I came into contact with Pat Wherley and The Energy Company through the internet and several Franchise Opportunity websites. The Energy Co.'s promotional site was very in depth and very positive as to the success an investor in a franchise could potentially realize. I proceded to fill out a questionnaire. A front man who evaluated my information set me up with a telephone "interview" with Patrick Wherley, the president of The Energy Company. He contacted me several days after our phone conversation and congratulated me on being granted an exclusive territory should I decide to invest. He gave me the names of 2 successful franchisees who could answer any questions I may have. (This begins the deception as one person stressed that they were averaging $250/month on the 16 machines she had in place and the other said that he had averaged about $150/month on each machine he owned. After my one year of experience with the program I have become quite aware that this is not possible.) Pat also sent information and gave information over the phone as to how well the business was doing and how I would get support in setting up my business and growing it so that I could take advantage of a financing program to purchase additional vending machines. He mentioned a former NFL player who loved the Power Cells leading me to think that the business would get some good publicity. All was positive and it seemed to be something worth putting your time and efforts into. After deciding to invest I sent a down payment and recieved a training kit. This proved to be the only information or help about starting and operating the business of any kind I would receive from The Energy Company and Pat Wherley. (This was a deception mentioned by other report filers. The contact ended once I received my machines. I was on my own.) This is especially hard to swallow as the business was marketed as a Franchise Opportunity that offered support in getting started. I don't know of too many franchises that cannot be reached by telephone to have your questions and concerns addressed. Pat is the only company contact I know of and he never returned my calls.
Yes, I did receive the Power Pump vending machines and the product, I can't deny that. But both were delivered about 4 months after I paid for them. Also, It took about 4 more months to finally obtain a professional locater to place the machines. (This was the second locater. The first one assigned to me skipped town and go where as he put it "he could make some money." without locating one machine.) So, it took about 8 months from when I paid the money to get up and going. I must also stress that 30 cases of product is equal to a whopping 24,000 Power Cells. I think I would be dead before I could sell them all! And mine had "Best if used by November." They were manufactured in November. This gives a 1 year shelf life (Pat deceived me by initially telling me that they had a 2 year shelf life.) My machines weren't in place until May. That gave me 6 months to sell 24,000 Power Cells before they were outdated.
The locations obtained are low traffic, no sales businesses. The locaters said that it was not even worth trying corporate businesses like Walmart, Gold's Gym, corporate retailers of any kind because it was a waste of time. After talking to several myself I would agree. (This was another deception as The Energy Company information packet and Pat said that the opportunities to locate in a variety of business were endless.) It turns out that all of mine were located in used car dealerships or privately owned auto repair shops, dead end locations when it comes to volume sales of an energy snack product. Pat did tell me that the worst that could happen is that you have to relocate a machine of it didn't pay off. I did move 2 to a couple of independently owned convenience stores and failed in attempts to relocate several others. I could possibly locate them in better businesses but I would have to work 80 hours a week to do it, and travel the tri-state area of Iowa, Illinois and Missouri to do it, and buy the gas to undertake such a venture. Not a very good prospect.
Did I evaluate the business opp well enough? Obviously not. Did I come to the right decision when I decided to buy into this business? Definitely not. But, were there deceptions involved. Definitely, yes.
Anyone thinking about getting into this business should at least consider what I and the other reporters have said.
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