I bought an Inches A Weigh License Agreement in 2001. I have an entry regarding the business but thought Scott deserved a special complaint all his own!
I was a 6 figure income salesperson for 15 years and thought I could spot a slick salesperson anywhere. I am also very good at the due dilligence part of any transaction. I guess I was not as good as I thought!
If you are considering buying an IAW agreement, please do your homework. Do not get sidetracked by the smooth answers that aren't true. The start up costs are higher than he says, the business model is outdated and you will never be able to get a straight answer on units that are currently open or more importantly ones that have closed. I recently learned of an IAW center open in metro Atlanta and contacted them. They were never told about my closed center or another one that closed about a year after me. They had only been open a few months but were already in trouble and were making drastic changes to the business model to try to survive.
Scott has a very smooth answer for why he offers a licensing agreement vs. A franchise agreement. The real answer is that selling a franchise is heavily regulated by the FTC. A franchise most disclose info on previous litigation, current units and recently closed units. Since that would end IAW, a license agreement is a clever way to get around all the disclosure.
What may be the worst part, is that he will try to gain your trust by talking about his Christian faith. He is so convincing that you will believe he would never lie or cheat or do wrong because his faith prevents him from doing things that would hurt others. Always be careful when someone would rather talk about their Christian faith than let you see it in their lives. Make business decisions based on business and facts.
I have to hand it to him. I fell for the whole bit. The only comfort is that the numerous previous owners I know from all areas of the country who are for the most part smart, savvy and professional fell just as hard as I did. This is one group, the Suckered by Scott Club, you don't want to join!!
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