6 Pop Songs Great for Audio Demos
Worst DIY Installs Ever Part 7
10 Must-Have Products for Your Next Install
6 Amazing High-End Home Theaters
Print
Email
Comments (0)
Share
TheaterXtreme ‘Suspends’ Operations but Franchises Live On
Theater Xtreme was the great hope in home theater franchising, but the corporate entity just suspended operations. The move should not affect independently owned stores.
The Pittsburgh and Auburn Hills stores, like the other franchisees, originally stuck with TX's complete game plan, buying TX's own private-labeled products as well as name-brand products such as Klipsch speakers, through the TX distribution network.
Ultimately, however, there were fulfillment issues from TX, says Ciccone, and TX "did step away from distribution."
The original contracts stipulated that franchisees purchase certain equipment from TX, but in the end they ended up – with TX's blessing – forging their own relationships with manufacturers and distributors.
That's a big problem considering that TX's big money-maker was to be the resale of OEMed products to the franchisees.
Other than that, says Ciccone, the only other obligation of franchisees was to pay royalties to TX.
The pending lawsuit involves an alleged breach of contract on TX's part.
Our industry has seen its share of casualties lately. Is the economy to blame for TX's demise?
Probably not, suggests Ciccone. "They really had an extremely difficult time growing the business," he says. "A lot of issues surfaced before the [economic] slide; I wouldn't pin it on that."
In April of this year, TX CEO Scott Oglum painted a rosy picture for the company, which was set to open corporate stores in big malls in Florida and Pennsylvania, following the launch of another mall opening in New Jersey.
Apparently, all of those stores are now closed -- just like the two stores that TX closed at the end of 2007 as it struggled to find its groove.
Both Tudhope and Ciccone insist that, should TX ultimately go under, it will have no impact on their own businesses.
"It should not affect us," Ciccone says. "The vast majority [of franchisees] should be in the same boat."
Already, he says, the franchisees have forged a strong alliance on their own, outside of the corporate auspices.
"We've tried to band together, help each other as much as we can," Ciccone says.
Ciccone, like Tudhope, says business is good, but they're weathering the economic crisis like other home systems integrators.
As for Tudhope, he'll keep at it with or without a corporate office. "It's always been my intention to give people good home theaters at a good price," he says.
In the meantime, there appears to be only one more home theater franchise operation out there, Saavihome, and I'm not sure where they're going with that. Stay tuned ...
There is also a franchise operation, Shield Security, that targets home systems integrators.
Good luck to them all. The road is littered with failed "smart home" franchise initiatives -- Smart House, Owens Corning, Theo Kalomirakis, to name a few -- but one day somebody will pull it off!
Ultimately, however, there were fulfillment issues from TX, says Ciccone, and TX "did step away from distribution."
The original contracts stipulated that franchisees purchase certain equipment from TX, but in the end they ended up – with TX's blessing – forging their own relationships with manufacturers and distributors.
That's a big problem considering that TX's big money-maker was to be the resale of OEMed products to the franchisees.
Other than that, says Ciccone, the only other obligation of franchisees was to pay royalties to TX.
The pending lawsuit involves an alleged breach of contract on TX's part.
Blame it on the Economy?
Our industry has seen its share of casualties lately. Is the economy to blame for TX's demise?
Probably not, suggests Ciccone. "They really had an extremely difficult time growing the business," he says. "A lot of issues surfaced before the [economic] slide; I wouldn't pin it on that."
In April of this year, TX CEO Scott Oglum painted a rosy picture for the company, which was set to open corporate stores in big malls in Florida and Pennsylvania, following the launch of another mall opening in New Jersey.
Apparently, all of those stores are now closed -- just like the two stores that TX closed at the end of 2007 as it struggled to find its groove.
Life After Theater Xtreme
Both Tudhope and Ciccone insist that, should TX ultimately go under, it will have no impact on their own businesses.
"It should not affect us," Ciccone says. "The vast majority [of franchisees] should be in the same boat."
Already, he says, the franchisees have forged a strong alliance on their own, outside of the corporate auspices.
"We've tried to band together, help each other as much as we can," Ciccone says.
Ciccone, like Tudhope, says business is good, but they're weathering the economic crisis like other home systems integrators.
As for Tudhope, he'll keep at it with or without a corporate office. "It's always been my intention to give people good home theaters at a good price," he says.
In the meantime, there appears to be only one more home theater franchise operation out there, Saavihome, and I'm not sure where they're going with that. Stay tuned ...
There is also a franchise operation, Shield Security, that targets home systems integrators.
Good luck to them all. The road is littered with failed "smart home" franchise initiatives -- Smart House, Owens Corning, Theo Kalomirakis, to name a few -- but one day somebody will pull it off!
Subscribe to the CE Pro Newsletter
About the Author
Julie Jacobson, Editor-at-large, CE Pro
Julie Jacobson is co-founder of EH Publishing and currently spends most of her time writing for CE Pro, mostly in the areas of home automation, networked A/V and the business of home systems integration. She majored in Economics at the University of Michigan, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. Julie is a washed-up Ultimate Frisbee player with the scars to prove it. Follow her on Twitter @juliejacobson.
Post a comment