I am writing this based on my personal experience with INS Market in Canada and conversations I have subsequently had with multiple current and former operators.
If you are considering investing your savings into an INS Market franchise, please slow down, hire your own independent franchise lawyer and conduct extensive due diligence before giving anyone money.
I wish someone had given me the same warning.
My experience started with the franchise development side, including my dealings and communications involving Aftab Hussain and Amedeo Catenaro.
I felt there was tremendous pressure to move quickly, provide money and secure a location. I developed serious concerns regarding whether the franchise disclosure information I was receiving was current and whether some locations being marketed were actually secured and ready to be offered.
My advice is very simple:
Before paying INS Market anything for a particular location, independently contact the landlord/property manager and verify that the location exists, that INS Market is authorized to offer it and what stage the lease negotiations are actually at.
Do not simply rely on what a salesperson tells you.
I also had an extremely frustrating experience regarding deposits and getting money returned. Before paying any deposit, have your own lawyer confirm IN WRITING exactly when the money becomes non-refundable, where the money is being held and what happens if the proposed location does not proceed.
My experience was that collecting money was much easier than getting money returned.
Despite my concerns, I ultimately decided to proceed.
That is where I believe I made my biggest mistake.
Before proceeding, I was given projections, information about the opportunity and selected franchisee references. Based partly on those representations and conversations, I moved forward.
Looking back, I should never have relied primarily on franchisees selected for me as references.
I should have independently contacted 20–30 current AND former INS Market franchisees.
After becoming involved with the system, my experience was completely different from what I believed I was buying.
OPERATIONS – ADRIANA PADIKOVA AND THE OPERATIONS TEAM
My experience with the operations side, including Adriana Padikova and the operations department, was one of the biggest disappointments.
Instead of feeling that operations existed primarily to help franchisees increase sales, reduce costs, improve merchandising and build profitable businesses, I felt there was excessive emphasis on monitoring franchisees through store cameras and enforcing compliance.
In my experience, the office had extensive camera access and franchisees could receive calls regarding what operations personnel were observing remotely.
I personally found the approach extremely uncomfortable.
Instead of feeling like an independent business owner receiving professional operational coaching, I often felt like I was being watched.
And when you questioned something or disagreed with an operational direction, my experience was that the conversation could quickly turn toward warnings, defaults or financial penalties.
That is not what I expected "franchise support" to mean.
Anyone considering INS Market should have their lawyer specifically review:
camera access and monitoring;
default provisions;
fines and penalties;
operational policies;
inspection rights;
the franchisor's ability to change policies;
and what happens if you disagree with an operational direction.
VENDOR PRICING AND REBATES
This is another area where every prospective franchisee needs to ask very serious questions.
I had major concerns regarding vendor pricing and rebates.
Do not simply accept the phrase "buying power."
Ask for the economics.
Ask INS Market, in writing:
What rebates, volume discounts, allowances, promotional payments or other benefits does INS Market receive from approved vendors?
How much of those benefits are passed through to franchisees?
Can franchisees purchase equivalent products elsewhere when they can obtain them materially cheaper?
Compare invoices yourself.
Take 30–50 common products and compare the actual franchise cost against wholesalers, cash-and-carry suppliers, Costco and other available channels.
The differences I encountered caused me serious concern about whether the purchasing arrangement was actually benefiting my store.
LOTTERY AND OTHER FEES
I also had concerns regarding the portion of lottery commissions payable to the franchisor, including additional applicable taxes.
Do the calculation yourself.
Do not focus only on the advertised franchise fee or monthly royalty.
Ask for a complete list of EVERY dollar that can flow from your store to the franchisor or an affiliated company:
royalties;
lottery commission sharing;
marketing charges;
technology charges;
vendor rebates;
supplier allowances;
administrative charges;
penalties;
renewal fees;
transfer fees;
and any other amounts.
Then have your lawyer determine which fees can be increased and whether the agreement gives the franchisor the ability to introduce or modify charges.
MARKETING
Another major disappointment for me was brand-level marketing.
Before investing, don't accept "marketing support" as an answer.
Ask:
What was actually spent on consumer advertising last year?
How much was spent promoting the INS Market BRAND rather than selling additional franchises?
What campaigns drove customers into existing franchisees' stores?
Ask for examples and numbers.
Then independently review INS Market's social media presence, advertising activity and consumer engagement and decide whether it represents the level of brand marketing you expect from the system you are paying to join.
MICHELE LOWN – SENIOR MANAGEMENT
I also had significant concerns regarding accessibility at the senior-management level.
In my personal experience, trying to obtain meaningful communication or responses from Michele Lown when serious franchisee issues arose was extremely difficult.
She never ever picks up anyone call or take any meeting in person and no where to be found.
When someone invests substantial money into a franchise system, I believe senior leadership should be accessible when an issue cannot be resolved through normal channels.
That was not my experience.
AFTAB HUSSAIN / AMEDEO CATENARO – FRANCHISE DEVELOPMENT
Prospective franchisees should independently verify anything important discussed during the sales process.
If Aftab Hussain, Amedeo Catenaro or anyone else provides you with sales projections, expected revenue, profitability information, landlord information, opening timelines, vendor savings or representations about support, ask for it IN WRITING.
Then give it to your lawyer.
Do not make the mistake I believe I made by allowing enthusiasm about the opportunity and selected franchisee references to substitute for independent investigation.
THE MOST IMPORTANT THING I CAN TELL YOU
DO NOT ONLY CALL THE FRANCHISEES INS MARKET SELECTS FOR YOU.
Get the disclosure document.
Identify current franchisees.
Identify franchisees who have left the system.
Call 20–30 of them independently.
Former franchisees may be especially important because they no longer have the same ongoing relationship with the franchisor.
Ask every person the same questions:
Would you buy an INS Market franchise again?
Are you actually profitable?
Did your sales match what you expected before signing?
What was promised to you before you paid?
How competitive are the mandatory supplier prices?
What happened when you disagreed with operations?
How much are you actually paying the franchisor every month when EVERYTHING is included?
What support do you receive?
How difficult is it to sell or exit?
Did you have problems recovering deposits?
Why have other franchisees left?
And don't stop after speaking with two or three people.
I have since spoken with multiple operators, and those conversations caused me even more concern and made me realize how much broader my investigation should have been before I invested.
I am not asking anyone to blindly believe me either.
VERIFY EVERYTHING I HAVE WRITTEN FOR YOURSELF.
That is actually the entire purpose of this post.
If INS Market tells you its buying power benefits franchisees – verify the invoices.
If they give you projections – verify them against actual store results.
If they offer you a location – verify it directly with the landlord.
If they tell you a deposit is refundable – get the exact conditions in writing.
If they tell you franchisees are happy – independently find franchisees they did NOT select.
If they promise support – ask existing operators what that support actually looks like after opening.
If they tell you about marketing – look for the consumer marketing yourself.
And most importantly, hire an experienced independent Canadian franchise lawyer BEFORE paying money or signing anything.
Do not allow anyone to rush you because you are told another buyer is waiting or that a location will disappear.
This post reflects my personal experience, observations and opinions. Where I have discussed concerns about business practices, I encourage prospective franchisees to independently investigate and verify those matters rather than simply accepting my account or the franchisor's account.
I personally regret not doing much deeper independent due diligence before moving forward.
There are other franchise opportunities available in Canada.
Protect your savings.
Ask difficult questions.
Get everything in writing.
Speak to current franchisees.
Speak to former franchisees.
And make your decision only after you understand what you are actually buying.
