Comments on: Soup Nazi http://www.franchisegecko.com/2007/09/16/soup-nazi/ Franchise News & Information Sun, 05 Sep 2010 02:10:42 +0000 http://wordpress.org/?v=2.2.2 By: Therapy New York http://www.franchisegecko.com/2007/09/16/soup-nazi/#comment-51 Therapy New York Mon, 29 Sep 2008 03:46:56 +0000 http://www.franchisegecko.com/2007/09/16/soup-nazi/#comment-51 I think that when you running a soup restaurants their need to be a menu that sale every month of the year. I think that people eat chili at any time of the year. Also, I think there could have been some chili dogs and salads on the menu. I can tell there was a problem with the employees and management. I think that when you running a soup restaurants their need to be a menu that sale every month of the year. I think that people eat chili at any time of the year. Also, I think there could have been some chili dogs and salads on the menu. I can tell there was a problem with the employees and management.

]]> By: Franchisor Rip Off http://www.franchisegecko.com/2007/09/16/soup-nazi/#comment-9 Franchisor Rip Off Sat, 06 Oct 2007 17:15:14 +0000 http://www.franchisegecko.com/2007/09/16/soup-nazi/#comment-9 1. The issues with the franchisor are much deeper than it appears. 1. The company is undercapitalized. An investment bank retained to raise capital for the franchisor had discontinued its efforts after having received commitments for approximately 25% of the targeted capital. This was a result of the poor operating results of the company and its underlying franchisees. 2. The company has been seeking an acquiror of its operations. Throughout this effort the issues and challenges brought to the attention of the company by its franchisees have been quietly addressed but none of the problems have been resolved. 3. The misrepresentations made by the franchisor to induce franchisees to acquire territories and open up an Original Soupman outlet are many: (a) understatement of food costs; (b) co-branding with Cremalita ice cream to balance overall sales in warm months was abandoned soon after first 12 stores opened for business; (c) mandated use of cups and bowls that are 25% larger than purported serving portions, resulting in giving away 25% more product than consumer was paying for and at the same time causing an increase in purchases of product from the company to replenish inventory. 1. The issues with the franchisor are much deeper than it appears.
1. The company is undercapitalized. An investment bank retained to raise capital for the franchisor had discontinued its efforts after having received commitments for approximately 25% of the targeted capital. This was a result of the poor operating results of the company and its underlying franchisees.
2. The company has been seeking an acquiror of its operations. Throughout this effort the issues and challenges brought to the attention of the company by its franchisees have been quietly addressed but none of the problems have been resolved.
3. The misrepresentations made by the franchisor to induce franchisees to acquire territories and open up an Original Soupman outlet are many: (a) understatement of food costs; (b) co-branding with Cremalita ice cream to balance overall sales in warm months was abandoned soon after first 12 stores opened for business; (c) mandated use of cups and bowls that are 25% larger than purported serving portions, resulting in giving away 25% more product than consumer was paying for and at the same time causing an increase in purchases of product from the company to replenish inventory.

]]> By: Got Swindled and Lost Big http://www.franchisegecko.com/2007/09/16/soup-nazi/#comment-8 Got Swindled and Lost Big Sat, 06 Oct 2007 17:12:50 +0000 http://www.franchisegecko.com/2007/09/16/soup-nazi/#comment-8 Soupman is comparable to Ponzi...misrepresent, sell, operator's lose their life savings, and the cycle continues. The investment bank is still involved...perhaps they have an employee who is taking from the top? Don't understand how they have not cut off Soupman. Every other week a new President appears as the Savior, then within a week he quietly leaves. One guy the Primo Goomba has his family on the board and on payroll. Interesting, he and his family continue to collect paychecks while the Franchisees lose their life savings, homes and file for Bankruptcy. There were never 40 locations. At the most, it was 33 and the company never disclosed the store closings, instead they continue to list them as active, or "closed for renovation" so to create the perception that they exist. The Government should investigate these guys. Hopefully they will get exposed! Soupman is comparable to Ponzi…misrepresent, sell, operator’s lose their life savings, and the cycle continues. The investment bank is still involved…perhaps they have an employee who is taking from the top? Don’t understand how they have not cut off Soupman. Every other week a new President appears as the Savior, then within a week he quietly leaves. One guy the Primo Goomba has his family on the board and on payroll. Interesting, he and his family continue to collect paychecks while the Franchisees lose their life savings, homes and file for Bankruptcy. There were never 40 locations. At the most, it was 33 and the company never disclosed the store closings, instead they continue to list them as active, or “closed for renovation” so to create the perception that they exist. The Government should investigate these guys.

Hopefully they will get exposed!

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