TRADEBANK Franchise Complaints
Tradebank franchise complaints include the company’s alleged failure to provide marketing and operational support, and alleged pre-sale misrepresentations about the size, strength, profitability and success of the Tradebank franchise system.
(UnhappyFranchisee.Com) Tradebank is a franchised barter brokerage business. Tradebank franchisees offer individual businesses the opportunity to convert their goods or services into “barter credits” or “trade dollars” recognized as currency within the Tradebank system. Tradebank members can then use those trade dollars to purchase good and services offered by other Tradebank members.
As an intermediary, Tradebank franchisees receive a commission on each trade transaction.
Tradebank claims it offers franchisees limitless financial potential.
Tradebank franchisee recruitment materials claim that the barter industry is exhibiting phenomenal growth, and its franchisees enjoy limitless financial potential:
Tradebank is your chance to be involved in a dynamic industry that is projected to grow at a phenomenal rate – over 500% in the next decade. This exponential growth is easy to understand. Barter is a business tool that can be used by virtually every business owner or professional – anyone who wants to conserve cash and increase profits. The market is basically limitless – and the same can be said for your financial potential.
However, a lawsuit filed by a Tradebank franchisee in July, 2012 (FLORIDA BARTER EXCHANGE, LLC, vs. TRADEBANK INTERNATIONAL, INC., and TRADEBANK INTERNATIONAL FRANCHISING CORPORATION) enumerate a number of serious allegations about the Tradebank franchise opportunity and its principals.
According to the lawsuit, Tradebank International, Inc. and Tradebank International Franchising Corporation made a number of representations and omissions to Florida Barter Exchange, Inc. which were materially false.
In the lawsuit (excerpts are in quotes), Florida Barter Exchange, Inc. alleges:
Tradebank has failed to provide a state-of-the-art online barter system
“TIFC [claimed it] would, throughout the duration of the agreements, maintain and upgrade a state-of-the-art, online 24/7 barter system for use by Plaintiff and others which would meet industry standards and be competitive with those systems used by Tradebank’s competitors- in fact, TIFC has not done so;”
Tradebank has failed to provide a four-color, monthly newsletter
“TIFC [claimed it] would, throughout the duration of the agreements, provide to Plaintiff and its customers a four-color monthly newsletter for their use – in fact, TIFC has not done so;”
Tradebank has failed to provide phone consultation as promised
“TIFC [claimed it] would, throughout the duration of the agreements, provide telephone service consultation during normal business hours- in fact, TIFC has not done so;”
Tradebank misrepresented the size and success of its brokerages
“TIFC [claimed it] had at least 70 full-time, successful, uniform Tradebank brokerage businesses located throughout the United States – in fact, there is little uniformity among the Tradebank brokerage businesses, and only a few are full-time, successful operations;”
Tradebank has failed to provide continuous, effective franchisee training
“TIFC [claimed it] would, throughout the duration of the agreements, provide continuous, effective training for franchisees and their brokers – in fact, TIFC has not done so;”
Tradebank has failed to provide promised marketing programs and materials
“TIFC [claimed it] would, throughout the duration of the agreements, provide updated, state-of-the-art website, technology, Mastercard partnership and marketing materials – in fact, TIFC has not done so;”
Tradebank has opened competing barter franchises within existing franchisee’s territories
“[Tradebank claimed it] would not sell other barter systems to customers within the franchise territories purchased by Plaintiff from Defendants – in fact, Defendants have sold other competing barter franchises and systems to others within the franchise territories acquired by Plaintiff from Defendants;”
Tradebank misrepresented the strength of the barter industry
“[Tradebank claimed franchisees] would be part one of the fastest growing, most dynamic industries in the world–the barter industry – in fact, the barter industry experiences very little growth and loses so many customers from year to year that it is difficult for the Tradebank brokerage businesses to increase sales and earn profits;
Tradebank lied about the ability to use trade dollars in Canada and Europe
“Tradebank [claimed] customers can easily use their trade dollars in Canada and Europe – in fact, such trade with Canada is prohibited, and conducting such trade in Europe is extremely difficult;
Tradebank lied about the size of its customer base
“[Tradebank claimed] Tradebank system has at least 12,000 customers – in fact, the actual number of active customers is far less than the number represented by Defendants;”
Tradebank lied about the success rate of franchises
“[Tradebank claimed] over 90% of franchised businesses in America are successful – in fact, the number of franchised businesses that succeed in America is much less than the number represented by Defendants;”
Tradebank is a stagnant or declining system
“[Tradebank claimed that] Tradebank is a financially sound, dynamic system with substantial growth; in fact, Tradebank is a stagnant or declining system; most of the money received by TIFC is siphoned off by Til and spent on numerous projects which are unsuccessful and have no value for Plaintiff and other Tradebank brokerage businesses – Defendants spend almost nothing on marketing the Tradebank system;”
Most Tradebank franchisees never achieve profitability
“Tradebank [represented that its] franchisees will begin earning money immediately from their franchise investment… – in fact, most Tradebank franchisees never even reach the breakeven point;”
Tradebank misrepresents working capital needed
Tradebank claimed that new franchisees “should not need more than $18,600 working capital to support the franchise until reaching the breakeven point… and substantially more working capital is required to support the Tradebank franchise business”
Tradebank fails to disclose legally required information to franchisees
“[Tradebank claimed that] the FTC did not require disclosure of any litigation or additional information regarding Defendants or their officers – in fact, Defendants failed to disclose that they have been involved in litigation over their franchises and trademarks and that the CFO of TIFC owned a Tradebank franchise which failed;”
Tradebank misrepresents the value of its franchises and average revenue per customer
“[Tradebank claimed that] Tradebank franchises are very valuable; each customer of the franchisee represents at least $1,000 of value of the franchised business – in fact, the Tradebank franchised businesses have much less value than represented…”
ARE YOU A TRADEBANK FRANCHISE OWNER OR MEMBER?
ARE YOU FAMILIAR WITH THE TRADEBANK FRANCHISE OPPORTUNITY?
PLEASE SHARE A COMMENT BELOW.
Mr. Ney, (Trade Bank attorney)
We have a very small window of time during which my clients (and I’m saying Community Connect ) are open to discussing possible resolution of Tradebank’s claims, before Community Connect’s answer and counterclaims are due at the end of next week. Based on some of new information they’ve just discovered, one approach to establish that any agreements between Tradebank and the franchisee were void (induced by fraud, misrepresentations, etc.), will be to join a number of individuals as counterclaim defendants, including Mr. Davis, Ms. Hale, Mr. Gerry, Mr. Hayden, Ms. Yaffee and others who allegedly have firsthand knowledge of company practices in regards to deficit spending in the Tradebank system. Based on new information obtained since the depositions, my clients will likely allege Civil RICO claims against those persons, and at least based on what I’ve been told, it appears they have well-justified grounds to bring such claims. Annette Riggs provided a list of potential experts to John Lynch for the purpose of his own due diligence (and named some of the same to you in her deposition), and I want to make sure your clients are aware these are who my side will be contacting and working with as well. With background descriptions I am including them here as they were provided to Mr. Lynch: “Harold Rice, American Exchange Network. He is probably the most important person for you to talk to as he is an accountant and tax consultant and has had his own trade exchange (owned by his accounting firm) for more than 25 years. Harold is the go to guy for new and long established trade exchanges and I don’t know anyone with more knowledge about accounting (including how deficits are treated by the IRS) and tax reporting for barter/trade. He is giving a workshop at this years IRTA conference as he has done at many others in the past. Ron Whitney, Executive Director of IRTA. Probably doesn’t need explanation but he is very familiar with Regulation 1 which I gave you the copy of and the history and purpose of it. Scot Mathewson, iTradeEarth. Scot has experience with the Tradebank offices in Canada, is an independent exchange owner for about 16 years. Before he went independent, he had a BXI franchise so he learned through being a franchisee and then went through the process of the full management responsibility of running his own exchange. He might have a lot of perspective that he could offer. Paul Suplizio, one of the original founders of IRTA and its first Executive Director. Paul was instrumental in the negotiations with the government back in the 80’s. He has deep knowledge of what happened and why regulations were put in place so that IRTA could demonstrate the ability to self-regulate. He was the primary lobbyist and representative of our industry that resulted in our designation as 3rd party record keepers and kept us from being regulated or shut down as an industry all together at that time.” This next referral was not provided to John Lynch but has become relevant since this list was provided to him: Mike Mercier, President of the Global Board of IRTA. Apparently Marcy Yaffee and Todd Gerry were personally trained by Mike and have a full understanding of deficit spending and the effect that it has on an exchange and franchisees. I understand that Mr. Davis, Ms. Hale, Mr. Gerry, and others may be familiar with some of these persons, who are well-known throughout the industry. Annette Riggs, whom you met, has known all of these potential witnesses/barter experts for many years and is very comfortable with her knowledge about their positions on these issues. And Harold Rice in particular appears to have a substantial amount of firsthand factual knowledge about Tradebank that if confirmed would be devastating to your clients (and the individuals who would be brought in personally). After the depositions, Ms. Riggs went forward on making few calls to these experts and uncovered information previously not known, which include Tradebank’s alleged practices with respect to “cash-converting” and “deficit spending on their own account,” “selling trade credits to franchisees,” and other giveaways that have all contributed to the deep deficits in the Tradebank system. So, my clients believe that this is a systemic issue and not unique at all to the Denver franchise. Also relevant would be evidence that Tradebank allegedly puts all of its franchisees at ongoing (and well-known to Tradebank’s management) risk by not properly recording or reporting enormous amounts of “deficit spending” for income tax purposes. All of these facts are sufficient allegations, my clients believe, to sustain RICO claims against the relevant individuals. Thefranchisee believed that the $400k of positive balances in the Denver franchise was an asset to his franchise, rather than what it was (and is), a liability. Community Connect is going to primarily make its defense with the case that any franchise agreement, and any covenants, between the franchisee and Tradebank were null and void (due to fraud and misrepresentation), and thus your clients cannot sustain claims against Community Connect. Again, my clients all believe they have credible information that Tradebank systematically engages in activities that lead to massive unreported and unpaid tax and other obligations, which puts their entire franchise system literally at imminent risk, and systematically makes material misrepresentations in various franchise documents. Your clients have aggressively pursued all of my clients, even coming all the way to Colorado to go after Community Connect. And I have to question why in the world your clients would want a transcript of the short hearing on Tuesday, unless it’s to use it for a “press release” or something akin to what they’ve done to and against many franchisees. When faced with such aggressive tactics and claims, my clients are going to respond with every legal avenue open to them. Or between gentlemen, we can say my clients feel it’s time to take the gloves off and take the offensive. In addition to Community Connect’s short-term litigation plans, your clients should also assume that the franchisee will shortly be seeking leave to amend his counterclaims and take similar steps (seeking leave to add RICO claims) in the pending Georgia litigation. All that said, there is again a very small window before my respective clients begin the next stage of their litigation counterattack so-to-speak. Annette Riggs feels that this case has the potential to bring forward unwanted government regulation or attention on the entire barter industry. As I understand it – this is the only reason my clients (and particularly Community Connect) would even consider some form of settlement before all of this begins to really escalate. By the end of next week Community Connect needs to file its answer and counterclaims, and we’re going to start preparing them Monday or Tuesday – so literally the window to seriously get your clients to confirm that they indeed want to continue is now. Once Community Connect files counterclaims, they’re going to be committed so-to-speak and will be much less likely to reconcile. And I’m sure it’s clear that many franchisees has some personal animosity towards your clients for what he perceives as very poor treatment and misconduct. Please let me know ASAP if your clients want to make some kind of settlement offer, or have a direct conversation with my clients. Hope you had a pleasant enough visit to Colorado, thanks, Gregory Goodman, Attorney GOODMAN | BOWLES LLC6901 S. Pierce Street, Suite 370Littleton, CO 80128(Columbine Valley Bank Building) 303-946-8525
CURRENT TRADEBANK FRANCHISEE EMAIL ADDRESSING CEO JOHN P DAVIS
Todd,
I understand your answer. But, respectfully, I believe John had no place to make this announcement. I don’t like the position this seems to have put you in. You are our President of Tradebank and these decisions and announcements should have come through you. I don’t believe John was respectful in this sense. John has a notorious habit of not following procedures in order to satisfy himself.It is my understanding that decisions such as this that have an effect on our bottom dollar should be discussed and voted by the Board of Directors, who in turn dictate their decisions to you as President. I would expect you as President to bring the decision to the Regional Owners at a meeting, in person or by phone, to allow a discussion of the decision. Regional owners then have a clear understanding of the change and are united in the decision. And clear decisions then become rules that are communicated to our client base in a timely manner. This process also solidifies the regional owners respect for you as our President.John clearly knows this correct procedure, but chooses to go on his own and create dissention among the Regional owners and stresses their relationship with the corporate office. During many meetings, I have personally heard him manipulate decisions and speeches simply to cause friction. It’s with sadness that I truly believe many of the problems in which Tradebank is facing right now stem from decisions and actions made by John Davis. I have been a regional owner now for eleven years, and these exact same issues have always plagued Tradebank. If Tradebank is going to survive, these actions have got to be stopped NOW. As a regional owner, I sincerely request that you would take a stand against John’s corruptible actions and consider the effects that his actions and decisions have on Regional owners and their clients. I believe you would have the backing of the majority of regional owners. I believe you have the best interest of Tradebank and the regional owners in mind and you could move us forward in a possible direction.I look forward to discussing these issues and sharing possible solutions among all involved at our convention in Nashville
.
Maureen Edwards
Tradebank of Middle Georgia
124 Gralan Drive Suite #6Byron, GA 31008Phone: 478-654-6624 478-654-6625Fax: 877-733-6163 broker@tradebankmidga.com
Albert Einstein stated, “The search for truth implies a duty. One must not conceal any part of what one has recognized to be true.” I am sorry but I have a moral obligation to protect future victims from Tradebank and to rage war against all who support their hidden agenda. I am in total support of Tait Carson and past and future victims of Tradebank. John Davis, Todd Gerry and Tradebank marketing material calls a Tradebank Franchise ……. “An Opportunity of a lifetime!”What is the meaning of an “opportunity of a lifetime?” It’s a chance that doesn’t come our way veryoften, and usually one that would result in tremendous benefits for us, if we can manage to grasp it before it slips away. “Other missed Opportunity of a lifetime!”All Regional Owners have an obligation to uphold the integrity of Tradebank!Attached is the video of Todd Gerry and John P. Davis and their resent trip to Orlando!
On March 2007 John Davis calls Tradebank.com stock “……….Don’t miss out on the opportunity!” According to Webster’s, the meaning of “opportunity”is Afavorable or advantageous circumstance or combination of circumstances. Also, A favorable or suitable occasion or time for progress or advancement”In an article in the Trade Street Journal, dated March-April 2007 John Davis states,“Our “Reg D” offering was launched and only time constraints on my part have kept it from completion. 2007 has already started with a bang!……..Completion of the “REG D” offering is my main focus for 2007. I will be visiting most of the US and Canadian cities beginning in late January until these projects are finished. There are only a few hundred thousand sharesleft for American clients and one million shares left for our Canadian clients. Let a word to the wise be sufficient. Don’t miss out on the opportunity!”Maureen Edwards has been recently quoted that when she sat on the Board of Tradebank many years ago (my guess is around 2007) That John Davis was trying to get the “Reg. D” offering completed and all the Board members at the time had to complete a Reg. D form. One of the questions that she had to answer honestly was, “do you know of any illegal activity done by Tradebank International or its officers?” She stated,“After all the forms where returned to Davis, there was never another attempt to file the reg. d again”. Also stated by Davis, his only focus on getting the “REG D” completed in 2007. See the Trade Street Journal March-April 2007. So who has benefited from the sale of 9.3 million shares of Tradebank stock, the stockholders?Todays Shopping Network, Inc. This Corporation is out of business. There was a ton of stock sold by Davis for this company was well! More Victims!3DH COMMUNICATIONS, INC. This Corporation is out of business? James Bower, Rob Verkiak and Davis together to victimize more Tradebank clients and regional owners with this stock. They even brag about it on Tradebank`s website. CITYBUDDY This Corporation is out of business more victimsIBIDEZY! Who Benefited? Purchased with Tradebank funds without the board’s approval.www.iBiDezy.com/tradebank. This Corporation is out of business. I know the man who sold it to Tradebank is happy. MYCHOICE FRANCHISING no is making any money! Who Benefited? Tradebank funds have been supporting Mychoice for two years now without the board approval. MYCHOICE.COM STOCK when will the reg. D be filed? Who Benefited?The Golden Gem Channel, This Corporation is out of business , Davis victimized more Tradebank clients and regional owner with this stock. Who Benefited?The Mine in South America This Corporation is out of business more victims. Who Benefited?With all of these other Opportunities who was the only one who benefited? John P. DavisLet me hit a little closer to home as a former Regional owner of two Tradebank franchises. As stated in the FDD “you only need 6-9 months worth of living expenses” (until your franchise starts making money) after you start you new region! This is what is called an earnings claim. This is clearing stated in FDD supplied to everyone who has purchased a Tradebank franchise. Only 6-9 months, Then you will be making enough to support your family and paid all of your bills. If this is true, Shame of Tait Carson and Ross Porter they should have honored their agreements, if it is not true shame on Todd Gerry and Tradebank International. So tell me who among you has been able to reach this claim made by Tradebank International in the first 9 months? We have 80 regions and 12,000 clients. See Tradebank`s welcome packet to new clients. if it is not true shame on Todd Gerry and Tradebank International.What about Tradebank being an Opportunity of a lifetime?The Region of Chattanooga since I have abundance of information of this region. Over the last five years this region has had just under 600 accounts canceled. What about “Residual income” that they claim in their marketing material? There sales are 31% year to date and the regional owner owns everyone trade dollars.Tradebank`s billable volume is down almost 1 million dollars year over year. Radman Reports from 1/1/2010 to 12/31/2010 “Trade Volume Ranking” Two key thing to look at when reviewing this report. First the average purchases per regional. Naturally if you’re going to claims it an opportunity of a lifetime then let’s look at the net. The average is 456,983.75 P&L on the average457,000 times 11% =50,270.00 in cash fees. 50,270 x 40% to the corporate office =30162.0030,106.00 the cost your monthly payment for your franchisee, of 600.00 per month or 7200.00 per year = 22962.00 minus your full time required broker 40 a week 160 a month 2080 a year (10 per hour plus fica) 12 per hour x 2080= 24960.00-1998.00 Minus your required office, phone, utilities, cell phone, insurance, auto, auto insurance, gas, office supplies, A P&L on regions doing 1,000,000 in volume (which only 10% of the regions have ever reached)1,000,000 x 11% = 110,000.00 in cash110,000 x 40% to corporate office =66,00066,000 minus (full broker12 per hour x 2080= 24960.00) =4104041040.00 minus (office 4800.00, cell 600.00, insurance 250.00, auto insurance 400.00, gas 3600.00, wear and tear on vehicle (tires maintenance) 500.00,office supplies, stamps and equipment 500.00, office phone and elec. bill, …..600.00 Your net is 34,590.00 this is the top 10% at TradebankHow long will it take you to reach a 1,000,000 in billable volume?Now Todd has been recently quoted as saying, “we would rather have 6 good regions than 70 regions not performing.”So how did they pick Rodger William to cut first? Straws? Names in a hat? Who is next? Maybe the corporate office just needed his other 60% (volume is way down year to date), 40% was not enough. Or maybe they just knew Mr. William would not fight back this was their way of intimidating to regional owners. I think most of you who are now working second and third jobs should quit them to concentrate on Tradebank unless it is Mychoice of course. if it is not true shame on Todd Gerry and Tradebank International.Here is the list of Regions please review and tell me which region has reached the “opportunity of a lifetime”Davis states at the latest regional owners conference, “there is more falling out of the bucket then going in!” True, Williams, Muchmoore, Porter, Carson 4 franchises, Winands 3 franchises, who is next? Well Panama City was added.
http://864business.com/
UNITED STATES FRANCHISES:Lavonda Henry (Current Franchisee) “I WAS JUST WONDERING IS TB MY HOBBY OR CAN WE ACTLY MAKE A LIVING DOING THIS?”
Anniston, AL FAILED FRANCHISE(only 3 Clients)
Asheville, NC FAILED FRANCHISE(only 12 clients)
Athens & NE, GA (upset Franchisee)
Atlanta Northwest, GA Atlanta Southeast, GA (upset Franchisee)
Auburn-Opelika FAILED FRANCHISE
Austin, TX FAILED FRANCHISE (only 2 clients)
Birmingham, AL (upset Franchisee)
Bowling Green, KY (upset Franchisee)
Brevard, FL FAILED FRANCHISE
Charleston WV FAILED FRANCHISE
Charlotte, NC (upset Franchisee)
Chattanooga, TN (upset Franchisee)
Clarksville, TN FAILED FRANCHISE (only 20 clients)
Colorado Springs, CO John Lynch (Current Franchise“If this is what Tradebank represents then it’s maybe me that needs to reevaluate Tradebank and being a Tradebank regional owner.”
Denver, CO sold, taking back and resold twice (losing money)
Dublin, GA FAILED FRANCHISE (only 8 clients)
East Central Florida, FL FAILED FRANCHISE (only 9 Clients)
Eastern Wisconsin, WI FAILED FRANCHISE (only 3Clients)
Florence, SC FAILED FRANCHISE (ZERO CLIENTS)
Gadsden, AL (losing money)
Greensboro, NC FAILED FRANCHISE(only 2 clients)
Greenville, SC (upset Franchisee)
Hopkinsville, KY FAILED FRANCHISE(ZERO CLIENTS)
Houston, TX FAILED FRANCHISE(1 client)
Huntsville / Decatur, AL FAILED FRANCHISE
Indianapolis, IN (losing money third year) less than 100 clients (upset Franchisee)
Kansas City, MO FAILED FRANCHISE(12 Clients) Franchisee now CFO OF TRADEBANK (DAVID HAYDEN)
Knoxville, TN (Happy Camper)
Lake-Sumter Failed franchise (ZERO CLIENTS)
Las Vegas, NV (10 clients)
Lawrence, KS FAILED FRANCHISE(ZERO CLIENTS)
Louisville, KY (upset Franchisee)
Mississippi FAILED FRANCHISE(2 CLIENTS)
Mobile, AL (losing money) (upset Franchisee)
Montgomery, AL FAILED FRANCHISE(9 Clients)
Nashville, TN HAPPY CAMPER
New Braunfels, TX Failed franchise (11 Clients)
NW Arkansas Failed franchise (29)
Oklahoma City, OK Failed franchise (10 Clients)
Omaha, NE 4 years still under 100 clients
Orlando, FL Franchisee suing TB
Panama City, FL (12 clients) Losing money
Raleigh, NC FAILED FRANCHISE(ONLY 3 clients)
Rockhill, SC FAILED FRANCHISE(ONLY 2 Clients)
San Antonio, TX FAILED FRANCHISE(ONLY 4 clients)
Savannah, GA FAILED FRANCHISE(11 clients)
Southwest Georgia, GA FAILED FRANCHISE(10 clients)
Spartanburg, SC FAILED FRANCHISE(only 4 clients)
Tallahassee, FL FAILED FRANCHISE(only 4 clients)
Tampa Bay, FL FAILED FRANCHISE(only 14 clients)
Topeka, KS
Tri-Cities, TN (upset Franchisee)
Tuscaloosa, AL FAILED FRANCHISE
Upper Cumberland, TN FAILED FRANCHISE(ZERO CLIENTs)
West Michigan FAILED FRANCHISE(only 9 clients)
Anniston, AL(only 3 Clients)
Asheville, NC (only 12 clients)
Athens & NE, GA (upset Franchisee)
Atlanta Northwest, GA Atlanta Southeast, GA (upset Franchisee)
Auburn-Opelika Austin, TX only 2 clients)
Birmingham, AL (upset Franchisee)
Bowling Green, KY (upset Franchisee)
Brevard, FL
Charleston WV
Charlotte, NC (upset Franchisee)
Chattanooga, TN (upset Franchisee)
Clarksville, TN only 20 clients)
Colorado Springs, CO
Denver, CO sold, taking back and resold twice (losing money)
Dublin, GA(only 8 clients)
East Central Florida, FL (only 9 Clients)
Eastern Wisconsin, WI (only 3Clients)
Florence, SC
Gadsden, AL ( money)
Greensboro, NC (only 2 clients)
Greenville, SC (upset Franchisee)
Hopkinsville, KY
Houston, TX (1 client)
Huntsville / Decatur,
Indianapolis, IN (losing money third year) less than 100 clients (upset Franchisee)
Kansas City, MO (12 Clients) Franchisee now CFO OF TRADEBANK (DAVID HAYDEN)
Knoxville, TN (Happy Camper)
Lake-Sumter Failed franchise (ZERO CLIENTS)
Las Vegas, NV (10 clients)
Lawrence, KS
Louisville, KY (upset Franchisee)
Mississippi (2 CLIENTS)
Mobile, AL (upset Franchisee)
Montgomery, AL (9 Clients)
Nashville, TN HAPPY CAMPER
New Braunfels, TX franchise (11 Clients)
NW Arkansas franchise (29)
Oklahoma City, OK franchise (10 Clients)
Omaha, NE 4 years still under 100 clients
Orlando, FL
Panama City, FL (12 clients)
Raleigh, NC (ONLY 3 clients)
Rockhill, SC (ONLY 2 Clients)
San Antonio, TX (ONLY 4 clients)
Savannah, GA (11 clients)
Southwest Georgia, GA (10 clients)
Spartanburg, SC (only 4 clients)
Tallahassee, FL (only 4 clients)
Tampa Bay, FL (only 14 clients)
Topeka, KS
Tri-Cities, TN (upset Franchisee)
Tuscaloosa, AL
Upper Cumberland, TN (ZERO CLIENTs)
West Michigan (only 9 clients)
“This is an opportunity that could change your life
and your financial future – dramatically. This is the Tradebank Franchise – a
chance to own your own business and to be a part of one of the fastest growing,
most dynamic industries in the world: the barter industry.” http://tradebankfranchising.com/
“There is a lot of prospecting involved in getting the first 50 clients, but after 50, it becomes a business based on referrals” he explained(Todd Gerry)
“You’re building a micro-economy that is like an engine,” Gerry said. It’s a business that will continue to generate money through network referrals.
ITEX, IMS, TODD GERRY, JOHN P. DAVIS, MARCY YAFFE, TRADEBANC, city buddy, golden mine gem channel, todays shopping network, 3DH, James Bower, Rob Verkiak, etrade , FDD Complaints, FTC COMPLAINTS Trade Bank http://www.aetv.com/barter-kings/video/?mkwid=s6CnEwrt1_pcrid_14796578235_pkw_ barter%20kings%20about_pmt_b&utm_source=google&utm_medium=cpc&utm_ term=barter%20kings%20about&utm_campaign=G_Barter+Kings&paidlink=1&cmpid=PaidSearch_ google_G_Barter+Kings_barter%20kings%20about#29749398
Tradebank claims “This is an opportunity that could change your life and your financial future – drastically.
Your Tradebank Franchise will provide you with instant income, as well as important residual income.” If you are considering buying a franchise MAKE SURE YOU CALL ALL THE FRANCHISEE AND VERIFY ALL FINANCIAL BEFORE PURCHASING this “opportunity!” Because if you don`t it really will change your life.
The lastest lawsuit against Tradebank
Jon P. Winand and Catherine A. Winand V. Tradebank International Franchising Corporation (District Court of Travis County, Texas, Civil Action 09-00429, filed on February 10, 2009).
ZAMPATTI v. TRADEBANK
INTERNATIONAL FRANCHISING CORPORATION et al.; and vice versa.
http://www.lawskills.com/case/ga/id/241/08/index.html
http://www.ripoffreport.com/junk-dealers/tradebank-of-florida/tradebank-of-florida-tait-cars-6cad6.htm
http://www.ripoffreport.com/directory/john-p.aspx
Tradebank International Franchising Corporation et al v.
Community Connect, LLC
http://dockets.justia.com/docket/colorado/codce/1:2011cv01530/126573/
Florida Barter Exchange, LLC v. Tradebank International,
Inc. et al
http://dockets.justia.com/docket/florida/flmdce/6:2012cv01145/273916/
http://www.barternewsweekly.com/2010/07/22/trade-banc-responds-to-lawsuit-2437/
http://www.barternewsweekly.com/2012/08/10/fraud-suit-involving-florida-barter-and-tradebank-intl-3426/
http://www.ripoffreport.com/tradebank-internatio/questionable-activities/tradebank-international-franch-e3097.htm
Other Fraud Cases filed
http://dockets.justia.com/browse/circuit-11/noscat-4/nos-370/
http://www.ftc.gov/
The Federal Trade Commission is the nation’s consumer protection agency. The FTC’s Bureau of Consumer Protection works For The Consumer to prevent fraud, deception, and unfair business practices in the marketplace.
The Bureau:
Enhances consumer confidence by enforcing federal laws that protect consumers
Empowers consumers with free information to help them exercise their rights and spot and
avoid fraud and deception
Wants to hear from consumers who want to get information or file a complaint about
fraud or identity theft
File a complaint today
https://www.ftccomplaintassistant.gov/
The Federal Trade Commission, the nation’s
consumer protection agency, collects complaints about companies, business
practices, identity theft, and episodes of violence in the media.
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Tradebank International, Inc. v.
Barter/Trade, Inc. et al
http://www.rfcexpress.com/lawsuits/trademark-lawsuits/georgia-northern-district-court/59148/tradebank-international-inc-v-barter-trade-inc/summary/
http://organictargeting.com/mychoice.html
Section 303 of the Food, Drug, and Cosmetic Act (“FDCA”), 21
U.S.C. § 333(a)(2), imposes felony liability for misbranding “with the
intent to defraud or mislead.” The question presented is whether this
provision requires proof of materiality. We hold that materiality must be
proven as an element of the offense under either a theory of intent to defraud
or a theory of intent to mislead.
JonP. Winand and Catherine A. Winand V. Tradebank International Franchising
Corporation (District Court of Travis County, Texas, Civil Action 09-00429,
filed on February 10, 2009)
http://www.ripoffreport.com/business-consulting/tradebank-internatio/tradebank-international-tradeb-88d5d.htm
[redacted] Todd Gerry Cell for more info
January 9, 2013
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Re: Tradebank International Franchising Corporation
Dear Sir or Madam:
Barter Brothers, LLC (“Barter Brothers”), a former putative franchisee of Tradebank International Franchising Corporation of Lawrenceville, Georgia (“Tradebank”). Tradebank is in the business of selling and licensing purported franchises to operate Tradebank brokerage businesses in the Tradebank barter exchange system, which is owned and operated by Tradebank International, Inc (“Tradebank International”). Tradebank International licenses trademarks to Tradebank for use in the sale of purported franchises to the public.
In 2010 Barter Brothers expressed an interest in investing in a Tradebank brokerage franchise. Tradebank and its principals made certain representations to Barter Brothers regarding the nature, operation and financial capability of the Tradebank business, the support which they gave their franchised brokers, the size and growth potential of the Tradebank franchise system, the success of Tradebank franchisees, and the potential for future success of Barter Brothers as a Tradebank franchisee if Barter Brothers purchased one or more Tradebank franchises.
Based upon the representations of Tradebank and its agents, beginning in January 2011 Barter Brothers signed purported Franchise Documents regarding Barter Brother’s investment in the Tradebank barter system in Colorado Springs, Colorado.
Tradebank failed to provide audited financial statements to Barter Brothers, as required by the FTC and NASAA rules, prior to taking money from Barter Brothers and inducing Barter Brothers to sign the Franchise Documents. When Barter Brothers requested that the audited financial statements be provided before the Franchise Documents were signed, Tradebank assured Barter Brothers that Tradebank was financially sound and would provide the audited statements in the near future if Barter Brothers would sign the Franchise Documents and pay the fees charged by Tradebank before receiving the audited statements.
Tradebank never provided the required financial statements. Tradebank has not been financially sound and shows no sign of becoming so. It is the understanding of Barter Brothers that Tradebank still does not provide audited financial statements to prospective franchisees with its FDD’s. Most money received from Tradebank franchisees is not used for the benefit of the franchisees. John P. Davis, the CEO of Tradebank’s parent company, Tradebank International, takes most of the franchisee funds from the franchise company and spends it on other ventures, such as “My Choice,” a franchise system operated by Tradebank International in competition with Tradebank franchisees. This competition violates Tradebank franchise agreements and conflicts with representations in the Tradebank FDD that its franchisees would receive exclusive territories free of other tradebank franchises. The competition from “My Choice” also dilutes funds which would be available to Tradebank to fund Tradebank’s obligations to its franchisees and to grow the system. Tradebank’s lack of capitalization also manifests in numerous broken promises and unmet obligations, some of which are set out below.
In addition to its failure to provide accurate financial statements, unknown to Barter Brothers, Tradebank made materially false statements and omissions to Barter Brothers regarding the following items required by the FTC and NASAA rules: (1) the financial condition of Tradebank, (2) a description of the Tradebank business, (3) the business experience of Tradebank’s officers, directors and key employees, (4) litigation involving Tradebank’s business, (5) the initial investment and working capital needed to open and operate the franchise business
for up to six months, (6) training and other assistance to be given Barter Brothers by Tradebank in the establishment and operation of Barter Brother`s Tradebank brokerage business, (7) a description of the exclusive franchise territories being purchased by Barter Brothers (8) representations of earnings expectations of Tradebank franchisees, and (9) the anticipated growth
of the franchise system over the next few years.
In particular, Tradebank made the following oral and written material misrepresentations and omissions on which Barter Brothers reasonably relied to invest in the Tradebank franchise system. Where appropriate, the Items in the attached Federal Disclosure Document for 2010 are attached.
(a) Tradebank would, throughout the duration of the agreements, maintain and upgrade a state-of-the-art, online 24/7 barter system for use by Barter Brothers and others which would meet industry standards and be competitive with those systems used by Tradebank’s competitors.
(FDD, Item 11.B.3.) In fact, Tradebank has not kept up with other barter systems’ software, websites and technological advances.
(b) Tradebank would, throughout the duration of the agreements, provide telephone service consultation during normal business hours. (FDD, Item 11.B.10.) In fact, Tradebank has ceased providing this service.
(c) Tradebank had at least 80 full-time, successful, uniform Tradebank franchised brokerage businesses located throughout the United States. In fact, there is little uniformity among the Tradebank brokerage businesses, and only a few are full-time, successful operations.
(d) Tradebank would, throughout the duration of the agreements, provide continuous, effective training for franchisees and their brokers. (FDD, Items 5,11). In fact, Tradebank has not offered any training beyond the rudimentary training offered when the franchisee initially signs up with Tradebank.
(e) Tradebank would, throughout the duration of the agreements, provide updated, state of- the-art website, technology, Mastercard partnership and marketing materials. (FDD, Item 11).
In fact, Tradebank has not kept up with the competition, causing its franchisees to lose customers.
(f) Barter Brothers would have the exclusive right to sell the Tradebank barter system to customers within the franchise territories purchased by Barter Brothers from Tradebank. (FDD Items 1.B.1; 13) In fact, Tradebank attempts to sell the “My Choice” franchise to Tradebank franchisees and others within the franchise territories acquired by Barter Brothers. “My Choice” is an alternative business system which competes with Tradebank franchisees for customers. (“MyChoice” is not mentioned as an affiliated franchise or as a risk factor in Item 1 of the FDD) Tradebank franchisees who also operate “My Choice” franchises divide their time, energy, money and loyalty between the two systems, thus prohibiting Tradebank franchisees from honoring their Franchise obligation to use their time, energy and money to develop only their Tradebank franchise. (FDD, Item 9) Tradebank franchisees necessarily depend on each other to develop customers who will purchase the goods and services offered by other Tradebank customers. Tradebank franchisees get no benefit when their customers use the “MyChoice” system rather than the Tradebank system. Every transaction in the “MyChoice” system is a
potential Tradebank transaction which is lost to the Tradebank franchisees. In addition, the “MyChoice” system has been unprofitable and a severe financial drain on Tradebank since its inception.
(g) Barter Brothers would be part of one of the fastest growing, most dynamic industries in the world–the barter industry. In fact, the barter industry experiences very little growth and loses so many customers from year to year that it is difficult for the Tradebank franchises to replace this lost business, increase sales and earn profits.
(h) Tradebank customers can easily use their trade dollars in Canada and Europe. (FDD, Item 1.B.3.) In fact, such trade with Canada is prohibited, and conducting such trade in Europeis so difficult that Tradebank does not even attempt to develop customers in Europe.
(i) The Tradebank system has at least 12,000 total customers. In fact, the actual number of active customers is far less than the number represented by Tradebank and is not growing.
(j) Over 90% of franchised businesses in America are successful. In fact, the number of total franchised businesses that succeed in America is about the same as small businesses generally. The success rate of Tradebank franchised businesses is much less.
(k) Tradebank is a financially sound, dynamic system with substantial growth. In fact, Tradebank is a stagnant or declining system. As noted above, most of the money received by Tradebank is siphoned off by Tradebank International and spent on numerous projects which are unsuccessful and have no value for Barter Brothers and other Tradebank brokerage businesses;
Tradebank spends almost nothing on marketing for the Tradebank franchisees.
(l) Tradebank franchisees will begin earning money immediately from their franchise investment and should not need more than $9,600 to $18,600 working capital to support the franchise for the first six months, by which time the business should be self-sufficient. (FDD, Item 7, Note 13). (FDD, Item 19, states that Tradebank does not make earnings claims. This statement is untrue). In fact, most Tradebank franchisees never even reach the breakeven point, and substantially more working capital is required to support a typical Tradebank franchised business.
(m) Tradebank franchises are very valuable; each customer of the franchisee represents at least $1,000 of value of the franchised business. In fact, the Tradebank franchised businesses have much less value than represented by Tradebank, and
(n) Tradebank failed to disclose litigation and additional information regarding Tradebank or its officers. In fact, Tradebank failed to disclose litigation in which it had been involved over its franchises and trademarks and that the Treasurer and CFO of Tradebank had owned a Tradebank franchise which was unsuccessful. (FDD, Items 2, 3).. Barter Brothers is also going to be suing Tradebank for the above misrepresentations and omissions, which induced Barter Brothers and its predecessor corporations to enter into franchise agreements with Tradebank, causing Barter Brothers substantial damages .Barter Brothers has been advised that these material misrepresentations and omissions are typical of those made to other purported franchisees in the Tradebank system and that these misrepresentations and omissions caused other businesses to sign franchise agreements with Tradebank. Barter Brothers requests the Commission to initiate an investigation of Tradebank and, if it so determines, to require Tradebank to cease selling franchises, which can only injure future purchasers of Tradebank franchises.
Sincerely,
Barter Brother`s, LLC
As a former franchisee in Greenville SC, I concur with every statement within this complaint. Tradebank and it’s business practices are evil. Brian Smith