(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.
Unhappy Franchisee: Franchising rumors, rants, controversies, issues, complaints & insider information you’re not supposed to know.
WHAT DO YOU THINK? ARE YOU FAMILIAR WITH RED BULL OR CREATIVE CONCEPTS OF AMERICA (CCA)? LEAVE A COMMENT BELOW.
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Tags: , biz opp scam, cca scam, creative concepts of america, Red bull vending, vending franchise, vending scam
