How to Terminate a Medical Spa Franchise: Letters of woe.

It seems that I'm being type cast as a medical spa vigalante and I'm being sent all kinds of medspa franchise stuff.

There's been more than a few questions about how to terminate a medical spa franchise. Since people have sent me info, I've uploaded some scans of letters which franchisees have terminated their franchise agreements with.

Both of these letters were sent ot Radiance Medspa Franshise Group. I've been told that neither letter received any kind of response. That seems to speak volumes.

Successful franchisors make their money from royalties. The 'franchise fee' to a large extent is for training and startup. It's telling that in these instances at least, the franchisor let the franchise go without so much as a phone call. (Of course no one got their $80k back.) I'm curious about what other Radiance owners think?

So, for whoever requested this type of info.... here they are. 

The follwing links will take you to the scans of the letters. All identities have been removed from the letters.

Medical Spa Franchise Termination Letter 1

Medical Spa Franchise Termination Letter 2 page 1

Medical Spa Franchise Termination Letter 2 page 2 

Comments

[ODB]

What is going on out there. It sounds like there's not a happy medspa franchisee in America. I'm surprised that there's not a lynch mob marching to Arizona? Then again, perhaps there is.

[MichMD]

Do all these problems with medspa franchises, etc point to the most obvious simple solution?: Do it yourself, in your office or adjacent to your office and run it yourself as part of your practice. For the life of me, I can't see going into the hole $500,000-$1 million right off the bat and expect to recoup that any time soon when a $50k machine right in my office will probably make more profit and less headache. Am I missing something here?

[WideEyedMD]

Wow. I just stumbled across this site (actually it was emailed by a colleague who heard I'm interested in making a move.)

I'm impressed with the openness of the discussion. Every other site I'm aware of is basically just an online press release. Thank's to all who are posting. I hope to be able to add something of value.

And BTW, my move won't be to buy a Radiance Franchise.

[RadFran]

I think this pretty much sums up the feelings of Radiance Owners. They had to band together and spend thousands of there own money to create marketing which is suppose to be part of everyone's turnkey agreement. They have lost the source of financing for franchisees because of corporate fraud. I think every owner could write these same letters. One of these writers just changed there name, signage etc and "re-opened", the other I believe just shut down. Nobody knows who works there because there is little contact and turnover is high. Chuck is a fraud and a true con. Pretty hard to continue to sell franchises when all your franchisees are going to jump ship. Look at the mess you can make when you oversell and do not deliver.

[medspabuzz]

Sounds as if Radiance Medspa Franchise Group is a mess and needs a reorganization and some cash. I guess if they let there franchisees go that easily they should consider it. Possibility to salvage your investment besides the franchise fee and anything else you may feel they blindly lead you into.

[RadFran]

I don't think you could give away your franchise based on current circumstances. Like many posts here, the do it yourself theme seems the only logical solution. What would be any different at this point?

[medspamarketer]

I hear Acara is looking to acquire medical spas. Even franchises.

[RadFran]

Any Particular area or region of the country?

[medspamarketer]

I don't think it matters. They've talked to medical spas all over the country.

[justcurious]

Medspas of America is also looking to acquire existing medspas. They purchased the Solana Med Spa franchise in Alabama in late 2006. Supposedly they will be rebranding the medspa (along with all the others they acquire) to the Virtuoso brand. Honestly though, and it's just my humble opinion, I don't think the medspa will do any better. The general public tends to be skeptical of businesses with ownership turnover, especially in less than 2 years.

[RadFran]

I need to move on, the writing is on the wall and I am only 8 months in. I need a doc who wants to take this place to another level and leave the franchise behind.

[Medspa Manager]

It really is a sham this so called Radiance Medspa "nothing" $80,000 up front. Take your money and run!! That is Chuck Engleman's way to do business. He has mirepresented himself in every aspect of his life. Nothing but a used car salesman. Do you have a conscience at all? You know what they say? Every DOG has its day. Your time is up.

[?]

Folks,
Radiance appears to be in rough shape. Take a look at how many lawsuits have been brought against them in AZ alone:

http://www.superiorcourt.maricopa.gov/docket/civil/caseSearchResults.asp?lastName=&FirstName=&bName=radiance&x=0&y=0

There are at least several others in other states, Oregon, Colorado, not to mention the 23 franchisee lawsuit. They apparently aren't even fighting or responding to some of them as they suffered default judgements and their income is now being garnished directly from franchisees.

I heard that the franchisees started a discussion group of their own and many of them shared how much more expensive the business was to start and run than they were told. Few, if any, were profitable and several were attempting to get out. Radiance found out about the group and started monitoring the discussions so it ended.

They were apparently also refusing to refund franchise fees to buyers who discovered their financial misguidance and tried to legitimately rescind. There is a great 20/20 or 60 Minutes story here.

[keith]

Actually, I went to their franchise seminar about 3-4 years ago.
I'm glad that I decided not to join them.