Fast Fired franchisees say Carbone promised big sales, then gave little support

Fast Fired is a build-your-own pizza franchise started in 2018 by Carbone Restaurant Group of Winnipeg. CBC's investigation of 6 November 2023 found the Regina franchisees Swapnil Shah and Tejas Patel had put in over $300,000, had made no profit in nearly two years, owed a bank $270,000 and were closing; four other Prairie stores had already closed. Shah said he was told he would make $500,000 to $700,000 a year, paid a $30,000 fee plus 7% royalty, and did hardly $15,000 a month in sales; training was two days, he said, with little advertising or head-office support.

CBC compared the company's claims with what it could verify. In 2021 the company's CEO said a deal had been struck for 82 locations across four provinces, and a July 2021 release trumpeted 'explosive growth' after $2.5 million in financing. The planned Sage Creek store never opened, CBC found no evidence of announced deals in Australia, India, Egypt or Turkey, and a Calgary-based gas-station operator said its national deal listed on Carbone's website never existed and asked for the reference to be removed.

Former staff said the company ran out of money in early 2022. A former chief marketing officer sued for over $42,000 in back pay; Carbone denied the allegations and said she was fired with cause. Three former employees won over $26,000 in wage awards, and CBC counted 12 other lawsuits in Manitoba, three involving Fast Fired locations and seven in which the CEO, his companies and partners were ordered to pay nearly $1 million. The CEO told CBC his 2021 comments were based on agreements at the time and that timelines change.

A Regina couple lost over $300,000 and owe a bank $270,000; five stores closed or closing; 12 other lawsuits and $26,000+ in wage awards.

The company publicised large expansion plans (82 locations, gas-station sites, international deals) that CBC could not verify or that did not materialise.

Franchisees say income projections of $500,000 to $700,000 a year were not met, with sales around $15,000 a month in one case.

Franchisees say head-office training and advertising support were minimal, with few staff to call on.

The company continued recruiting new franchisees while former owners and staff said it lacked money and people.

A franchisor's growth claims must be backed by signed deals and support staff; announced pipelines that never open turn franchise fees into franchisee losses.

Fast Fired kept recruiting franchisees after CBC's questions. The CEO said new marketing staff had been added and that the 2023 goal was to open as many of the agreed franchises as possible. The Regina store was due to close by the end of November 2023.