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Question DetailsAsked on 4/22/2015

I purchased coffee vending machines from a franchiser, i paid in full but supplier has failed to excecute on promis

purchased (2) coffee vending machines from a franchisor, initiated a bill of sale for deposit on 3/9/15 in the amt. of $500 & supposedly preserved the (2) locations from the list of 4 available at the time for that location, (I have the list for verification) pd. balance in full on 3/19/15 in the amt. of $10,700, (the location & shipping cost all included in that cost, all ea.$300) from that moment on paid in full, complete silence for a wk. or so until I called & emailed Sales Rep ,it's been a different excuse,ever day since up to this very day presently (4/22/15), stalling,delays, lying, excuses, deceptions & deceit, (I have a long history of emails of my complaint history & their responses with lie after lie, I'm making this story as short as I can, I finally received the (Cargo/Freight) on 4/16/15, instead of delivering to the location, they dumped it off in my living room of my condo, it's been here every since, not set-up, no assembly, not delivered & no where to go

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I guess you probably know this, but you need an attorney experienced in franchise contracts - and sorry but no, AL does not list or rate attorneys.


I was prepared for a total scam situation where you paid and got nothing, but since they delivered a machine may be just a very poorly run operation, or the person you bought through (the sales rep) is actually a middleman franchiser who gets his cut based on how many sub-franchises he sells, regardless of whether they ever sell a cup of coffee or not - basically a pyramid scheme. Because we are talking your buying a franchise for two machines rather than dozens, that is what I think this is - you were dealing with a franchisee, not the actual mother company, because for this sort of business you would usually buy a territory with dozens or even hundreds of machines.


Unfortunately, what your recourse is depends on the terms of the contract, whether their behavior is just failure to comply with the contract, or civil fraud, or possibly criminal fraud. Since they actually delivered a machine (unless it was a stolen machine), probably not the latter.


Also, I am afraid since you took delivery of the machine(s) at your home rather than at the setup location that may have hurt your position too, assuming the contract called for delivery to the service location.


You need an attorney, and a lot of the outcome might depends on whether this is an interstate operation or not, and of course on whether the machine is legit or a defunct one or one stolen - I remember reading an article some years ago about a gang in a major city that used a liftgate truck and uniforms labelled for a vending machine service, went around and stole machines from their outdoor or lobby locations, then sold franchises and the machines to victims. Hopefully that is not your case.

Answered 4 years ago by LCD




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