A USA Mobile Drug Testing franchise owner claims that the Rhino7 Franchise Development brokers lied and used misleading sales representations to sell the flawed USAMDT franchise and collect more than $2M in sales commissions.
The allegations made by the unnnamed franchisee came in response to and support of a similar complaint published this week, USA MOBILE DRUG TESTING Franchise Owner Warns of “Lies and Deceit”.
UnhappyFranchisee.com has contacted executives of Rhino7 franchise development and USA Mobile Drug Testing to offer a chance to refute, clarify or acknowledge these claims, but we have not received a response. We have not verified the accuracy of the dollar amounts cited in this message, and will once again give executives of both companies a chance to respond.
A group of USAMDT franchise owners are suing the franchisor, alleging that they were provided pre-sale earnings representations for a company (A&B Employers Solutions) whose operation, they later determined, bore little resemblance to the typical mobile drug testing franchises they were sold.
Additionally, franchisees allege that the Rhino7 broker gained their trust by telling them that he, too, owned a USAMDT franchise. The franchisee alleges that USAMDT CEO Joe Strom failed to stop the broker from misleading prospective franchisees, even after he acknowledged that he was not, nor had ever been, a USAMDT franchisee.
Another USAMDT Franchise Victim wrote:
This is much more than a warning signal for those looking for business opportunities in the franchise world, or inclined to buying a USAMDT franchise.
What makes this letter so powerful? It was written not by an outsider but by someone who has been exposed long enough, first-hand and personal to Strom’s character and treacherous style. Strom’s name appears frequently in all revelations about USAMDT but Strom wasn’t doing this alone: Rhino 7 and A&B Employers Solutions contributed heavily to this scheme. These are allegations which can hardly be denied by Strom & Co-Workers, Rhino 7 and A&B Employers Solution.
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If we have to believe USAMDT’s accounting numbers reported in the FDD, Strom paid in commissions from the total revenue to Rhino 7 the following amounts:
2010: $281,400 (60.31%)
2011: $1,540,639 (54.88%)
2012 (4mths): $418,584 (42.95%)
No question, it worked pretty darn well for Rhino 7 which innocently claimed in the “Franchise News” article not to have a clue that they have been selling Joe’s lies. Really? Wasn’t the Rhino 7’s rep posing as “USAMDT franchisees” to prospective buyers to sell with more conviction? Such honesty, it is amazing. As to the other player, it’s just a matter of time until the “side deal” between Strom and A&B Employer Solutions will be revealed. We are working on it. Patience.
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By reading this letter, both people out of and still in the USAMDT franchise have the opportunity to roll back the tape of “franchise discovery” experience. Although not all discoveries make you happy, this feels now more like a horror movie that will make you really sick. It is fair to believe that every single franchisee has been navigating through this quagmire of lies and deception put forth masterfully by Strom and Co-Workers.
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After reading this, many will say “How the hell happened? Was I that stupid?” You may say that they have been stupid, naive enough to take the bite. But these people came from environments where they never been exposed to such level of lies, deception and dishonesty.
There was no CEO biography, no picture of Strom on USAMDT website to have a “visual” at this character. (He put one up recently after being blasted on this website posting.) He was hiding. Just the striking resemblance between Joe Strom and Mike Murdock would’ve probably been enough to be poked in the eye by the false prophesy flag.
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Strom seems to be tormented by the “non-compete” and other business integrity concepts. He preaches a few but practices none simply because he has neither personal nor business integrity. See the “side deals” concept as an example of “franchise business integrity”. Strom faithfully continues to tell lies, cut side deals and spin the truth (like the Jerry Clum shtick) while he seems oblivious to the fact that all these gimmicks backfire hard.
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The only thing Joe Strom succeeds at brilliantly is draining out what is left from his franchise network. Those people work hard, they work on their own but Joe doesn’t care about the franchisees despite his putrid rhetoric; he keeps on cutting diligently the branch under his legs. He is bringing the franchise down. When most of those you collect royalties on (while their work hard and you tell lies) are gone, then what, Joe? Collect royalties on Kevin Smith, VP and close advisor (?!), and the rest of your executive team?
USA Mobile Drug Testing Franchisees Allege Fraud
Franchise Complaints: CEO Joe Strom Responds
RHINO7 Franchise Complaints
ARE YOU A USA MOBILE DRUG TESTING FRANCHISE OWNER, EXECUTIVE, EMPLOYEE OR CLIENT? ARE YOU FAMILIAR WITH RHINO7 FRANCHISE DEVELOPMENT OR THE USA MOBILE DRUG TESTING FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW. Contact UnhappyFranchisee.comTags: Rhino7 franchise development, Rhino 7 franchise development, Rhino7, Rhino 7, USA Mobile Drug Testing, USA Mobile Drug Testing franchise, USA Mobile Drug Testing complaints, USA Mobile Drug Testing franchise complaints, Rhino7 franchise broker, drug testing franchise, mobile drug testing, Joseph Strom, Joe Strom. franchise millionaire, Jerry Clum
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