CUPPY’S COFFEE: VP Theresa St. Clair’s Resignation Letter

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Also read:  Cuppy’s Coffee Overview, CUPPY’S COFFEE, Java Jo’z, Elite Manufacturing, Medina Blogliography, Cuppy’s Coffee, Elite Manufacturing Franchise Complaint on Rip-off Report

Both previous owner Morg Morgan and (less effectively) current owner Dale Nabors seem to be proficient at remaining in the background while their "executives" sign documents, send the uneasy memos, take the difficult phone calls… and incur the wrath of cheated franchisees.  As head of the entity that was used to exchange many people’s life savings for broken promises, missed deadlines, unreturned refunds, and bankruptcy, Executive Vice President of Elite Mfg, LLC, Theresa St. Clair has certainly attracted her share of wrath.  But was St. Clair part of the problem, as some have suggested, or well-meaning person who was pushed to the forefront of the battle wearing a bright red target?

St. Clair’s defenders have pointed out that her much-maligned email to franchisees (Cuppy’s Coffee / Elite Manufacturing Infuriates Franchisees With Form Email) was sent under her signature without her permission.  One "Guest" came to her defense recently by posting this comment, which includes her resignation letter:

Arod……Theresa NEVER promised anyone anything!!! She always referred them back to their agreement. There was a handful of contracts that she added a statement about “if refund was requested… they would get a refund within so many days”. That statement which would have been very few of was included in contract ONLY if Morg Morgan or Ben Doyle told her to put it in there.

If someone did request a refund it ALWAYS went through the legal department which was handled by Danny Jones. Danny Jones ALWAYS tried to bully people into settleing for less refund money than what they paid. Theresa doesn’t have a new vehicle like Amy Hiller and Robine Donlon. She still drives the same vehicle when she first started working for the company. If anyone should be investigated here along with Morg and Ben and Dale, it would be Danny Jones because he’s been with the company sinced Roy Snowden’s Java Jo’z days.

Hell, if the zees want someone to testify on their behalf they should talk with Theresa. She use to be VP of Elite sales until Morg threw her into the Elite Ops division against her will because she told Morg & everyone that she knew nothing about construction but Morg put her in there anyway last December. After being in the Elite Ops for a few months she began to realize that something wasn’t right and voiced her concerns with Morg & Ben who continues to tell her and other employees that everything was ok. Theresa kept seeing that the zees were NOT getting built out as promised nor were they getting their cabinetry or equipment, etc… At that time Dale was a consultant and he also kept telling her it was going to get better & asked her to hang in there.

She hung in there for a few more months & then Dale bought the company. T was so excited about what changes would’could be happening because Dale promised so much, etc… Unfortunately after 3 months of non-action on Dale’s part to get things moving for the zees, she had enough & put in her letter of resignation which I just happen to have a copy of. I believe this show what Theresa’s values are:

August 24, 2008

To: Dale Nabors and Human Resources of Medina Management

From: Theresa St.Clair – Executive Vice President of Elite Mfg, LLC

Re: Letter of Resignation

Dear Dale,

Before you bought the company, we had several talks about the lack of ethical and honest behavior with the previous owner and the direction of the company and what needed to happen in order for it to truly be successful. I felt we saw eye-to-eye.

You bought the company approximately 3 months ago. I believed you could and would turn this company around and be on the up and up with the employees and franchisees. Meaning…start operating this organization ethically, honesty and with integrity. The first month I was impressed with your actions.

Unfortunately, your actions these last few months which include the total absence of any communication from you to your staff in Florida, have made me question your character, your honesty and your integrity. I also no longer feel that you have the franchisees best interest at heart. You have accepted more money from franchisees and you are not delivering their equipment, cabinetry and furniture.

Therefore, please consider this my letter of resignation effective immediately. Let me know when I may pick up my last paycheck for last week or will it be direct deposited?

If Terri or Lori has any work related questions for me I will help them as much as possible.

Regards,

Theresa St.Clair
Executive Vice President
Elite Manufacturing, LLC

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CUPPY’S COFFEE: Attorney Rudy Harper & Assistant Desiree (Reportedly) Resign

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It’s been reported that Cuppy’s Coffee in-house attorney Rudy Harper and Desiree Kahn, the Cuppy’s Coffee legal assistant in charge of handling refunds, resigned Wednesday, September 10th.

Harper and Kahn reportedly stayed behind in Ft. Walton Beach after a limited number of employees were invited to relocate to the new home office in Muscle Shoals, AL. Not receiving a paycheck and a lawsuit from the landlord over nonpayment of rent are likely factors in their abrupt departure.

One commenter on Blue Mau Mau wrote:

The last attorney left is Lou. Is he even allowed to practice law in the state of Florida or Alabama?

With all of the legal issues Cuppy’s is facing, perhaps it should have been high on Cuppy’s priority list to at least pay their attorney his paycheck.

What do you think? Are there any Corporate employees left in Florida? Did the Alabama “Dream Team” get paid? Share a comment below.

CUPPY’S COFFEE: Vendors, Landlord, & Clients Feeling Scalded, Too

 

Is there anyone NOT furious with Dale Nabors, Medina, Cuppy’s Coffee, Elite Manufacturing, ETC.?

  jd writes "Looks like Medina’s former landlords have sued for ‘non-payment of rent’ and were starting evictions proceedings.  The suit was filed two weeks ago and they were a little late.  Also, San Gelato Franchising Corp is suing Medina, Dale and Morg in Okaloosa County as well.  Not sure what their complaint is, but it was just recently filed too.

Medina, parent company of Cuppy’s Coffee and Elite Manufacturing, reportedly convinced Fort Walton gelato manufacturer San Gelato to develop a franchise program to be administered and expanded by Medina.  The lawsuit is likely in regards to Medina’s abandonment of the program once the company was sold to Dale Nabor’s FranSynergy.

Cuppy’s vendors

Submitted by Guest on Tue, 2008/09/09 – 09:05.

I am an employee for one of Cuppy’s vendors. Cuppy’s has owed us around $10,000 for many months. When we contact Cuppy’s regarding the amount owed, they inform us (when we arent sent to voicemail) that "the check is in the mail" or that "the check will be released on Friday." Suprise, Suprise.. we have never received a check.

I notice that people state that Cuppy’s (under Morg) took people’s money and used it for something else. Well, I am here to say that I believe it is still going on today (under Dale). We continue to receive orders from Cuppy’s franchisees (who have already paid corporate for their products) and then Cuppy’s corporate is unable to pay us for the products delivered.

It seems as though Cuppy’s corporate is taking that money from franchisees that should be used for products, and spending it on other things.

Beware what you order from Cuppy’s.. Even though you pay for it, you may not receive it because they do not pay their vendors!

CUPPY’S COFFEE: Employees Plenty Steamed at Nabors, Hiller

More than cappucino is getting hot & frothy in Ft. Walton Beach.  After moving the company to Alabama, Dale Nabors has left Cuppy’s Coffee employees and ex-employees plenty steamed about having to embrace their new unemployment status without even their final check to live on.  Here are some recent comments on Blue Mau Mau:

NOT PAID Submitted by friendnotpaid on Mon, 2008/09/08 – 15:23.

If you think the franchisees have problems get this:
As I understand it, Dale Neighbors did not pay his employees last week. He apparently paid the Alabama crew, but has cut off all communication with the staff in Mary Esther. The employees that were laid off when the company moved were not paid either. They were told that the “check is in the mail”. I doubt that is the case. I would love to hear from others to see if they got paid. I know that my friend was expecting her last check and did not get it direct deposited, and she was told by the payroll company that the check from Medina had bounced and that there was no attempt by Medina to make it good.

Cuppy’s fails to pay employees again Submitted by Guest on Tue, 2008/09/09 – 16:02.

Amy Hiller, Vice President of Operations for Cuppy’s, sent an email out to past employees informing them that they could pick up their paychecks today between 4:30 and 5:00.

After some employees drove over an hour to receive their checks, they were informed that there were no funds in the Cuppy’s account and Cuppy’s was unable to release the paychecks.

Not only did employees notify their attorneys but the Fort Walton Beach Police Department was called to the scene as well. No charges were filed due to the fact that Cuppy’s claims that they are not refusing to pay but that there are just no funds to pay employees at this time.

Employees will just have to get in line..Cuppy’s owes rent, refunds, vendors, settlements… should I even continue…

get off your butt Amy Hiller and work Submitted by Guest on Tue, 2008/09/09 – 21:21.

I am sure her butt got paid though- but people that actually do work and don’t walk around smiling all day and going on 2 hour lunches don’t get paid- yet again another thing that does not make sense about Cuppy’s Coffee!

Not Paid Submitted by Guest on Mon, 2008/09/08 – 15:39.

I am friends with the Manager of the Cuppys in Shalimar. She nor any of her employees have been paid. They were promised their checks today, it did not happen. No one from the Ala. office will return calls.

Cuppy’s corporate store to possibly shut down Submitted by Guest on Tue, 2008/09/09 – 16:07.

Well, it’s not the low store sales that may shut down the corporate store. The manager may be shutting Cuppy’s doors tonight because the store’s employees, including the manager, have not been paid.

Anyone need a job? Looks like Cuppy’s will be hiring new staff for the corporate store… Slaves welcome to apply

sjustice64 on September 9th, 2008 10:33 pm   Why dont all the employees whose paychecks bounced file worthless check charges against Cuppy’s or FranSynergy?? You can easily file a charge with the state attorney’s office in shalimar or crestview, florida for no charge.

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LA WEIGHT LOSS: Widespread Closures, TX Centers Closing 9/26

(Source: FranchisePick.Com)  Also read:  LA WEIGHT LOSS: Widespread Closures Reported Across the Nation,  LA WEIGHT LOSS: The Closings Begin,  LA Weight Loss Rumors: What Have YOU Heard?

Over at WEIGHT LOSS COMPLAINTS, Suzy reports:

Just another FYI – The Temple, TX center closed last month and the Waco, Killeen, and College Station, TX Centers are due to close on September 26th.

Thanks, Suzy It’s been added to the list of LA WEIGHT LOSS closings.

See the unofficial*, updated LA Weight Loss store closing list here: LA WEIGHT LOSS CLOSING

 

* LA Weight Loss chooses not to comment on store closings, past present or future 

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CUPPY’S COFFEE: AAFD Not Getting Its Share of the Spoils

It looks like the AAFD won’t be getting a share of the blood, sweat or tears of Cuppy’s Coffee franchise owners unless they extract it themselves.

Like many of the Cuppy’s Coffee employees fired after Dale Nabors bought the company, the American Association of Franchisees & Dealers (AAFD) surely misses the good old days when previous owner Morg Morgan cut them in on a share of the plunder.  In 2007, Morg Morgan’s Cuppy’s Coffee paid the AAFD what’s been called a  "considerable sum of money" in exchange for an AAFD fair franchising award, for the ability to be paraded on stage at the AAFD annual franchise fairness-festival, and for AAFD Chairman Bob Purvin’s defense of the organization despite widespread complaints and indications that Cuppy’s Coffee was engaged in fraudulent, unethical and likely illegal franchise practices.

Once it was clear that the new owner was not going to continue to pay the rental fee for the AAFD’s halo of fairness, the AAFD boldly suspended its fair franchising status. 

In Janet Spark’s interview with new owner Dale Nabors, Nabors outlines what it would cost Cuppy’s Coffee to be named a fair franchise once again and for a place in the chorus line on the AAFD stage:

-  The AAFD wants $100 per location the first year and the $300 per unit the second and third years, to run the Cuppy’s Coffee "independent" franchisee advisory council.

-  The AAFD wants to receive 1.5% of all purchases made through a buying co-op that it would form and administer.

-  The AAFD wants the exclusive right to mediate for franchisee disputes… at $350 an hour.

Janet details Dale Nabor’s reaction to Bob Purvin and the AAFD’s demands:

Suspension of AAFD Contract Accreditation:  According to Sparks:  "Nabors said the franchise agreement is as fair today as it was when Purvin’s group approved it. He said nothing had changed there."  The AAFD’s accreditation award was supposedly based solely on the fairness of its franchise contract, but was suspended because Purvin’s calls were not being returned and Nabors was not rendering unto the AAFD that which was the AAFD’s.

AAFD-Run Advisory Councils:  "After doing the math, Nabors said he just didn’t want to commit the franchisees to that expense. Besides, he added, he had already started his own franchisee advisory council to get feedback and share it with other franchisees. "

AAFD-Administered Buying Co-op:  "’To increase the cost of the products to the franchisees so that the AAFD could earn a percent and a half was not what I felt was in the best interest of the franchisees, so I said no.’ Nabors saw no need to have AAFD manage the cooperative."

AAFD Mediation:  "He said they have used [the free mediation program of the International Franchise association] and it worked successfully for them at no cost. He concluded on the subject, ‘So it came back to whether I wanted to commit to $350 an hour for an unknown number of hours to Bob Purvin or AAFD when I could get the same service rendered for less money or no money.’"

AAFD’s Real Interest in Cuppy’s Coffee:  "I understand the AAFD’s business model. I understand that even though it’s a non-profit organization they do have employees who make good money…. Bob Purvin and I had a three hour conversation about a month ago where I was constantly being asked for my support. And the support came down to economic support. I made the decision that at this time it was not the best utilization of the company’s money to pay the AAFD.""

So it looks like Cuppy’s will have muddle through without thier now-discredited award.  It looks like the AAFD won’t be getting a share of the blood, sweat or tears of Cuppy’s Coffee franchise owners unless they extract it themselves.

It looks like Nabors is more interested in running with the big boys at the IFA… who at least are good at what they do.

QUIZNOS: Saratoga Franchisees Call it Quits

According to the Saratogian, multiple factors prompted the owners of a the Saratoga Springs Quiznos to close the store’s doors, from competition to nearby roadwork to Quiznos corporate’s mark-up of required purchases. The franchise had been open for about 2-1/2 years, but locked up Friday, posting the dreaded sign: ""Thank you to our valued customers, but due to economic hardships beyond our control we are now closed." According to the Saratogian:

"We tried to make it through the track season," said Dan Warren of Saratoga Springs, part of a four-person ownership group. "September is one of the slowest months of the year, so it was time." Other owners are Rob Tecler of Saratoga Springs, Mike Beshara of South Glens Falls and Neil Rinehimer of Jupiter, Fla.

* * * * *

"It’s probably everything," Warren said about the reason for the store’s closing. "There’s a lot of competition in Saratoga Springs. Plus, our location was a poor location. They’ve been doing road work out front for the past six months. That cut our sales in half."

* * * * *

Warren said that store owners are required to buy products from Quiznos at above-average prices. Similar complaints were made in a Wisconsin lawsuit that says Quiznos licensing agreements compel franchisees to buy all their supplies – from sandwich meat to paper towels – from Quiznos-owned vendors that charge higher prices than those of independent suppliers. The New York Times reported the corporation receives millions of dollars in rebates from these vendors. Quiznos has been the target of several lawsuits related to its treatment of franchisees, according to the Web site Wikipedia.org. A New Jersey lawsuit relates to the $25,000 in licensing fees Quiznos charges its franchisees. The lawsuit contends that Quiznos often collects and pockets this fee without fulfilling its obligation to find store locations.

* * * * *

Warren said that he and partners also purchased rights to open a Wilton Quiznos, but didn’t pursue it because the Saratoga Springs store didn’t perform as well as they had hoped. Last year, a Quiznos store owned by Steve Baker on Route 50 in Ballston Spa closed. That site is now occupied by Russell’s Deli.

* * * * *

Roger Sharp of Saratoga Springs owns Quiznos stores in downtown Glens Falls… "Both of my stores are making money," he said. "The season in Lake George, considering the weather, wasn’t that bad. We had so much rain this year." Despite their profitability, Sharp said that his stores are for sale… With more than 5,000 U.S. shops, Quiznos is the country’s second-largest submarine sandwich shop, but still much smaller than industry leader Subway.

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CUPPY’S COFFEE: Franchise Sales Video

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Comment quickly before they take this offline, like they did the forums.  Among other things, this Cuppy’s Coffee franchise sales video could be used to demonstrate some good examples of illegal earnings claims as it boasts 70% – 80% repeat business, customers who purchase 4-5 times per week, and a system that "keeps profit high."

They pack so many questionable claims into 7 minutes, it’s hard to pick a favorite.  What’s yours?

Personally, I want to know more about the "proprietary system" for gathering email addresses.

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CUPPY’S COFFEE: Interview With Franchisee Rick Noem

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Interview with Cuppy’s Coffee Franchisee Rick Noem, Ft. Collins, CO

Franchisees Krista and Rick Noem paid $125,000 to for the Fort Collins, Colorado Cuppy’s Coffee franchise and as a downpayment for construction of their Cafe from (essentially) Cuppy’s construction arm, Elite Manufacturing.  Their American dream quickly turned into a nightmare.  To date, they have lost more than $200,000 and are in a financial crisis.

UF:  What’s your background? What were you doing prior to owning your franchise?
Rick: Krista has been in the fast casual restaurant management field for 21 years.  I have managed Pizza Hut, Einstein Bros Bagels, Long John Silvers, Jack in the Box and Wendy’s.  I was looking for an opportunity that would allow me to work for myself to benefit our family rather than give it to another company.  Rick is an analyst for IBM with an MBA in Technology Management.

UF:  When did you decide you wanted to own your own business? Describe the process you went through to determine which franchise to buy.
Rick:  We decided two years ago to start looking into the world of franchising.  We actually signed with a company called Saint Cinnamon out of Toronto in September of 2007.  In January of 2008, we severed our relationship with that franchise due to Saint Cinnamon making significant changes to our contract that would have crippled us right out of the gate (so we have a really bad track record on picking franchises).  We had to find another concept that would work in our 2000 square foot space. (Lease was signed in October of 2007).  In February of 2008, I was contacted by Ken Massie (no longer with Cuppy’s) about their concept.  I flew to Florida on February 10, 2008, to see the operation.  I was impressed with the product and knew it could surpass Starbucks and some of the other major coffee brands out there.  It took us about a month to do our homework.  There were two locations in Colorado open or soon to be open.  We spoke to both franchisees (who both had a few minor construction delays) but who were overall thrilled with the concept and the product they were serving.  We did see all the negative blogs, but really thought this was due to Java Joz’, and that Cuppy’s was/is going to be a great up-and-coming company.

UF:  Describe the company’s sales process and your interaction prior to becoming a franchisee.

Rick: We ended up signing our franchise agreement on March 24, 2008.  Ken Massie and other key players were calling me several times a day to check on my progress, answer any questions we had and really made it seem like there was going to be a strong communication network between franchisor and franchisee.  While the phone calls were getting old, it comforted us knowing that they would always be there for us.

UF: How was the company’s training and pre-opening support. Was it a positive experience?
Rick: We returned from Cuppy’s Coffee College on August 8, 2008.  It was a great experience.  Everyone seemed knowledgeable about the product and were very enthusiastic about getting us up and open for business.  We felt the training program was sufficient but after training everything ended abruptly (support/communication).

UF: When did things start to go wrong? What was it that made you an unhappy franchisee?
Rick: In May of 2008, I advised Cara (our FSM) and Theresa (Elite) that I was running out of capital to get me through the build-out process.  I was advised that if I was approved as a franchisee, I would put 50% down, Elite would in house finance the other 50% as well as obtain an equipment leasing package to come up with working capital.  After I put the 50% down, none of the other promises materialized.  I made it clear to everyone when I signed that they were getting everything we had and there was no more where it came from.  I was assured by Steve Wesolowski (finance department) that it was a done deal.  We have gone through many different banks and capital companies trying to obtain additional working capital to no avail.  I went to Florida on June 27th and confronted Theresa St Clair, Dale Nabors and the Greg Rynearson (new president of Elite) and told them once again that we were out of funds and rent was to commence on June 28th and that we were not happy with how long it was taking the architect and engineer to complete our plans.  Rick and I scraped up enough money to pay our rent and loan payments (totaling $9200 a month) for June, July and part of August.  I was assured that we would work something out with Dale.  He made many statements to me about talking to my landlord to have rent postponed for three months and tacked on to the back end of the lease.  My landlord was not willing to go for that because the delays were not due to him but to Elite and the architect and engineers of the project.  In April of 2008, we provided Elite with a full set of plans (we had them completed when we were doing the other concept) and all that needed to be done was the Cuppy’s dress and engineering.  It took us until July 11th to receive the first set of plans.  They were a joke.  The architect added doors and walls where there were no plans for them.  It took an additional three weeks to get a set of plans that were good enough for my landlord to get to the city.  He still had to redline some changes but they were pretty minor.  The final plans arrived to my landlord two days before we left for training.

UF: Have you tried to resolve your issues with the franchisor? What was the outcome?
Rick: All we get from the franchisor are empty promises of phone calls and follow-up.  They are great about talking the talk when you are face to face but it is not long before you realize they are just blowing more smoke.

UF: What is your current situation? What would you like to see happen at this point?
Rick: We are broke, can’t pay rent ($6000 a month) or loan payment ($3000 a month).  We want our money back so we can stop the bleeding and try to get closer to being able to pay off all the debt occurred at Cuppy’s expense.

UF: Do you think that the franchise concept is a viable?  Under what conditions?
Rick: I think Cuppy’s has a great product and could make a name for itself once it has a sound infrastructure in place.  I feel Dale started with good intentions but really didn’t know what he was getting himself into when he purchased the company.  If Dale can rectify the situation with all the unhappy franchisees, and build up the infrastructure to support new stores, we think he can turn this around. Whether this happens or not is yet to be seen. I would not invest money with this company as it stands now, until its intentions can be ascertained.

UF: What mistakes did you make?  Looking back, what would you have done differently?
Rick: We jumped into Cuppy’s after our landlord made it very clear that even after our Saint Cinnamon effort failed he was going to hold us to our lease.  We were pressured by our landlord to get something in our space quick.  Cuppy’s came along, gave us a great song and dance and we jumped.  They were so upbeat, and the interview process with them made it feel like we had to say the right things for them to consider us, like we were interviewing for the right to be a part of this company. This gave them more credibility. Again, I feel strongly that while we are guilty of jumping in too fast, Cuppy’s is guilty of misleading current and potential franchisees.  They were making promises to close the deal.  The money we gave them is gone.  Dale told us on two separate occasions that he is personally responsible to us for that money, and that he will do what it takes to make good on it if he was unable to secure financing for our store.  We need him to make good on that so we can attempt to repair the damage done.

UF: How has your franchise investment decision affected your life?
Rick: We had hopes of opening several locations.  We wanted to make enough money to help put our five children through college and pay off our debt so we could enjoy our retirement years.  Now we will be working to replace money taken from our 401K and stock sale so we can set a time for retirement (probably ten years later than previously planned).  Once we settle with Cuppy’s, we still have to come up with a plan to help us sever from our lease without having to file bankruptcy or lose our house altogether.  We do not know how this is going to turn out. We have contacted people to keep theirs eyes open for anyone looking to rent in this area. Hopefully we can find someone to take over this lease, which is going to be a huge money-maker. I am just sorry that money will not be coming our way. This will haunt us for many years to come.

UF: What advice would you give to prospective franchise owners? What questions should they ask? What warning signs should they look for?
Rick: If someone offers you a “free-franchise”, remember the old saying.  “You get what you pay for”.  They are great at wining and dining you until you sign and then the honeymoon is over. We paid nothing for the franchise, and that is exactly what we got back from them. Investigate prior lawsuits and blogs. Take these blogs seriously, and contact the writers to get more information, I wish we had.  Had we known all of this six months ago we wouldn’t be where we are today.  We did our homework.  Even though I called the references provided to me by Cuppy’s, I also talked to franchisees who were already open in our area.  They were happy with the company.

UF:  Have you heard the allegations that Cuppy’s Coffee franchisees may have been paid to give positive references?

Rick: I just recently learned that.

UF:  Thanks, Rick

Rick: Thanks for listening.

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RED BULL: Gored by Vending Scam

Jan warns about the all-too-familiar fate of those who fell for the alleged Red Bull vending scam. Before you invest in a vending business opportunity believing that a big name company must be legit, read Jan’s story:

I, too, was misled by this “Business opportunity” offered by Creative Concepts and Red Bull.

In October of 2005 I ran across a web site describing various business opportunities. One that caught my eye was a RED BULL VENDING PACKAGE. I was familiar with the energy drink and thought that Red Bull was a reputable company as they had been in business several years and were considered to be the #1 selling energy drink on the market. I contacted Creative concepts of North America who was handling these distributorships for Red Bull. After receiving their information package and reviewing it carefully I was contacted by a Creative Concepts Representative. He stated that “business was booming” and over the course of many phone calls I was convinced that it sounded like a good opportunity.

The information package touted, among other things: 1. Complete 3 year warranty for machines against defects, materials, parts, service and labor and a 3 year theft and vandalism policy. 2. Protected distribution rights for my territory. 3. Customer Support Program. It also described the “lucrative world” of energy drink vending, describing it as a high growth proven industry and a recession proof business with very tangible tax benefits. Also, the materials described Red Bull as the “biggest threat to coke and Pepsi in the last 40 years” This statement is absolutely erroneous and I doubt that Pepsi or Coke feels very threatened by Red Bull as about 95% of the places I contacted had contracts with either one or the other of these companies!

According to Creative Concepts, machines were selling so fast that that most “distributorships were taken up.” My area was still available but probably “wouldn’t be for long.” Much of the projected earnings that they bragged of sounded a little outrageous to me but I was looking to make a little extra money and did not intend for this to be my sole means of income. I asked them why Red Bull did not place the machines themselves and they said that Red Bull did not want to hire extra people to place machines and service them. That sounded sensible and reasonable to me.

In January of 2006, I used what savings I had in addition to some credit cards to transfer funds in the amount of $12,570.00 to Creative Concepts. After I received the machines, I spent days leading to weeks, then months trying to place the machines…all to no avail. I was dumfounded to learn that just about every location I visited had contracts with either Pepsi or Coke. I went to hotels, motels, colleges, malls, factories, gyms, office buildings, rental centers, car dealers, bowling alleys, roller skating rinks and just about every kind of business you can imagine. Curiously, many of them told me that they had already been contacted by Red Bull in the past about placing a machine and had turned them down.

I finally found one apartment complex willing to let me put a machine out by their picnic area. Exasperated, I finally contacted a Red Bull representative to hear of any ideas he would have in helping to locate my machines. I was quite taken when he jokingly said to me: “Yeah, they (meaning Creative Concepts) sell you the machines but they don’t tell you that you won’t find anywhere to put them.” At that time I was very confused as to why Red Bull would allow a company to sell their machines when they KNEW that people had very little, if any, chance of securing locations for them! I think I realized at that time that this whole scenario was corrupt and that Red Bull had been involved in some kind of scheme with this Creative Concepts Company. I also found out shortly after I received my machines that the affiliation between Red Bull and Creative Concepts was dissolved.

I was contacted by both for buy back programs and eventually sold the machines back to Red Bull for $1700.00 for the 2 new machines and $1500.00 for the used machine for a total loss of $7,750.00. It was very unfortunate for me to lose this money but I have been able to maintain and pay off my credit cards by working a few extra hours at the job I was told I may be able to retire from! I know that others have invested much more and that it has affected their lives in profound ways and will continue to do so for many years to come, possibly their whole life.

Red Bull acted in a very fraudulent manner and should be held accountable for involving themselves in business practices that leave so many people bankrupt, destitute and broken hearted. They agreed to be in a partnership with a company that was selling machines (with the Red Bull name emblazoned all over it) full well knowing that you CANNOT FIND PROFITABLE LOCATIONS FOR THESE MACHINES!!!!!!! Red Bull is a multimillion dollar company and should make restitution.

WHAT DO YOU THINK? HAVE YOU HAD EXPERIENCE WITH RED BULL OR OTHER VENDING COMPANIES? SHARE A COMMENT.

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