There is No Down Time with a Pirtek Franchise
Joel Furfari writes in the Gwinnett Business Journal in an article titled, “Don’t get hosed” how on a typical construction site or in a factory, time is money. Broken machinery can derail a project’s schedule and send it way over budget.
Mike McCarthy, president of Pirtek Norcross, says the culprit in such malfunctions is often a faulty hose. That’s where his company comes in.
“In a typical scenario you have a company out at a construction site laying pipe or moving earth. They have their big heavy equipment and it’s 8 a.m. on Monday morning and suddenly this machine blows a high pressure hose,” he says. “In the old days what would happen is they’d send a mechanic out there, he figures out the problem, goes back to a hose shop to buy a new house and then goes back and install the hose. It would take three or four hours.”
Five years ago McCarthy, after a career as an electrical engineer, purchased a franchise covering half of Metro Atlanta from Pirtek. The Australia-based company has grown quickly in recent years as the demand for on-site hose replacement grows.
“I spent 25 years in the corporate world with General Electric and then five years with Siemens,” says McCarthy. “I had spent my entire career in businesses that sold services and products to big industrial customers.”
By the time he made vice president at Siemens, McCarthy, a native of Dublin, Ireland, decided he wanted to run his own company.
“I started looking around at what kinds of businesses were available. I decided that I didn’t want to start from scratch, and I eventually I found out about Pirtek,” he says.
McCarthy’s franchise covers the entire Atlanta region north of I-20 and has grown from three to five service trucks since it opened. He expects demand to continue rising and says there’s an “unlimited market” for Pirtek’s services due to the wide variety of customers that must deal with hose failures. Pirtek Norcross currently has seven employees.
“I thought Atlanta would be a very good market for our products and services,” he says. “We’re kind of like the Triple-A of the hydraulic industry, so in a city like Atlanta, where time is money, the service has been very well received.”
Each Pirtek truck is stocked with the hardware it needs to replace hoses and fittings on any type of machinery, usually within an hour. McCarthy says users of hydraulic construction machinery and manufacturers tend to be major customers. Other industries such as recycling and transportation are major users as well.
“The key thing in a hose is what goes on the end of it,” he says. “There’s a huge variety. We carry over 700 different fittings on our trucks, so we can build our own assemblies right there on site.”
Pirtek’s business model relies on one-time fees instead of a subscriber-based model.
“They call us when they need us, so it’s a very economical proposition for them,” McCarthy says. “If they don’t need our services, they don’t have to pay for us. Our business model is based on having a wide base of customers.”
This past December Pirtek Norcross repaired the Salvation Army’s mobile command center that had been used for Hurricane Katrina relief in New Orleans.
“We were looking for a company that was not only local and available but that would come directly to us to make the repairs,” says Christie Sutton of the Salvation Army. “We knew Pirtek’s track record was pretty impressive and sometimes just knowing that the job will be done and done right is all that matters.”
Learn more about the Pirtek Franchise Opportunity.
Jim Coen, Mr. Franchise
I have learned franchising from the ground up. I’ve been a franchisee for a bad franchisor. I’ve worked for good franchisors and I’ve worked for marginal franchisors. I’ve helped many franchisees succeed.
I provide a consulting process that saves you time and money in your franchise search and provides you with the tools to make the right choice for you and your family.
Call: 617-469-3002
Comments
Pirtek and its franchisees fail to comment on the business after 3 or 4 years. Most Pirtek centers fail or are refranchised. Ontario, Ca. Tucson, Az. Portland, Or. Anahiem, Ca. have all failed. The centers in Miami, and New Orleans, and Tampa were “terminated” after filing an arbitration based on over charging the franchisees for product. A franchisee in Dallas sued PirtekUSA and won because PirtekUSA passed out confidential information to the new franchisee. The numbers do not lie, so check the numbers, ask all the question before you get involved in any franchise, and certainly before you buy a Pirtek. Pirtek even sold a center to a poor guy while they tried to shut down a terminated center in the area. The franchisee and Pirtek lost thier case, the center closed within 18 months. Pirtek has grown only marginally in the last ten years, the center in San Diego, a very early center is now in financial trouble, with its second owner.The center in Allentown Pa, shut down. The center in Clearwater, Fl. resorted to buying a second territory because its current territory is a non-starter,its sales lag far below what is required to be anything more than a low paying job for its owners. Its a very expensive franchise with very low rewards.Get references from past franchisees, better yet just don’t buy a Pirtek.
Pirtek is a great franchise system with over 300 Centers operating around the world. However, like any franchise system, including McDonalds, there are certain individuals that buy a franchise and then choose to not follow the system. The author of the blog, Scott Layer, is one of those individuals who refuses to accept the fact that he was the cause of the failure of his franchise. As is the case on the internet, his email is filled with a lot of inaccuracies. And, in fact, he chose to file for bankruptcy to avoid his creditors. He started a lawsuit against Pirtek that was won very handily by Pirtek.
Pirtek is an award winning franchise that has even been voted International Franchise of the Year by the HSBC bank. We are very proud of the millionaires we have made. It is such a good business that a number of our franchisees have signed on for their second or third Centers. If you have an interest in a Pirtek franchise, and getting the straight facts, please don’t hesitate to call Gwyn O’Kane at 321-504-4422, or myself, Morgan Arundel. I am the president.
Business is about the numbers, so research the numbers carefully and make sure the numbers are as accurate as possible. Mr. Arundel fails to tell you that many of his franchisees are/were in excessive debt,(above and beyond operational business debt) some franchisees were in debt to Mr. Arundel or his company that they could not pay. He fails to mention that there are a very small number of centers operating in the U.S. despite his forecasts for 300 centers. Currently Pirtek is number 447 on the Franchise 500 list, down from 445 last year. It is a reach for Mr. Arundel to compare McDonalds to Pirtek. The 9th Circuit Court of Florida ruled his business is “nothing unique”, “a fungible commodity”. (wilcox vs pirtek) The research that any prospective business owner conducts should be verifiable. In regards to Pirtek, you would want to ask about the following people or realtionships in these areas. Bobby Moore, Dick Wilcox, Mike Whitehead, Dan Pridemore, Paul Gorney, bankrupt center in Ontario Ca, bankrupt center in Anahiem Ca, bankrupt center in Tucson Az, bankrupt center in Portland Or, bankrupt center in Nashville Tn, bankrupt center in Allentown Pa, and the list can go on to include two centers closed in Connecticut, center closed in Pittsburg, center closed in Boston, center closed in Houston, center closed in the Carolinas, there are more and the list of failures/closures continues to grow. I agree with Mr. Arundel that there are many inaccuracies on the internet. Some of those inaccuracies are Pirtek related.
If you have an interest in Pirtek and getting the straight, verifiable data and verifiable facts please don’t hesitate to call me (813) 318-1258 or e-mail me at fixxme@aol.com. Thank you and good luck in your search.
I have owned a couple of small businesses in my life. I briefly looked into Pirtek in an effort to diversify. I found Pirtek to be too risky for me. I currently do between 2 million and 3 million dollars per year. For me money was not really a problem. I went another way and based on the fact that some Pirteks have closed I think I made the right decision. Make sure you ask all the questions you can and talk to every franchisee. I agree with Scott Layer, you might want to stay clear of Pirtek. You can contact me at the e-mail above. Thanks, Mike.
UPDATE. Pirtek Nashville Files For Bankruptcy. This location was recently sold for more than $300,000, this location has now had three owners and has now filed for Bankruptcy twice. Many locations are either for sale or are on the brink of bankruptcy. You really want to research this franchisor before you get involved in the mobile hose business. There are 38 or so locations, most have been Re-Franchised or closed or Bankrupted. This is a bad business when you consider the risk. Anyone considering a Pirtek would be better off doing it on thier own, you will reduce costs, increase profit margin, and not have the stigma of failure and bankruptcy that Pirtek has. Google Pirtek Nashville bankruptcy click on link concerning Hose Co. If you want to know more contact me at Fixxme@aol.com or call 813-318-1258. I will be happy to guide you through the Pirtek failures as well as the way to provide mobile hose service in a profitable way. Goodluck, and I want to thank all of you that have contacted me and made this a great experience. Please call again if you have any questions. Scott Layer.
I am very happy to be a Pirtek Franchise owner in Plano, TX for the last 3
years. I have struggled a little bit in this economy, like everyone else,
but I am proud to report that my business has increased significantly over
the last 12 months while I have watched several businesses close. Pirtek
has over 300 Centers in operation around the world and is number 1 in the
world and number 1 in the U.S. in mobile hose replacement.
In several of Scott Layer’s erroneous blogs, that he has scattered across
the web, he mentions the arbitration in which he was instrumental in
bringing against Pirtek USA. What he fails to mention is that the result of
that arbitration found that Pirtek charged fair and reasonable prices. In
fact, the Centers that brought the arbitration ended up paying all of
Pirtek’s legal bills because Pirtek won the arbitration. In January 2006
Scott called me (before the arbitration) and he tried to inject fear and
uncertainty and he tried to convince me that the Pirtek system did not work.
Scott seemed to want to stir up trouble and do harm to the Pirtek system.
Eventually he gave up on recruiting me into his campaign. The bottom line is
that Scott failed and I believe he wants everyone else to fail just like he
did.
The Pirtek System is not for everyone. It requires hard work and diligence,
just like any business. However, if you follow the Pirtek System and grow
your business like 300 other franchisees around the world have, the rewards
can be very big. That’s why 6 of the Pirtek Center owners own more than 1
Center and some have signed on for a third Center. I am glad to be a Pirtek
Center owner and have already signed on for another one too! -David Johnson, Owner Pirtek Plano
Update: Jan 26 2009 Pirtek Nashville now company owned store. Yep, Pirtek takes over another location because the 3rd owner could not make it in Nashville! I recently called Pirtek Nashville and confirmed that PirtekUSA has taken over the store. The technician that answered the phone said business is slow and that the franchisee that purchased it is no longer the owner. Do not get ripped-off, make sure you know who and what you are dealing with when it comes to buying a Pirtek franchise. More Pirtek locations have been re-franchised, Terminated or closed, than have been successful. Gil Moyers, PirtekUSA employee, is now running Pirtek San Diego, another location that is for sale. Other Pirtek advertisements claim Gil Moyers was running Nashville, when I talked to him he said his job is to ramp up sales so PirtekUSA can sell them. If you have questions please call me, 813-318-1258. Scott
“Let me reply to Mr. Layer’s email. I am a Pirtek franchisee located in
Detroit. I am in the worst economy in the U.S. The Pirtek System is one of
the best franchises around. In fact, as I see a number of other restaurants
and other franchisees fail, I am really glad to be part of the Pirtek
System. While I keep reading about a lot of other businesses sales go down
in the past year, in fact, my sales are up over 20% over last year and I
just set an all time record! The Pirtek System works for those that follow
the Pirtek System. Is it possible to fail? Absolutely, just like in any
business. But, I will tell you that I have now opened my second Center
which is doing great and I have signed on for my third. The Pirtek System
is a system that works and gives you a great chance to make some real money.
But, you have to follow the Pirtek System.”
Thanks, Eli.
We thought you might like to know Pirtek-Monroeville is celebrating our 5th year anniversary as a service provider for our hydraulic hose & fittings customers.
Our center is located just outside of Pittsburgh, Pennsylvania. My wife and I are the original owners who started this business from scratch with zero customers. We built the business and reputation by providing companies with a unique service that frees customer’s personnel to be more productive on their job while our trained technicians repair equipment with the correct product quickly. We are very proud of our growth. In the Pittsburgh marketplace we realized potential customers were reluctant to try this unique service. However persistence and meeting the one hour ETA claim convinced customers we save them from longer downtime thus saving money in the long run.
Yes owning a business or a franchise is a very risky consideration and if you’re not willing to put time and team energy into it every day of the week, then select something safer but much less exciting. The Wall Street Journal, Small Business Report, Monday, February 23, 2009 shared an interesting article titled “So you want to be an entrepreneur”, by Kelly K. Spors. When my wife and I read it we realized we met all the criteria but didn’t know it until five years later! Risk, financial sacrifice, passion, execution of ideas and truly being a self-starter never has been more important held attributes than in today’s business climate.
Please visit us at our web site and click on ‘NEWS’ tab to read about our latest job re-hosing a huge drill rig for new customers in West Virginia.
http://www.pirtekusa.com/fwp/monroeville/
I think its great that Matt and his wife are happy. Of course they never mention what the sales are, or how much profit. They never tell you how they are doing in real numbers, but I hope they do. I am asking now, please give us some numbers…if you are so proud please post them!. Matt does not mention anything about all the closed locations or the bankruptcies. What Matt does tell you is that Five years after purchasing a low paying, high risk job that he read an article that rationalizes his purchase. Rationalizition is the most dangerous form of thought.
While Matt and his wife may work long hard hours, and build a team, it would be nice to get some details. It is not enough to say they are proud of their “growth”. It is not enough to say “we are in it, so we must be proud!” If you have ever owned a business you know, as I do, that business is about the numbers. Pirtek is great if you want to take a big risk by borrowing money on your home, pay yourself a low wage, have your wife, and sometimes, your kids work long hard hours to make a small wage. I feel sorry for Matt and his wife, more than one marriage has been destroyed by owning a Pirtek. Call all the other Pirtek locations scattered around the country. Call Matt and get him to tell you his numbers. I hope you get them. If Matt dodges the question then you know its all hype. Word on the street is that Morgan Arundel is offering free shipping to franchisees that blog positive statements. Pirtek is in business to sell franchises, in 12 years Pirtek has managed to get to 35 franchises while losing, closing, reselling, terminating and/or having go bankrupt a majority of the locations.
If you like risking $500,000, (which by the way is not starting from “scratch”) and trying to sell over priced NON-American made hose that franchisees are forced to buy from PirtekUSA then by all means buy a Pirtek location you can call your own. I would suggest the Atlanta market and the Pittsburgh market, as well as Detroit. I hear the Orlando Market is ready for some expansion.
The more money you have to bring to the table the better, but about $500,000 should get you to the “Come to Jesus” conversation you will have with your family and bankruptcy Attorney when the money runs out in about 4 years. On a personal note, I would like to thank those of you that have told the whole truth, and have determined that PirtekUSA sold you a poor performing business. Honesty is hard to find, I am sorry that most Pirtek franchisees feel duped. I encourage all past and present franchisees to speak up, I encourage nothing but the verifiable truth. In the end, that is all that matters. So Matt, and those like him please tell us more. Tell us your profit, tell us how your day goes and tell us the financial rewards you have achieved by owning a Pirtek. Until then remember more Pirtek locations have been closed, gone bankrupt or been sold for a loss than have been successful. Pirtek is a bad business, and the numbers indicate it is. If you have any questions please contact me at 813-318-1258, good luck. Scott
Boy Scott,
If you spent this much time working on your OWN life
maybe you wouldn’t be such an angry, pessimistic person.
Boy Ron,
It is good to hear that you have read all my blogs. Its not very fun getting phone calls or e-mails from Pirtek Franchisees about to go bankrupt, maybe that is why you assume I am pessimistic or angry. I might spend two or three hours a week helping prospective Pirtek franchisees make the right decision, but I find consulting very rewarding and profitable, so I am sorry that you have interpreted my message as angry or pessimistic. I am hoping to open a website soon that will outline what I know is wrong with Pirtek. I think people should have access to the Pirtek bankruptcy statistics and Pirtek legal problems and all the problematic hydraulic issues that help Pirtek franchisees fail. The franchise failure rate at Pirtek is extremely high and I think Pirtek is an unsavory business, pointing out the short falls of any business is my objective, Pirtek is just an example I use often. Please let me know if I can help you in your search to buy a business, my fees are reasonable and the information I provide is not very easy to find on your own. I can save you lots of time and help you find a business that works for you, not against you, like Pirtek. If you have any questions please call me, 813-318-1258. Have a great day, Scott
As you know from reading my blogs I am not a fan of Pirtek. I have tried to warn prospective business owners of the risks associated with buying a Pirtek Franchise. You may recall that just four months ago Mr. Johnson, owner of Pirtek Plano(Dallas Tx), was very complimentry of his Pirtek Franchise. Mr. Johnson contridicted my statements regarding the value of Pirtek. David Johnson further stated that business was so good that he had signed up for his second Pirtek Location.
You will be interested to know that based on numerous calls to Pirtek Plano, 972-423-1111, and e-mails directed to me, that Mr. Johnson has closed the Pirtek Plano location. It looks like the mustard is coming off the Hot Dog.
If you have any questions regarding Pirtek or the many closures and Bankruptcies please call me, 813-318-1258, or e-mail me fixxme@aol.com Thanks to Ron and the many others that have contacted me. Kiwi, are we still having fun?
I have been watching this blog with much interest. As I indicated before the businesses I own have provided me with a fabulous income. However, I have always tried to invest my cash flow into businesses that I feel will generate more return on my money. I have investigated Pirtek before and passed on this idea because it seems too risky. I called Pirtek in Plano Texas (near Dallas) and it seems that Pirtek in Plano is closed. I have been involved in my business for 26 years and have never seen the Franchisee turnover that I have seen in Pirtek. In my opinion it would be a very bad choice to go with this franchise. Be careful with this one! I agree with the postings of Scott Layer.
Email me if you are considering this franchise. I am a neutral party in this matter, but I think Mr Layer is right. Thanks for allowing my input. Mike Domingue.
Pirtek need to be stopped on September 5th, 2009 12:50 pm
Pirtk UK are just the same Scott, ask about Slough, Cambridge, Bridgewater, Poole & more
Not only terminated, CCTV ripped off walls whilst they STEAL everything to stop you trading. Do some digging a get court records for the Ltd companies that ran the above centres in the UK over the last 10 years.
All on record, this is not just any franchise, it is corrupt to the core & we have full records to prove it.
Scott,
You remind me of that woman on Seinfeld who hated Jerry and her whole standup routine was bashing Jerry Seinfeld…”Jerry Seinfeld is the devil.”
I hope your consulting gig is profitable in your attempt to tear down the profits of other hard working folks.
You keep asking for everyone to reveal what their profits are (unrealistic expectation of any owner); why not reveal why you hate this company so bad. Every company has skeletons in the closet. I sell medical devices and there is not one mfg that does not have lawsuits pending.
Rich
If you have read this far you should check out http://www.bluemaumau.com and http://www.maybenow.com. The posts on these websites tell it like it is concerning Pirtek.
This is for Rich.
Rich, If I really “hated” Pirtek I would have opened my own website long ago. I just post the truth here and there. (although, I might open my own website, I just have not done it yet)
Rich, my suggestion is that you buy a Pirtek Franchise. After you sign the contract with Pirtek look up Scott McGee, his claim to fame was that his career was just like yours, “Medical Sales”. Scott McGee purchased Pirtek Nashville for about $450,000, he must have loved it, I am sure you would too.
Oh, yea, I almost forgot. I have Scott McGee’s Pirtek Bankruptcy file. I can send you his Bankruptcy files if you want a look see.
In the end, it is idiots like you Rich,( see Richard Solomon’s article about “morons” that buy Pirteks) that attack me personally and buy a Pirtek. Paul Bowes attacked me, he is bankrupt after he purchased a Pirtek. David Johnson attacked me, he is Bankrupt, he did’nt listen to two Pirtek franchisees that told him not to buy one. Neither one of these sad, and now broke individuals listened to me. Go ahead Rich, make my day, buy a Pirtek. (I doubt you have enough money to buy one anyway)
My “Gig” consulting is perfect for me and fairly profitable, not six figures profitable, but nice. If PirtekUSA shuts down I will have accomplished just one more goal. One of my early goals was to help Paul Bowes go Bankrupt, which happened. I have other goals too, all moving along very nicely.
If PirtekUSA changes how they do business I will have to direct my attention toward Rita’s or some other franchise like Sign-A-Rama, either way I win and help people at the same time. Have you even read the other posts from my supporters? No, probably not. Rich, here is PirtekUSA’s phone number. 1-888-774-7835. Tell them I sent ya!
If you have questions concerning Pirtek, or need more information feel free to call or email me any time. Thanks, and have a great day. Scott Layer, 813-318-1258 or Fixxme@aol.com
Here are some cases where a lawyer brags about kicking some Pirtek franchisees around. This is the complete listing. Here is a practice that revolves around very few clients..but Pirtek franchisees are attacked often. This is probably good publicity if you are a franchisor, but it seems onerous if you are a Pirtek franchisee. The truth hurts. The numbers do not lie, people do. When it comes to lawsuits and bankruptcies and terminations and closed locations the record is very clear concerning Pirtek. Its a bad business, unless you are this lawyer. Think about it..
* Pirtek USA, LLC v. Bobby Moore, et al, American Arbitration Association, Case File No. 33 114 00360 07 (AAA 2008) (enforcement of noncompete agreement, attorneys’ fees provision, and personal guaranty against former franchisee)
* Wilcox et al. v. Pirtek USA, LLC, America Arbitration Association, Case File No. 33 114 Y 00030 05 (AAA 2006) (litigation by and against a group of franchisees concerning pricing of product and enforcement of post-term obligations)
* Pirtek USA, LLC v. Wilcox, Bus. Franchise Guide (CCH) 13,511 (AAA 2007) (enforcement of franchisor’s noncompete agreement and award of lost profits against former franchisee)
* Wilcox et al. v. Pirtek USA, LLC, Bus. Franchise Guide (CCH) 13,404 (AAA 2006)
* Pirtek USA, LLC v. Zaetz, 408 F. Supp. 2d 81 (D. Conn. 2005)
* Pirtek USA, LLC v. Layer, Bus. Franchise Guide (CCH) 13,357 (D. Fla. 2005) (enforcement of franchisor’s noncompete agreement and other post-termination obligations against former franchisee)
* Auto-Chlor System of Minnesota, Inc. v. JohnsonDiversey, 328 F. Supp. 2d 980 (D. Minn. 2004)
* Tatan Management v. Jacfran Corp., 270 F. Supp. 2d 197 (D.P.R. 2003) (order holding that franchisor was justified in terminating franchisee’s franchise rights)
* RE/MAX North Central, Inc. v. Cook, 64 Fed.Appx. 562 (7th Cir. 2003) (affirming franchisor’s award of damages and attorneys’ fees on trademark infringement claim)
* RE/MAX North Central, Inc. v. Cook, 272 F.3d 424 (7th Cir. 2001) (affirming courts order granting of preliminary injunction on franchisor’s trademark infringement claim)
Write a Comment