I am a single mother with 6 children and I have provided care to my Downs Syndrome brother for over 20 years. Being single and having a big family I was looking for a way to make an extra income to pay for everyday living expenses, college, etc.
In February I was searching the Internet and saw a Creative Concepts of America advertisement for a Red Bull franchise. I contacted them and requested the information. When I spoke with CCA I was told they had an exclusive contract with Red Bull North America (RBNA) to sell the vending machine franchises. I was told they had just started selling them in November. I phoned RBNA to verify this information and was told if I wanted to buy any machines it was being handled by CCA exclusively so to call them.
I did and this is what I was told. Of course you couldn't buy just one machine. It was either 3,10, 25, etc. I was told each machine holds 372 cans which is 15.5 cases. Cost for product for 372 cans was $465.00. If 372 cans sold the profit is $279.00 per week. For 3 machines profit would be $837.00 per week. Monthly profit on 3 machines would be $3,348.00. Now if each machine were emptied 2 times per week, as I was told this would be no problem in achieving, the profit would be $1,674.00, with a monthly profit of $6,696.00. Wow, what a great income. That would help with all the common necessities of life.
I was given references to call. One reference said he bought 5 machines and paid them off in 10 months with all his profits. When I look at the time frame now you can start to see the deception. If they didn't start selling these machines until November and it was only March that would only be 5 months. Another reference told me she made $5,000 in one weekend and that she was going to buy 5 more machines. Haven't been able to get a hold of that person since CCA filed bankruptcy. I believe all the references were nothing more than a plant to get people to buy the Red Bull vending machines.
I was told I would have warranty protection, and a theft and vandalism policy on each machine. I was also told these machines would be placed in prime locations such as gyms, airports, car dealerships, office buildings, etc. I was told we would have protected areas where no one else could place a Red Bull vending machine. Now the final piece of information that made this deal look great was the letter from RBNA that CCA was an exclusive re-seller of Red Bull licensed machines. So we purchased 3 machines. Went to the bank and took out a loan with my 2 older children. I thought I did my homework but I was wrong.
CCA filed for bankruptcy. Hundreds of people were out millions of dollars. Red Bull would not honor any dealings we had as vending machine owners. I sent emails, letters, and made phone calls to RBNA with no response from them.
CCA took most people's money and they didn't receive their machines. Red Bull didn't care. They so graciously offered to buy those machines back at $1,000 each. Wow.
I was PROMISED by a team of Red Bull staff that showed up at my door that I would get help in placing my machines. I was told if there was a location I wanted to secure they would send their "road team" out and secure the locations for me. I gave this so-called "road team" 2 locations and they never, never, never, went out. I asked Red Bull again for help but that request fell on deaf ears.
I managed to place one myself. The second one I got placed was stolen a few days after placing it. With no insurance, although there was a contract signed with CCA that Red Bull would not fulfill that said our machine would be replaced. We are paying on a loan we can't afford. Being out $10,000 doesn't hurt the big Red Bull company so why would they care. Red Bull doesn't care about the little guys only the profits they make because they are greedy. I hope Red Bull feels great about taking the food out of children's mouths because they don't want to take responsibility for what has happened. Deceptive, deceptive, deceptive.
How can a billion dollar company like Red Bull enter into a contract with a company like CCA. They both used deceptive business practices. You would think with the big name of Red Bull and all the attorney's Red Bull has in their employ they would have researched CCA closer. How could this happen?
I am very angry about what has happened to me and my children and the overwhelming financial burden this has placed on us. I think this story needs to be told on the cable news shows. Everyone needs to hear all the stories of the hundreds of people that were taken by CCA and Red Bull.
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