How to spot a Scam - Be A Smart Investor
R M - Thu 29/Nov/2007 4:51pm [Last Comment]
Dear all,

To those would-be franchise buyer, please note the following:

If business technique/approach you come across show the following 10 signs, please proceed with caution, or better still RUNNNNNNN!!!!

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By Andrew A. Caffey | March 12, 2001

How To Spot A Scam
The top 10 warning signs of a shady franchise or business opportunity


If you're in the market to buy a business, protect yourself by being on the lookout for these 10 warning signs of a franchise or business opportunity scam:

1. The Rented Rolls-Royce Syndrome. The overdressed, jewelry-laden sales representative works hard to impress you with an appearance of success. These people reek of money-and you hope, quite naturally, that it will rub off on you. (Motto: "Don't you want to be like me?") Antidote: Check the financial statements in the Uniform Franchise Offering Circular; they're required to be audited.

2. The Hustle. Giveaway sales pitches: "Territories are going fast!" "Act now or you'll be shut out!" "I'm leaving town on Monday afternoon, so make your decision now." They make you feel that you'd be a worthless, indecisive dreamer not to take immediate action. (Motto: "Wimps need not apply.") Antidote: Take your time, and recognize The Hustle for the crude closing technique that it is.

3. The Cash-Only Transaction. An obvious clue that companies are running their programs on the fly: They want cash so there's no way to trace them and so you can't stop payment if things crash and burn. (Motto: "In God we trust; all others pay cash.") Antidote: Insist on writing a check-made out to the company, not to an individual. Better yet, walk away.

4. The Boast. "Our dealers are pulling in six figures. We're not interested in small thinkers. If you think big, you can join the ranks of the really big money earners in our system. The sky's the limit." And this was in answer to your straightforward question about the names of purchasers in your area. (Motto: "We never met an exaggeration we didn't like.") Antidote: Write your own business plan and make it realistic. Don't try to be a big thinker-just a smart one.

5. The Big-Money Claim. Most state authorities point to exaggerated profit claims as the biggest problem in business opportunity and franchise sales. "Earn $10,000 a month in your spare time" sounds great, doesn't it? (Motto: "We can sling the zeros with the best of 'em.") If it's a franchise, any statement about earnings (regarding others in the system or your potential earnings) must appear in the Uniform Franchise Offering Circular. Antidote: Read the UFOC and find five franchise owners who have attained the earnings claimed.

6. The Couch Potato's Dream. "Make money in your spare time . . . This business can be operated on the phone while you're at the beach . . . Two hours a week earns $10,000 a month." (Motto: "Why not be lazy and rich?") Understand this and understand it now: The only easy money in a deal like this one will be made by the seller. Antidote: Get off the couch, and roll up your sleeves for some honest and rewarding work.

7. Location, Location, Location. Buyers are frequently disappointed by promises of services from third-party location hunters. "We'll place these pistachio dispensers in prime locations in your town." (Motto: "I've got 10 sweet locations that are going to make you rich.") Turns out all the best locations are taken and the bar owners will not insure the machines against damage by their inebriated patrons. Next thing you know, your dining room table is loaded with pistachio dispensers-and your kids don't even like pistachios. Antidote: Get in the car, and check for available locations.

8. The Disclosure Dance. "Disclosure? Well, we're, uh, exempt from disclosure because we're, uh, not a public corporation. Yeah, that's it." (Motto: "Trust me, kid.") No business-format franchisor, with very rare exception, is exempt from delivering a disclosure document at your first serious sales meeting or at least 10 business days before the sales takes place. Antidote: "Disclosure: Don't let your money leave your pocket without it."

9. The Registration Ruse. You check out the franchisor with state authorities, and they respond, "Who?" (Motto: "Registration? We don't need no stinking registration!") Franchisors are required to register in 15 states; in Florida, Nebraska and Texas, franchisors may file for exemption. Antidote: If you are in a franchise registration state and the company is not registered, find out why. (Some companies are legitimately exempt.)

10. The Thinly Capitalized Franchisor. This franchisor dances lightly around the issue of its available capital. (Motto: "Don't you worry about all that bean-counter hocus-pocus. We don't.") Antidote: Take the UFOC to your accountant and learn what resources the franchisor has to back up its contractual obligations. If its capitalization is too thin or it has a negative net worth, it's not necessarily a scam, but the investment is riskier.


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Andrew A. Caffey is a practicing franchise attorney in the Washington, DC, area; an internationally recognized specialist in franchise and business opportunity law; and former general counsel of the International Franchise Association.

Niche: Diskusi Tuntutan Dan Tribunal
 
1. R M - Thu 29/Nov/2007, 4:56pm
Point to add:

MATKiosk, Airku, Waterdrop - all these so called business license/opportunities were sold by the people/company who shows most of the above 10 signs. So you have been warned!!!

Others may want to add to the above list of businesses to stay away from as THEY DO NOT REVEAL THE TRUTH!!! That's the biggest flaw in their marketing approach as they are intent on cheating or conning people to part with their money.  
2. R M - Thu 29/Nov/2007, 5:01pm
Bear in mind they are not registered with the Malaysian Franchise Association as they may claim during the presentation on MatKiosk.

Note the vending machine/kiosk is not the problem, it's the people/company behind the selling of the business THATS THE ANNOYING PROBLEM. They would LIE with no conscience whatsoever to take the money from innocent/naive investors.  
3. Ajat - Mon 18/Feb/2008, 1:33pm
dear RM, can kafon capitals sdn bhd be trusted? it is also a kiosk company tht claimed just started arnd 4 months ago. it is situated at plaza mont kiara. also gv my ic copy and signed some of the application forms for credit card but i didnt gv my salary slips & kwsp statement. i'm worried abt all these matters. will it be harmed to me after i had gv them my ic copy and signed all the forms without my payslip & kwsp statement? i really need assistance & assurance abt this matter. i'm so worry if they can do anything with tht documents eventhough i didnt gv them any money but still i'm worry abt tht. i even write my account no at the application form for credit cards. will all of these gv any bad effect to me? can they misuse my copy of ic & the credit card application forms with my signature on it? help me plz...thank u.  
4. Zool Hilmi - Wed 12/Mar/2008, 9:09pm
kepada pembaca forum ini,

semua syarikat ini adalah penipu, sila tal sendiri en osman 0123581546 atau en tahir 0126298989 bertanyakan status lesen jualan langsung mereka. semua yang mereka buat ini adalah sama modus operandi mereka.
berhati-hati dan bersatu menentang penipuan!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  
5. Spy Bussiness - Fri 23/May/2008, 9:08pm
hai guyz!

please inform everyone now they changing the bussiness type

to PERTERNAKAN IKAN KELI using company name IKLISA SAMUDERA SDN BHD

which the adress is

30-3 right angle
jalan 14/22
46100 petaling jaya
selangor darul ehsan
tel:03-79584370
fax: 03-79584372

still the same modus operandi plan as fucking mad PUKIos
for each cubicle of ikan keli RM38000
pay 30% can start the agreement already
pay 10% can start also
there is referral plan also

u can log on to

WWW.ICO.COM.MY

most of the staff who work at mat PUKIos transfer and working there

--jeffri ilhansry (016-9981198) = the fucking faggot who talk sweet like his mom ass says that he wanna convert to islam, wanna be fren and anything until u agree to invest. then use the commission he got from ur pecket to operate his dick.

--rubiah jusoh or ruby. (0172866501) =the slut available to fuck anyone as long as u agree to invest and use the commision to enlarge her breast and tighten her pussy.

-john -the fucking indian try to act like mat salleh (but his dick is small)

-ishak
-leo
.

to all my fren please forward this message and ask ur fren or family to becareful with this FCUKinnocent salesman (as they claim they cant be blame if u get scammed because its the company responsibility)

BECAREFUL !!  
6. Conned Investor - Fri 30/May/2008, 2:31pm
matkiosk, smartkiosk, paystation, airku, freshwater, puredrops (same blardy ppl behind... GMC Utama!) "investors" who have also been conned, please email us at jacinta.anthony@my.ey.com and leave your contact details (email, hp and landlines) so we can work together to bust this scam and get JUSTICE!!!

Amazed Aims, GMC Utama, Global Marketing Concepts, all same ppl who keep changing company names and product names lah. they have NEVER delivered one single thing they promised. and, they have been UNCONTACTABLE for the past 3 weeks. no one picks up the office phones, no one picks up their hps, no one bothers to call back.

i don't want to do business with people who don't keep their word. no integrity. not reliable. and full of lies!

drop us your contact details, we will share our 'findings' and plan of action with all of you. let's take action NOW before they run off to thailand!

thanks.  
7. Polly Mark - Wed 6/Aug/2008, 10:55am
I had paid RM 11,4xx for nothing since last year. Now the company GMC donot know where?  

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