24SEVEN VENDING IntelliVend Franchise Complaints

24SEVEN VENDING IntelliVend franchise scheme is gone but no doubt the financial damage it caused has not been forgotten.

(UnhappyFranchisee.Com)  According to the 2014 Coleman Report, 24Seven Vending has one of the highest SBA franchise loan default rates in the past decade (46%).

A 24Seven Vending franchise blog from 2009 stated:

“…Many of you are so frustrated and have been suffering from intimidation, or being afraid to stand up and say anything, for fear that they will strong-arm and threaten you into submission.   Many have lost their businesses or are going to lose their business or are just plain hanging in there because there’s nothing else you can do.  Some have been forced out of their homes.   Their families uprooted and life savings lost.”

See the other worst franchise loan defaulters here:  Worst Franchises by SBA Loan Defaults (2014)

Are you familiar with the 24Seven Vending franchise or the IntelliVend franchise parent VTL Group or its principals?  Please share your experience or a comment below.

According to this 2007 company press release, 24Seven Vending routes sold for $254,000 each and the New Zealand-based VTL Group sold more than 100 24Seven Vending franchises

VTL sells its 100th franchise in the United States

Kiwi technology transforming a traditional American business

Auckland, 14 March 2007 – New Zealand-listed vending machine franchising company VTL Group Ltd (NZX: VTL) has reached a milestone with the sale of 100 franchises in the United States under the 24seven vending machine franchise brand.

The US franchised 24seven vending routes normally sell for $US254,000 each. They are created from the trading stock of sited machines acquired by VTL Group from established vending machine operators, which have been converted to VTL’s proprietary technology prior to being franchised as ‘going concern’ routes.

Group chairman Gary Stevens says VTL’s technology is the key to converting marginal vending businesses into profitable owner-operated franchises.

“We’re delighted to have sold our 100th 24seven franchise to an operator in Miramar, Florida.“Our 24seven vending machines automatically report their sales so that our franchise operators know what lines are selling, what needs restocking and when machines need servicing. VTL’s technology transforms the profitability of vending machine businesses by providing a total management system, which maximises sales and reduces operating costs. It also introduces greater accountability and best-practice standards within the vending industry. This allows us to convert an old-style and mature business to our technology and franchise platform and create a dynamic, modern franchise that provides profitable opportunities for owner-operators.

“Proof of this is the fact that some franchises have been on-sold to new owners at higher prices.” He says VTL is continuing to build its stock of sited machines through the acquisition of service routes from local US companies.

“Our acquisition of Nor-Cal Beverages, Inc., in November 2006 delivered us more than 20 routes which we will sell down as franchises in the Northern Californian region over the next 12 months. More recently we have just completed negotiations to acquire the vending routes of Arctic Vending in California.” Mr. Stevens says the 24seven vending machine franchise model generates revenue from the sales of franchise businesses, plus on-going revenue streams through the collection of monthly monitoring fees and sales royalties.

VTL Group sold its first 24seven franchise in the US in July 2003. The company also has sixty nine 24seven operators within Australasia.

In the US, Service America’s core business has been restructured and the sale of non-core assets is expected to be largely concluded before the end of the financial year. Seconded CEO John Hotchin has installed a strong franchising culture and a consistent level of franchise sales is being achieved. As a result, Service America delivered a small operating surplus in the six months to 31 December 2006, which was well ahead of last year and slightly ahead of forecast. Service America has some 37,000 vending machines on some 10,000 sites under its control in North America, the equivalent of more than 400 franchises, including the routes franchised to date. Mr Stevens said the recognition of the value being added by VTL’s business and technology platform in the US has seen the strengthening of the company’s balance sheet by $US7.3 million 2 with the introduction of two Boston-based cornerstone shareholders, Mr John Halpern and Mr. George Denny III, who paid $US1 (approximately $1.45) a share last month to each acquire a 9.95% shareholding in the company…

About VTL Group Limited

VTL Group Limited (NZX:VTL) is a global franchisor, with its franchised brands represented internationally including Australasia, North America, UK and Europe. VTL Group’s franchise model is supported by a complete management system including its leading-edge proprietary technology and financing. The company’s primary growth strategy for 24seven® and Shop24™ is based around purchasing quality electronic vending equipment for 24seven or the manufacturing of its Shop24 units, installing proprietary control technology and building a network of franchised owner/operators.

For more information, please contact: Gary Stevens, Chairman, VTL Group Limited

However, there is little trace left on the Internet of this hard-selling franchise except a short-lived franchise warning site from 2009 and 2010 called “Intellivend Blog Spot.”

Vending Franchises Cause Pain, Suffering, Financial Loss

In a 2009 post, “Intellivend Blog Spot” stated:

Intellivend Vending 24seven Franchise Investigation

Welcome to the Intellivend Blog Spot! This blog is intended to provide insight into the facts and the current status of Intellivend and associates. We also welcome and encourage those that want an anonymous voice to share their experiences and adverse impacts dealing with any of the related companies.

  • All Seasons Holding, Inc
  • All Seasons Services, Inc
  • Service America Group, Inc
  • All Seasons Vending Inc
  • VTL
  • 24Seven
  • Bacon Whitney LLC
  • VendPath LLC active
  • Stonemark Beacon Inc active
  • Intellivend LLC active

These companies were all formed by the same group of individuals. All have been either bankrupt, dissolved or gone into receivership within last 4 years. The executives behind these companies are the following.

The executives behind these companies are the following.

  • John Hotchin (CEO Bacon Whitney, CEO Director All Seasons Services, Director Nathans Finance, Co founder Director VTL, Director All Seasons Holdings Inc, CEO Service America)
  • Charged with misleading investors by making false statements to investors owes $174 million to 7000 investors; less than 10 per cent is expected to be recovered.
  • Mark Bruno  (President and Founder Bacon Whitney, President and Director All Seasons Services Inc, frequent visitor to Intellivend)
  • George Denny  (Chairman of the Board All Season Services, Halpern Denny Fund majority share holders in Service America Group, Share Holders in VTL, Chairman of Board Bacon Whitney, Partner George Denny fund)
  • John Halpern (Board of Director All Seasons Services Inc., Partner George Denny fund, Halpern Denny Fund majority share holders in Service America Group, Share Holders in VTL, Board of Bacon Whitney)
  • Chris Rollins (Northeast District manager (92-98) for All Seasons Services Inc., VP and eventually Chief operating development officer of Bacon and Whitney. Claims he invested his own money into the business and has taken over defunct Bacon Whitney which is now known as Intellivend)


Lawsuits are mounting; the numbers of franchisees suing are into the double digits and escalating into multiple states across the country.

Vendors are not being paid

Commissions and Royalties are being diverted, franchise owners are paying Intellivend 10% of gross sales and they have failed on numerous occasions to deliver the commissions and have diverted monies.

Services levels are falling due to Technology outages

Franchisee’s Revenues falling

Franchisee’s defaulting are increasing

Expenses are rising with very expensive law firm Boylon Brown based in NYC hired to defend the lawsuits and default franchisees. Most likely were your royalty payments are going.

Intellivend is getting desperate they have resorted to creative methods of raising capital. They have been generating invoices without ever presenting or notifying the individuals of outstanding balances. They are going straight to debt collectors whom are directly harassing people who have lost their business. Its Likely these debt collectors are sold bogus debt, pennies on the dollar in order for Intellivend to raise some much needed capital.

Most are failing the few that are prospering well soon if not already will feel the bleeding. There is no reinvestment into the business three is no added value to your investments. The good equipment is being sold off, locations are being sold or traded to competitors. They have no facilities to store any equipment. The vast majority of the equipment you are operating is out of date and has very high maintenance cost which you have the burden of repairing.   They are charging unreasonable moving fees and MMF even when there is no justification.

Even there own employees have lost confidence in the leadership and are looking for a new jobs.

…Many of you are so frustrated and have been suffering from intimidation, or being afraid to stand up and say anything, for fear that they will strong-arm and threaten you into submission.

Many have lost their businesses or are going to lose their business or are just plain hanging in there because there’s nothing else you can do.

Some have been forced out of their homes.

Their families uprooted and life savings lost.

Meanwhile these greedy individuals are profiting from hard working honest families who have been deceived.

These entities and individuals have made claims and representations whether orally or in writing, which is inconsistent with or contradicts the marketing materials and disclosure documents which are unlawful.

If you have been misrepresented and or deceived during and after the sales process and or have been mistreated in any way please post your story on the blog.





Contact UnhappyFranchisee.com

TAGS: VENDING franchise, vending franchise opportunity, vending franchise complaints, 24Seven franchise, 24Seven franchise opportunity, 24Seven franchise complaints, VTL, 24Seven, Bacon Whitney, VendPath, John Hotchin, Mark Bruno, George Denny, John Halpern, Chris Rollins, SBA loan defaults, franchise loan defaults 

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