Did Red Bull Scam Jesus?
(Unhappy Franchisee) Comments are pouring in in response to reports on franchise watchdog site Unhappy Franchisee that Creative Concepts of America and Red Bull North America defrauded investors through an alleged vending scam.
Unhappy franchisees of the Red Bull vending franchise claim that the business opportunity in which they invested induced them to invest an average of $25,000, then set them up to fail.
Red Bull North America then purportedly bought back their machines at 30% of the original investment, then resold or placed them themselves.
However, they may have made a critical mistake in their choice of victims. Jesus himself left an angry message on Unhappy Franchisee.
Wrote Jesus:
I too, was looking for way to make extra money. I came across an ad for Red Bull vending franchises from Creative Concepts of America.I contacted the company and they {Paul}sent me information.
They guaranteed high traffic locations and that the average machine in service were vending 20-30 cans a day.Also I was told I would have protected territory.
A rep at creative concept{Paul} gave me references of people that were already making a lot of money with these machines.They told us that everything was safe and that we would even get a theft and vandalism warranty on our machines.Everything they told me sounded reallygood so gave it a try.
Before sending any money,I called red bull.They told me that creative concept was legitimate and that were the only company authorized to sell red bull vending machines.I was told not to hesitate to do business with them because they were a very reputable company.
So after hearing this I decided to buy 5 machines for close to $25,000.I took out a second mortgage on my home to do so. I sent my money to Creative Concepts and received my machines a couple months later.
After receiving my machines CCA connected me with a locating service as promise.The service was not able to find me ANY high traffic locations.I was then told that all high traffic locations already had exclusive contracts with Coke and Pepsi and would therefore be impossible to get in to. The locating service finally secured 3 locations for me .These locations averaged 2 cans per week.
I called Creative Concepts to complain about the location and request that new locations be found for me.The number was disconnected.In talking to other Red Bull vendors online, found out that creative concepts had just disappeared overnight.I didnt have the help I was promised.
I ended up looking for my own locations which weren’t any better. Each time I moved a machine it would cost me $125.00.Then I after talking to a local vender all the machines had the same keys. This after having a couple times robbed of the little money inside.
I was unable to recover to recover any money using my warranty since Creative Concepts was gone. Red Bull said there was nothing they can do because Creative Concepts was their own company and was not affiliated with Red Bull in any way.
Red Bull finally offered to buy back my machines for pennies on the dollar. I have lost lots of money in not the machines, transportation and general business costs.
This was in no way the business that both CCA and Red Bull promised. All across America similar situations happened and Red Bull did nothing to help, only offer pennies on the dollars for there machines. Shame on Red Bull because they wanted the machines for their distributors.
Bottom line: hard working people were swindled out of a lot of money.
Jesus
Homestead, Florida
Read more about the Red Bull investment controversy at Unhappy Franchisee.
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POSTED IN: RED BULL
2 opinions for Did Red Bull Scam Jesus?
tony
Jul 21, 2008 at 8:17 am
Like many others I was looking for a business to start to supplement my income. On October 2005 I came across CCA who claimed was the only company offering exclusive rights to sell Red Bull through their exclusive vending machines.
Jeff Youngbauer,CCA’s representative, quickly sent me out a distributorship package explaining all the details, who also stated that this was such a ground floor opportunity. Because of the $23,000 investment that was needed to start this ground floor opportunity I gave it some thought.
I contacted Red Bull and inquired about CCA. Red Bull told me that CCA was the only authorized distributor of Red Bull vending machines. I grew with excitement because I trusted a multi million dollar company that endorsed their sole distributor of vending machines.
On April 2006, I refinanced my home to finance this disaster that Red Bull and CCA created. On April 17,2006, I placed my order for 5 machines and 1800 cans of Red Bull and quickly wire transfered to CCA $23,000.
On April 24,2006 I received an email from CCA stating that, as of April 14,2006, CCA would no longer be distributing Red Bull vending machines. On April 17,2006, when I purchased my machines, CCA never told me this information. I contacted Jeff Youngbauer to get an explanation. He proceeded to tell me that, according to Red Bull, CCA had sold enough vending machines, but that my order was ok.
Feeling uneasy about this situation, on May 22, 2006, I sent a letter to CCA wishing to cancel my order with a full refund. Suni Perez(Customer Support) with CCA contacted me stating that CCA would honor my cancellation with a full refund made in three equal payments.
I NEVER RECEIVED MY REFUND FROM CCA!!!!!!!
Red Bull North America should be held responsible for the deceitful business practices that CCA was participating in. After all, Red Bull did endorse CCA as the only authorized distributor of Red Bull vending.
tony noto
Jul 23, 2008 at 8:32 am
It is not likely anyone will ever receive any justict. Andrew and his pirate family have hidden thier assets well. I have been down a long road with CCA.
A group of us actually won a judgement against CCA in Florida courts but have noway to enforce it. The only hope any of us ever really had was the police but though they paid a lot of lip service they never did anything. As for red Bull, thier deep pockets has and will scare most lawyers away. Mayve a gruop here and there with special circumstances may have and or had a shot at something but for most of us we have been let down by the agencies that should have helped us.
Tony Noto
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