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 to pay for everyday living expenses, etc.
In February 2006, 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 phoned RBNA to verify this information and was told if I wanted to buy any machines it was being handled by CCA exclusively. I was told this was a legitimate business venture and was backed by Red Bull.
I contacted CCA again. Of course you couldn’t buy just one machine you had to buy either 3, 10, 25, etc. I was told the profits on 3 machines would be approximately $7,000 per month since they would be placed in high traffic areas such as airports, gyms, colleges, car dealerships, etc. 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 2005 and it was only March 2006 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 disappeared. 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, 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. We diligently did our homework and thought with a name like Red Bull we couldn’t go wrong. So I went to the bank and took out a loan with my 2 older children.
CCA filed for bankruptcy. Hundreds of people were out millions of dollars. Although RBNA said they severed their agreement with CCA in April 2006, CCA was still selling Red Bull franchises June 30, 2006. One has to ask why would RBNA allow CCA to continue to sell these fraudulent franchises creating more victims of this scam. That’s what it was a scam.
Some people received their machines, some received a few of their machines, and some did not receive any at all. Keep in mind all these machines had to be paid for in full before they were delivered.
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 after 7 months of sitting in my garage. The second one I placed was stolen a few days after placing it. With no insurance on the machines now, we could not get it replaced or be reimbursed for our loss.
Red Bull does not 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? You would think with the big name of Red Bull and all the attorneys Red Bull has in their employ they would have researched CCA closer. I bet this would never happen in Austria where Red Bull originated from, so how and why did this happen in America?
IS THIS HOW THEY DO BUSINESS IN AUSTRIA?
Seeing Red In California
