What are the Risks of Owning a Farm Stores Franchise

Are you considering investing in a franchise in the convenience store industry? Looking for a business model that offers a unique approach to reaching customers? Do your research before investing.

Farm Stores Franchising: A Closer Look During Economic Uncertainty

1. Farm Stores Franchising: A Closer Look During Economic Uncertainty

   
   

   In times of economic uncertainty, many individuals seek investment opportunities to secure a stable financial future for themselves and their families. Farm Stores Franchising, with over 60 years of history and recognition as a top franchise in various business publications, may seem like a promising option. However, a deeper analysis reveals several alarming red flags and concerns regarding its future.

   
   

   Farm Stores Franchising is currently facing multiple judgment liens and commercial eviction cases due to unpaid rent at corporate-owned locations. Lawsuits have emerged across the United States, including Ohio, Kentucky, Georgia, and Florida, with serious allegations against CEO Maurice Bared for engaging in fraudulent business practices. One notable case involves Bared selling a store, misrepresented as corporate-owned, to an elderly immigrant woman who invested her life savings. After the sale, the franchise was unable to deliver the store, as it had no rights to it, and refuses to refund her over $100,000.

   
   

   Additionally, there are complaints from brokers who connected potential franchisees to Farm Stores, only to see the franchise refuse to pay for their services after the investors committed to locations. Numerous reports indicate that existing franchisees have had their businesses unjustly taken away, suggesting a troubling pattern where stores are sold to individual owner-operators, only for the franchise to seize and resell them—an alarming recycling scheme.

   
   

   Franchisees have voiced concerns regarding the lack of advertising and marketing, with funds reportedly funneled into legal fees stemming from ongoing lawsuits. The franchise faces multiple breach of contract claims and allegations of fraud, casting doubt on its legitimacy. Many positive reviews and ratings in publications like Fortune 500 and Entrepreneur appear to be unverifiable and may have been paid for to attract potential investors.

   
   

   The corporate office has recently relocated from Coconut Grove, FL, removing its physical address from public listings and now only provides a PO Box. This downsizing and skeleton staff operation, coupled with numerous lawsuits and complaints, raises further concerns about the franchise's stability.

   
   

   Given these issues, if we were to rate Farm Stores Franchising on a scale of 1 to 10 for stability, growth potential, and return on investment, it would receive a low score of 2. This drive-through convenience store concept, which sells bread, dairy products, and other staples, is struggling, having recently lost its milk brand and consistently removing items from its offerings.

   
   

   Franchisees have also reported receiving no support or communication after their initial investment, leading to a lack of assistance and guidance. As potential investors, it is crucial to conduct thorough research and consider these significant concerns before making any decisions regarding Farm Stores Franchising.