UPDATED: IFE International Franchise Expo Ejects NYC Bagel Franchise Scam
UPDATE: This post has been updated to reflect the quick and decisive action taken by the International Franchise Expo (IFE) to investigate & ultimately eject exhibitor Davidovich NYC Bagel & Sandwich Shop from its franchise expo. Craig’s List franchise scammers whose fraudulent practices have been documented & exposed in three state investigations is exhibiting under a new name at the International Franchise Expo (IFE) May 30 – June 1, 2019 at the Javitz Center in New York City, NY. Franchisor exhibitors should expect unfair competition and lost leads to a competitor deceptively promising full financing and no franchise failures. Prospective franchisees should be aware that more than 90% of those who paid franchise fees never opened and 99.9% of those who opened eventually failed.
(UnhappyFranchisee.Com) UPDATE: This post was originally published Thursday, May 30 at approximately 11:30 am E.S.T. with the headline “IFE International Franchise Expo is Promoting a Blatant Franchise Scam.” After receiving our warning, Tom Portesy and IFE officials immediately got together with Franchise Section Chief of the New York Attorney General’s Office Joseph Punturo, who was an exhibitor and speaker of the show, and Assistant Attorney General of Maryland, Dale Cantone, who was also a scheduled speaker.
Franchise Section Chief Joseph Punturo determined that the Davidovich NYC Bagel & Sandwich Shop FDD failed to include legally required disclosures, and CEO Joe Smith was asked to pack his booth and leave the show less than 24 hours after the UnhappyFranchisee.com warning post was published.
We published this follow-up post on Friday, May, 31, 2019:
NYC Davidovich Bagel Ejected From International Franchise Expo (IFE)
We applaud MFV Expo’s CEO & President Tom Portesy and the IFE staff, Joe Punturo and the Franchise Division of the New York Attorney General’s Office, and Maryland Assistant District Attorney for taking quick and decisive action to protect attendees and exhibitors.
A warning has been issued for attendees and franchisor exhibitors of the International Franchise Expo (IFE) being held May 30 – June 1, 2019 at the Javitz Center in New York City, NY.
The IFE is an international trade show produced by MFV Expositions, sponsored by the International Franchise Association and assisted by the Department of Commerce/US Commercial Service.
According to the MFV website, the IFE is the premier annual event for the franchise industry
IFE is one of the few shows supported by the US Department of Commerce. Through international buyer outreach, the show attracts investors from nearly all 50 states and over 100 countries around the world. From domestic or international expansion to selling single units, area developments, or master franchises, IFE is the industry’s one-stop shopping event.
The IFE promises franchise sellers the opportunity to “Engage face-to-face with qualified prospects… “ and “engage with current and future prospects throughout your sales funnel.”
One of the “opportunities” being hawked at the IFE is a known Craig’s List scam now being promoted as “Davidovich NYC Bagel & Sandwich Shop” franchise opportunity.
Headed by two men named Joseph Smith and Dennis Mason, the franchise fee-collection scheme has been promoted in recent years through a number of corporate names (New York Bagel Enterprises, Inc., SMS, Inc., SMS Franchising LLC) and trade name variations (NY Bagel Cafe, NYC Bagel Cafe & Sandwich Shop, Davidovich NYC Bagel & Sandwich Shop).
NYC Davidovich Bagel Scammers: No Valid FDD, Three State Enforcement Orders & Millions in Fines & Judgements
State investigations by franchise regulators in Virginia, Maryland, Washington each determined that the sellers of what is now called NYC Davidovich Bagel & Sandwich Shop provide their victims with fraudulent franchise documents designed to hide their numerous franchise lawsuits, judgements, enforcement orders, bankruptcies, and store failures. All three states issued enforcement orders against Joe Smith & Dennis Mason, and the State of Virginia fined the two more than $750,000. The Washington Enforcement Order includes a long list of NYC Bagel lawsuits & judgements.
NY BAGEL CAFÉ Guilty of Fraud, Fined $764,899.33
NY BAGEL SCAM Washington Enforcement Order
NY BAGEL CAFÉ SCAM Claims Validated by VA Corporations Commission
NY BAGEL CAFÉ Franchise Fraud Investigation by MD Attorney General
NYC Davidovich Bagel & Sandwich Shop Hides its 50+ Franchise Closures
NYC Davidovich Bagel scammer Joe Smith & Dennis Mason provide bogus franchise disclosure documents that claim they have suffered ZERO franchise failures and ZERO store closures.
UnhappyFranchisee.Com and NY Bagel Victims have painstakenly documented more than 50 NY Bagel Cafe and NYC Bagel & Sandwich shop franchise locations that have closed or rebranded:
NY BAGEL CAFÉ Franchise: How Many Have Closed? [UPDATED]
The NYC Bagel Franchise Graveyard shows the storefronts of the many dead NY Bagel Café franchises, providing indisputable proof that the NY Bagel Café is an extremely high-risk venture – and those risks are not disclosed as required by law:
NY BAGEL CAFÉ Franchise Graveyard
Help Us Warn Potential Victims & Shut Down the NYC Davidovich Bagel Franchise Scam
We have been warning potential victims and urging law enforcement to act since 2013. Here is an index of our more than 40 blog posts:
NYC Bagel Franchise Scam Overview
Unfortunately, Joe Smith & Dennis Mason have become more aggressive and open with their bagel franchise scam.
There are currently 200 Craig’s List ads promoting their scam.
They are being promoted through the International Franchise Association and the IFE.
Their fraudulent Franchise disclosure document is posted in the Frandata SBA Franchise Registry, and they are eligible for SBA-guaranteed loans that have already resulted in a default.
Help us warn potential victims, urge law enforcement to act, and stop the NYC Davidovich Bagel & Sandwich franchise scam with a contribution here:
Help Stop the NYC Bagel Franchise Scam
NYC Davidovich Bagel Franchise Posts
DAVIDOVICH BAKERY: Part of the NYC Bagel Scam?
FRANCHISE DISCUSSIONS by Company
ARE YOU FAMILIAR WITH THE NY BAGEL, NYC BAGEL OR DAVIDIVICH BAGEL SCAM? HAVE YOU DEALT WITH DENNIS MASON OR JOE SMITH? SHARE A COMMENT BELOW.
TAGS: NY Bagel Cafe, NYC Bagel franchise, NYC Davidovich, Davidovich bakery, Davidovich Bagels, Davidovich franchise, Joe Smith, Dennis Mason, IFE, International Franchise Expo, International Franchise Association, IFA
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