RED BULL VENDING: College Student Scammed?

College student Nic Bernhard thought he was making a solid investment in his future; however, his future allegedly involved digging out from under a vending scam from a trusted company:

I am one of the many that was scammed by Red Bull and CCA and can confirm that these reports are totally on the mark. I was a young college student at the time and was looking for vending opportunities with a reputable company.

I would not have felt so confident, but I knew Red Bull was a huge world wide corporation and a very popular drink. Of course, we all confirmed with Red Bull that Creative Concepts of America was their representative for vending machines. Red Bull sang their praises and the person I spoke with before finalizing my purchase of 10 machines, assured me that Red Bull Vending would prove to be a lucrative investment.

Like others, this turned into the biggest nightmare of my life and and I will continue to pay off a debt for many years to come due to the lies and misrepresentation of this multi-billion dollar corporation.

I’m amazed that people like this can continue to live and function knowing how many people’s lives have been destroyed due to their actions. Some day, hopefully soon, justice will be served.

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RED BULL VENDING: Jennifer’s Story

Unhappy Franchisee Jennifer related her experience in a recent comment:

I fell for the Red Bull Scam too. We purchased the so-called “Red Bull Franchise” from Creative Concepts of America. There was a letter given to us from Red Bull North America to CCA confirming their relationship. We called RBNA and was told this was a good company and if we wanted machines to get them through CCA. This cemented the deal. Big name how could we go wrong.

With our purchase we were given protected territories, warranties, a theft and vandalism policy, and placement of our Red Bull vending machines in high traffic areas. Oh and lets not forget the money. Oh the money we were told we would make in this venture. My thoughts were this would be a great way to pay for the rest of my college expenses.

This whole business venture has been a joke. Who would ever think such a well-known company would ever allow this to happen.

The owner of Red Bull worth 4 billion dollars. Us Americans are out about 25 million. Red Bull needs to take responsibility for what has happened.

Jennifer

WHAT DO YOU THINK? LEAVE A COMMENT.

RED BULL VENDING: The Wallace’s Story

Unhappy Franchisees Michele and Vincent Wallace share their story:

Thank you for the story. I know that there are many of us out there. We all have our own story of how we were scammed. My husband and I have two little girls… now ages 4 and 6. When we bought the machines, we were hoping they would help fund their college savings. We used $15,000 of our savings… and lost it all. I know that $15,000 may not seem like much, but it is a huge hit for us. Here is our story:
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In November of 2005, my husband and I made a decision to start up our own business and buy 3 Red Bull Vending Machines through Creative Concepts of America, which was a“Red Bull Vending Machine Franchise Company”.
As we, ourselves, enjoy the Red Bull product, we thought that purchasing 3 Red Bull Vending machines was a very safe and smart decision… especially considering that this was a Red Bull FRANCHISE.

After doing our homework and speaking with a Red Bull / Creative Concepts representative – Jeffrey Youngbauer—we decided to purchase 3 machines at a cost of $4, 210.00 each. On 11/08/2005, a check in the amount of $12,630.00 was cashed. We received a business packet and 3 Red Bull vending machines shortly thereafter. Creative Concepts / Red bull referred us to a locating service whereby they found (very “shady”) locations for our 3 machines for a fee of approximately $1,200.

The machines failed horribly. Red Bull / Creative Concepts estimated selling an average of 27.6 cans a day (Gross profit of $.75 per can. 3 machines = $62.10/day, $434.70/week). It ended up that we were selling approximately 5 cans per week per machine.

In April of 2006, we received a call from Red Bull / Creative Concepts stating that they would like to extend the offer of buying back the machines because they had “upgraded their machines” to offering 3 products instead of 1. Of course, the buy back included a loss, which was expected. However, after much thought, my husband and I determined that the loss we would suffer if we sold our machines back would be much less than if we decided to keep them. So, we went ahead and agreed to sell back all 3 machines. A contract was signed and all seemed legitimate.

We upheld our end of the bargain and had all 3 machines moved to our garage. We contacted Red Bull / Creative Concepts, who had a moving company come and retrieve them from our garage. The agreement stated that Red Bull / Creative Concepts would buy back 3 vending machines at $2,800.00 per machine. A check for $3,000.00 would be issued once they had the machines in their possession and determined there was no damage. The remaining balance of $5,400.00 would be paid in equal payments within 6 months starting June 1, 2006 (to be automatically deposited).

The $3,000 never materialized. Rather, we received an email from Creative Concepts, declaring that they were in the 1st stages of bankruptcy. As Creative Concepts was a “Red Bull” franchise, we contacted Red Bull directly and let them know what happened. Red Bull admitted to having a relationship with Creative Concepts, but indicated that the relationship was severed once bankruptcy was declared. Red Bull disregarded our losses and completely ignored our continuous complaints and inquiries into the entire situation.

Red Bull is an unethical company, with very unethical business practices.

Sincerely,
Michele and Vincent Wallace

RED BULL VENDING: Michael Turko’s Story

Unhappy Franchisee Michael Turko comments:

There comes a time when corporations need to step up and reconcile poor business decisions and poor choices in business partners. Right is right, and Red Bull North America (RBNA) is just plain wrong.

I purchased 10 Red Bull vending Machines via Creative Concepts of America (CCA) for approximately $44,000 dollars. The machines arrived, with the initial stock of Red Bull product shortly thereafter. Along with the purchase of the machines and product, I was also purchasing a protected territory and a relationship with RBNA. This is all clearly stated in the purchase contract that I signed.

Shortly after entering this venture, it was announced via letter from RBNA that they had severed their relationship with CCA, and would no longer be supporting CCA as a business partner. This was shocking and of great concern to me, as my reason for making this investment was Red Bull brand recognition, and RBNA’s own first-hand confirmation to me that they did, in fact, have an ongoing relationship with CCA.

This business opportunity had been marketed as a Red Bull opportunity by CCA, with RBNA’s full blessing and knowledge.

Upon learning of the dissolution of the RBNA/CCA partnership, I attempted to contact RBNA several times to gain some clarity as to the nature of their abrupt suspension of activities with CCA. I never received a call-back from any Red Bull representative once I purchased the machines and product.

I then contacted CCA in hopes that they would address my concerns. After a very long and tedious negotiation, CCA agreed to buy back my machines at $3,000 per machine. A contract was signed to that affect. Payment was to be made by CCA upon receipt of the machines. The machines were removed from their working locations and put into storage with those that were never placed at all.

A moving company, hired by CCA, eventually picked up the machines and shipped them to Florida. I confirmed receipt of the machines at the warehouse that they were shipped to. I received proof of delivery from the carrier as well. This was something I requested…not offered by CCA or the warehouse.

I instructed the warehouse, which was obviously in some sort of arrangement with CCA, to NOT release the machines to CCA without my authorization, as they did not belong to CCA until payment was made to me. The warehouse agreed to follow my instructions.

After not receiving any payment or communication from CCA or the warehouse for two weeks (and several unreturned calls), I again contacted RBNA. They FINALLY agreed that they might be able to offer me some sort of settlement/buy back. The RBNA representative called the warehouse where the machines had been stored, only to discover that the machines were no longer there. They had been RESOLD to another party. So, basically, an agent of RBNA, CCA, stole my property and sold it to some other poor schmuck.

Not only was I now out $44K plus all the other expenses, but the machines were gone as well.

RBNA is responsible for putting their name on this venture, and authorizing such a sleazy, fly-by-night scam artist like CCA to represent them. None of this would have happened to me, or to anyone else, had Red Bull either been more discriminating in its choice of business partner/agent.

Red Bull could have done the right thing when they found out about CCA’s practices. They could have been proactive in giving me and others the opportunity to opt out of this program without severe financial damage. Instead, the battened down the hatched and simply ignored the enormous mess that they created.

Red Bull North America needs to be held accountable for allowing its agents to defraud so many investors who had believed in the Red Bull brand and had been excited and proud to be a part of such a success story as Red Bull. RBNA’s reaction and lack of ownership of this terrible outcome tarnishes a once brilliant name.

WHAT DO YOU THINK? SHARE A COMMENT.

RED BULL VENDING: Mallory’s Story

Unhappy Franchisee Mallory comments:

We did do our “homework” before purchasing our Red Bull vending machine franchise. And yes, we were told it was a franchise. I contacted the BBB, state and local officials in Florida, and could not find anything derogatory about CCA. I phoned Red Bull North America and was told they had an exclusive agreement with CCA to sell these vending machines. I was told by RBNA this was a legitimate business venture. I was presented with a letter from RBNA confirming their business relationship with CCA. I would never have thought in a million years, with such a big name and strong corporation, RB would be part of a scam like this one.

We bought 3 machines and had no help from RBNA. Although I had 5 people from the local distributor come to my home and make a lot of empty promises.

We placed one of them after sitting in the garage for 7 months. A year later we placed the second one. It was stolen a few days after placing it. The machine, the money inside, and all the product in it, gone. Now we were suppose to have a theft and vandalism policy that would replace that machine but of course with the bankruptcy of CCA and the denial from Red Bull that they are in no way responsibile, we are out money and pay on a loan each and every month for something we no longer have. Our third machine we placed has sold 2 cans in 6 months. Far cry from the $7,000 a month profit we were told we would make.

And the buy back program. What a joke that was. We were offered $1,000 for each of our machines. Some did sell their machines back to CCA and never got paid. CCA then sold those machines to other unsuspecting individuals. Well then RB came along and did a buy back program. RB did not follow the chain of custody on those machines so some of the machines they bought are now considered stolen. This is all documented through law enforcement.

I must say it seems we lost “peanuts” compared to what other victims have lost and my heart goes out to them. I spoke with a victim in NY yesterday who’s home is now in foreclosure due to this scam. Many have already lost their homes, retirements, savings, inheritances, and some divorces due to this scam. We estimated a total loss to all victims of approximately 25 million dollars.

How can a billion-dollar company like Red Bull allow this to happen? I bet this would never happen in Austria where Red Bull originated from, so how and why did this happen in AMERICA?

You would think that the owner of Red Bull, with all his billions would step up to the plate and pay each victim of this scam. It would be pennies to him.

RED BULL VENDING A SCAM?

Would Red Bull really risk their good name and valuable reputation by becoming involved with a sleazy vending business opportunity scandal? Apparently so… Read more

CUPPY’S COFFEE GOES TO COURT

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CUPPY’S COFFEE: “A Very Long Expensive Ride”

Christy Shaw writes:

Hi,
I gave $35,000 3/06 and have been hoping that I would be taken seriously instead I’ve just been taken for a very long expensive ride. I sent another $45,000.00 via SBA loan to get my building in April .08, now its July and for some reason, I have no building comming and no responce other than were working on it. They took my money and all I have is another expensive recourse of mediation, you know what that will get me! I wish I could strip them of their life savings, like they have of mine. P.S. all Cuppies people that think that Java Joz people are a bunch of whiners, I’m pretty sure many of you will be expieriencing the same, and I wouldn’t wish that on anyone.
Good luck to you all!

Well put, Christy. A long, expensive ride indeed. The bad news is that even if you reach the end of the road you end up locked in as a franchise owner. As some have said, maybe those who never opened are lucky they didn’t.

Make & Take Gourmet: The Meal Dissembly Kitchen

dis·sem·ble \di-ˈsem-bəl\ transitive verb 1 : to hide under a false appearance 2 : to put on the appearance of : simulate intransitive verb : to put on a false appearance : conceal facts, intentions, or feelings under some pretense

The growth of Make and Take is entirely company funded, Bellso says. The company currently has no investors and has not taken out any loans, she says.

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