HUMAN Healthy Vending: the Next Revive Energy Mints Scam?

September 2, 2012 Franchise Publicity

HUMAN Healthy Vending: the Next Revive Energy Mints Scam?

HUMAN Healthy Vending claims it’s both helping entrepreneurs start their own lucrative vending businesses and helping to fight American obesity.

However, if HUMAN Healthy Vending turns out like the Revive Energy Mints vending franchise, the only thing American consumers will be losing is their life savings, credit ratings, and peace of mind.

Through a sales program allegedly run by William Wotochek, hundreds of Revive Energy Mints vending opportunities were sold to individuals who invested $12,000 to $25,000 or more.

In or around July or August, 2011, Revive Energy Mints disconnected its phone lines, abandoned its offices and disappeared without a single word of explanation.

Revive franchisees were left with no way to reorder product, with garages and basements filled with worthless machines, and without the “lifetime support” promised by Chierotti, Russo, Wotochek and others.

Many investors, several of whom are physically disabled, were left penniless. Savings gone, one Revive franchisee battles Lou Gehrig’s disease with the anguish of possibly leaving his loved ones saddled with debt. Some declared bankruptcy. One couple had their truck repossessed from their driveway at night, while they slept.

The Revive Energy Mints victims never received a single word of explanation or apology from Bill Wotochek or anyone of the others who persuaded them to put their trust in Revive franchising.

HUMAN Healthy Vending: Red Flags are Flying

The similarities between HUMAN Healthy Vending and Revive Energy Mints are frightening:

Both vending franchises were founded by two clean-cut 20-somethings with polished stories and inspired business “visions.”

HUMAN Healthy Vending was founded by Sean Kelly (not to be confused with the franchise writer Sean Kelly) and Andy Mackensen.

Revive Energy Mints was founded by Logan Chierotti & Ryan Russo.

Both vending opportunities started as business opportunities and were converted to franchise opportunities.

Both vending opportunities have or had slick, colorful brands and professed to be combining the benefits of vending with innovative, healthier options.

And, perhaps most strikingly, both opportunities had/have the same hard-sell artist closing their franchise deals: Bill Wotochek.

William Wotochek: President of Revive Franchising, LLC

While the other similarities might be superficial, the fact that franchisee and distributor recruitment efforts for both companies are spearheaded by Bill Wotochek is anything but.

In our interviews with Revive Energy Mints victims, Bill Wotochek’s name came up repeatedly as the man instrumental in convincing them to invest in the doomed vending scheme.

The 2011 Revive Energy Mints Franchise Disclosure Document lists William “Bill” Wotochek as having a leading role in both Sito Marketing and Revive Franchising:

President: William Wotochek

Mr. Wotochek worked as a consultant for Y-Development, LLC, from 2004-2005, in Denver, Colorado. In 2006, Mr. Wotochek worked in sales and business development for Key Financial, Inc. and General Steel corporation in Denver, Colorado. From 2007 to 2008, Mr. Wotochek worked at the Dalbey Educational Institute, LLLP, as Senior Director of Business Development. In September, 2008, Mr. Wotochek was hired to work in business development with Sito Marketing, LLC, our affiliate, in Denver. In January, 2009, Mr. Wotochek was promoted to Vice President of Expansion for Sito Marketing, LLC. In October 2010, Mr. Wotochek was promoted to President of Revive Franchising, LLC.

Bill Wotochek: Vice President of Sales, HUMAN Healthy Vending LLC

The 2012 HUMAN Healthy Vending Franchise Disclosure Document lists Bill Wotochek as Vice President of Sales since it was founded in November, 2011 and Vice President of Sales of its predecessor NWBL since July 2011, right around the time Sito Marketing and Revive Energy Mints Franchising LLC left its franchisees high and dry.

The current HUMAN Healthy Vending Franchise Disclosure Document (FDD) reads:

Vice President of Sales: Bill Wotochek

Mr. Wotochek has been Our Vice President of Sales since We were formed in November 2011. He has served as Vice President of Sales of NWBL since July 2011. He was a sales representative for Sito Marketing, Inc. from January 2008 through July 2011. Mr. Wotochek was the owner of Wotochek, LLC from august 2006 through December 2007.

HUMAN Healthy Vending’s FDD Appears to Contain False and Misleading Statements

The HUMAN Healthy Vending Franchise Disclosure Document (FDD) is a FTC mandated disclosure document that is registered with the State of California and State of Minnesota is required to be provided to each prospective HUMAN Healthy Vending franchise owner.

HUMAN Healthy Vending FDDs are sent to registration states with a sworn, signed and notarized statement from HUMAN CEO Sean Kelly that all statements and representations in the FDD are factual and truthful.

Here’s Human CEO Sean Kelly’s sworn statement from a 2012 franchise registration application:

However, the HUMAN Healthy Vending 2012 FDD appears to intentionally misrepresent the role Mr. Wotochek played in the Sito Marketing LLC and Revive Franchising.

The HUMAN Healthy Vending FDD downplays Mr. Wotochek’s role in the vending franchise disaster by stating only “He was a sales representative for Sito Marketing, Inc. from January 2008 through July 2011.”

Why does HUMAN Healthy Vending not disclose that Bill Wotochek was, in fact, Vice President of Expansion for Sito Marketing, LLC and that in October 2010, Mr. Wotochek was promoted to President of Revive Franchising, LLC?

What else isn’t HUMAN Healthy Vending telling the registration state franchise examiners and its prospective franchise owners?