Dental Fix RX CEO Blames Franchise Failures on Franchisees, SBA Loans

25 thoughts on “Dental Fix RX CEO Blames Franchise Failures on Franchisees, SBA Loans”

• If you’ll notice the recurring issue with David Lopez, all of his problems come from the same place:

  His mouth.

• Looking back, that whole experience was very shady. There is no question they were pushing inexperience business people into untenable financial positions that they didn’t fully understand for their own profit.

• I love the Lopez quote above “If [the Franchisee Defendant] would have taken the money from his savings account or from his wife”…what kind of sexist pig is this guy? SMH

• Not sure if this article is for, or against dental fix.

• Bob:

  I must say that in researching this article I have become enthralled with what comes out of David Lopez’ mouth. (Of course if I were a former franchisee who believed his earnings claims and wound up trying to save my house from foreclosure, I would feel differently).

  David Lopez was featured in a Franchise Times article with the headline “Dental Fix CEO learns lessons one sip at a time.” The headline was based on Lopez’ quote ““You have to motivate yourself to the point that you drink your own Kool-Aid, because the second you don’t, nobody else will either.”

  Was David Lopez unaware that the term “drinking the Koolaid” is a reference to the 900 individuals who died after drinking cyanide-laced Koolaid under the direction of a leader who appeared rational at first but turned out to be a delusional and dangerous narcissist?

  Or was he sending a cryptic warning to those who thought they were heading for Park Place with their Monopoly money, but would be lucky to be living on Baltic Avenue after they got Dental Fixxed?

• Roger:
  The site name might be a giveaway to where our sympathies lie. But we are primarily a discussion site, and encourage all to share their opinions… especially those that differ from ours. What do you think is the cause of the high failure rate of Dental Fix RX franchises? Do you agree with David Lopez that Dental Fix RX franchisees feel like they can casually walk away from their investments because they have “no skin in the game”?

  The last sections are meant to be sarcastic. I invite Dental Fix RX (or franchisees of other concepts who took out SBA loans) to share their experiences with the pain of “walking away.” It’s hard to believe that David Lopez would contend that SBA loan holders think they are spending “Monopoly Money” when their homes, retirement accounts, assets, credit scores and everything else they’ve worked for is on the line. The reality is that the Department of Treasury comes after the borrowers for the full amount, and will garnish their wages for years to come. Or sic collection agencies on them. The “guarantee” by the SBA is a guarantee to the bank – who approved a loan that could never be repaid.

• For all you current or former Franchisees – THIS is the place to air your grievances. Please comment and contribute to the conversation. SEO and Page Hits matter for search visibility and organic conversation will ensure that Lopez gets exposed for fraud. Do your part and comment below!

  David Lopez used the same techniques to market to us, so let’s throw it back in his face.

  Kim – I would’ve asked my wife, but that conversation wouldn’t have gone over well. I guess Lopez didn’t get the memo that I liquidated my retirement account ($65K) after giving him all the loan money. It’s not like I had skin in the game or anything…. /s

• In one part of the deposition, an attorney is surprised that David Lopez cannot say how many franchises his first company FROOTS has despite the fact that he still has an ownership stake. Lopez explains “…I try to take my energy and focus it on things that produce value for me and it’s not something that produces value, so I just block — try to block those things from my time and my energy.”

  Perhaps the pain and loss of a failed franchise is one of the things Mr. Lopez “blocks.” I am eager to hear David Lopez’s response to this sad story posted by “JV” over on the Dental Fix RX Franchise Complaints page http://www.unhappyfranchisee.com/dental-fix-rx-franchise-complaints/

  David, did JV not have “skin in the game”?

  “I’m one of the victim of Celtic Bank and Dental Fix Rx “fraud scheme”. This two companies turns my life and my family into a nightmare. Why I call this a “fraude scheme”? Because for me, today that I think about it, and how this persons took advantage of me, advantage of my dream, for this a more, this is a fraud scheme.

  “Everything begins with an email showing my interest in the franchise and asking for more information. Couple of hours later Dental Fix Rx franchise sale representative was calling me. Two weeks later I was flying from West Virginia to Florida for a “discovery day”. I clearly remember when the seller ask me, “did you have $25K in cash? I say: I’m close to it, but I had a 401K, and other sources and make them cash quick.” She then say: “I got the person who will get you a $150K SBA (7a) loan. Just call this person, I’ll do the same, and just follow her on everything she says to you, and in less than 30 day you will have that money in your bank”. And guess what? I did…

  “Celtic Bank representative sent me an email with an “example” of how to fill a financial statement, sales projections, including overvaluing my house to make my equity higher, just to qualify myself to this $150K loan quickly.

  “Everything runs as planned, I quit my job, I pull out my 401K retirement plan, my wife did the same, and we sell our first and only house. All this to follow a “dream”, that 6 months later turned into a nightmare. Had to fill a Bankruptcy Chap 7, had to move to a one bedroom apartment in Puerto Rico, yes to a one bedroom apartment with a family of 4 members, because we loss everything, our jobs, our house, our dreams…”

  David, if you are going to be in the business of selling franchises, understanding the entire process holds “value” for you in that it might keep you from saying preposterous things that undermine your credibility as an entrepreneurial visionary and “innovation evangelist.”

• Also 38/54 SBA Loans have defaulted. He’s had more than 75 failures, so his 90% of failures had loans metric is bogus.

  Just another example of David Lopez’s inability to properly count.

• Sounds like the same story. Was told how to fill put projections to recieve loan. Used up all of 401k. Financially changed my life to where I had to file Bankruptcy and because of that couldn’t get certain employment. Almost lost my house. How can this be our fault I’d it’s the same story for so many who have never met. Seems like California got hit the worst to.

• Id recommend you all look at Carolyn Bolton, she is the scammer that came from subway and took Brian’s job. She is actually one of the dumbest people they have and she will crumble as shes weak. all dental fix franchises are getting screwed by Carolyn as she drowning in the mess she got herself into.

• David Lopez is an idiot if he doesn’t realize that the loan payments are simply too high when coupled with Dental Fix’s ridiculously and unreasonably high weekly/monthly franchise fees. It’s wasn’t because we thought we hade “no skin in the game.” MORON!

  He is the epitome of greed. Dental Fix benefits from failed franchisees enough to pursue them and that’s what they do. It’s as simple as that and it’s all going to come to an end here soon. Also the training in the classroom is only 3 weeks. Not 6 weeks which would be more appropriate. Then they place you in training with an already successful franchisee for one week which teaches you absolutely nothing about obtaining customers which is what you really seriously need to be trained in.

  The training all together is a joke and just about as insufficient as it can be. They boast about their technical service help line while you’re in training and then when you get in the field it is nonexistent. If you do reach someone at Dental Fix for help, you get the infamous question… “Did you call the manufacturer?”

  Their markup to the franchise on equipment/hand pieces makes it impossible to sell anything unless the customer is ignorant enough to not shop around. Dental Fix has made life for me and my family a living hell. I’ve been out of business since the end of 2017 and have yet to default on my SBA loan ($1921.00/month). Now tell me David Lopez, does that sound like I think I “have no skin in the game?”

• To whom it may concern,

  I was a franchisee and unhappy with results as well. I lasted about 1.5 years and that’s because I ended up getting an SBA loan. I lost 110k of my own 401k money.

  I feel like they didn’t research the market fairly. They advertised how the competition was the big corporations when in fact the ones who had all the business were these mom and pop’s. They didn’t have the overhead like we did so was hard to compete with pricing. After a couple of months of being launched, it was hard to get a hold of anyone their to help you out or ask questions about repairs.

  I had to file bankruptcy because of this franchise. 1st time ever in my life. Those franchise messed up my financial life for a few years and because I had to file bankruptcy I was unable to get certain employment.

• After training the DF marketing guy came to my town to help me cold call, and he said things to the dental office leads I didn’t feel comfortable with….

  In the end I couldn’t keep up with expenses. I lost my retirement, it went on to effect my marriage.

  If I could do it all over again, I wouldn’t.

• David Lopez and his cronies are a perfect example of greed and stupidity! They suck you dry right from the beginning, the make you purchase a $90k Mercedes Benz Sprinter van just because they were getting $8k kickback from MB. You do not need such big expense when you start a business. And then you have to pay weekly royalties fees that will clean up your business account until you run out or money and have no choice but to go out business and become miserable because you just lost your lifetime savings.

  You cannot make any money selling equipment with the high margins they charge on top of manufacturers price, you cannot do business with two middle man.

  Their marketing campaign sucks and you hardly ever get new customers.

  $15k for their training program is a joke, people cannot learn everything they need to know to be successful in 3 weeks……

  You pay “Corporate Support” fees every week for no support “zero” support. They just take your money and they invest it in the other business “Dental Whale”.

  These are the reasons why Dental Fix Franchise owners are not successful, we do have “skin in the game” ; we are well aware that we are dealing we real money here, money that worked hard all our life to lose it all in this Ponzi Scheme.

• I worked for the corporate office these franchisees got “Fooled by the “sales man” in a fancy Corvett and they were fed the idea of dreaming big working less and making 3x the profit on one job. One guy said they had to buy a MB sprinter No.. that is false they could buy any kind of work van one guy even made a van from an old Ambulance…

  THEY WERE SOLD AGAIN BY A SALES MAN ” these guys wanted the corporate operators to do all they’re the work, the marketing calls and take appointments YES This was Operators job but the employees only made 10 bucks an hour so they did the minimum … but David Lopez didn’t invest back into the DFx company it went from David Lopez having an office at the corporate office to him not being there at all and paying himself and his wife that didn’t work there a salary.while the employees don’t get annual pay raises so they’re was no incentive to go above and beyond D.L didn’t invest back into the company nor his employees supporting these franchisees.

  But these guys became “Divas” sending equipment into the repair shop at the corporate office for repairs they learned how to repair in training.. ummm makes no sense…and they didnt invest in there education they should have done their homework on Dentalfix and the Dental field. The LISCENSING that manufactures have cost! the training to repair …

  Sales is what drives this company not repair on handpieces…these guys repaired handpieces time and time again but failed to learn in depth other equipment they touch on it and learn it in training but I feel goes out the window once they go back to their territories

  .. if your not telling your customers what you do and selling yourself your going to fail ….Personality goes a long way and More than half of these guys were stiff older men thinking they knew
  (know it alls) how to repair everything and the kitchen sink but.. none knew how to sell themselves which needs to be learned with experience…these guys expected everyone else to do the hard work for them with minimial effort and than blamed other people when it got hard!

• I am a dentist who retired at age 45 after owning a number of successful practices and other businesses. After my young children entered high school I was bored and bought and ran another large group practice for 10 years. I retired again in 2017, but after a year and a half I was bored silly again, looked at many different business opportunities, and decided to go back to owning dental practices since I knew the business inside and out.

  I heard of Dental Whale and did some initial research, and was impressed by the fact that 3 of their “divisions” were on the Inc. 5000 fastest growing company list. I spoke and emailed numerous times with their VP of sales (Dan Chiljean), who told me that if I joined Dental Whale I could use all their services for $2500 a month. To include Dental Fix (would come and repair my equipment immediately), Marketing, IT development and maintenance/repair, virtual front desk, billing and collections. If I wanted to be a “Dental Entrepreneur” (multiple practice owner) that would cost an additional $24,000 (approximate number), for which I would be mentored by Dr. Ken Tralongo, an “expert” on getting dentists out of the chair and turning them into businessmen. What I did not know at the time, but now know, is that this company is a loose agglomeration of independently owned sub-companies operating under the Dental Whale umbrella.

  Dental Fix is a “David Lopez company”, Ken Tralongo owns the “Entrepreneur Program”, and I’m not sure who owns the other companies. A simple Google search found that Dr. Tralongo is also involved in lawsuits with unhappy “Entrepreneurs”. I can’t comment on the other companies in Dental Whale because I have had no contact with them.

  However, just reading David Lopez’s testimony leads me to believe that this is not a DSO at all, but a bunch of franchisors operating under the disguise of a DSO, with a lot of unhappy franchisees.

  What really makes me angry is Mr. Lopez’s idiotic statements concerning his franchisees use of bank loans. A nearly 50% franchise failure rate simply cannot be blamed on people using loans as “Monopoly Money”. And the fact that he has such disdain for his own customers’ financial acumen is sickening. Mr. Lopez claims to meet with every franchisee personally and explain the financial ramifications of their investment. Surely an experienced businessman like Mr. Lopez, who “owns a lot of companies” would be able to distinguish between a financially savvy potential franchisee and one who knows little about business, loans and risk. Surely each potential franchisee had to complete a detailed application and statement of net worth as is common with any FDD. Ethical franchisors routinely turn away applicants who do not meet basic financial standards, and the best of them turn away applicants with no experience in business (or offer detailed training as a condition). After all, the franchisor wants to maintain a good reputation so that he/she can sell more franchises.

  It appears Mr. Lopez has failed to perform even basic due diligence on his potential franchisees. But it’s easier to blame everyone else than to accept that you are a greedy idiot. Unfortunately our business law and custom is based on “caveat emptor”, so unless the franchisees can prove fraud or malfeasance (read up on AAMCO for a real eye-opener on fraud and malfeasance), many people are going to lose their savings, their homes, their retirement accounts and their credit ratings. And I feel terrible for them.

• Solly,
  You hit the nail on the head with your assessment of Dental Whale really being a Franchisor operating as a DSO. It might explain things to know that numerous officers and directors of DentalFix came from Quiznos shortly after that system imploded. In fact, Scott Mortier, Dental Whale’s “Rainmaker” or “Chief Revenue Officer”, was even individually named as a defendant at one point as a defendant on the lawsuit against Quiznos that eventually turned into a RICO Class Action resulted in a settlement of $206 Million. Brian Dershow, Dental Fix’s COO up until January of 2019, also settled fraudulent sales allegations alongside of several other Quizno’s employees to the tune of $140,000 to the franchisee back around 2008, this action is listed in one of Quiznos FDD.

  Tralongo currently has 5 lawsuits pending in Broward County Florida.

  Breakaway Practice, another Quasi-DSO company under the Dental Whale umbrella has 12+ Lawsuits pending in both Federal Court and Bexar County, Texas.

  There is so much more to this story but you are also right that people have been ruined. There’s over 15 Bankruptcies and counting. The franchisees that are still around deserve the business of every office in their territory.

  I’m the franchisee involved in this litigation and have close ties to the Dental Industry. I think that long-term, Dental Whale will be a self-correcting problem once their primary customer base, the Dental Office, starts to realize what they’re about. Given that you’re posting here, I’d say that it’s happening as we speak :)

  Thanks for the detailed insight on Dental Whale’s sales pitch to offices!

• First off I just contacted Dental Fix, to think about my future options in the dental field. I have a very successful dental film processor refurbishing business. I started with a $10k credit card, and my initial first investment was $150.00. I turned it into a very successful business. I know film processors won’t be around forever, and I’m looking towards the future. I have acquired some serious debt building this company, but nothing I can’t get overcome with the success. I was in dental sales, and a electronics technician by trade for over 20 years. I would like some suggestions from others on my next step. I’m not sure if Dental Fix is that next step. My company website is GotaDentalLLC.com.

• Lopez comments are a lie, as a failed franchise, I was threatened to be sued for the total 10 year term ( at least hundred of thousands of dollars) and I was forced to cut a check for $5k, they wanted $10k just to get out. Scandalous. How does he think we don’t have skin in the game, when you have an SBA loan secured on your house, and you throw all your saving into it. Goes to show how clueless he is on the commitments we all have made.

• Wonderful grammar on all of these postings, is anyone educated beyond the 6th grade level.

• Wow…

• I have to agree with Brandon. I wasn’t a owner, therefore I REALLY didn’t have “skin in the game”. However, I was a Biomedical Equipment Tech that was trained to troubleshoot to component level, worked in teh hospital for 7 years before following some horrible advise and took a job Managing and operating one of these franchises. The first thing I noticed, was the HORRIBLE training experience that I received. The 6 week training is not designed to get you ready to take on $250k+ in revenue, it is designed to make you feel that you are. I was under one of the owners that eventually had to sell his franchises due to not being able to pay the bills. A bit of what i was able to do as a tech/manager.
  Sarasota, Florida Area

  – Manager/operator of dental equipment repair franchise. Duties include: schedule management, daily parts inventory, marketing to clients, emergency repairs, documentation of invoices/work orders, equipment sales from inception to delivery, customer service to over 340 offices.
  -$91,424 in increased annual territory revenue. Increased amount by 107% from previous territory manager.
  – $48K secured annual through maintained service contracts.
  – Cultivated and grew repeat business from current customer base as seen by invoices greater than $1,000 increasing from an average of 9 per year to an average of 40 per year, with the average amount of the invoice increasing by $1,000.
  – Managed MULTIPLE office renovation projects from beginning to end, working with contractors to make sure that the proper electrical, plumbing, and pneumatic systems where in place, as well as researching proper documentation for said installations.

  At the end of this, my boss wasn’t taking a paycheck, and was only paying me $36k/year. We worked 20 hour days, performed Blitz marketing, and even had him cold calling my territory, while i was doing 4-6 calls a day.

  The FUCKING audacity of David Lopez to think that he is so much smarter than anyone else to get the concept of a loan. Who the hell do he think he is!! My nephews understand how a loan works, my boss DEFINITELY understood how a loan works, considering he had a Business Degree from one of the best schools in the country.

  DENTAL FIX IS A SCAM!!! Training is atrocious. The call center did not gain ONE customer for me the entire three years that I was there, however I paid $2,500 in Corporate Fees/Accounting Fees. Furthermore, I would have to count on two hand the amount of times the Call Center would set me a “Meet and Greet” only to drive 1.5 hours to an office on the opposite side of my territory only to have the office tell me that they told the call center not to send a tech. NOT ONLY NOT SEND A TECH, but they know who we were, and wouldn’t use us if we were FREE…..

• You worked 20 hour days really is that possible?

• 20 hour workdays are the carrot. A Termination letter from Zarco is the stick.

  There’s a reason why the state of Virginia intervened. You should start believing everything in this thread rather than criticizing ESL grammar.

  Do you work for or have a relationship with the franchisor? They’ve been known to post shill reviews.