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Show Homes Complaints 2

ComplaintsBoard
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7:37 am EDT
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Show Homes Deceptive Business Practices

DO NOT BUY a franchise from this outfit. Showhomes bills themselves as America's largest home stager, but are working hard at being America's largest home staging Ponzi scheme.

DO NOT TRUST any current franchise owner to give you an honest assessment of this business. Franchise owners receive $10, 000 for every investor they convince to buy in. These people do not disclose this fact upfront. You will not find out about this until after you buy.

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Darrell Beaton
Warren, US
Sep 24, 2009 4:57 pm EDT

as the saying goes...if I knew then what I know now.

M
M
Maid Simple
US
May 31, 2014 7:16 pm EDT

All these franchise scam also applies to Maid Simple franchise business. Don Hay and Bart Puett are two biggest scammers. New Maid Simple franchisees keep losing money. Do not buy Maid Simple franchise business. Period.

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A
AtlantaCR
Denver, US
Oct 05, 2012 4:22 pm EDT

Showhomes Franchise Corporation and for-sale Showhomes franchise owners have a vested interest in refuting or deflecting posts like the above complaint... instead of acknowledging the issue, whether it is an allegation of unethical and deceptive business practices, or fraud, and then committing to a change in behavior.

To shed more light on thist:

1. None of the Tampa area Showhomes franchises are doing well based on their P&Ls. None. One owner said that last year she had a 'profit of just $4, 000' before taking a penny out to pay herself.

2. Nationally, Showhomes' August 2012 gross revenues from all their franchise territories was 9% lower than from a year ago.

3. Showhomes Franchise Corporation charges an industry high 10% royalty tax every month based on a territory's gross monthly revenues. AND they also mandate an additional 2% of gross for an advertising fee, another 2% of gross for insurances, and they debit you for the cost of their annual meeting whether you attend or not. Altogether, this comes to about 15% of each franchisee's gross revenue being shipped off to Showhomes Franchise Corporation. For many furniture staging jobs, 15% is your total profit margin.

4. Showhomes Franchise Corporation requires minimum royalty payments of about $800 per month from each new territory sold. In other words, each territory owner has to gross $8, 000/month in order not to be hit by a 'higher than 10%' royalty rate for that month, which I already mentioned is the industry high royalty rate. Here's the kicker: the average gross monthly income per Showhomes territory through August 2012 was under $5, 000/month. If we can assume Showhomes Franchise Corporation has a trackable business model with contractual consistency across all their newer territories, then it appears that the majority of Showhomes territories are not making minimums and are in fact, in trouble financially.

5. Since Showhomes Franchise Corporation started in 2003, the failure/dropout rate for new Showhomes franchisees has been high, yet the corporation seems unaffected. Why? The answer is the franchisor doesn't realize a penalty for failed territories, only the franchisee does. In fact, the Showhomes franchisor can theoretically make more money if new owners fail and he resells the territory before their third anniversary. Assume a new territory does better than average and grosses $8, 000/month for 3 straight years, and then goes under. $800/month x 12 months/yr x 3yrs = $28, 800, which is the amount in just royalty payments sent to Corporate. Showhomes Franchise Corporation sold territories in 2011-12 for between $30, 000 and $44, 000. Clearly, 28, 800 is less than the sale/resale revenue from flipping the same territory over and over again within every three year period. It's even more profitable for the franchisor if new franchise owners fail before their second anniversary. This is indeed happening.

Ergo there is a growing motivation to 'sell' if you are a current Showhomes franchise owner, and just as strong a motivation to preempt any issues brought up by 'rock the boaters' until yours actually sells.

Back to the original point of the above complaint: Showhomes Franchise Corporation pays its current franchisees $10, 000 to help them sell 'territories'. For a non-insignificant number of Showhomes franchise owners, this is more than the profit they earn working the business in a year. Buyers think they are getting critical decision-making information about the business model before they buy, not a sales pitch made by what are essentially people who are an extension of the corporate sales team working "undercover".

Putting this Showhomes business practice on "Complaintsboard.com" will make it infinitely easier for prospective Showhomes buyers to find out about it because they sure aren't being told by Showhomes. Getting paid a referral fee is not illegal, but being on the take and not disclosing it is clearly unethical and a deceptive business practice because of the role you play in getting/closing the sale. Being better informed about who is giving you advice and their background/motivation I think is important. That's the whole reason for why the poster wants to fully disclosing this practice on this and other consumer protection forums on the World Wide Web.

ComplaintsBoard
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11:38 pm EST
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Show Homes Tender hijacks property!

Posted: 6:50 pm EDT October 21, 2010Updated: 10:46 am EDT October 22, 2010
COBB COUNTY, Ga. -- A Cobb County couple says their house has been hijacked by a woman who was supposed to help them sell it.

Hanna and Devin Pintozzi hired Buckhead staging company Show Homes to help market their upscale Smyrna house. Their contract included a live-in resident manager to make the home look more appealing to agents and buyers while the couple lives elsewhere. The couple said resident manager Katrina “Honest” Jimmerson has barricaded herself inside.

On Thursday, Channel 2’s Diana Davis visited the $350, 000 home that has been up for sale since March.

The doors were locked. The blinds were drawn. The couple’s house key didn’t work, and the realtor lock box key was missing.

“We can’t go in the home. We don’t know what she is doing in the home right now. The company did not give us any information about her before she moved in, ” Devin said.

Creative Show Homes brochures describe resident managers as often young executives or families, but Jimmerson has a rap sheet. She was recently arrested on unrelated charges.

The couple approached law enforcement officials about the issue, but the Cobb County Sheriff said it’s up to the staging company to evict Jimmerson, because the couple signed a contract.

The couple said the staging company has been just as unprofessional and irresponsible as the woman locked inside.

“They haven’t answered to any of our needs. They didn’t inform us that this was even a problem … What if I had been out of state?” Hanna asked.

Creative Show Homes owner Don Clarke said he understands the couple’s concern. He promised that Jimmerson will be removed from the house before Nov. 5.

The couple said the staging company claims they got a court order on Jimmerson but have yet to show any paperwork.

The Pintozzis cut off the water supply to the house, but Jimmerson was able to convince a work crew to turn it back on.

“It’s heartbreaking, completely heart breaking, ” Hanna said.

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Overview of Show Homes complaint handling

Show Homes reviews first appeared on Complaints Board on Feb 22, 2011. The latest review Deceptive Business Practices was posted on Sep 14, 2012. Show Homes has an average consumer rating of 1 stars from 2 reviews. Show Homes has resolved 0 complaints.
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  1. Show Homes Contacts

  2. Show Homes phone numbers
    (888) 483-5331
    (888) 483-5331
    Click up if you have successfully reached Show Homes by calling (888) 483-5331 phone number 0 0 users reported that they have successfully reached Show Homes by calling (888) 483-5331 phone number Click down if you have unsuccessfully reached Show Homes by calling (888) 483-5331 phone number 0 0 users reported that they have UNsuccessfully reached Show Homes by calling (888) 483-5331 phone number
    (615) 292-0892
    (615) 292-0892
    Click up if you have successfully reached Show Homes by calling (615) 292-0892 phone number 0 0 users reported that they have successfully reached Show Homes by calling (615) 292-0892 phone number Click down if you have unsuccessfully reached Show Homes by calling (615) 292-0892 phone number 0 0 users reported that they have UNsuccessfully reached Show Homes by calling (615) 292-0892 phone number
  3. Show Homes emails
  4. Show Homes address
    2110 Blair Blvd., Nashville, Tennessee, 37212, United States
  5. Show Homes social media
  6. Rachel
    Checked and verified by Rachel This contact information is personally checked and verified by the ComplaintsBoard representative. Learn more
    May 24, 2024

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