by sean on June 24th, 2007
(FranchisePick.com) Ever since the iSold It eBay drop-off store franchise was launched in 2003, the entrepreneurial press has hyped the unproven concept as franchising’s hottest new opportunity.
Earlier this year, Entrepreneur Magazine named iSold It as #110 in its influential Entrepreneur 500 ranking, and named iSold It the #1 Top New Franchise for 2007.
A few months after the Entrepreneur list was published, a letter appeared on the Internet in which iSold It CEO Ken Sully admitted that a significant number of iSold It stores were losing money, more than 60 stores had closed, and many of those who had invested in the iSold It franchise “lost sizable investments, including homes and retirement savings.” Sully added that, due to the claims of the failed and failing franchisees, “it is unclear if we will be able reach a conclusion without litigation, reorganization or insolvency.”
On the Internet, iSold It’s awards and top franchise designations began to be overtaken by the increasingly troubling reports about the struggling franchise company. The visitor traffic of eBay drop-off store complaint site amitheonlyone.org reportedly surpassed the traffic of the iSold It corporate webpage.
The Entrepreneur 500 499?
And then, within the past two weeks, iSold It mysteriously disappeared from its #110 spot in the 28th Entrepreneur 500 rankings. Since other companies in the listing have widely publicized their ranking numbers, Entrepreneur seems to have just eliminated the #110 position.
[Above: Screen capture from Entrepreneur.Com, Franchise 500 list]
Top 10 9 New Franchises for 2007?
The #1 position of the “Top New Franchises” for 2007 list seems to have disappeared as well. On another page, United Shipping Solutions had been granted the #1 spot.
[Left: Screen capture from Entrepreneur.Com, Top New Franchise list]
iSold It is still listed in the site’s franchise directory, but the franchise information has been replaced by the message:
iSold It is currently offering resales only. Contact the company for more information.
Entrepreneur Magazine has been criticized for its Entrepreneur 500 rankings before, but in recent years the criticism has become more angry and urgent.
The Entrepreneur franchise rankings have drawn increasing criticism as some of their top recommendations have become embroiled in controversy. Many of the franchises receiving high rankings and praise from Entrepreneur were receiving complaints and class action lawsuits from their franchise owners. In 2006, Quiznos suffered numerous franchisee lawsuits, a scandal in which a senior VP was arrested for “attempted sexual assault on a child,” and the tragic suicide of a failed franchise owner. Yet Quiznos was ranked as the #2 franchise opportunity in the country for 2006. (Quiznos reportedly did not turn in their paperwork for 2007). Another franchise embroiled in controversy, The UPS Store, was ranked #4.
Kudos to Entrepreneur Magazine for responding to the emerging information about iSold It and reacting accordingly.
POSTED IN: ISOLD IT, xBuyer Beware
A post on the Guest Book. Thanks Chance!.....
Peg: You are off to a great start building awareness on the ebay drop off store issues. Unfortunately iSoldit and Snappy are still selling this faulty concept. Required reading for potentials looking at buying or opening one of these stores should be www.AmITheOnlyOne.org and www.franchisepick.com thanks for helping to educate the unknowing!
Chance on March 3, 2008
