USA MOBILE DRUG TESTING (USAMDT)

USA Mobile Drug Testing Franchisees Allege Fraud

USA Mobile Drug Testing (USAMDT) franchise owners provide on-site drug testing to companies.

The company claims it is growing – from 77 franchises in 2011 to 93 in 2012.

The franchisor, CEO Joe Strom and their franchise sales firm, Rhino7, tell franchisees that for an initial investment of $83,731 – $115,611, they can make net annual earnings of $145,745*.

They claim the $145,745 number is based on the performance of an affiliated firm in CT, running a USAMDT business just like the franchisee’s.

On closer investigation, it appears that USAMDT does not have anywhere near 93 franchises, and the chain is losing locations – not growing.

CEO Joe Strom refuses to comment.

A group of irate franchisees claims that none of the franchisees are earning $145,745, as USAMDT and Rhino7 represent.

In a classic bait and switch scam, franchisees allege, USAMDT is using financial data from a firm that bears little-to-no resemblance to a USAMDT franchisee’s business.

CEO Joe Strom refuses to comment on the earnings claim allegations.

The franchisees have retained an attorney, have de-branded from USAMDT, and are demanding $635,000.

They have filed a complaint with the Federal Trade Commission (FTC) and are contacting the media, and governmental & law enforcement agencies to try to stop the alleged fraud.

Here are our posts on the USAMDT dispute and controversies.

* USAMDT claims it’s not promising franchisees will earn this amount, but the impression is clear.