David Fermani
Forza Auto Salon
I guess the only entity prospering from this is corporate.....
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David Fermani said:FYI: In this months Entrepreneur's issue, mentions this info about Ziebart's franchises:
2009 = 264 locations
2010 = 349
2010 = 360
Startup Costs = $167K-326K
Franchise Fee = $25K
Franchise Royalty = $5-8%
Financing is offered
Seems like they are still growing by adding more locations. Especially in these last couple of years with such a bad economy. Seeing that they are local to me, I might one day stop in @ their world headquarters in Troy, MI to check them out.
David Fermani said:Oh, I know how they achieved such great sucess.......They are members of the IDA:
Membership Directory - The International Detailing Association
Greg Nichols said:I wonder if they will be creating the "test" to measure a detailers credibility for the IDA...........
Cheers,
Greg
05/18/2006 - After years of legal battles with Troy-based Ziebart Corporation, 27 of the company's current and former franchisees won a significant binding arbitration award, including nearly $2 million in damages.
After years of legal battles with Troy-based Ziebart Corporation, 27 of the company's current and former franchisees won a significant binding arbitration award, including nearly $2 million in damages for breach of contract and product liability as well as declaratory relief to guide the future actions of the parties. Norman Yatooma & Associates in Birmingham represented the Ziebart franchise owners covering nine states. This month, Ziebart made good on the final payment from the arbitration award.
In a lawsuit originally filed in Wayne County Circuit Court in August of 2001, the franchisees alleged that Ziebart violated its franchise agreements through overpricing of chemicals and other products. In particular, the suit alleged that Ziebart violated its contracts by not providing products to franchisees “at or below competitive market prices.” In addition, the franchisees alleged that Ziebart provided defective Formula Q, a rustproofing sealant, among other issues. Ultimately both parties agreed to submit the case to binding arbitration before the Honorable Barry L. Howard, former Chief Judge of the Oakland County Circuit Court.
Judge Howard’s award declared that the “at or below competitive market prices” term was ambiguous and therefore construed against Ziebart. The award declares that Ziebart may define the term but only if it is consistent with the license agreements between Ziebart and its franchisees. Judge Howard also declared that Ziebart breached its contracts from late 1998 through 2003 by charging the franchisees prices for Formula Q that were not “at or below competitive market prices.”
After initial failure to willingly pay off the Judgment, NYA secured a writ of execution against Ziebart and seized the company's property at its Troy, Mich. headquarters. Along with five court officers, three movers and two moving trucks, Yatooma entered Ziebart's headquarters to empty the facility. To stave off the closing of its headquarters, Ziebart's CEO Tom Wolfe remained over night with the court officers at the headquarters and accompanied them to his bank the next morning where he withdrew $200,000 of his funds.
Accordingly, Ziebart agreed to make monthly payments ranging between $50,000 to $70,000 plus interest, with such payment automatically doubling if Ziebart is one day late.
"The receipt of the final payment of this judgment and the judgment itself is a significant victory for the Ziebart franchisees as well as consumers who will enjoy lower prices," stated Yatooma.