Approximately 3 weeks ago I was searching the internet for a business opportunity. I went to google and typed in keywords affordable franchises. I went to a site called franchises.com, and chose the lower end $100-$1000 investment opportunities.
I came across one that was titled American Towel USA. If you go to americantowelusa.com, you will see a nice website with products that you can readily order and then down on the bottom right corner is the business opportunity. First of all, I checked on franchise.com that I wanted to be contacted by this company; However I went a step further, and contacted the name of the contact person given on the site, Eric Larson.
I called him, and he then directed me to americantowel.net, which he said was all about the opportunity. So I forgot about the original site I was at, and began reading his site, americantowel.net. I didn't make an immediate decision, I waited a couple of weeks and thought about it, and after a few weeks had totally forgotten about the initial site I was at to compare the two sites.By the way, a few days after I checked that I wanted to be contacted I did get another call from Eric, so I was put further at ease, thinking this is all ok, this is the same guy.
Eric told at the initial conversation that he had a new site built for distributors, that was going to hold 900 products, but he has 250,000. He claims he has 20-30 years experience in the business.
Let me just briefly explain what the opportunity is. This is a towel and scrub supply business. "Eric" told me that for $100 I was buying a distributorship another $100.00 I was getting a sample kit of products, $300 were for 500 post cards and labels which were to be sent to targeted businesses in my area, and $600.00 was for my own website and hosting for 1 year. So for $1100.00 I was starting my business.
First flag, I asked to see one of his distributor sites, he never supplied that. He has a sample site, on his site, but there are no products there. On July 28th I mailed a check to him for $100.00 for the application/distributorship made out to Towel Daddy on August 5th he emailed me and said I was accepted and for me to contact him. He gave me a link to his back office where I could get the price list.
He asked me to overnight a check to him for $1000.00 for the remainder. I wondered why he wanted it so quickly and all of a sudden there was a rush. He promised to send me a link that night to start on the training. I went ahead and overnighted the check to him.
The next morning I had not heard anything from him, he did not send the link nor returned any emails. I checked my bank account and the $100.00 check had cleared. I have access on my bank acct, where I can view my checks online, so I viewed the check, and he had altered the check, I had to enlarge the check to see that he had added, GOLFDUDE INCORPORATED. I thought o my gosh what is this. So I immediately went to golfdude.com. And these words I read kinda made me sick "I am an aspiring PGA TOUR professional and play everyday. I need money for tournaments, pay my bills, food, and have fun. I also have a family" He had another business going on, which nothing is wrong with having more than one business, but if he golfs all day and needs someone to pay his bills, where was the time to help me in mine?
At this point I didn't know whether it was on the up and up or not, so until I could really know for sure, I stopped payment on the $1000.00 check and began to investigate further.
I began googling his business names, and his name. First of all he is using a Los Angeles Cell phone, 213-880-7863
and also he has on his website to contact him at 718-502-6233. The 718 is the number he had me calling him at, when I checked that number out, it is a landline in New York, New York, I am waiting on a report to find out where exactly that number is located and who it belongs to. If I am calling a land line in New York, and mailing a check to California, am I dealing with two people?
With the assistance of my best friend, we found news wires submitted by americantowel.net about an exploding opportunity in the towel and scrub industry, and mentioned that the system was started by a Howard Leventhal 20 years ago and combined they have 30 years experience. At this point I also began trying to find out something about Howard Leventhal.
After hours and hours of researching I couldn't come up with anything except I didn't have a good feeling, I had an altered check, and I had a New York landline, when he said he lived in Los Angeles. It didn't all add up, but it just wasn't enough.
Finally the two word business I never googled or searched was American supply. I went to google and I got it, http://www.towels-scrubs.com / American supply. THIS was the website I originally saw, my adrenaline was pumping. It came back to me, THIS was the business I originally wanted to get in. What had happened? What went wrong?
When I clicked on Business information and Contact information, THERE IT WAS, Howard Leventhal
. I sat there and read everything, looking for some kind of affiliation with Eric Larson. Are they partners? What the heck is going on?
After reading and overcoming my shock, I emailed Howard Leventhal and asked him if he was affiliated with Eric Larson?
Howard Leventhal's site plan was as follows:
Distributor: $250
500 Cards: $200
500 Labels: $100
Webstore: $500
Hosting: $100
Total: $1150
Eric had only charged me only $100 for the distributorship. The plans were different and Howard's site was so nice and the products were all there, and the plan was so simply laid out.
I even went a step further, Howard's phone number was on the site, I decided to call him. He answered. I asked him if he was partners with Eric Larson. He said that Eric Larson bought a distributorship from him a few months ago and has yet to fulfill his terms of the agreement.
The facts I have since learned from a very lengthy conversation with Mr Leventhal put the pieces all together for me.
The day I went to franchise.com i went to The distributorship site that Eric Larson bought from Howard leventhal through American Supply. That site is listed on the internet as americantowelusa.com That is the site that a distributor coming into American Supply will receive. You get to name your own site, YOU are the contact person and get full credit for everything that is purchased on that site. If someone joins American Supply through your site, you receive a commission and Howard trains them and you receive a percentage of their sales.
What eric has done, He has created a copy site, he has actually take some of Howard's pictures, and has even used the references from Howard's site on his own site. Eric has 0 experience in the towel business, his 0 experience combined with Howard's 30 years gives him 30 years experience (LOL)
What Eric is doing is copying Howards proven system to validate his own and has broken his agreement with Howard. I thought I was signing up for American Supply, but Eric used the pretense and store front of American Supply to take my money and place me in American Towel, Towel Daddy or "GOLFDUDE" I dont know what his plans were, I didn't let him take the $1000.00 for me to find out.
I will tell you that, while on the phone with Howard on that call, Howard three wayed a call to Eric with me listening, (Eric did not know I was listening) He asked Eric where was the sample kits? Where was he going to get his post cards and labels? Eric never answered.
Bottom line, Eric is using the American Supply website to draw you, and then placing you into his own business, that he has no experience in, and has no website in place and no cards and labels ready or in place. Tell me, Would you invest???
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