Minuteman Press International


Country United States
State Chile
City Farmingdale
Address 61 Executive Boulevard
Phone 631-249-1370
Website www.minutemanpress.com/

Minuteman Press International Reviews

Most Useful Comment
  • Nov 10, 2014

Minuteman developed its brutal, oppressive and complex franchise system over a period of 40 years. Minuteman deceives and cheats prospective franchisees into buying into the franchise system.

The Minuteman Franchise Agreement has a 35 year term. The agreement is generally extremely one-sided and unfair in favor of Minuteman whilst it is to the detriment of the franchisee. The franchisee cannot terminate the Agreement. The agreement is the backbone of the oppressive Minuteman franchise system. Once the Franchise Agreement has been signed, the franchisee is dominated, indoctrinated, suppressed and exploited by the dictatorial Minuteman.

Minuteman has a core team of well-trained representatives at its Head Office in Farmingdale, New York, USA. The team members are trained to ruthlessly protect the interests of Minuteman, mostly to the detriment and at the expense of the Minuteman franchisees.

Minuteman sends these well-trained representatives from its Head Office to market its franchise system to prospective franchisees in Australia. Whilst in Australia the representatives are also responsible to do support work in Minuteman franchise stores.

Christopher Jutt, the son of Minuteman’s Senior Executive Vice President, is a member of the well-trained Minuteman team.

Typically the Minuteman representatives enter Australia on “Short Stay” visas. Typically a “Short Stay” visa is for holiday purposes or for attending a conference in Australia and the visa holder must depart Australia within 3 months. Typically the “Short Stay” visa-holder may not work in Australia.

Christopher Jutt - unlawful conduct in Australia:

It appears that Christopher Jutt entered Australia in about July 2012 on a “Short Stay” visa. He worked in Australia at the Brisbane Franchise Exhibition where he marketed the Minuteman franchise system to prospective franchisees.

After the Franchise Exhibition Christopher Jutt remained in Australia, worked as a full time employee of Minuteman Press International Inc. He continued to market the Minuteman Franchise System to prospective new franchisees. In addition he was responsible to provide operational support to existing Minuteman franchisees, assisting the franchisees to improve their marketing and selling skills.

Apparently Christopher Jutt worked in Australia in breach of “Short Term Stay” Visa regulations.

Christopher Jutt departed Australia by end September 2012, before the expiry of the 3 month term of his “Short Stay” visa.

On 1 October 2012 Steven Cooper, of the Minuteman Head Office in New York, sent an email to all Minuteman franchisees in New South Wales and Queensland Australia, advising of the appointment of Christopher Jutt as Minuteman’s Area Manger for New South Wales and Queensland.

Christopher Jutt returned to Australia during October 2012, and immediately started to work in his new position as Area Manager for New South Wales and Queensland.

Christopher Jutt made application to the Australian Authorities for a class 457 visa which was sponsored by his employer, Minuteman Press International Inc. The visa was granted during December 2012 or January 2013. Christopher Jutt again departed Australia during December 2012, before the expiry of the 3 month period of his “Short Stay” visa.

It appears Christopher Jutt unlawfully continued with his work as the Minuteman Area Manager for New South Wales and Queensland whilst the Australian Government considered his application for a class 457 Visa. Christopher Jutt and Minuteman Press International Inc. apparently disregarded and breached Australian Immigration Laws and instead decided to unscrupulously serve their own selfish interests. The apparent unlawful conduct of Christopher Jutt was authorized and condoned by the President of Minuteman, Bob Titus, as well as by the Senior Vice President of Minuteman, Michael Jutt.

Christopher Jutt’s application for an Employer Sponsored 457 Visa was approved during December 2012 or early January 2013.

Many Minuteman franchisees are struggling in their loss-making businesses. These struggling franchisees want to sell their businesses and are desperate to get out of the brutal Minuteman franchise system. Christopher Jutt is also responsible to find buyers for the struggling Minuteman stores. He is responsible to manage the transfer of the franchise business from the existing franchisee to the new franchisee. The transfer of the franchise store is a two-step process:

Firstly Christopher Jutt has to secure a new Franchise Agreement with the buyer of the failed franchise business. The new Franchise Agreement has a 35 year term. The brutal and one-sided agreement cannot be terminated by the franchisee.

Secondly Christopher Jutt is responsible to persuade the exiting franchisee to sign the brutal, oppressive and extremely one-sided Deed of Surrender and Release. Christopher Jutt engages in unlawful conduct whilst he intimidates, bullies and rushes the franchisee into signing the Deed. He denies the franchisee the opportunity to seek legal advice before signing the Deed. In addition the exiting franchisee has to pay the $25,850 transfer fee to Minuteman.

Christopher Jutt unlawfully intimidated, bullied and rushed at least 3 Australian franchisees into signing the brutal and one-sided Minuteman Deed of Surrender and Release. He behaved like a thug towards these franchisees.

In addition, Christopher Jutt sold 15 new Minuteman franchise stores to new franchisees during the past 2,5 years.

Christopher Jutt therefore entered into 18 new Franchise Agreements on behalf of Minuteman during the past 2,5 years, i.e. 15 agreements for new stores plus 3 agreements for transferring existing stores to new franchisees.

History has shown that more than 73% of the Minuteman franchisees failed in their franchise businesses in New South Wales and Queensland, during the 10 year period to December 2011. Eleven franchisees had to close their failed franchise businesses whilst a further 6 had to sell their loss making businesses.

The franchisees who failed in their franchise businesses made estimated losses of more than $4,500,000. Minuteman received an estimated $3,400,000 from these franchisees.

It therefore follows that more than 73% of the 18 new franchisees who were signed-up by Christopher Jutt, are likely to fail in their franchise stores, i.e. a further 13 franchisees are likely to fail. These franchisees are likely to make losses totaling more than $3,600.000. Minuteman is likely to receive more than $2,762,500 from these franchisees.

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  • Aug 30, 2014

MORE THAN 73% MINUTEMAN PRESS INTERNATIONAL INC. (MPI) FRANCHISEES FAILED IN THEIR BUSINESSES IN THE AUSTRALIAN STATES OF NEW SOUTH WALES AND QUEENSLAND.

Over a period of more than 10 years, up to December 2011, a total of 22 franchisees invested in MPI franchise stores in New South Wales and Queensland; of these, 11 franchisees had to close down their failed businesses and a further 5 franchisees were forced to sell their loss making businesses.

SIXTEEN of the 22 MPI franchisees in New South Wales and Queensland have thus far failed in their businesses, giving a MPI franchisee failure rate of 73%. This is a best case scenario as we know of more struggling franchisees who will have to either close their businesses, or will be forced to sell their loss making businesses.

One store has its fourth owner in six years; the previous 3 owners all failed in the store and made losses.

Franchisees who failed in their MPI stores reported losses up to a staggering $700 000 in a single store; whilst MPI received an estimated $300 000 from the owners of that store.

MPI opened and closed a new MPI store in the Sydney area around 2007 / 2008. The franchisee commenced legal proceedings against MPI; MPI entered into a confidential settlement agreement with the franchisee and MPI paid settlement to the franchisee. MPI did not disclose the opening and / or closure of the store in its Australian Disclosure Document nor did it disclose the Legal proceedings (disclosure of both the opening and closure of the store as well as the legal prceedings is required by law).

MPI developed its brutal franchise system, whereby franchises are ruthlessly exploited, over a period of 40 years. MPI ruined many of its franchisees financially. The system is driven by greed.

During 1998 MPI, Sign-A-Rama and its founder, Roy Titus, were prosecuted by the USA Federal Trade Commission, convicted on all charges brought against it and was fined $3.47 million for their deceptive conduct. The Court made a Permanent Injunction Order against MPI, Sign-A-Rama and Roy Titus. The Permanent Injunction Order prevented MPI, Sign-A-Rama and Roy Titus to make unsubstantiated claims about how much sales and profits a prospective franchisee could expect from MPI store.

Amongst other charges, MPI was charged and convicted of falsely representing to prospective franchisees that, as owners of a MPI store, they could expect to earn 33,33% of the store sales as profit. The court found that most MPI stores do not make 33,33% of its sales as profit.

Shortly after the conviction MPI expanded its franchise system to other countries. Sixteen years later MPI expanded its brutal franchise system to Canada, Australia, South Africa and the United Kingdom. The unscrupulous management of MPI persistently practices its unconscionable conduct, unethical and immoral business practices against its franchisees.

MPI has skilfully modified its representation to prospective franchisees after the court case. However, in its slick and well-rehearsed presentation, MPI still falsely represents to prospective franchisees that they can expect to earn 33,33% of MPI store sales as profit. MPI consistently contravenes the Permanent Injunction Order.

Schedule of MPI store failures in the states of New South Wales (NSW) and Queensland (QLD), Australia:

Store

Blacktown, NSW

Business Closed Down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Parramatta, NSW

Business Closed Down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Sylvania Heights, NSW

Business Closed Down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Wollongong, NSW

Business Closed Down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Stanmore, NSW

Business Closed Down.

Smithfield, NSW

Business Closed Down.

Sydney Area, NSW

Business Closed Down, owner commenced legal action against MPI; MPI paid Settlement to Owner; MPI “Silenced” Owner with Confidentiality Agreement.

Penrith, NSW

Business Closed Down; Owner liquidated / deregistered business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Ingleburn, NSW

Business Closed Down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Artarmon, NSW

Business Closed Down.

Albury, NSW

Business Closed Down.

Caringbah, NSW

FIRST OWNER. Business Sold at loss as owner could not sustain business losses and Owner went broke.

Slacks Creek, QLD

FIRST OWNER. Business Closed Down. MPI forced Owner to re-open business. Shortly afterwards owner had to sell business at a loss as Owner could not sustain business losses. After sale of business the First Owner remained responsible and liable for the Premises Lease and the two Leases for Equipment. Owner had to pay many thousands of Dollars for monthly lease payments when the new store owners also struggled in the business and could not meet their lease obligations.

Slacks Creek, QLD

SECOND OWNER. Business Sold at loss as Second Owner also could not sustain business losses.

Slacks Creek, QLD

THIRD OWNER. Business Sold at loss as Third Owner also could not sustain business losses.

Mooloolaba, QLD

FIRST OWNER. Business Sold at loss as owner could not sustain business losses and First Owner went broke.

Mooloolaba, QLD

SECOND OWNER. Business Sold at loss as Second Owners also could not sustain business losses.

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  • Sep 1, 2014

Quotes from the slick and extremely well-rehearsed Minuteman Press International (MPI) marketing presentation to prospective franchisees:

Quote 1: “You do not need any prior Print Industry experience to successfully operate a MPI franchise store.”

Quote 2: “You do not need any business experience to successfully operate a MPI franchise store. Ninety seven percent of our franchisees had no prior Print Industry or business experience.”

Quote 3: “A typical MPI store will do $30 000+ sales per month with only 2 people working in the business.”

Quote 4: “As a typical MPI store you can expect your profit to be more than one third of the monthly sales.”

Quote 5: “We will find your premises, negotiate your lease, supply your equipment, set-up your store and give you all the training you need. All you have to do is sign the Franchise Agreement, pay the money to MPI and we will take care of the rest.”

Quote 6: “We will not allow you to open a business in a premises unless, we are confident that you will make it in the area.”

Quote 7: “Experienced MPI representatives will work with you in your MPI store until such time as you are successful.”

Quote 8: “MPI perfected its business model over a very long time. Very few, if any, of our stores fail or close. Our system works. You can rely on it.”

Quote 9: “We have successfully set-up more than 900 stores in 5 countries all over the world. We know what we are doing. You are in good hands”

Quote 10: “We have been doing Print Franchising successfully for more than 40 years.” (That is nowadays, during earlier years the figure was adjusted to whatever period was applicable at the time).

Quote 11: “You can trust MPI, it has a proven track record with ethical and sound business practices.”

Quote 12: “A typical MPI franchisee works business hours, Monday to Friday. As a MPI franchisee, you will have a great quality lifestyle.”

Quote 13: “When you want to sell your MPI store we will take care of the sale of the business. The MPI store will sell for more than 30 times the monthly profit.”

The harsh reality of MPI store owners:

Over a period of more than 10 years, up to December 2011, twenty two franchisees invested their hard-earned lifesavings in MPI franchise stores in New South Wales and Queensland in Australia. They all relied on the MPI marketing representations before deciding to invest in a MPI franchise business.

More than 73% MPI franchisees failed in their businesses in the Australian States of New South Wales and Queensland in Australia.

MPI franchisee failures in the states of New South Wales (NSW) and Queensland (QLD), Australia:

Blacktown, NSW - Business closed down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Parramatta, NSW - Business closed down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Sylvania Heights, NSW - Business closed down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Wollongong, NSW - Business closed down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Stanmore, NSW - Business closed down.

Smithfield, NSW - Business closed down.

Sydney Area, NSW - Business closed down, owner commenced legal action against MPI; MPI paid Settlement to Owner; MPI “Silenced” Owner with Confidentiality Agreement.

Penrith, NSW - Business closed down; Owner liquidated / deregistered business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Ingleburn, NSW - Business closed down; Owner liquidated business to avoid MPI claims for Royalties for remaining period of the 35 years of the Franchise Agreement.

Artarmon, NSW - Business closed down.

Albury, NSW - Business closed down.

Caringbah, NSW - FIRST OWNER. MPI sold business at loss as owner could not sustain business losses and the Owner went broke.

Slacks Creek, QLD - FIRST OWNER. Business closed down. MPI threatened owner that it would claim more than $500,000 for royalties for remaining period of Franchise Agreement. MPI forced Owner to re-open business. Shortly afterwards MPI sold business at a loss as the Owner could not sustain business losses. After sale of business the First Owner remained responsible and liable for the Premises Lease and the two Leases for Equipment. Owner had to pay many thousands of Dollars for subsequent monthly lease payments when the new store owners also struggled in the business and could not meet their lease obligations.

Slacks Creek, QLD - SECOND OWNER. MPI sold business at loss as Second Owner also could not sustain business losses.

Slacks Creek, QLD - THIRD OWNER. MPI sold business at loss as Third Owner also could not sustain business losses.

Mooloolaba, QLD - FIRST OWNER. MPI sold business at loss as owner could not sustain business losses and First Owner went broke.

Mooloolaba, QLD - SECOND OWNER. MPI sold business at loss as Second Owners also could not sustain business losses.

Behind each one of the above franchisee failures is a tragic tale of human suffering. It is a story of sadness and blatant exploitation. Ordinary hardworking human beings who TRUSTED MPI with their lifesavings. They all had dreams of a better life. They were BETRAYED by the well-practised, unconscionable, unethical, immoral, greedy practices of the heartless management and business practices of MPI.

The franchisees who failed in their businesses lost an estimated $4 500 000 of their personal wealth.

MPI received an estimated $3 400 000 from these failed franchisees.

The franchisees who failed in their businesses had to live through the emotional stress and the other related consequences of trying to survive in their struggling and ultimately failing businesses. In the end they lost their money and their dignity – all due to the gross inhumane conduct of MPI and its management.

Conflicting quotes from MPI executives and representatives after franchisee invested in MPI franchise store:

Quote 1: Bob Titus, President of MPI: “You made a poor business decision to open your MPI franchise and now you try to put the blame on us.”

Quote 2: Bob Titus, President of MPI: “Why don’t you let us sell your business for you …….. You will not get much for it.”

Quote 3: Bob Titus, President of MPI threatened: “Another franchisee also filed a dispute against MPI. He is no longer in business.”

Quote 4: Bob Titus, President of MPI: “You have filed a dispute against MPI. We will not give you store support until such time as you withdraw the dispute…… You have to continue to pay your royalties although you get no store support. You have a contractual obligation to pay royalties.”

Quote 5: Michael Jutt, Senior Executive Vice President of MPI: “You have to accept a MPI franchise store is not for everybody and some will fail. That is business.”

Quote 6: Michael Jutt, Senior Executive Vice President of MPI: “When you buy a print business you should not pay any money up front to the seller of the business. Agree to pay a commission for the actual sales you achieve after you have taken over the business. That is all you should pay for a print business. Take the equipment for no payment.”

Quote 7: David Koelmel, Regional Vice President of MPI: “Congratulations on achieving $30,000 monthly sales. Most MPI franchisees NEVER achieve that level of sales.”

Quote 8: Chris Jutt, MPI Area Manager in Australia: “You can expect failures of MPI franchisees. The successes far out-number the failures.”

Quote 9: Glen Coyle, MPI Area Manager in Australia: “I agree. A MPI Franchise Store is not everybody’s cup of tea. Franchisees do fail in their businesses.”

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  • Sep 15, 2014

During 2007 Minuteman Press International Inc. (MPI) had 51 franchise stores in the United Kingdom. During the three years 2007, 2008 and 2009 MPI closed 13 of its franchise stores in the UK. This represents the closure of more than 25% MPI franchise stores in the UK. The following store locations were closed during this period:

Shenley Church Enp. Milton Keynes.

Burton on Trent.

Wakefield.

Colchester.

Leeds.

Cambridge.

Swindon.

Enfield.

Milton Keys.

Telford, Shropshire.

Bedford, Bedfordshire.

Harrogate.

Letchworth Garden City.

More than 73% MPI franchisees failed in their franchise stores in the states of New South Wales and Queensland in Australia.

The MPI business model is a scam! Be very careful of these people. MPI employs immoral and unethical business practices against its franchisees.

Mark as Useful [482 votes]
  • Nov 1, 2014

Minuteman Press over charges its franchisees for Royalties by deliberately and fraudulently inflating franchisees’ Gross Revenue. Gross Revenue is inflated because Minuteman does not deduct all sales credits from Gross Revenue as is provided in the Minuteman Franchise Agreement. Minuteman charges franchisees 6% royalty on the inflated Gross Revenue.

Minuteman is over charging franchisees for royalties in breach of its own Franchise Agreement.

Minuteman is using its FOCUS Management System (FOCUS) to commit the fraud against its franchisees.

Minuteman has been requested on numerous occasions to fix the problem. It steadfastly refuses to do so.

What does the Minuteman Franchise Agreement say about the deduction of sales credits from Gross Revenue?

The Minuteman USA Franchise Agreement defines the deduction of credits from Gross Revenue as:

“Cash refunded and credit given to customers shall be deducted in computing Gross Revenue to the extent that such cash or credit represent amounts previously included in Gross Revenue on which Royalty Fees were paid.

The Minuteman Australian Franchise Agreement defines the deduction of credits from Gross Revenue as:

“Excludes any sales credits such as the sale price of any Services or products rejected by customers where cash or allowances have been refunded or made to the customer.”

Does the Franchise Agreement require sales credits to be passed within a time limit to qualify as a deduction from Gross Revenue?

The franchise Agreement does not specify a time limit for credits to be passed in order to qualify as a deduction from Gross Revenue.

Why is Minuteman’s FOCUS Royalty Statement fraudulent?

The FOCUS Royalty Statement has a paragraph inserted which quotes the definition of royalty payable as from the Franchise Agreement. However the quote deliberately and fraudulently omits to quote the permissible deduction of sales credits from Gross Revenue.

How can the fraudulent and complex FOCUS Royalty computation be explained?

FOCUS performs the monthly calculation of Royalties payable by franchisees to Minuteman.

FOCUS prepares a Royalty statement for the franchisee. It simultaneously prepares a file which FOCUS transmits electronically to Minuteman. Franchisees do not have access to the information in the file, however it is known that, amongst other information, the file contains Gross Revenue and Royalty Payable information.

When FOCUS performs the calculation for Royalties Payable to Minuteman, it does not deduct the following sales credits from Gross Revenue:

- Prior Period Voids (i.e. current month sales credits for sales invoiced during prior months and which invoices FOCUS previously included in Gross Revenue).

- Prior Period Write Offs (i.e. current month sales credits for sales invoiced during prior months and which invoices FOCUS previously included in Gross Revenue).

- Credit Adjustments (i.e. current month sales credits).

Consequently Gross Revenue is overstated. FOCUS calculates Royalties Payable to be 6% of the overstated Gross Revenue amount. Minuteman therefore fraudulently overcharges franchisees for Royalties.

The non-deduction of the above mentioned sales credits from Gross Revenue is abreach of the Minuteman Franchise Agreement.

Why must franchisees submit the FOCUS Royalty Statement to Minuteman and why must franchisees pay the amount on the Royalty Statement?

It is a requirement in the Minuteman Franchisee Agreements that franchisees have to use Minuteman’s FOCUS Management System (FOCUS) in the franchise business.

Minuteman insists that Franchisees have to pay the full amount on the FOCUS Royalty Statement. Should a franchisee pay a lesser amount Minuteman would:

- Threaten the franchisee that he / she is in breach of the Franchise Agreement.

- Victimized the franchisee.

- De-activate the FOCUS system and consequently the franchisee would be unable to manage the day-to-day activities of the franchise business.

- Cease store support to the franchise business.

- Threaten the franchisee with an audit of the franchisee’s financial books at the expense of the franchisee.

- Threaten to terminate the Franchise Agreement.

Why is it necessary for franchisees to pass sales credits?

Queries and disputes arise in all businesses with regards to sales transactions. Often sales invoices have to be reduced with a sales credit before a customer would pay an outstanding amount. In many instances invoices may have to be credited in full.

Consequently the passing of sales credits is a standard practice in all businesses all over the world. Sales credits are passed for many reasons, e.g. incorrect pricing on an invoice, product quality issues, or wrong customer was invoiced, quantity disputes and many more reasons.

Customers can at any time complain to a franchisee if they are not satisfied with an invoice, quality of product or any other reason. There is no time restriction. Franchisees deal with queries and disputes as and when customers bring it to their attention. Often differences or disputes may take considerable time (sometimes months) before it is resolved.

It is prudent and sound business practice to pass credit notes as soon as a franchisee has determined that an invoice is not correct.

Are there real life examples of franchisees who were over charged for Royalties by Minuteman?

Yes there are. Franchisee no 1 used FOCUS to pass Credit Adjustments and Prior Period VOIDS (sales credits) to a value of more than $165,500 over a period of approximately 2,5 years. FOCUS did not reduce Gross Revenue and consequently fraudulently over charged the franchisee $9,930 (i.e. 6% of $165,500) for royalties.

Franchisee no 2 used FOCUS to pass sales credits to the value of more than $30,000 using the Prior Period Void / Write off transactions in FOCUS. FOCUS did not reduce the Gross Revenue and consequently fraudulently over charged the franchisee $1,800.00 (i.e. 6% of $30,000) for Royalties.

Most, if not all, franchisees have been fraudulently over charged for Royalties by Minuteman.

Is the Minuteman fraudulent mal-practice restricted to one country?

No. Minuteman operates its franchise system in USA, Canada, United Kingdom, South Africa and Australia. Franchisees in all these countries use the FOCUS Management System. It is highly probable that all Minuteman franchisees in all countries have been over charged for Royalties.

For how long have Minuteman been over charging franchisees for Royalties?

Minuteman boasts in its marketing presentation to prospective franchisees, that it has been developing and fine-tuning its FOCUS Management System since 1978. It is highly probable that franchisees have been over charged for royalties for a period of up to 36 years.

Do we know by how much money franchisees have been over charged?

No we do not know. What we do know is that Minuteman has more than 900 franchisees and Minuteman has been franchising since 1975. Most, if not all, franchisees have been over charged for royalties. It can be safely assumed that the over charges will be millions of dollars.

Is Minuteman aware of the over-charges?

The problem was brought to Minuteman’s attention more than a year ago. Minuteman has been requested to fix the problem on numerous occasions during the past year. It steadfastly refuses to do so!

Minuteman has deliberately and fraudulently programmed FOCUS to compute 6% royalty payable on an inflated Gross Revenue amount.

Minuteman cheats its franchisees over charging them for Royalties using FOCUS.

Minuteman over charges franchisees for royalties in breach of its own Franchise Agreements.

Current state of affairs

Franchisees and ex-franchisees are out-of-pocket whilst their money is in the bank account of Minuteman. Minuteman is denying the problem and apparently has no intention to fix it!

Mark as Useful [481 votes]
  • Oct 20, 2014

Minuteman Press charged its Australian franchisees AUD419.10 (AUD381.00 excl. GST) when it should have charged AUD302.50 (AUD275.00 excl. GST); an overcharge of 38,5%.

The Minuteman Press disclosure documents determines that the Annual FOCUS Fee payable is USD285.00 plus tax. The amount is payable in local currency and is to be converted on the invoice date.

Minuteman Press has franchisees in Canada, United Kingdom, South Africa, USA and Australia. INFORMATION AT HAND SUGGESTS MINUTEMAN PRESS COULD HAVE OVER-CHARGED ITS FRANCISEES MORE THAN $654,126 FOR ANNUAL FOCUS FEES OVER SIX YEARS.

Below is a table of the approximate annual FOCUS License Fee Minuteman Press should have charged its franchisees in each country by year, since 2000 (USD285.00 converted at annual average exchange rate):

CANADA (Canadian Dollars). Franchisees should have paid less than (amounts excluding tax):

2000 CAD423.29

2001 CAD441.25

2002 CAD447.42

2003 CAD399.36

2004 CAD370.86

2005 CAD345.42

2006 CAD323.23

2007 CAD305.98

2008 CAD303.77

2009 CAD324.98

2010 CAD293.52

2011 CAD281.95

2012 CAD284.93

2013 CAD293.60

2014 CAD312.07

UNITED KINGDOM (GBP) Franchisees should have paid less than (amounts excluding tax):

2000 GBP188.49

2001 GBP197.97

2002 GBP189.96

2003 GBP174.56

2004 GBP155.59

2005 GBP156.85

2006 GBP154.91

2007 GBP142.41

2008 GBP155.34

2009 GBP182.58

2010 GBP184.62

2011 GBP177.80

2012 GBP179.91

2013 GBP182.33

2014 GBP171.12

SOUTH AFRICA (RAND) Franchisees should have paid less than (amounts excluding tax):

2000 R1978.53

2001 R2450.41

2002 R2996.29

2003 R2155.60

2004 R1837.22

2005 R1816.47

2006 R1933.16

2007 R2010.69

2008 R2354.26

2009 R2399.17

2010 R2086.38

2011 R2071.02

2012 R2341.61

2013 R2752.56

2014 R3064.39

AUSTRALIA (AUD) Franchisees should have paid less than (amounts excluding tax):

2000 AUD491.99

2001 AUD551.36

2002 AUD524.52

2003 AUD439.17

2004 AUD387.72

2005 AUD374.10

2006 AUD378.53

2007 AUD340.54

2008 AUD340.92

2009 AUD364.54

2010 AUD310.48

2011 AUD276.33

2012 AUD275.30

2013 AUD295.51

2014 AUD311.24

USA (USD) Franchisees should have paid (amounts excluding tax):

Amount Minuteman Press should have charged its USA franchisees for all years from 2000 to 2014 should have been USD285.00 excluding tax.

WHAT MINUTEMAN PRESS FRANCHISEES SHOULD DO ABOUT THE OVER-PAYMENTS:

Franchisees are advised to review the invoices from and their payments to Minuteman Press for the annual FOCUS Fees using the amounts above as a general guideline. In the event of over-charges franchisees should demand a refund from Minuteman Press or alternatively could report the matter to the regulatory authority such as the USA Federal Trade Commission.

Minuteman Press reluctantly refunded some of the over payments to some of its Australian franchisees at the end of April 2014; more than 30 months after it was requested to repay over-charged amounts.

Minuteman Press:

Refunded a selected number of over payments. It did NOT refund any ex-franchisees whom it over charged. Many ex-franchisees had to close its businesses and incurred massive losses in the Minuteman Press franchise system. Many other franchisees had to sell their businesses at substantial losses as they could not sustain the business losses made in their Minuteman Press franchise stores. Minuteman Press bullied, intimidated, rushed and forced these ex-franchisees into signing the Minuteman Press brutal, grossly unfair and unlawful Deed of Surrender and Release. Minuteman Press unscrupulously elected to further exploit these unfortunate and vulnerable ex-franchisees and did not refund their over payments.

Minuteman Press calculated the refund amounts using an assumed flat rate annual charge of AUD275.00 excluding tax (AUD302.50 including tax). The flat rate is incorrect and many franchisees were refunded too little. The Australian Dollar fluctuated against the US Dollar on a daily basis. When the Australian Dollar peaked against the US Dollar, Minuteman Press should have invoiced franchisees AUD258.00 excluding tax (AUD283.80 including tax). When Minuteman Press refunded its Australian Franchisees it unscrupulously underpaid them.

INFORMATION AT HAND SUGGESTS MINUTEMAN PRESS COULD HAVE OVER-CHARGED ITS FRANCISEES MORE THAN $654,126 FOR ANNUAL FOCUS FEES OVER SIX YEARS.

Mark as Useful [481 votes]
  • Oct 11, 2014

Minuteman overcharged its Australian franchisees AUD116.60 per year for the use of its FOCUS Management System. Minuteman charged franchisees AUD419.10 per year when it should have charged AUD302.50.

Minuteman overcharged its Australian franchisees over a long period of time; at least from 2008 to 2013, i.e. at least 6 years.

As at the end of 2013 Minuteman had approximately 50 franchisees in Australia. The annual over charge of AUD116.60 for 50 Australian franchisees equates to an annual overcharge of AUD5,830. Minuteman repeatedly overcharged its franchisees since at least 2008, i.e. 6 years. Therefore total over charge of Australian franchisees for 6 years amounts to AUD34,980.

There is no reason to belief that the over charges have been isolated to Australian franchisees; in all likelihood Minuteman over charges all its franchisees.

As at the end of 2013 Minuteman had approximately 935 franchisees worldwide. The annual over charge of $116.60 for 935 franchisees worldwide, based on the over charges in Australia, equates therefore to an annual overcharge of $109,021. Minuteman repeatedly overcharged its franchisees since at least 2008, i.e. 6 years. Therefore total over charge of all Minuteman franchisees worldwide for 6 years, based on the over charges in Australia, amounts therefore to $654,126.

All Minuteman franchisees, worldwide, are advised to review their invoices for the annual FOCUS fees. It is recommended franchisees review all invoices from at least 2008. The annual charge should be the equivalent of USD285 plus any applicable tax. If franchisees find they have been overcharged they should demand their money back. Alternative the misconduct can be reported to the government regulator, such as the Federal Trade Commission.

The Minuteman rip-off methodology:

Minuteman Press franchisees have to sign the Minuteman FOCUS Management System License Agreement. The agreement gives the franchisee the right to use the Minuteman FOCUS Management Software (FOCUS). Franchisees use FOCUS to maintain its customer database, prepare customer quotes, manage production, measure profitability, do customer invoicing and to manage accounts receivable. Franchisees are dependent on FOCUS for the day-to-day running of the franchise business and their businesses are extremely vulnerable when FOCUS does not work.

In terms of the FOCUS Management Software License Agreement and the Franchise Agreement franchisees have to pay to Minuteman USD285 plus tax annually on the anniversary of the store. The USD285 is converted to local currency on the date of the invoice.

Real life example of Minuteman’s unethical and immoral conduct towards its franchisees:

Store owner queried exorbitant invoice charge of AUD419.10 during September 2011. Minuteman’s Senior Executive Vice President, Michael Jutt, personally received notice of the query.

Minuteman refused to pass credit for the over charge. Store Owner had to pay the invoice in full. If store owner elected to withhold payment Minuteman would “disconnect” the franchisee’s FOCUS system. A brief explanation of the procedure: Minuteman programmed FOCUS to demand a secret code to be keyed into FOCUS, once a year on the anniversary of the store. In order prevent FOCUS from “shutting down” the franchisee has to request the secret code from Minuteman in New York. Without the secret code FOCUS stops working and the franchisee cannot use FOCUS. Consequently the franchise business is paralyzed. Minuteman will not provide the franchisee with the secret code unless the franchisee has paid its FOCUS account in full.

Store Owner declared a dispute with Minuteman and requested mediation. Minuteman hired lawyers to represent it at Mediation. Minuteman persisted denying over charging for FOCUS annual fee notwithstanding the fact it was blatantly obvious from the FOCUS License Agreement that the over charges were indefensible.

During 2013 store owner again received an invoice for AUD419.10 and again queried the exorbitant charge for the FOCUS annual fee.

The President of Minuteman, Bob Titus, personally authorized credit to be passed. However all other Australian franchisees had to pay AUD419.10.

During February 2014 Australian Minuteman franchisees were alerted to the over charges.

During March 2014 Bob Titus and Michael Jutt sent an email to all Australian franchisees. In the email Minuteman admitted they over charged franchisees for the annual FOCUS fee. Bob Titus and Michael Jutt explained the over-charges occurred due to an “inadvertent error”. This was a blatant lie by Bob Titus and Michael Jutt. They have been fully aware of the over charges for a number of years.

At the end of April 2014, two and a half years after it was brought to its attention, Minuteman finally and reluctantly repaid the Australian franchisees for the over charges for the FOCUS Annual License Fee. However, as always with Minuteman, there was a sting in the tail. The amount repaid to franchisees was calculated on the assumption that the Australian Dollar remained stable against the US Dollar over the period of 6 years. This is not so as the Australian Dollar strengthened against the US Dollar during this period. Once again Minuteman short changed its franchisees.

It is also known that Minuteman over charges all its franchisees, worldwide, for monthly royalties. Minuteman does so in breach of its own franchise agreement. A further report explaining the misconduct in this regard will follow.

And then there is the unlawful conduct of Minuteman management and its employees who work in Australia in breach and violation of their visa restrictions………..

During 1998 Minuteman and its founder, Roy Titus, were prosecuted by the Federal Trade Commission for serious misconduct against its franchisees and prospective franchisees. They were found guilty, convicted, fined $3,47 million and enjoined with a Permanent Injunction Order by Judge Hurley in the US District Court for the Eastern District of New York. It was a landmark judgment. The press releases from the Federal Trade Commission and the Judge Hurley’s judgment can be found on the website of the Federal Trade Commission. To access the information go to the website, type “Minuteman Press” in the search box in the top right of the web-page. The links to the press releases and judgment will be listed in the search results.

Today the President of Minuteman Press is Robert Titus, the son of Roy Titus. The court conviction has not stopped the Minuteman misconduct towards its franchisees and prospective franchisees. It continues relentlessly.

Mark as Useful [481 votes]
  • Sep 20, 2014

Minuteman Press Inc. (MPI) has a slick and well-rehearsed marketing presentation to con prospective franchisees to buy into its scam franchise system. During the presentation MPI represents to prospective franchisees that they do not need any prior print industry experience or any prior business experience in order to operate a MPI franchise store. MPI represents it would provide all the required training and support to the prospective franchisee to successfully run the franchise business. MPI claims that 97% of its franchisees did not have any prior print industry or prior business experience.

The Franchise Agreement has a 35 years term. The franchisee cannot terminate the agreement, however the agreement provides MPI with many opportunities to terminate the agreement.

As at December 2004 MPI had 728 franchise stores in the USA. Since then MPI closed more than 247 of its franchise stores in the USA. This represents the closure of more than 34% MPI franchise stores in the USA between January 2005 and September 2014.

Many ex-franchisees go bankrupt. Many ex-franchisees see bankruptcy as the only way to escape as MPI unscrupulously pursue ex-franchisees for royalty fees for the unexpired period of the 35 years of the franchise agreement.

Furthermore, many franchisees fail in their businesses and have to sell their loss making businesses. When a franchisee sells a MPI franchise business, MPI forces the franchisee to sign its Deed of Surrender and Release. The Deed of Surrender and Release is a brutal and one sided agreement. Once signed the franchisee has been “silenced”, may not say or do ANYTHING against MPI, the franchisee has WAIVED all its claims against MPI and the franchisee has a Restraint of Trade restriction and cannot trade or work in a business which is competing with a MPI store. The franchisee is rendered powerless against the all mighty MPI.

During the period between January 2005 and December 2009 a total of 285 MPI franchisees in the USA sold their businesses. This represents a franchisee business sales rate of 39%. MPI demands $19,500 for each store transfer to a new franchisee. MPI received $5,557,500 for franchisee transfer fees during the period January 2005 to December 2009.

The extrapolated sale of franchise stores for the period January 2005 to September 2014 therefore amounts to the sale of 556 franchise stores during this period. This represents a MPI franchisee store sales rate of 76%. Again,MPI demands $19,500 for each transfer to a new franchisee. MPI therefore received an estimated $10,842,000 for franchisee store transfer fees from January 2005 to September 2014.

Between January 2005 and September 2014 an estimated total of 803 MPI franchise stores either closed down or transferred to new owners. This represents 110% of MPI stores either closed or were sold between January 2005 and September 2014.

MPI store closures in USA since January 2005:

2005 – 24 stores.

2006 – 16 stores.

2007 – 22 stores.

2008 – 38 stores.

2009 – 51 stores.

January 2010 to December 2011 - more than 54 stores.

January 2012 to February 2013 - more than 15 stores.

March 2013 to September 2014 - more than 27 stores.

Behind each of these MPI store failures there is a father and / or a mother, probably with dependent children and an extended family. MPI ruthlessly rob these vulnerable people of their hard earned wealth and their dignity. Often the MPI store owners suffer health problems caused by the stress of trying to survive in the scam MPI franchise system.

The MPI franchise system has been carefully constructed and the franchisee is set-up for failure. MPI profitability is reliant on the frequent re-sales of franchise stores.

The new franchisee, who buys a failed franchise store, has to sign a new 35 year franchise agreement.

There is only one winner in the MPI franchise system – that is MPI.

The franchisee is the loser in the MPI franchise scam.

MPI shamelessly preys like parasites on vulnerable families.

Mark as Useful [478 votes]
  • Dec 29, 2017

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