Big Brother is Watching
July 13th, 2008 | 
Author: I read this comment from Lori Durham of Dream Dinners which she left on UnhappyFranchisee in regards to comments about the meal assembly industry being made in public:
But, please, what we need now is keep these kinds of comments and conversations amongst the franchisees only and NOT on public blogs. None of us can even sell our stores anymore because it takes one log into Google and there is all this crap out there. Our customers are reading this stuff too and they don’t know the difference between Home Office and the local store. They see Dream Dinners and they think the local store has issues.
I have to say that I am shocked and appalled by the very notion of selling a meal prep store to another person under the current conditions. That is simply passing off all your problems onto someone else. Knowingly selling a concept that doesn’t make money is a terrible thing to do.
There are probably a couple of stores out there on the market which might be making money or have the chance to and if the buyer is truly informed then best of luck on the purchase, but as is more likely the case this is an obscene thing to do to someone else. From what I have read many people aren’t allowed to give the full details of their business and keep back far too much financial information. Many owners have chosen to take the more honorable route and have simply closed their doors rather than pulling someone else into the same mess they have found themselves in.
But if you look at this comment closely it doesn’t say these negative comments and negative blogs (telling the truth always ends being a negative thing to franchisors) are driving customers away, it doesn’t say it makes consumers question the idea of the business, it says that stores can’t be sold. This makes me wonder if the real problem here is that Franchisors can’t make money off selling new franchises nor can they make money off the transfer fee when a franchise is sold from a failing store.
From your comment you seemed more considered with losing out on franchise fees rather than the impact on customers. Why is that? Is it because you’re only making money off people who buy into the franchise and not from customers who basically walked away from this idea over a year ago?
Other Articles of Interest:
- The Lament of the Disenfranchised
- Comments On Meal Assembly
- How To Handle Franchise Lawsuits
- So where will this lawsuit take us? And where will it leave us?
- My thoughts on the Meal Assembly Industry
- The end of the line for Super Suppers
- Why the Meal Prep / Meal Assembly Kitchen Franchises are Failing. Part 3
- Is it still a meal prep store or is it just take out?
- What’s with all the vulgarity?
- Hypothetically Speaking
Posted in 
Tuckerbox,
You have to admit that there are “truthful” and “useful” posts on this site, as well as some “angry” and “vengeful” posts. It’s the name calling, and unkind personal remarks some post that weaken the purpose of this blog, I think. When we are talking about issues that have to do with honest facts of what is going on in this industry, this site has been invaluable. But talking about someone’s yacht, or what kind of car they drive, or keeping soneone on insurance until an out of wedlock baby is born……what is that for?
I totally agree with Sarah Rivers, that owner communication is very important, and a franchise advisory committee would have been awesome. She replied to Lori Durham, “As to your points about Darin’s comments on the webinar, I really think we’re in agreement, it’s really just about semantics. I would say he “slapped hands†for letting out company information, you would say he “cautioned us to be mindful.†Same thing really.” and that is key, it’s perspective, Lori is still trying to make it work, and sees things a different way than some of us who have had to throw in the towel. I think the owners who are in her position need to do that! Once she gets to the point where she realizes she can’t go on, her perspective will change. That is human nature.
Where I differ from Lori is her comment, “None of us can even sell our stores anymore because it takes one log into Google and there is all this crap out there.” while I agree the crap out there hurts the existing stores, we can’t sell them because they aren’t profitable, and there is just more information out there for prospective buyers than there was when I bought mine. I wish I had that information then!
Selfishly, I wish I could have sold, (and I know my franchisor wished I could have sold) so that I didn’t have to endure all that closing a store and coming to grips with my debt entails, but I think prospective buyers need to get all the facts, or we MAK store sellers are just as unscrupulous as the people we write about.
I have been one of those owners that has been too busy working her store and not reading blogs until 2 weeks ago. I came up for air so to speak when one of my customers was talking about meal assembly watch. At first I was shocked to read all the ‘gossip’ if you will until I gave it some real thought. See I didn’t just buy a franchise, I thought I bought into a value system that matched mine. I have truely questioned thier motives. If first started when they let go of good people that gave everything to their company. Second, I have learned from other owners that their has been a few dream dinner owners that have faced cancer. Where has Tina & Stephanie been? Not one suppotive phone call…thats right, not one!
As far as reading about the yachets they own, cars they drive, big fancy houses they own. I know that is all stuff- it’s the heart of the matter I care about.
I have followed everything the home office has told me to do. it has kept me spinning, throwing $15,000 in 6 mos. for marketing the the ROI is less then 1%
You do the math, now I can see why some owners would attack the yachet/cars/house
Will the stores in operation stand up?
Looking Through the Eyes of a Customer-
Dream Dinners Owners today are so worried that their customers are reading blogs that may be a negative, harsh, brutal, & untrue- how about this……….?
When our customers go to the main Dream Dinners, Inc. to sign up for a session, they first have to find a location. Right? Say I live in Washington, me a previous store owner in Washington would know that Woodinville, N.Seattle, Auburn, Covington, Totem Lake & Everett are all closed. But HOW would your customer know this? I know these stores are closed- I mean CLOSED. But how does a customer know? The website does not show they are closed. It still gives the name of the owners with phone numbers that either directs to HO or the famous 999-999-9999
What if a cutomer has family in Jacksonville, Florida and wants to purchase a baby shower gift? Will our customers know that Jacksonville will be closed the end of this month? Wait, what if I have a friend that lives in Sacramento, CA? Do we know that this store too closed last month????? Where is the communication? HO may think of this as proprietary information, maybe, but Owners/Customers need to know that stores are closing.
The question should be: How can I sell gift cards in good faith to my customers?
Since One Accord is considered a marketing specialist, I would think this would be an area of concern for Big-Man with little paycheck, rent a CEO’s agenda. Maybe even one of his BRILLIANT 87 initiatives.
I believe the Owners, who are in the daily trenches, are the experts in the Industry, and HO should embrace the wealth of information they have at the store level. Since Tina & Stephanie never operated a store for any length of time, one would think they would embrace this sort of learning curve they have.
But all in all, if we are so concerned about our Guest’s, Lets help them find a Store that says- WE ARE OPEN in a timely manner. Not worry if they are reading this post…
Dear “my name doesnt matter”,
I want to respond to your post because because you mentioned “truthful vrs. useful” posts on this forum.
You may think of stephanie’s yachet, fancy cars, big homes, keeping John A. on because he is having a baby for insurance purposes as gossip & unuseful information. However, I don’t!
When I read this stuff, I verified with our coach (suzanne) who is no longer there and she said it is all true.
Here is how I put it into presective- Dream Dinners, Inc. recieves a min. of $2600.00 from each store in royalities. X 220 Stores= $572000.00 a MONTH!
Where is my marketing dollars going? With that money rolling in, there should be No excuss why Dream Dinners is not a brand name in households across the country.
On top of all of this, I, as a store owner is putting every resource back into my business with out taking a paycheck, buying a fancy car/yachet/home, pay my ONE employee min. wage, never indulge in a Norstrom Shopping Spree, nor take a much needed family vacation ifor 2 yrs!
From what Owners see, this mis-management of funds, example-Employees over paid (John A.) never returns a single call, expensive HO lease, expensive vacations, yahets, Nordstom Shopping spree’s, fancy houses, ect. only EATS the compnay from within.
Tina or Stephanie should work as an example for other owners. If I knew my royalities were working for my business, I would not care if they lived a lavish lifestyle or not.
I just think this information has been Useful- That is why I choose NOT to pay my royalites!!!!
That’s a good point, we all thought we were “buying into a value system that matched ours”, from a few soccer moms who told us they were just like us, and we were part of their “family”. Not only were we going to make some money, but we would be helping busy families!!!! And, you don’t have to have any food or business experience, they would take care of all that.
That was a big mistake, it felt like a slap in the face to find out that we aren’t “family” ! NOW it was business, and they are making business decisions that protect them, not us!!! If they were to be totally open and honest about what is going on with DD (or any MAK franchisor) it would probably kill their company and they would be financially ruined (like us). If they spin everything to the most positive, they feel they have a chance to weather this “little hiccup”!
I wasn’t planning to get rich, but I did want to make some money, and work for myself. I even believed that this was a great solution for busy families, so it wasn’t all about money. My rationale for trying to sell was that I would sell it for so cheap that possibly the next owner could make some money. But, in the end, no one wants to buy it!! I think the information out there does keep people from buying our existing stores, and that is why this blog is here isn’t it.
I think DD Home Office is playing the “we are family” card again when their leadership says that by posting or reading blogs like this, we are “tearing ourselves apart from the inside out”, when in reality it is hurting THEM.
I see the comments about the yacht and cars to be in response to Stephanie and her comments that owners are just worried about the “bottom line†rather being involved with and being a part of their communities. It comes across as rather hypocritical for someone who owns a yacht, multiple cars and multiple homes to make comments about others who only seem to be concerned about the bottom line.
I do agree that some of the other comments were probably going a little far, but I feel those are coming from that same place of frustration that while they are going deeper into debt the franchisor seems to be living pretty well.
As stated, the comment wasn’t made about how this is affecting their ability to attract customers or is affecting owners or how this is giving customers the wrong impression of the business, the comment was clearly made in regards to selling stores.
I think utahguest sums it up pretty well…
And mind you this comes from a “faith based” company.
Did I read your post right? You are expected to pay $2600 minimum in royalties a month? That’s a whole lotta loot. I didn’t really have the perspective when I read Lisa’s post the other day that said that her minimum $300 in royalties was a good deal. I figured that price was pretty reasonable since it likely included website hosting and recipes (regardless of how good or not good they were).
When you sign on the line, 13 customers x $200 doesn’t seem at all unreasonable- the incremental cost of covering royalty minimums. When that’s all you’ve got coming in the door period, it is unfathomable.
Yes, you read right … once a Dream Dinners store has been opened for a year, you get a nice little notice that you are now expected to pay royalites on $30000 revenue per month – whether you are making that or not. It’s their ‘performance standard’. So, you pay $1800 per month in royalty payments no matter what you are making. Plus, you must pay $800 per month in Marketing fees. So, bottom line, $2600 per month to the Home Office.
For me, the written was on the wall when owners came to HO and asked for a repreive from the formula. Most owners were willing to pay 6% on their volume but 85% of the owners were not making the $30000 per month. HO flat out refused … basically saying “read your contract”. That was the point where I knew this ship was going to sink. They have absolutely no interest in helping the store owners succeed – it is all about them getting their money.
Even when they give you the 3 months off, it’s with interest on an accruing basis and when the 3 months are over … you have your current $2600 plus a payment on the 3 deferred months. Is it any wonder the stores are closing so fast? Less than 10% of stores can generate that kind of volume. But, they still refuse to change their formula … which basically is saying that they still believe a store can generate $30000 per month every month of the year (even in the summer).
When asked why they set up the contract that way, their reply is that it is standard practice for franchises to implement a performance standard. But, I don’t think there is one other meal prep franchise that does. So, I think they modeled it after McDonald’s or some big time franchise. Anyway, that just me speculating, but it’s a topic that gets me going time and time again.
I would view the franchisor’s reluctance to reduce the minimum royalty payment as a sign that they know the end is near. After all, it is clearly not working for what sounds like the vast majority (all?) of stores who cannot achieve $30K in monthly revenue.
So yes, logic would dictate that the franchisor would reduce the minimum payment–perhaps even just temporarily–to keep stores in business. It is the old adage of “I’d rather have a few percent of something than 100% of nothing”. That would keep the stores in business longer; maybe not forever, but perhaps long enough for the business to shake out.
But, if the franchisor knows that they won’t make it that far anyway, why not go for broke…in this case literally.