Hey, it’s Dan. Welcome back. You’re watching IAllegedly and I’ve got a good one for you today because we’re going to talk about the worst financial decision of my life and please hit the like button, subscribe to the channel, but let’s get right into it. I’m at the Flamingo Sanctuary at the Flamingo Hotel so I spend another day at the conference out here in Vegas which has been fantastic. Those of you on the private channel, you guys are going to have a plethora of good videos. But I want to thank Gary out of Florida for sending me this one because we talked about Dickie’s barbecue last week and how all of these franchisees are failing and they’re shutting down.

Here’s the one, Scott Rafer. This guy was in Long Island and this guy had what he thought was going to be a very successful franchise and here is the thing about this guys, people buy these things and end up having a job where they work 80, 90, 100 hours in a week because they can’t get people to work there. They are tremendous, you know, and have a tremendous amount of debt and Mr. Rafer talked about how, you know, all the financial projections that the, that the, you know, the owner, Dickie’s, told him none of them came true, not one of them.

And the thing about this that I want to discuss this with you is that it is crazy, guys, how people go out and they buy these places. You have a franchise fee. You’ve got to pay them to be part of this. You’ll have a startup expenses. They anticipate, hey, listen, it’s going to cost you half a million dollars to get your place up and running. So most people say, oh, that’s good. I’ve got half a million dollars and then they don’t realize that $500,000 is actually going to be 800 grand.

Uh-oh. So with that, it gets completely out of control. And then you have ongoing royalties. And like he said, and a guy named Stephen Raffin said, is that you have all they do is make the money. Dickie’s makes the money. The franchisees do not make the money. So again, guys, this is one of those things that if you think you’re going to go strike it rich with these places, it doesn’t always work. Now, my attorney has a client that is incredibly successful owning franchises. He owns multiple Taco Bells and this guy is loaded.

He just bought a house in excess of $20 million and owns real estate and bought his employees to keep them happy, bought them houses between six and $700,000. So some of these people make a boatload of money. Let’s put it that way. But not everybody. That’s the problem. And when you hear these stories, it’s like, you know, people do insufficient research in these places. People don’t discuss what it takes to run a business. You know, when you look at this, people don’t realize that the restaurant industry, food service, all we talk about now is the labor cost and how everybody wants to get $20 an hour.

Now, here’s the thing. If you don’t think that this is going to be a problem, you’re kidding yourself. Everybody hears about California. Hey, man, they’re getting almost $21 an hour. Now, I want that. You know, they misunderstand about support that they’re going to get from the dealers and from the man from the main company. You know, failure to thrive, poor franchise performance. I mean, poor market research, all this stuff, you know, here’s the wild thing that I wanted to cover with you guys. Subway. Subway, the sandwich shop, went through just a huge franchise boost and added all these stores in the early 2000s.

At one point, they were larger than McDonald’s. In 2016, they had over 44,852 locations globally. McDonald’s had 40,000 at that point. Now, McDonald’s has fallen off too. McDonald’s isn’t the cash cow that everybody thinks it is today. So that’s completely ridiculous. Now, since that time, you know, you had during that time during its peak in the United States, there were 27,219 subways. Now, it’s dropped off 7,500. They did such a such a horrible thing to the people that had franchises. Think about this. You have a franchise and they could sell another franchise within one mile of your location.

One mile, guys, one mile. Now, in the city of Tustin, California, I remember there was one point in time where there were three subway sandwich shops within a mile of each other. And it wasn’t a mile as the crow flies. It was what they, the shenanigans was the driving directions. Well, you go down this street, you go down this street, and I’m like, wait a second, I could throw a baseball to the other subway location. These owners never, ever thought about this. So, you want to lose your hide, you want to go do this and be completely broke and upside down, go get a subway, go do it.

So, completely wild. And I want to thank, again, Gary from Florida, thank you very much for sending me this because it was unbelievable how upset these people are and how they’ve just gone, you know, thinking that they’re gonna get rich and they’re nowhere near getting rich doing this. So, I want to cover more of this. And with the economy, so much is going on right now as I walk through the, this area. You know, it’s funny, all these companies are giving the federal government, they’re giving them different access to different things.

You know, Tim Cook last week gave the president, you know, a gold-based plaque, you know, with crystal and it was all nice and pretty and everything like that. That’s wonderful, okay. Amazon, think about this, Amazon just gave the federal government for its AWS program. This is the program, guys, that you can run a website on and if you have scalability, if you have a website that could have a thousand people and go to half a million people, this thing scales automatically. It’s very good in one sense, but that, they gave the federal government a billion dollar coupon, one billion dollar coupon to run that.

So, you know, a bakery in California had, you know, a two hundred and twelve thousand dollar charge missing from its bank account. So much so that they froze the bank account because there was nefarious activity and it basically is gonna put the bakery out of business. I am telling you guys, do not, you need to have online access, you need to have printed statements so you can see everything, you need to know who to talk to at your bank so that there’s never a problem with this because if you think that they’re not going to take advantage of your kidding and then the bakery is basically out of business, you know.

We talked about, you know, people wanting money. There was a person that had a bachelor’s degree and two things I want to talk about with this. Number one, a job in computer science. People are graduating from college thinking that they’re gonna go into a business that’s going to give them one hundred and sixty-five thousand dollars a year and AI is replacing these people right now. Isn’t that crazy? So AI is replacing these jobs as people have no potential to get a job and they’re experiencing that. Now another guy got laughed at when he had a bachelor’s degree.

He went out to get a job and he asked for, think about this, he asked for seventeen dollars an hour. Seventeen dollars an hour with a bachelor’s degree. Gotta pay for school, gotta pay for all that stuff. They said no we’re gonna give you nine dollars an hour and they laughed at him, you know. I was making almost twenty dollars an hour in the late 90s as a gardener. Now I’m making less. Yeah, they’re paying people less money. This is the problem that people don’t realize is that your college degree doesn’t mean anything.

Anything, you know. Here’s the other thing is that crumbling roads across the country, think about this. Roads are so deteriorating that is causing so much damage to cars right now and you’re seeing wear and tear, things that the insurance companies won’t pay for. You’re neglect and we’re seeing this. You see it in homeowner policies where you should have fixed that gate and you caused your own fire, you know. Stuff like that to, you know, you should have not driven on that that dangerous road. I mean it’s absolutely crazy, you know.

People are starting to complain about tariffs and we will see in the next few weeks if this is going to be an issue or not. I mean it’s kind of interesting, kind of exciting when you think about that. But the other thing is Walmart overcharge people and got sued. Think about this. They are settling a case and realtor has to pay for 5.6 million dollars. There’s going to be refunds for this but one thing that’s terrible is, you know, you pick up some ground beef and it says it’s 1.2, 3 pounds and it wasn’t.

It was less than a pound and people start realizing. People start saying this doesn’t yet, doesn’t meet the weight that you said it was. Plus people that are loons carry scales with them and weigh things. Started taking pictures, so much so that they got sued with a class action lawsuit. Who knew, man? Who knew? So I love this. I want you to think about this. I’m gonna finish this video, just be a quick one today. UPS, okay, offered its drivers buyouts and they were making like, hey, you know, less than a month ago, three weeks ago they said this is one of the most successful programs we’ve ever seen and everybody’s accepting this and we’re so excited.

Wait a second, you know what they did today? Today they announced that they’re gonna extend it for two more weeks to let the buyers come, to let the drivers make the decision that they want to go out and I’m thinking God, I’ve told you guys, if you guys get a buyout offer, accept it. The other thing is if you get a buyout offer and you’re not happy with it, you know, I have a friend of mine who they let go and he said, listen, I’m not leaving with this, you know, I’m disappointed that you guys are letting me go and I like your four months but it’s not enough.

I’ve given you guys eight years of service and I want more. So what did he get? Six months, plus his insurance paid for a year and some other expense that they were writing a check for. Crazy because he asked for it. Yeah, we don’t want to get sued by this guy so we’ll just give him the six-month severance. Here is, I gotta read this to you because it’s so weak, okay? How much do you think they gave these people? They must have given them a year or two salary to lead.

For every year that you work there at UPS, you get $1,800, okay? The highest workers, they targeted the highest 25% of the wage earners and people that have been there with the most seniority and make the most amount of money so they offered them 1,800 bucks a year. You get a minimum of $10,000. I don’t know about you but would you quit your job for 10 grand right now in this economy? The one that we’re told is so great so these people are out quitting their job for $10,000. Is that nuts? And again, UPS is like, we’re surprised that more people didn’t take this.

Yeah, because the offer sucks out loud. It’s so bad and so awful. I mean, I was absolutely floored when I read this. I’m gonna get the exact numbers for you. Oh yeah, some guy with 27 years of experience at UPS, if you left, they’ll give you $48,600. $48,600 is the most that you could get. No, don’t accept that. I’m telling you, a buyout is a buyout, guys. I would think that they give this guy a quarter of a million dollars to sit there and quit his job. 48 grand to leave a job that pays over a hundred delivering boxes.

Now, you can think about this. For those of you that are in a business and you work inside an office and you have your UPS man, think about that. This guy’s got a good gig. He’s got a route. Yeah, they work a lot. Yeah, that truck is hot. Didn’t have and delivered packages and flirt with people in the offices all day long and have a good gig. Okay, I’m gonna do that. Gonna leave that for $10,000. You guys, UPS is insane that they thought that this was gonna fly, but they lied to the public and told us how great the deal was and it sucks.

Don’t kid yourself. This is an absolute travesty and they know it. Think about this one. Final, final thing that Ford me was remember MC Hammer too legit, too legit to quit. Yeah, that guy. Okay. Well, he just got sued by Land Rover and you can’t touch this. Don’t forget that. Okay. Well, they’re trying to go after his car because they want to touch that, but he went out and bought himself a Land Rover. Now, I would say like, oh, MC Hammer’s in trouble again. But no, those $76,000 on a car that he purchased for $114,576.

Okay. God. You know what I mean? Come on. What do you, what do you, who are you kidding? And now he can’t afford to pay for this. What a shock. What an absolute shock. Okay. So let me know what you think. But MC Hammer’s getting sued. Okay. By the way, his payments. Okay. I’m gonna leave you at this one. $2,433. Whoa. Yeah. Okay. Who, I mean, people out there, you have house payments that are not that much. Let me know what you think. Hit the like button. Don’t forget. We have a private channel called I allegedly live.

Use the link below to sign up for that. Sign up for the email list because one’s going out this week, guys. Okay. Use the link below. Onward and upward. You want to get a hold of me and send me stuff like Gary did. It is, uh, hello and I allegedly.com. I’ll see you very soon. [tr:trw].

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