren’t called “royalty”.
There are over 300 comments on this forum, and most of them are posted with 3rd grade intellect.
You don’t know what you are talking about. You should buy a franchise and post 1-2 years after.
That person sure as hell doesnt know what they are talking about. This business is a terrible everyday migraine. Many vendors have cut 800 off. Some are scared too because they might not get paid for whats currently owed. The problems never end.
We didnt buy into this franchise to cover the cost of their system. I dont remember reading that anywhere in our agreement.
name the vendors…
Not to mention the vendors that cut them off what about the ones that make them pay their past dues or you get what you pay for equell amount. Word out on the street is 1800 is tapped out with furthering any credit limits with just about every supplier they have becuse 1800 ows so much they tried to get everyone over the barrel but most suppliers will just cut their losses and deal with them as a cash basis only. The factories in China wont even deal with them
YES THEIR MUST BE SOME TRUTH TO THIS CREDIT STRAPPED COMPANY. TWO SALESMEN EACH FROM DIFFRENT SUPPLIERS OF 1800 ALSO CONFORMED THAT THEY ARE OWED BIG BUCKS AND ONLY SUPPLY THEM PRODUCT S THEY PAY FOR IT. I WOULD SUPPOSE THE SUPPLIERS ARE REALLY WORRIED ABOUT GETTING THEIR RECEIVABLE BACK. I REALLY FEEL FOR THE SUPPLIERS.
name the suppliers that cut them off–bet there aren’t any. Name the suppliers whose salesmen made those comments? bet comments were made to competitors to boost sales with them…w/o credible sources or naming vendors this information is useless.
look you jerk the 1800 locations know very well whos product they are not getting any more. I have nothing to prove to you you creep. I know several suppliers that have them on prepay. the point is that this is a scam company so you go buy one or even a few. I for one never intend to get paid the money owed to me. So get lost you stupid scumbag.
I am a 1 800 Radiator Franchisee. No vendors have us on prepay.
You’re clueless.
Identify yourself.
I WOULD THINK THEIR IS A REAL CHANCE THE FILING WILL HAPPEN BY YEAR END. TOO BAD IF IT HAPPENS FOR ALL US SMALL GUYS. ALSO AFTERTHE FILING WILL THEIR BE ANYTHING REALLY LEFT FOR US? HOW CAN WE CONTINUE TO OPERATE WITH ANGR SUPPLIERS? BEEN TRING TO SELL MY LOCATION FOR 2 YEARS AND NO ONE IS EVEN INTERESTED. THIS SUCKS
[vulgar comment deleted by Franchise Pundit --- please keep the conversations respectful and intelligent]
[vulgar comment deleted by Franchise Pundit --- please keep the conversations respectful and intelligent]
“never to get paid the money they owe me”…?? Are you a Vendor where 1800 owes you money? A franchisee? this makes no sense.
I guess the Spectra case isnt enough evidence that corporate doesnt pay their bills. I suppose more vendors have to cut corporate off or sue them in order to prove that corporate cant pay. If a company doesnt release an FDD/UFOC it is a strong indicator that they are indeed hiding something. No company would limit their marketability and sellability unless something else was priority…something not in the best interest of investors-something they dont want the public to know. It is unheard of for a franchise organization to not release disclosure documents if those documents are clean. In fact, if those documents were strong, they would be released with neon lights for their competitors and investors to view. The fact that no one knows ANYTHING should be a strong sign that this company is hiding something. Why would so many people have so many questions…including its own franchisees? Use common sense guys. If questions remain 5-6 years after franchising, then these people must be going to extents to hide something.
Couple that with the character of the people that operate this franchise, and its a fail – fail situation
No I dont sell them and never will. Im not wasting my time and money to try to collect it, dont need it that bad. I pefer to sell their competitors and soon all the 1800 locations that alone will get me all my money and more back.
It makes perfect sence you retard yes they do owe me money for product I sold them and I never got paid. Im talking about corp. you stupid jerk What makes no sence? This is pretty simple you shitface creep
sorry but i find it hard to believe you are a vendor that 1800 owes money to and rather than go through a collection process spend time posting on this forum. If you truely are a vendor in the industry (highly doubtful given your threats, racial slurs, tone and general uneducated responses), do you still sell to them? If so why? Speak up, i’m sure others would like to know.
Are you 12 or 13 years old?
EVERY COMPETITOR buys as cheap or cheaper than rad express.
The additional 10% and depressed cash flow because of ACH payments is a huge nut to crack.
I hope you are making money at your warehouse.
Things have really calmed down on this website. What is happening with this franchisor? Are they still having problems with franchise failures, lawsuits and vendors? What has happened with the franchisee association?
Sales in 2010 were much higher than 2009. Vendor relations couldn’t be better. All of the people posting negative comments above don’t know what they are talking about.
2011 is going to be a very VERY good year.
why would a franchisor not renew their documents? i heard that this is not common
if a franchisor is not actively recruiting and selling franchises there is no need to register. likewise, if there are no prospects to sell in the immediate future, there is no need to meet any prior registration deadline. unlike subways and mcdonalds this model does not rely on selling lots and lots of franchises forever. they are pretty maxed out now. it is however still a good thing to do to assist in the resale process and should be done. i have heard that all state registrations have been filed within the past 2 weeks so this whole issue of them not being able to register due to financial issues is just bogus.
Wrong! This franchisor has had franchise locations for sale all over the US for quite some time now. Just look at the listed resell opportunities on their website. And that doesn’t include many locations not listed because the franchisor does not want to give the impression that lots of them are for sale. The list hasn’t changed in quite a while – no one is apparently interested in buying these.
reread the email above: if there are no prospects for sales there is no need (and certainly no requirement) to reregister. i also don’t beleive the list on their website is 100% accurate-i think some of those have sold. they also list resales from existing owners there so they are not all open territories owned by zor.
If the franchisor is involved in negotiations for a resale they probably need to be registered in states that require registration. Not a lawyer here– just seems to be common sense.
A new owner would probably be required to execute whatever documents the prior owner was required to provide to the franchisor.
If the corporate offices cannot sell anymore franchisees, then its really doubtful that any owner will be able to. That article by Webster really has me worried.
I heard that Performance Radiator will be closing 15-20 locations.
No way Performance is one of the best companies out their. If anything they are expanding provide more info please do you have any back up?
Got it from three insiders, by 12/31/10
This should be a warning to anyone considering buying this franchise. Performance is a wholly owned corporation that sells these products without royalties and call center charges and, etc…. If they can’t make it in some markets, what does that tell you about 1-800-radiator? Or more specifically, what does that tell you about franchisees of 1-800-radiator who must bear the additional expense to survive?
These products are a dime a dozen and the influx of cheap Chinese parts available everywhere is the dominant factor making it tough for everyone, especially those charging an additional 10-18%.
Financial Disclosure
By Michael Webster on June 3, 2010 11:16 PM | 0 Comments | 0 TrackBacks
The franchisor is obligated to give a prospective franchisee financial disclosure of the franchisor’s business.
One of my concerns is that this financial disclosure is less than what a shareholder gets in a public company.
A shareholder can exist relatively quickly, but a franchisee is usually stuck for the term of the franchise contract – a situation that calls for more disclosure and not less.
Here is the type of example that should be of concern, from the franchisor 1-800 Radiator’s 2009 filing.
A number of questions spring to mind, especially since this is buried in the footnote of the financials.
1. Is Radiator Express really the franchisor, if it is doing all the collection and operational functions? If so, where are its financials – it being the “parent company”?
2. How much additional funds does the Parent need? Is it in danger of no longer being an going concern? What will happen to the franchisee operational support being provided?
3. It is now the middle of 2010 and there has been nothing filed on Caleasi which answers question 1 or 2. Is Radiator Express insolvent, preparing a receivership, or preparing for bankruptcy. Franchisees really need to know this.
4. Radiator Express, in this note, appears to be charging the franchisor a sum equal to most of the franchisor’s revenue. But where is the explanation of what forms the basis of these charges – we don’t have any information in the FDD about Radiator Express.
I could be way off base on this questions, and maybe there is a simple answer. Does anyone from 1-800 Radiator have an explanation?
This tells you that 1-800 Radiator is kicking butt and putting the competition out of business. Performance Radiator is losing business to 1-800 Radiator and we are running them out of town.
Most of the 1-800 Radiator locations are run by hard working American families who give all their time, finances and hard work into these businesses. We have survived through a horrific depression and kept our doors open when other businesses have closed their doors. Sales continue to increase in our Franchise, as well as most other Franchises around the Country. This is a good solid Franchise and was a great investment. We are all under a corporate blanket, but most of the locations are family owned and operated.
Our contract is for 20 years, so we have lots of time to renew.
It sounds like someone is fishing for information in this blog and it is most likely a competitor of 1-800 Radiator. Performance Radiator is notorious for using marketing tactics like this to bad mouth our company, to make them look better. It would not surprise me if Performance Radiator was behind this. They are constantly pulling all kinds of stunts in our territory to try and make us look bad. They lie to our customers. Make up stuff about us, to try to take our business. If you ask me, they are grasping for straws.
Well, if Performance Radiator cant make it in some markets it means they are doing something wrong.
What do you have against 1-800 Radiator? 1 in every 6 radiator sold n the United States is a 1-800 Radiator which means they are doing something right. They have very strict quality control, the best warranty in the business, top notch customer service.
It’s funny how little is really known about this franchise. Nobody knows for sure how many franchise location are still open. Nobody knows how many have closed or been taken back by corporate. Nobody has a current franchise owner list.
The corporate guys used to publish this information but then discovered it encouraged franchise owners to unite and resist the zor, so they stopped. Then they got rid of the franchise owner’s forum because too many were complaining about corporate abuse practices. They always monitored everyone’s email.
Owning this franchise was like having big brother there with you.
I always thought it stange that there has never been a compilation of store locations either as a list or stars on a map.
This is such a scam company. You would have to be a retard to even consider buying into this company. I also heard from many reliable companies that they are burning through their cash for the cod payment terms their on.
If anyone wanted to question their finacial abilities just spent $50 on a d and b statement and you will see they are not credit worthy to anyone.
This is such a scam company. You would have to be a retard to even consider buying into this company. I also heard from many reliable companies that they are burning through their cash for the cod payment terms their on.
If anyone wanted to question their finacial abilities just spent $50 on a d and b statement and you will see they are not credit worthy to anyone.
just did…D&B report is platinum level with a high rating. I think that speaks volumes regarding the motives behind your post.
Could you please copy and paste the report to prove your point?
i can request the same thing from you.
I don’t have a report bud, I didn’t make the claim above, just another guy here… I guess that means you don’t have it though. If you did you’d just put it up considering it proves your point.
Yea paste some of the report you lier. Just a little.You are so full of it you smell like that rippey whore girls dirty snatch. Maby you are her crack head brother Joe or your the famous Give it to me Hard Daddy Rippey. Either way I smell a dirty Rippey around here. Just put up your info and prove your point. Cant do becuse you are a Lier
** EDIT BY FRANCHISEPUNDIT Aug-16-2011: Folks, please stop the name calling and insulting.
are you kidding me? is that really how you spell the word “LIAR”???? you did it twice too. please go to school then come back here retard
d&b reports mean very little. it will not show the amount they owe to vendors because the vendors have not reported ucc filings or anything official such as to credit bureaus. dont take that report as a means to describe a “healthy” business.
You don’t know what you are talking about. Any vendor who has extended credit to these guys, not been paid and had to turn the matter over to collection would show on a D&B report. The SPI case would show on D&B, the personal credit histories of the main players would be there. All other ligitation would be there. And if someone ran a BIR all would be exposed as this type of enterprise cannot hide too much if it is filing tax returns, reporting to city, state and federal agencies and issuing financial instruments of any kind.
Read the article about 13 posts up.
1. Is Radiator Express really the franchisor, if it is doing all the collection and operational functions? If so, where are its financials – it being the “parent company”?
You dont know what you are talking about because there are plenty of vendors that 800 owes/owed that doesnt/wont show up on d&b such as frigette, ranshu, apdi, csf,vengard. and others. Spectra probably only showed up AFTER the UCC filings. Not while 800 owed them money and was behind. They were behind with Spectra since before 2006
I have been tring to sell my location for 4 years. Once the few that were interested got a close look and reallized they would have to work 70 hours a week they ran away quickly. I even take half of what I paid just to get time off and do somthing else. So it is deal at half of my cost. If interested let me know and I an call.
this is definately a rippey. i can tell. Ted probably. he is a retard
You have a potty mouth. Does your mother know?
I happen to work for one of these franchises. And I’m under paid, no vacations “without conflict and often discouraged”, over worked “doing the tasks of five diffrent employees” because we are understaffed.
And to put the nail in the coffin no lunches no breaks with NO OVERTIME! Sometimes we are forced to work the day before holidays and after, so it makes vacationing irrelevant.
I know there are others out there like me that work for greedy franchises, and one day they will all stand as one legion. I am but one of many educated people stuck in a workforce where there are no other jobs to turn to at the time.
-CC
In your opinion how is the franchise system as a whole doing?
This place makes money…I move parts. Mass quantity’s of radiators, condensers, fan assembly’s, radiator caps, compressors, even gloves.
If the franchise owners wernt so stingy and paid what their employees were worth then it would be more profitable for them.
On a weekly basis I move anywhere between $10,000 to $20,000. And in return I have my job threatened, belittle’d, discouraged, and screamed at.
Im asked to do too many tasks. Back office work, rack parts, sell parts, make outgoing calls, go on delivery’s at times using my own car.
Im discouraged to take lunches or breaks or even go on vacations. Im forced to work weekends though its overtime I dont get paid for it at all!
I guess it all depends on the operator. 1800-Radiator “FRANCHISE” is a great operation and can be good for employee’s if there were more staff and better pay for people that do deserve it.
Also an employee. Cant say i disagree with your view of your situation. While I cant say i get yelled at or recieve threats, I can say that im overworked and underpaid. But so is everyone in the 99%. I just wish my boss was here more then 5 hours per week lol
Oh, btw, my location is making a fortune.
I don’t know where you got your info, we have an owners forum.
How come everyone stopped talking regarding this company? it’s like someone turned the lights out and left the room.
what happened
I HEARD THEY R BUYING OUT SPI ANY TRUTH TO THAT
[deleted by Franchise Pundit --- vulgar comment]
Interesting. If we were to believe all the comments, we have probably heard from every existing and former franchisee on this forum. I don’t think so. Is this sinking ship the same one with double-digit growth in a rough economy?
It has almost been a year since we gave up on our 1-800 dream. Just prior to calling it quits, there were 2 vendors that had put us on credit hold. I will not mention the companies, but we had to call corp before placing orders.
There was a local large vendor who also was crying that they were not getting paid.
Rad express was getting 90 day terms and using the float to finance things. Great idea considering the credit crunch.
I was forced to sign a waiver of any law suits. I wish that I could persue litigation now that I can afford to. We lossed about $250K including our retirement monies.
There was a rush to set up the franchises and never any concern regarding profitibility of any one location. I was also placed in a territory with a very large regional competitor who flipped a switch and drove me out.
Any decent law suits or all hot air here ?
This “regional competitor” is a real threat that all franchisee’s need to look out for as 1-800 can easily be out performed on the pricing issue. The corporate story talks about mom and pop companies along with the local parts store being the competition. The fact is that in many markets, some of the big players are just waiting for the right reason to “flip the switch” and 2011 may bring some pressure to bear on the 1-800 model.
That’s exactly right. The problem with this business is that each franchisee is basically working for themselves while large regional players can ship products on containers and spread costs among several locations while not paying any royalties/fees to a franchisor. Thus, it’s a hit or miss type of business: if you get a good territory, you get lucky until a good competitor moves in; if you get a saturated territory, you’re out of luck and, most likely, out of your initial investment. By the way, chances are the franchisor will tell you all territories are good and that they have never had any failures! Hah, hah.
Automotive parts are a commodity. Folks don’t pay a premium for service – they pay for the cheapest part they can get. The worst part is that everyone offers at least a 1 year warranty so the warranty thing isn’t that big a deal.
Franchisor’s cash in bank per CA 6-24-10 filing:
12-31-06 2,314,773
12.31-07 1,101,592
12-31-08 154,970
12-31-09 853
06-05-10 71-
No details for parent company (Radiator Express) so actual cash is not disclosed.
New discussion on this subject, much easier to follow:
http://franchisepundit.com/forums/index.php/topic,558.0.html
So the parent company is milking the franchisor. Makes sense. They are probably not interested in growing the franchise system any longer. Just making as much cash as possible. This probably means they are not going to be changing their way of doing business any time soon.
http://dockets.justia.com/docket/missouri/mowdce/6:2010cv03331/95957/
This is based on 1-800-radiator’s misrepresentations about the number of PIDS in a given territory. They do this all the time. I know 1 guy that was told his territory had 1500 active pids. After buying the franchise, he and his regional went through the territory and could not find 200 pids. Needless to say he soon went out of business. This is a common ploy and any of you who have a similar story to tell should contact the plaintiff’s attorney in this case and let them know:
Steve Garner
Strong-Garner-Bauser
415 E. Chestnut Expressway
Springfield, MO 65802
417-887-4300
It doesn’t matter. 1-800-radiator will get it into arbitration and the whole thing will be swept under the rug.
http://radiatorfranchiseeassociation.com/Association_Bulletins.htm
Very interesting reading – tells you everything you need to know about 1-800-radiator franchise.
The ones I know of hire all their people through a temp agency, not direct hire. I costs the company $30/hr to send out salesman who don’t have product background and the training is minimal.
30 bucks? i make 12 per hour… cheap fucks
Great concepts! I was having some porblems about what you already mentioned, Now I might be better!
7 more franchises failed!!
“During September 2010 the Association received reports of seven franchisee warehouse closings.”
Read all about it:
http://radiatorfranchiseeassociation.com/October_2010_Association_Bulletins.htm
I am a 1800Radiator Franchise owner. I would not recomend buying this franchise to anyone. The franchisor, Joe Rippey spends all his money on lawsuits against franchise owners, competitors, and vendors.
As my employee stated the 1800Radiator Franchisor is like a pimp and you are his prostitute. He pushes you around, beats you up, takes your earnings until there is nothing left. That is the kind of relationship you will have with the Rippeys. They will take more in royalties a year then you will make! 10% royalties on your gross sales!
This string reminds me of the prior emailing back and forth at 1-800-Rad. How all you guys doin?
May be a good business for some. However, I got taken for a ride. Anyone interetsed in a class action. fishinguy@optonline.net
I’ve been a former owner for quite some time and I find this site interesting. Perhaps someone can answer a few questions:
1. What ever became of the attempt to form a franchise owners’ association? Did it even get off the ground? I can’t imagine corporate allowing that to happen without a big fight.
2. A number of early 2010 posts suggest (hope?) that the corporation was nearly out of business. Is there any evidence of this? Does anyone have any idea how many warehouses opened or closed in 2010?
3. What is the status of the lawsuit filed in Missouri, mentioned in an August post? Have any lawsuits been successful? Corporate appears to be pretty successful in the courts.
Best of luck to all who remain! For all my fellow ex-owners, I feel your pain and understand your anger. Keep your heads up!
Thanks.
I have been out of the business since 1998, when I made a lot of money doing the right thing…..I delivered! It isn’t about 5% or 15%. it is about reputation and being FIRST to the front of the car! If you buy into a market too small to support the volume required to provide this kind of service, you are done before you start.
If your “business plan” is to price compete, you won’t make money and vendors will recognize that you have no potential growth, and growth is necessary.
Anyone have any updates on this franchisor?
Was looking in to getting a 1800 in so cal. Anyone have any new info?
I am astonished by the things I have just read on this website. Honestly it should all be taken down because most of it is just utter nonsense and bullshit.
Being a current, successful 1-800-Radiator franchise, I know that all these clowns pretending to be ‘ex 1800′ and so on, is all bullshit. You obviously don’t know what you are talking about.
I worry about my bottom line, as any small business in America does. And my Corporate Headquarters does the same. I don’t know how much money they have in the bank, i don’t know if they pay bills late, or early! Not once have I been denied a part, a pallett, or anything from any of our listed suppliers and vendors.
Our last Conference in Vegas in April of 2011 was full of Franchisees. Most who are happy, but definitely many that are not. We had our annual Vendor Show, which was in the biggest room so far, and was absolutely packed with Manufacturers’. Some very happy with 1-800-Radiators business, and some who have been trying to GAIN our business. They spent thousands of dollars to fly out to Vegas, set up a booth, give out free prizes to Franchisees, some even stayed the whole weekend interacted with Franchisee’s asking “what can we do better”. So ‘anonymous’ who wants to say differently – you are a joke. And unfortantely anyone can say whatever they want to say on this website, and make up silly names.
I AM A CURRENT OWNER and I have been since October 27th 2007. I DID NOT MAKE ANY MONEY FOR ALMOST TWO YEARS!!! That’s right. I was broke, busting my ass for TWO DAMN YEARS, and didn’t make ANY MONEY! Why am I telling all you clowns? Because if I started any start up business I would expect not too. And when i started to make a little extra money along the way, I invested most back into my business to help grow to where I am today!
2010 I grossed 1.2 million dollars. And as of today, July 29th 2011 I am up more than 35% of last year.
So why believe me? My name is Vito Cirioni. My franchise number is #278. 1-800-Radiator & A/C of Westchester NY. I service Bronx, Manhattan, Westchester County NY and Fairfield County CT. My location address is 516 S. Fifth Ave, Mt. Vernon NY 10550. You can email me directly at vito@1800radiator.com or you are more than welcome to stop by my store and meet one of my many employees or see my 8,000 sq ft warehouse and my every day operation.
If you are actually interested in a Franchise and not just defamation, slander, or libel — please email or simply stop by a local franchise in or around your neighborhood.
Vito, Just because you don’t agree with what is being said here… DOES NOT mean that it is bullshit… You live in a market that has 1000′s of PID’s.. some of us in the rural west… are lucky to have 100′s of PID’s…in parts of more than 1 state.. with a lot of nothing in between the towns.. SHipping is huge and when we would order parts from the vendors, some took over a week to get delivered.And for those of you on here questioning buying direct from the vendors..that won’t happen, the vendors are all afraid of being blocked by Corp. if they were to get caught,as they have been told that they are to bill 1-800 direct.
You say your gross sales are over 1.2 million for 2010..that doesn’t mean that you are making any money. Once you get involved with this Franchise .. the only way out is bankrupty, when you show little to no income they are not re-sellable..You are stuck!
Im with you Ex Owner 2, A million dollars for 2011, 8000 sq ft for that big market is nothing. I bet he will never break even. If the guy is stupid enough to pay big bucks for that 800 location he is stupid enough to work 80 hours per month. I bet he is living in the warehouse since that is where all his money is. That guy sounds like a retarded Rippey for sure. This company is a scam, Old man Rippy is a fraud,
Joe is a crack head and the sister Ruby is a known whore. They were all inbread and developed a life incest from Daddy.EDIT BY FRANCHISEPUNDIT on Aug-16-2011: Please stop the name calling and personal insults.This company is a complete scam… they take 2% of ALL gross sales for marketing..WHERE the hell do they market? Have you ever seen any T.V time?? Magazines?? If you ask them where it is spent, you get the standard “Logos, Trademarks, websites.”.. REALLY… they should have to show each and every warehouse just where they spend that money..The franchisee’s pay for Phone Book ads.
ALL disputes have to be settled in Arbitration.. that way anyone looking to get into this company doesn’t have a clue how many territories have been closed, bankrupt, sold to a neighboring territory, at a profit for the Rippey’s.
Vito is doing sooooo well that his franchise has been listed for sale on their corporate site for over a year (https://www.1800radiator.com/territories/listings/_available/index.html).
Too funny. Spin that one Vito.
Roughly 20% of the franchises are listed for sale on their very own site. This does not include those that want to get out, but are doing it more discreetly, and not listing it there.
Imagine any truly successful franchise that has 20+% of their outlets for sale at any one time. There aren’t any.
If they sell it thru corps website… Corp takes a %..!!!!
So if a current frachise owner wanted to sell me his business he couldn’t? Truthfully I wouldn’t be interested in there customer list. You can get a customer list very easily through the net. I just think you could get the inventory pretty cheap as well as get rid a little nat.
A franchisee owns all the inventory and equipment. The only one that legally has an interest in that would be the bank who has a UCC filing. The zor will pressure the zee into thinking they have an interest when they do not. A zee can work with the bank to liquidate these assets to anyone they want.
Truthfully I wouldn’t be interested in their customer list. Anyone can get a customer list very easily through the net. I just think you could get the inventory pretty cheap as well as get rid a little nat.
There are lots of franchisees that are doing VERY WELL. Do your due diligence and actually visit a few to get the straight scoop. There is so many half truths on this site it’s rediculous. When you visit any existing franchise, you will get the truth….the great, the good, the bad, and the ugly.
‘half truths’ is what Joe Rippey used to call my comments all the time. They’re only half truths if there isn’t proof. Where’s yours? You don’t even tell us your real name and a way to reach you…
Some things have probably changed since early 2008, but I can tell that the core of the zor/zee relationship has not.
“The vendors don’t want to sell direct to the franchisees because too many dead beats (like Samir and “Ex-Owner2? above) spoiled it for the rest of us”
REALLY??? we were never sold parts directly. so how COULD we have spoiled it for the rest of you?!! HARDWORKING FRANCHISEE my ass! you are from Corp..and we all know it! $80-100K salary??!! NEVER happened.We were lucky to stay above water as long as we did!
You guys should attend the franchise convention and be part of the franchisee association that is being organized by many franchisees.
WELL T HOPE THE LAW CATCHES UP WITH THEM FIRST I WOULD HATE TO SEE ANYBODY DO SOMETHING THEY WOULD REGRET.
THE GREEDY 3 WILL GET THEIR DAY IN COURT
ALSO JOE AND TED IF YOUR OUT THERE LET US NO WHAT YOU THINK OF THIS SITE
now that i have pretty much lost everything i hope he goes to jail 2
Great to know that the vendors can see that the franchisees are hard-working and honest people that want to pay their bills and do business the right way. I think every franchisee should start buying direct if possible. In most cases, the franchise agreement allows this, but consult your UFOC and attorney Richard Soloman (www.franchiseremedies.com) for guidance.
I believe that all vendors will quickly start to sell directly to the franchisees. The vendors that have taken losses by extending credit to the zor need the money, and the zees need honest suppliers with no-nonsense billing. It’s a win-win relationship that can benefit both.
If this is true, please call Richard Solomon if you havent.
Please let us know if they come after you for buying direct.How did you get APDI to go along with this?
Based on comments at the convention, I believe any attempt by franchisees to purchase directly from vendors will be met with stiff resistance from the Rippeys. It is a vital aspect of their business and used by them to fund other activities. The “float” as they call it generates important revenues for them. In addition, this allows them to receive kickbacks and/or vendor benefits that are not otherwise available to the franchisees.
I would suspect that any franchisee that purchases directly from vendors will be threatened with termination even though their franchise agreement allows direct vendor purchases. 1-800-Radiator will just look for some other reason to terminate the franchisee such as “not enought visits”, “not enough inventory”, “too many dropships”, etc… whatever!!
Please, everyone try to find people to support the association and join. It needs members for support. As an ex franchisee, I urge you to help them out.
They can go to hell for what they have done.
The vendors wil not allow you to pay them directly. They have been told by Corp not to. Why would the vendors risk being blocked in the system for 1 warehouse? We have spoken to a number of them and they are afraid of getting caught… So Corp will continue to make money off of the parts, even though they say they make no money off of the parts, but when the franchisee gets 30 day terms and some of the vendors are giving Corp 180 days to pay… they are making money off of that float…
I think this may work
NEW BRUNSWICK, N.J., Jan. 13 — In what is believed to be first action of its kind, lawsuits were filed today against Snap-on Tools, Inc. on behalf of wives of former New Jersey and New York Snap-on franchised tool dealers, alleging they were harmed by the company’s “false, fraudulent and misleading representations” that not only led to the collapse of their husbands’ franchises, but also resulted in the loss of the wives’ own money and family savings.
The four plaintiffs commenced the legal actions in the New Jersey Superior Court in New Brunswick, claiming that they were the victims of franchise fraud. A similar lawsuit was filed in Texas by four wives on December 30, 2003 against Snap-on’s Dallas branch.
“To the best of our knowledge, this is the first time that spouses who are not directly involved in a franchise have sued a franchisor,” said Susan P. Kezios, President of the American Franchisee Association. “All too often, Snap-on franchisees and others have big post-sale problems that started in the pre-sale process. These franchisees believed in the American dream of entrepreneurship, and ended up being victimized.”
Snap-on manufactures automotive repair tools such as wrenches and screwdrivers. They are purchased by dealers, from Snap-on, and are resold to mechanics, door-to-door.
In the actions against the Edison, N.J.-based Greater New York branch of Snap-on, the plaintiffs include Nancy Casey, Middletown, N.J., wife of former Snap-on dealer Brian Casey; Maritza Franco, Scotch Plains, N.J., wife of former dealer Francisco Franco; Abbye Goldwasser, wife of former Staten Island, N.Y. dealer Jeff Goldwasser; and Jane Catrini, Centereach, N.Y., wife of former dealer Richard Catrini. Collectively, the four plaintiffs lost initial investments exceeding $150,000 and owe Snap-on over $715,000.
Mr. Casey, for example, was Snap-on’s ‘Rookie Dealer of the Year’ in 1998 and led the chain’s Greater New York Area Branch in sales in 1999. “In early 2000, he was sold a second franchise in violation of Federal Trade Commission Regulations and Snap-on’s own lending policies, leading to the failure of both franchise routes. Consequently, he and his wife lost their $40,000 investment and now owe Snap-on $257,000,” said Gerald A. Marks, the Red Bank, N.J. attorney for the former dealers and their wives.
“The wives are taking this action because they have been financially injured and emotionally damaged,” Mr. Marks continued. “Their spouses’ rights have been restricted by an arbitration clause in the franchise agreement that imposes limits on the husband’s ability to prove their case. This new legal approach being applied today bypasses the limitations and restrictions of arbitration, and lets the wives bring their suits in court, before a jury, rather than a business-oriented arbitrator. These suits will expose Snap-on to hundreds of new cases, which the company had hoped to prevent through the arbitration provisions in its contracts.”
The wives are being victimized twice, charged Mr. Marks. “Once by franchise fraud where they lose their own savings, and a second time by unfair arbitration clauses buried in Snap-on’s franchise contracts that strip their dealer-husbands’ right to go to court to get back the money that was unfairly taken from them,” he said. “The actions of Snap-on Tools are a prime example of this double disadvantage that causes families to lose their life’s savings as well as the ability to effectively fight back. The economic challenges facing Snap-on franchisees are underscored by very high dealer losses and turnover in its network. Through our discovery process, we learned that in the company’s Eastern Region in 2002 alone, dealers sustained $2.9 million in losses. Further, a high turnover rate caused 387 dealers to leave the business during the 2000-2002 period, being replaced by only 377 new dealers.”
Mr. Marks said over a dozen women have formed WASO (Wives Against Snap- on), a nationwide organization that is seeking to unite the spouses of all former Snap-on dealers who have been financially and emotionally damaged by the company. WASO has established a web site, http://www.snap-onfranchisefraud.com., that tells each of their stories. The web site provides contact information for other Snap-on spouses across the nation who wish to join the lawsuits, and also provides detailed information to former dealers regarding their rights against Snap-on.
In support of their claim of franchise fraud, the plaintiffs will rely on the testimony and affidavits of many former Snap-on sales managers, including Richard Lenahan, who stated that the company engages in multiple fraudulent practices, such as:
(1) “Income representations that falsely advise potential dealers that
all Snap-on tool routes or ‘List of Calls’ are similar and have the
same profit potential;
(2) Assigning dealers an inadequate customer base (‘List of Calls’), that
is insufficient to support the dealer’s purchases, overhead, debt and
personal expenses; and
(3) Extending excessive amounts of credit to dealers, inducing them to
purchase more tools than they can resell to their customer base,
ultimately causing them to go out of business.
Mr. Lenahan added that, “Snap-on’s economic incentive to knowingly place dealers in inadequate territories stems from the fact that the company profits when the dealer buys his inventory from it. In the small, territories, costs are exceedingly high and the dealer typically fails. To further complicate matters, Snap-on managers have a conflict of interest since they are paid a commission on what a dealer purchases, and not on his profits, if any.”
Mr. Marks noted that arbitration clauses such as Snap-on’s act as a barrier, preventing franchisees from obtaining a full and fair hearing. “When you don’t have the same rights in arbitration as you do in court, you will be at a severe disadvantage. Your wife and your family will bear the loss,” he said. “This novel case is attempting to eliminate the tyranny of arbitration and the way it is sometimes used against unsuspecting franchisees.”
Difference is Snap-on is a large deep pocketed franchisor. Another lawsuit against 1-800-radiator (or Radiator Express) may tip it over.
thats 100percent 800 radiator
I think 1800Radiator owners should band together and sue the Rippeys for:
1) false income representations
2) inadequate customer base to support inventory purchases, overhead, debt and personal expenses
3)breach of contract by disallowing franchise owners to purchase directly from vendors
4)profiting off of franchisees by disallowing them to purchase directly keeping discounts
5)breach of contract by keeping warranty credits from vendors due franchisee
If Snap-on can do it, we can do it.
As a ex-franchisee I dont care if this puts them out
They didnt care when I went out
This is the time to act for all ex-franchises lets see if Mr Marks can do anything for us
Mr. Marks is not likely to take on these cases if he doesn’t see gold at the end of the rainbow.
Heres a E mail I got from Mr Marks He would look at it
Please send me details of the 1 800 Radiator problem.
Thank,
Jerry Marks
Marks & Klein, LLP
63 Riverside Avenue
Red Bank, NJ 07701
Phone: (732) 747-7100
Fax: (732) 219-0625
jerry@marksklein.com
http://www.marksklein.com
Gee looks like a lot of people are very very angry. Has this company filed Chapter 11 yet? All I can see is a lot of negative post. Too negative to read. Can some one post if the Chapter 11 was aleady filed?
We should all invest together and buy a vending machine franchise or a curves. Those sound like fun. Little work is required. Anyone have experience in either these?
Your way off topic, but hotels are the best investment. Forget the vending stuff and the fitness stuff, most women are fat forever so stay away from the all womens fitness stuff. Super 8 or days inn for sure. I could be talked into investing in another one of these. What state are you in?
The problem isn’t the franchise. You can win over customers in the automotive cooling industry and have a good business. You can’t do it when you’re charging 10-18% more than the competition. Mechanics don’t like loosing $$ and they don’t want to loose jobs because you have to pay franchise fees.
both i think have been reviewed on franchise pundit, search the articles.
What’s a good franchise then without the big fees? Are hotels good? Days inn? Anyone know? I want someone easy
They don’t charge 10 to 18 percent more than the competition. Their pricing from vendors is much better than the competition.
Really, “someone”? Wow, looks like there’s some really dirty things on the mind.
A good low fee fran, where?
Lake Shore Radiator, Inc. has filed suit in Federal Court against Radiator Express Warehouse, Inc., headquartered in Benicia, California and doing business as 1-800-Radiator and Radiator.com.
Alleged in the Amended Complaint dated April 27, 2006 are claims of trademark infringement, false designation of origin and dilution arising under the Lanham (Trademark) Act of 1946, violations of the Florida Deceptive and Unfair Trade Practices Act, and common law unfair competition, trademark infringement and trade defamation. The complaint alleges that 1-800-Radiator improperly used Lake Shore’s trade names Lake Shore Radiator and RadiatorBarn.com to direct customers to 1-800-Radiator’s website and away from Lake Shore’s sites. The complaint also alleges that 1-800-Radiator made false and deceptive comments regarding RadiatorBarn.com products and services during conversations with prospective customers
Old news…………………….? Is it even still active?
quick search shows not active….dead since at least 2007
I hear Performance is closing 15-20 locations
Really now that is news
I heard it to, I was surprised but it came from 2 different sources.
http://www.complaintsboard.com/complaints/1800-radiators-c346268.html
http://franchisepundit.com/forums/index.php/topic,558.0.html
And this was a Corprate location.
I bought a radiator from 1800RADIATOR for my 93 Chevy K3500 pickup 2 weeks ago but couldn’t get any time to install it untill tuesday night. When I pulled the old one out of the truck, and compared, the “new one” it had a 3″ filler neck, so there was no way it would fit in my truck unless I cut a hole in the hood!
No problem, I’ll just exchange it for the correct one. Right? Wrong.
Before I took the old one back to 1800RADIATOR, I called ahead to make sure that the ratty box would not cause any problems with the return. “No problem”, I was assured by the operator. When I took the part in to the shop, though, the story was different.
First, the guy from 1800RADIATOR tried to assure me that it was, indeed, the correct part number. I told him the bit about it working if I chopped a hole in my hood, so he went back into the warehouse and came back with a 2-core radiator with the correct filler neck. I told him that I paid a lot for a 3-core, I was not going to downgrade to a 2-core. He told me that “This radiator cools as well, or better than the 3-core because it had plastic tanks instead of metal ones”.
I told him that I was not convinced, so he went about “inspecting” the one I was trying to return, and after a couple of minutes told me that he would not be able to accept it for a return since it had been installed. I told him in no uncertain terms that it had not been installed ever!
He told me I would have to wait for his supervisor. After sitting for 15 more minutes, his supervisor came out and echoed what the first guy said: “We cannot accept a used radiator for an exchange”.
I told them that the had better accept the radiator because it was their fault, but the guy got more and more beligerent and accused me of having filled it with coolant, as his evidence that the part had been installed. I told them that the only way coolant had touched the radiator was if it had dribbled off of my old one while I was comparing them. He told me with an air of finallity that that constituted “being installed”.
I will be filing a report with the Better Business Bureau. __________________
Be glad you didn’t buy a franchise. Your losses would have been much greater and no BBB report.
It is true about the 2 core being as efficient if not more than the all metal. They are made high efficient now. You would have just paid for expensive copper, and some people prefer that if you are willing to pay the big bucks. But it sounds like someone else returned a used Radiator ahead of you and you got the shaft. I hate to see that happen. It’s too bad they didn’t just exchange it for you. Not all 1-800 Radiator locations are like that. Most of them have a great return policy.
This is a really old posting I read somewhere else on the internet a long time ago, somebody just copy and pasted from another forum. So two weeks my ass.
hi my names john former employee where 1-800-radiator originally got the info how to train there employees how to sale then fired me I personally sold 1.6 mill dollars in radiator sales my 2nd yr there but any ways i got a freat investment idea in retirement holmes franchise where the retired person can invest into the own retirement holme with other retired people if interested email me at johnlassus@ymail.com thanks
Im In
I would love to swap stories about why so many warehouses have gone out of business… why you lost everything you had in the process….these guys are crooks and maybe some day they will get theirs…
Consistant 40k a week the past month, hasnt been above freezing temp the whole month. ACH 10-15k. Service is my game, price is a per customer basis, owners should stick to the phones since its your money your fighting for. Make the customer happy and they will return the favor %10 of the time. I dont wast money on rare product and think im going to make a buck off my fellow franchises. It takes me 5 weeks to turnover %52 of my inventory. Im having a good time. And those mother fuckers who gave me shit for not being a franchisor owner in the past, me and my %49 will see you in Vegas.
Where did you learn to spell?
Please explain.
What store number? Let us know.
Reading into your old posts it appears you work for corporate:
attack me
May 14, 2010 at 10:15 am
I’ve been there hand in hand with franchise owners. Im on my 5th warehouse right now. I get in, get the sales up, and move on to the next challenge.
Why would you be bragging about “owning a franchise and making “$40k a week” and “going to Vegas with your 49%” if you simply work for the corporate office. You go around to reclaimed franchises that have failed, lower the pricing in the area to nothing to get sales up so you can try and resell it to another chump. You should keep up with your old posts before you come on here and lie about being a owner.
No way no how. Their pricing from vendors is no better than anyone else. And, of course, they don’t charge their customer more than the competition – but that’s not the point. The point is that franchisees have to pay 10-18% more than the competition. Get it?
What’s the deal with this place? Any new news?
question? any current franchises left? if so would you be willing to sell the business not the “1-800″ part of the business but area, inventory, equiptment, etc. can you sell or is it controlled by corp?
basically if i wanted to buy yoiur business but not be part of the “1800″ model after doing so could this be done or does your contract with them not allow that?
Corporate does not own the inventory or business equipment. It was fully paid for as part of the initial business setup and belongs to the franchisee. They will make it seem like they have some sort of interest in it to intimidate the franchisee to allow them to buy it back for 50% or less and then re-sell this to another franchisee. The only entity that might have a legal claim to the inventory and equipment would be a bank with a valid UCC filing. Even then, a liquidation of business assets would still be possible if the proceeds would pay off the bank loan.
That Franchise Association can’t do shit for you… YOU signed that contract and it is totally one sided… YOU are screwed!!
They would sue the Franchise for not returning the Customer List…Trademark infringement. whatever they could sue you for..
The vendors don’t want to sell direct to the franchisees because too many dead beats (like Samir and “Ex-Owner2″ above) spoiled it for the rest of us, getting the entire company in hot water with the vendors by not paying their bills.
So instead, 1-800 Corporate now risks eating the loss should a franchisee default, because Corporate is still obligated to pay the vendors even if the franchisee doesn’t pay Corporate. This allows them to maintain the company’s rep with the vendors and, if necessary, extend terms to the franchisee to help them out (if they’re not a consistent problem, like Samir and “Ex-Owner2″).
Corp doesn’t charge us a penny over what the part costs from the vendor. So this BS about making money on the parts is exactly that.
All this anti-1-800 rhetoric is just sour grapes from franchisees who thought they could sit on their asses and pay themselves $80-100K salaries in the first year of a start-up business rather than actually earn their dollar like the rest of us.
Samir and “Ex-Owner2″ (yes, I know exactly who you really are) are held up as examples by most of the franchisees as what NOT to do to be successful at a business. Neither did regular marketing visits, neither maintained their inventory, and both failed to follow the obligations they signed up for when they signed their franchise agreements.
As other current franchisees on this board have noted: do your research, talk to current franchisees (many will even let you look at their books so you can see their actual net profitability compared to gross sales), and be willing to actually do some work to grow your business. The 1-800 programs works, but only if you’re willing to actually work it.
“The vendors don’t want to sell direct to the franchisees because too many dead beats (like Samir and “Ex-Owner2? above) spoiled it for the rest of us”
REALLY??? we were never sold parts directly. so how COULD we have spoiled it for the rest of you?!! HARDWORKING FRANCHISEE my ass! you are from Corp..and we all know it! $80-100K salary??!! NEVER happened.We were lucky to stay above water as long as we did!
What you are posting sir is defamation of character, and I’m no longer going to put up with this. You insinuate that we did not pay our bills to vendors when you know that is false. I also have proof to substantiate that is not true. Therefore, your post is done in malice which opens the door for me to take legal action against you. I will be contacting Ryan to get this started. Good day.
This is true however. They will do this, even when there is no true legal basis. A good judge will start to see this though. The costs end up becoming the problem. Justice isn’t cheap.