Dan Olsen claims to be a franchise guru who has created billion dollar franchise companies. A local volunteer and sports coach. A success mentor who just wants to give back. A recent arbitration ruling exposing Olsen’s fraudulent practices in selling the RX2Live franchise may add Liar & Fraudster to the list. Part of the VetFran Veteran’s Initiative @ UnhappyFranchisee.Com
A franchise salesman once said: “The secret to franchise sales is sincerity. Once you can fake that, the rest is easy.”
A longtime, prominent figure in the Franchise Dream-selling industry, Dan Olsen has credibility & sincerity down to a science.
In recent years, he has bolstered that image with an endorsement by and alliance with the As-Seen-On-TV gadget pitchman & Shark Tank star Kevin Harrington.
In a video testimonial, Kevin Harrington calls Dan Olsen “The Real Deal.”
According to the arbitrator of the franchise dispute RX2NAPLES, LLC; LESLIE DEAN; and MELVIN DRURY vs. RX2LIVE, INC., DALLAS BALDRI; ERIC FOSTER; GARRETT BLOOD; BRIAN HAZELGREN; RICHARD SCOTT, DAN OLSEN; and RX2LIVE, LLC, the only thing real about Dan Olsen’s pitch for the Rx2Live franchise was that it was really deceptive, really fraudulent and real unlawful.
It also wasn’t real bright, as the franchisee they deceived was a battle-tested attorney, Leslie Dean (Dean Law, VeteranAppeals.org), and her CPA husband Melvin Drury – a couple willing and able to fight back.
[Then again, RX2Live’s alleged decision to capitalize on the COVID-19 pandemic with a fraudulent, price-gouging and 3M N95 respirator counterfeiting scheme wasn’t too bright either.]
Arbitrator: Dan Olsen & Execs made false representations, concealed material facts and made false Earnings Claims to sell the Rx2Live franchise
Rx2Live is a Highland, Utah-based franchise company that’s still selling.
According to the petition, Dan Olsen “has never been an officer of RX2Live, but is the leader and motivational force behind RX2Live and had significant management responsibility.”
His co-defendants are
- Richard Scott (Chief Executive Officer from its inception in 2016 until 2018)
- Brian Hazelgren, Chief Executive Officer
- Garrett Blood (An employee of RX2Live from 2017-2020)*
- Eric Foster and Dallas Baldri (partners in their own company, HD Group LLC, and were the salesmen who sold the RX2Live franchise units)
The Defendants & RX2Live represented to franchisees that they’d be able to sell such high-demand products as medication dispensing services, allergy therapy services, DNA testing PGX testing, weight loss products and services, corporate wellness programs, and senior services to the healthcare industry.
Despite the significant role Dan Olsen played in the Rx2Live franchise organization, he and his work history were not disclosed, as required, in Item 2 of the Franchise Disclosure Document (FDD).
Note: Garrett Blood & Kevin Harrington were later dismissed from the suit.
Not disclosed: Dan Olsen’s Checkered History, Franchise Growth System Enforcement Order & Hazelgren’s prior conviction for Securities Fraud
According to the Arbitrator’s decision,
“RX2Live, Mr. Olsen, Mr. Scott and Mr. Hazelgren were responsible for concealing the material fact that Mr. Olsen’s previous company, Franchise Growth Systems, took a multi-million dollar judgment in Nevada. This Nevada judgment from 2016 should have been disclosed in the FDD but was not….
“RX2Live, Mr. Olsen, Mr. Scott and Mr. Hazelgren were responsible for concealing the material fact that Mr. Olsen and Franchise Growth Systems were cited in 2015 by the Department of Business Oversight for the state of California for offering and selling unregistered franchises, making untrue statements of material fact to franchisees and making untrue statements to the Commissioner with the intent to impede, obstruct and influence. Mr. Olsen and Franchise Growth Systems were both fined and issued a cease and desist letter. Given Mr. Olsen’s deep day to day involvement in RX2Live, the California Citation and Cease and Desist Order should have been disclosed in the FDD.
“…Mr. Hazelgren becoming Chief Executive Officer was material because he had a conviction for securities fraud.”
“Most of Claimants’ Allegations of Fraudulent Inducement Are Supported by the Evidence” – Arbitrator
“RX2Live, Mr. Olsen, Mr. Foster, Mr. Baldri, Mr. Scott, and Mr. Hazelgren made directly or were responsible for making numerous misstatements of material fact, and concealing material information from the Claimants….”
Those false statements include:
“…that RX2Live was in a 1/2 trillion dollar industry when RX2Live and its franchisees had not materially entered the healthcare industry.
“…that Mr. Harrington was on the Board of Directors of RX2Live when he was not and when, in fact, RX2Live did not have a functioning Board of Directors.”
“… that the franchise system was turnkey when it was far from it and when its only marginally successful franchisee, the Campbells, while making some revenues, were barely profitable. In fact, Ms. Campbell testified that she and her husband were inventing procedures and best practices on the fly with no help from the franchisor.
“…that franchisee overhead would be negligible because the franchisee’s sales force could be comprised of 1099 employees, including physicians, when applicable government regulations required that Medicare or Medicaid monies earned as a result of services offered by affiliated physicians be paid only to W2 employees.
“… that the franchise system had developed 17 profit centers including medication dispensing services, allergy therapy services, DNA testing PGX lab service testing, weight loss products and services, corporate wellness programs and senior services energy drip and micro-current. In reality, there were less than a handful of programs that RX2Live had marginally developed.”
“… that the services offered by franchisees were in high demand among physicians when they were not and, in particular, when their own franchise could not make any meaningful sales to physicians. Indeed, Mr. Foster and Mr. Baldri have abandoned their franchise.
“…that exclusive features of being an RX2Live franchisee would be ‘immediate income generation’ and low risk.”
“…that franchisees would be able to legally market and sell PGX and other lab testing when, in fact, Consultative Genomix (the lab who performed the PGX and other testing) did not authorize RX2Live to perform tests through it at all. Indeed, Consultative Genomix issued RX2Live a cease and desist (Claimant’s “Exhibit 17”).
“Mr. Harrington inaccurately represented in the publicly accessible June 15,2018 (recorded) advertising video that he was on RX2Live’s Advisory Board…
Harrington testified at the final hearing that he has never been on RX2Live’s Advisory Board, at any time. In fact, Harrington testified that RX2Live never even formed an advisory board.”
Dan Olsen, Rx2Live Ordered to Pay Naples Franchisees $105,238.74
The Final Order issued by arbitrator Harold R. Bruno III on September 22. 2021, reads:
RX2Live, Inc., RX2Live, LLC, Dan Olsen, Eric Foster, Richard Scott, Brian Hazelgren and Dallas Baldri are jointly and severally liable to RX2Naples in the amount of $78,401.73 for breach of contract, violation of the Little FTC Act and fraud.
RX2Naples is also awarded its costs of $1817.35 to be paid by RX2Live, Inc. RX2Live, LLC, Dan Olsen, Eric Foster, Richard Scott, Brian Hazelgren and Dallas Baldri, jointly and severally.
RX2Live, Inc., RX2Live, LLC, Dan Olsen, Eric Foster, Richard Scott, Brian Hazelgren and Dallas Baldri are jointly and severally obligated to pay RX2Naples, LLC $25,019.66.
The total amount of the award is, accordingly, $105,238.74, to be paid jointly and severally by RX2Live, Inc., RX2Live, LLC, Dan Olsen, Eric Foster, Richard Scott, Brian Hazelgren and Dallas Baldri.
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TAGS: RX2Live, RX2Live franchise, RX2Live lawsuit, Dan Olsen, Kevin Harrington, Franchise fraud, scam, Leslie Dean, Melvin Drury, Eric Foster, Richard Scott, Brian Hazelgren, Dallas Baldri , Franchise Growth Systems, arbitration, franchise complaints, franchise, franchise opportunity, franchise complaints, unhappy franchisee