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I have seen numerous reports of closed or terminated Pirtek locations. How can I get more information and details about these Bankruptcies and closures? It seems like $500,000 is a lot to risk on such a poor performing business, how do I confirm all the information I have? I even read in the Pirtek Franchise Agreement that past and present Franchisees were not allowed to speak openly about their experience with the franchise! I would like more information on the failure rate of this franchise.
Tags: Failure, franchises, Pirtek, Rate
Report (0) (0) | 12 years, 9 month(s) ago
Pirtek is a very poor business choice.The Pirtek business model has proven faulty and many experts agree that staying away from this franchise is now prudent. Pirtek Franchisees continue to lose money and squander precious resources. From a historical view it is without question that Pirtek has reached its apex, and is now on the decline. Nothing illustrates this more than the incredible failure rate experienced in the United States. Recent declines in the credit markets as well as major declines in most areas of the economy all contribute to the lack of profits at Pirtek. Pirtek products are negatively effected by the devalued dollar, pirtek product is produced overseas: Logistics hurt the already thin margin on this commodity. Historically, Pirtek saw only slight growth during an unprecedented economic boom in the USA. The poor management team at Pirtek, as well as recent trends to reduce emergency repair costs amongst it's customers (emergency repair of hydraulic hoses is the primary plus Pirtek relies on) result in little or no margin. Cash flows in the major markets that Pirtek serves are notoriously slow. Training cost, employee turn over and market penetration are all negatively impacted by Pirtek's pricing policies that rise at four times inflation and start high to begin with. Franchise Contracts: there is much agreement that one-sided, take-it-or-leave it, franchise contracts, like pirtek utilizes, have become so fine tuned that any dispute resolution is unlikely to result in a positive outcome for any Pirtek franchisee. In fact, Pirtek essentially boasts that once the franchise agreement is signed the franchisee is left to fend for itself. The nebulous world of franchising is difficult enough. Now, add to it the false promises of large profits, a workable business model and a strong management team and one soon realizes that purchasing a Pirtek franchise is indeed, not prudent.
Latest activity: 13 years, 2 month(s) ago. This question has 2 answers.