State Blocks Sale of New Franchises by Mr. Miniblind Inc.

Mr. Miniblind Inc., a window coverings retailer, has been prohibited by the state Department of Corporations from selling franchises.

After an investigation revealed that Mr. Miniblind had sold unregistered franchises, the department on Friday also charged the Santa Ana Heights company with selling franchises for different terms than those registered with the state. The agency also charged the company with telling prospective franchisees that their profits would be one amount but registering different amounts with the state. In addition, the state said it found various other problems related to the company’s use of advertising funds.

Mr. Miniblind owner Christina Huckins could not be reached Friday for comment.

The Department of Corporations decided to investigate Mr. Miniblind after receiving a high number of complaints from franchisees about the company, state officials said.

As of July, 1992, the company had 89 franchises nationwide, 53 of those in California.

“We found Mr. Miniblind continued to sell franchises even when their registration with the state had lapsed,” said Bill McDonald, chief of enforcement for the Department of Corporations in Los Angeles. “Now, what they can’t do is sell franchises in California.”

This is not the first time Mr. Miniblind, founded in 1987, has run into problems.

The state issued a desist and refrain order against company co-founders Christina and Mark Huckins on April 18, 1988. And on Dec. 10, 1991, the Sacramento County district attorney filed an order charging the company with untrue and misleading advertising.

“So many of the people out of work are former aerospace workers looking to start a business with their severance pay. As a result, there is a high demand for franchises and a lot of unregistered franchises being sold,” McDonald said.