I am filing this report in an effort to make all consumers aware that this group is a predator on fair minded individuals looking for a business. CPC offers a business opportunity investment that provides Cost Segregation Studies (accelerated depreciation) to commercial property owners to increase their depreciation, which in turn results in results in greater cash flow and higher after tax income in the early years of the asset.
Although this is a legitimate IRS approved program, the deceptions begins with the business offering itself. An investment of $30k - $90k is required to become one of their Licensed Affiliates. The FTC and States require very specific disclosures and documents presented to a consumer considering such an investment. (See FTC requirements for offering a business opportunity). The specific requirements you must insist on 1) their current financial statement 2) a list of 10 other existing affiliates to discuss this opportunity with. They would not provide this required information to me, but rather gave me the names and numbers of only 3 people (who I suspect got paid to talk to me) to answer questions. Their excuse, they did not want to trouble there affiliates with phone calls. The financial statements were never provided after numerous request.
They also engage in open and blatant deceptive trade practices. If you review any of their online advertising and promotional material, they appear to offer a business opportunity that is strongly supported by their staff and their marketing efforts. My experience is that you will need to challenge them on providing what they promised and that they really do not care about your business success after they get your money up front. This is one of those programs that say what ever you need to here until they get your money and train you. Then you are on your own.
The specific deceptive advertising items are the following;
We have completed 10,000 cost segregation reports.
This is difficult to imagine since CPC INCORPORATED IN April. That averages more then 208 studies a month and nearly 7 a day. Ask them for a project list.
Our top Affiliates earn an amazing income and you can, too! Plus, it's possible to earn back your initial investment in as little as 2-3 months!
Again, this is very misleading. They teach you to tell the client that it will be 2-3 weeks to receive the benefits estimate (tax savings) and once you collect a deposit, another 60 90 days to receive your clients report. Let's say I have paid $60,000 for my affiliation. How do you earn the initial investment back in 3 months? Have them show you this higher order math.
The Cost Segregation Process is Simple for Clients The cost segregation process involves very little paperwork and does not require the client to share confidential information, in fact, we don't even need to see their tax returns.
I love this one, how does someone calculate estimated taxes without the clients confidential information. For that matter, they will insist on the prior tax return or they will not process an Affiliate's paperwork for the project.
CPC Has Over 150 Years of Combined Cost Segregation & Related Business Experience.
The firm was incorporated in 2005. There are between 4- 6 managers that operate within the company. Most of their engineers are subcontractors.insist on a detailed explanation and the resumes of these CPC people with the sum of 150 years experience.
"There is unlimited potential in this up-and-coming industry so now is the time to get on board with CPC and learn from the best. You don't need any specific industry experience just the desire to work with the market leader."
If the affiliate is not trained in sales or accounting (preferably both), you do not stand a chance of explaining this tax program to an accountant. If you have no sales experience you will not likely ever to make enough in commissions to earn your investment back.
These misleading and deceptive practices are how they entice investors into purchasing a Licensed Affiliation. To protect yourself and your money, you will need to insist on them providing all the disclosure documents defined by FTC requirements. You have little chance to receive them, which should tell you everything you need to know about the lack of open, supporting business opportunity you could be entering.
My best advise is to look for other franchise opportunities that do not hide their business owners / affiliates. They will not even provide the names of their 150 affiliates to other affiliates. What are they trying to hide?
I would also recommend you asking the following questions;
1) Where do the proceeds of the license affiliation get distributed and do you hold a reserve for the promised payouts and marketing materials?
2) How much does the average affiliate make in gross sales revenues in their first year and their second year?
You have been warned.
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