NY Bagel Café Franchise Scam? NYB CEO Joe Smith and franchise salesman Dennis Mason took her $25,000 franchise fee as a refundable downpayment, a Massachusett’s woman claims, then refused to give it back when she was unable to get funding. With litigation being cost prohibitive, she is taking to the Internet to warn others about the NY Bagel Café franchise, Joe Smith and Dennis Mason.
(UnhappyFranchisee.Com) In 2009, the Conlons dreamed of opening a sandwich shop.
According to Janet Conlon, she filled out an application for a NY Bagel Café & Deli franchise and was told she had excellent credit and qualified to be a franchisee.
She was told that she needed to pay the $25,000 franchise fee up front and would be connected with funding sources.
When her son Eric asked whether the $25,000 fee was refundable in the event they couldn’t get funding, franchise salesman Dennis Mason responded, in writing: “Absolutely.”
The Conlons weren’t able to procure funding.
CEO Joe Smith (who sometimes goes by Joe Bagels online) has refused to refund the $25,000.
Six years after New York Bagel Café took her $25,000, a Twitter battle broke out between Conlon and Joseph Smith.
NY Bagel Franchise Scam Claim: “Joe Smith Scammed Me Out of $25,000”
Smith was referring to the supposed re-opening of the River Vale, NJ location, one of many failed New York Bagel franchises (See NY BAGEL CAFÉ Franchise: How Many Have Closed? [UPDATED]).
Janet Conlon tweeted: “Joe Smith scammed me out of $25,000.”
Joe Smith replied: “Nobody scammed you you paid a franchise fee and you couldn’t obtain financing because of your credit.”
New York Bagel Café & Deli deleted the exchange.
Janet responded with a barrage of Tweets on her own page:
“My credit is excellent. You ran my SSN# and I was qualified because my credit was excellent.”
“Joe Smith New York Bagel Enterprises Inc. gives misleading, fraudulent and incomplete information in his sales pitch.”
“Joe Smith is a fraud, gives negligent misrepresentation about his NY Bagel franchise and breached our franchise contract.”
Dennis Mason Email Seems to Back Up Franchisee Claim
Joe Bagels claims the franchise fee was non-refundable.
However, an email exchange between Janet’s son Eric and New York Bagel franchise salesman Dennis Mason (also read DENNIS MASON Franchise Complaints ) provided to UnhappyFranchisee seems to validate Conlon’s claim.
The emails are dated 7/13/09, while Dennis Mason was still trying to close the sale and the Conlons were deciding whether to move forward.
The email exchange reads:
Eric Conlon: “Hi Dennis, my mother was wondering if she does not get the loan from the SBA, is the 25,000 refundable?”
Dennis Mason: “Absolutely”
Here is a screenshot of the alleged Dennis Mason smoking gun email:
Are Joe Smith, Dennis Mason & New York Bagel Harvesting Franchise Fees for Profit?
The practice is, unfortunately, more common than you’d think
It’s hard to know how many franchise fees New York Bagel Café is collecting each year, since Joe Smith has refused to provide us with his Franchise Disclosure Document (FDD) in which franchisor’s are required to state how many franchises have been sold but not yet opened (SNOs).
The New York Bagel Café disclosure documents we have seen do not include the required information in Item 20 regarding SNOs or the number of franchises that have closed in the previous three years.
Have You Paid New York Bagel Café a Franchise Fee?
If you have paid New York Bagel Café, Joe Smith or Dennis Mason (who also goes by the name “Keith” or “Ken”) a franchise fee, please email us in confidence at UnhappyFranchisee [at] Gmail.Com.
We would like to hear your story – positive or negative.
ARE YOU FAMILIAR WITH NY BAGEL FRANCHISE OPPORTUNITY, JOE SMITH OR DENNIS MASON?
PLEASE SHARE YOUR OPINION BELOW or Contact UnhappyFranchisee.com
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