Should I Buy EmbroidMe?

inkman996 · February 11th, 2013, 09:01 AM

Quote:

I don't agree that you could do very well on your own as the support from the franchise plus the buying power we can get helps you grow at at much faster rate

That comment right there just disqualified your statement from having any credibility. You just tried to tell everyone that an embroidery business cannot work with out some Big Brother corporation to help you out. Terrible and ridiculous statement, especially considering the majority of Emroidme franchises do not succeed and yet many many privately owned embroidery shops do.

minimalist · February 11th, 2013, 11:17 AM

Quote:

Originally Posted by jareme

I have to respond to this post because I have owned an EmbroidMe for the last 9 years and have been very successful with this franchise. I am grossing over $700,000 each year the last 2 years plus there are several stores that gross over 1 million! I don't agree that you could do very well on your own as the support from the franchise plus the buying power we can get helps you grow at at much faster rate than if you did it on your own. I did not know a thing about embroidery and have been able to grow my business with the support of the franchise as well as other franchisee's. If I had to do it over again, I would in a heartbeat!

How many heads are you running to get $2243 a day based upon a 6 day week?

Robert Young · February 11th, 2013, 02:39 PM

They did say Gross sales... and it took 7 years to get to that level of 700k where they have been for 2 now. I would just have a hard time justifying paying home office $51,000 per year at this point after running the shop for 9 years!! They already have all the other expenses any other shop would have... rent, utilities, payroll, shipping, supplies, etc... but on top of all that they have to give an additional 51k away.... so you have to sell 100k before you are even with any competitor as far as overhead?

minimalist · February 11th, 2013, 03:02 PM

Quote:

Originally Posted by Robert Young

They did say Gross sales... and it took 7 years to get to that level of 700k where they have been for 2 now. I would just have a hard time justifying paying home office $51,000 per year at this point after running the shop for 9 years!! They already have all the other expenses any other shop would have... rent, utilities, payroll, shipping, supplies, etc... but on top of all that they have to give an additional 51k away.... so you have to sell 100k before you are even with any competitor as far as overhead?

Robert,

Try 150K at 33%. Adding everything else, maybe 20-22%. At a 25% accounting for no problems their overhead is going to ding them for 200K debt service to the franchise. Unsustainable the way I see it. The whack is the inventory tax (super whack at the 700K) and the property tax if they own the building. Rent alone at a paltry 1K a month is going to set them back 36K at the 33% minimal expense. Like working for free, get into embroidery.

Robert Young · February 12th, 2013, 02:20 PM

ouch... well for all that money you think in today's world their websites would be current... I just looked up one of the local ones here in San Antonio....under the CURRENT SPECIALS tab: "Offer ends Oct, 2011"

inkman996 · February 12th, 2013, 04:18 PM

What I wonder is if you earn buying power with the vendors by being an embroidme franchise r does embroidme only do the purchasing? I would hate to spend thousand upon thousands a dollars for years and not have any buying power what so ever if I decided to go out on my own, or as in the case of the above poster he would waste tons of cash and open a second embroidme. Some people never cease to amaze me.

Robert Young · February 15th, 2013, 04:11 PM

Well I think the original question has been answered quite vocally. . the ONLY posts that say YES.... 3 of them are from people that THIS IS THE ONLY THREAD THEY HAVE EVER POSTED IN.... and the 4th is from a person that has 6 posts and this is the ONLY one concerning embroidery. hmmm.... makes me wonder.

jareme · February 18th, 2013, 04:18 PM

I have 6 heads and do very well even though some in this forum seem to think there is no way an Embroidme franchise can prosper. Well, it can. One additional thing that the franchise does is that even though we pay a 6% royalty, that royalty is capped at $45,000 per month, so once you go above that monthly amount that is no royalty or Ad fee. How many franchises have that? I would say "0". We have plenty of support and education and I only see my business continue to grow. It did not take me 7 years to get to 700K as suggested above (only 3)and not paying anywhere near 51k in royalties( see above comment).You need to take the time to see both sides of the story and do your homework.

Robert Young · February 18th, 2013, 05:48 PM

Hi, not arguing whether you can prosper or not, just that your base line is obviously much higher because you have royalties to pay on top of all the normal bills your competitors have... so just have a hard time thinking that the 45k(assuming you meant per YEAR? not month as you wrote) is worth it. And the site does not mention a cap.. just that 6% for royalty, 1% for advertising and then the web hosting and site fees.

OR do you mean you only pay fees on your gross up to 45k per month? again that sounds MUCH better but it is not in their advertisments on the site.. so if I were looking at the buying of a franchise that is a HUGH difference.... most people probably see that and think what we thought... make sense?

Sorry, I got the 7 years to get to 700k from your quote: " I am grossing over $700,000 each year the last 2 years" not the last 6 as it now seems to be? maybe we are wrong in our opinions, but we can only go off what we read on the site and what you tell us, and so far both seem to be clear as mud. sorry. please clarify. thanks.

inkman996 · February 20th, 2013, 09:37 AM

Quote:

I have to respond to this post because I have owned an EmbroidMe for the last 9 years and have been very successful with this franchise. I am grossing over $700,000 each year the last 2 years plus there are several stores that gross over 1 million! I don't agree that you could do very well on your own as the support from the franchise plus the buying power we can get helps you grow at at much faster rate than if you did it on your own. I did not know a thing about embroidery and have been able to grow my business with the support of the franchise as well as other franchisee's. If I had to do it over again, I would in a heartbeat!

See the part I high lighted? Well thats BS and only something someone from with in Embroidme would actually say, you know a pushy salesman tactic! Your talking about 9 years of business and it took seven to get to 700k gross, that is not much really if you think about it. Not to mention a slice of that 700K went to the franchise oh yea. Sad thing is you are talking to people that are in this business and know it top to bottom, you cant BS us with that crap.

I have no problem with someone needing their hand held by a big daddy if thats the way they want to do business, but to claim its the only way it can be done is ignorant, especially when your claiming a whopping 700K yearly gross after nine years.