The owner of the San Diego Padres, billionaire Peter Seidler, has been accused of using aggressive tactics against small business owners in his franchising empire. Seidler recently acquired a majority stake in Unleashed Brands, a company with over 1,300 franchises for youth-focused businesses. Before Seidler’s involvement, Unleashed Brands faced lawsuits from franchisees who claimed they were charged hidden fees and misled about the hours required to operate their businesses.
Unleashed Brands has also been accused of attempting to silence trade press that reported on its tactics. The company allegedly tried to persuade franchisers to boycott the publication Franchise Times. Additionally, some business owners have claimed that Unleashed Brands has hindered their efforts to form franchisee associations, which allow them to fight for better rights and lower fees.
These aggressive tactics contrast with Seidler’s reputation as the owner of the Padres, where he has one of the largest payrolls in baseball. However, the Padres have been deemed one of the season’s biggest disappointments and are unlikely to make the playoffs.
There have been specific legal cases against Unleashed Brands, including a lawsuit from Premier Martial Arts franchisees and a termination of a Little Gym franchise in Maryland. In the case of the Little Gym franchisee, she alleged that Unleashed pursued legal action against her while she was going through a high-risk pregnancy, leading to the loss of her arbitration case and her child.
Franchise Times, a leading trade publication, has published critical stories about Unleashed Brands, prompting the company to allegedly orchestrate a mass boycott of the outlet. Former senior editor at Franchise Times, Beth Ewen, believes that Unleashed Brands employees launched an anonymous website, encouraging franchisors to stop participating in the publication’s conferences and advertising with them.
Peter Seidler has also faced criticism for his management practices in other companies he has acquired through his equity firm, including Rawlings and Easton Sports. Rawlings closed a plant in Minnesota, resulting in the loss of 80 jobs, and moved production to China.
Despite the allegations and controversies surrounding Seidler and Unleashed Brands, a spokesperson for the company maintains that their focus is on driving profitability for their franchisees and delivering quality experiences to their customers. Seidler himself has not responded to requests for comment.
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