“What? Me worry?” – This could have been the caption on Gerald Tritt’s recent Instagram upload that portrays him living it up with a smile that would put Alfred E Neumann of Mad Magazine to shame. Mr.Tritt appears not to have a care in the world as he tools about in a loaner Ferrari for the weekend, living the dream as he weekends in Chicago and hangs out with the Boss Man himself, Bruce Springsteen – champagne dreams and caviar fairy tales indeed!
Alas, it is a lifestyle that many Vera’s Burger Shack Franchisees can only aspire to after investing in the Gerald Tritt Franchise system.
In September 2014, the original Port Moody Franchisee managed to escape The System after having his store on the market for over a year. That particular Franchisee purchased a brand new location on Newport Drive and opened in or about September 2012 at a cost rumoured to be in the range of $375,000.00 to $400,000.00. Initially, the location recorded robust sales as it consistently ranked among the top of Vera’s locations in monthly sales and $2,000 daily sales were often recorded. However, the good times were not to last as the Port Moody location began a descent down the sales rankings by location. By June 2013 a scant nine months after opening, the Franchisee had had enough and listed the location for $379,000.00, but, like the Broadway location, the Franchisee could not find any takers. The location remained on the market as sales continued to decline pushing it ever downward on the Vera’s sales rankings by location. In September 2014, the news broke that the location had sold but at a price far far below the Franchisee’s investment. Reports suggested the location, less than two years old, had sold for a price between $215,000 – $200,000.00 representing a loss in excess of $150,000.00 to the Franchisee who had bought into the Vera’s Burger Shack brand.
It was the second location within three months that had sold at a loss in excess of $100,000.00 to its selling Franchisee. Unfortunately, it appears that unlike Gerald Tritt, neither the Port Moody nor the Broadway Franchisees will be driving Ferraris anytime soon.