USA MOBILE DRUG TESTING Franchise Complaints
USA MOBILE DRUG TESTING Franchise Complaints include a reportedly high failure rate, widespread franchisee discontent, and a lack of knowledgeable, capable franchise support staff at the franchisor home office.
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(UnhappyFranchisee.Com) USA Mobile Drug Testing was founded in 2008, and is based in Tampa, FL.
The USA Mobile Drug Testing franchise website claims that their franchise offers the tools for building a successful random drug testing service business that you can run from home.
[Also read: USA MOBILE DRUG TESTING Franchise Questions for CEO Joe Strom]
It states: “Owning a USAMDT Franchise offers most of the benefits of business ownership but provides important additional elements to help one succeed, such as a proven business model, comprehensive training, marketing expertise, and ongoing support. In addition, a nationally recognized brand and trademark provides instant consumer visibility and credibility.”
Like many brand-new, high-risk franchise opportunities with virtually no proven track record, USA Mobile Drug Testing markets itself as a lower-risk investment, stating:
“USAMDT Franchising provides many of the benefits of business ownership – the ability to make decisions and have control, to create wealth for the present and equity for the future; but is considered less risky than starting your own business.”
Is The USA Mobile Drug Testing Franchise a Flash in the Pan?
According to information submitted to Entrepreneur magazine, USA Mobile Drug Testing grew 600% in one year, from 11 franchises in 2010 to 77 franchises in 2011.
The following year, the number of USA Mobile Drug Testing franchises dropped 30% to just 52 franchises.
What happened to the 25 franchisees who thought they were taking a “less risky” path to business ownership and were told they could “Just get in your vehicle and make money?
Did they lose their investments of $83,731 – $115,611 in just one year?
Of 40 Remaining Franchisees, “Over 25% Are Looking to Get Out or Close”
UnhappyFranchisee.Com has received a complaint from an unnamed USA Mobile Drug Testing franchise owner who claims the situation is actually even worse than it seems.
He/she claims that the system is in a state of collapse, that there is no franchise support, and many franchisees are looking for a way out.
A USA Mobile Drug Testing franchise owner writes:
Of the 40 remaining franchisees, over 25% are looking to get out or close because they are out of money, no longer want to send their money to the ZOR, there is no support, no structure or system and all of the knowledgeable employees at HQ are now gone.
We have contacted the corporate office of USA Mobile Drug Testing franchise about these concerns, and invite their clarification, correction or rebuttal.
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Tags: USA Mobile Drug Testing, USA Mobile Drug Testing franchise, USA Mobile Drug Testing complaints, USA Mobile Drug Testing franchise complaints, USA Mobile Drug Testing failure rate, drug testing franchise, mobile drug testing, Joseph Strom, Joe Strom
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USA Mobile Drug Testing LLC Franchise – Franchise Fraud-Buyer Beware!
USA Mobile Drug Testing LLC frauds people out of their money and continues to squeeze more as they struggle to stay in business.
USAMDT started selling franchises in early 2009, average investment of $90, 000. They use an outside franchise business development company to sell them but this isn’t disclosed. The sales people are introduced as employees of USAMDT.
The financial representation listed in the FDD is so grossly inflated and doesn’t come even close to what the 1st and 2nd year business owner will make in revenues. Plus, the numbers used are said to be a franchise, which is untrue, it’s a company unrelated to the franchise, listed as a franchise, won’t talk to the franchisees, etc.
Many of us really did our due diligence before buying into this franchise but many things are kept from you until you’re in the system. Things like NOBODY on staff has any previous experience in this industry and the one person that does is an outside consultant that has helped others get into the business outside of the franchise.
To get personal, the CEO, Joseph Strom, is a narcissistic bully that uses a command and control management style. He doesn’t seem to get that franchisees are NOT employees. He believes he can motivate people with promises and rhetoric but when it doesn’t go his way, then he tears franchisees down and his revenge is divide and conquer. 90% of his promises are empty, zero follow through and unable to hold a business conversation without turning it into a vicious personal attack.
He’s cut tons of side deals with various franchisees that end up getting a free ride while many are stuck making up the shortfall.
BTW, this is a great industry and can be learned and launched, without any franchise, for a fraction of the cost. BUYER BEWARE! Unless you have a huge family trust fund and money is no object, do not invest in this franchise and don’t invest in Joe Strom.
Did you deal with Rhino 7 Consulting, Inc. when you bought your franchise?
What did the franchise broker tell you or email you about the financials or potential profits?
Rhino 7 operates in the shadows of franchising and they may be an honest franchise broker, but no one seems to know much about them?
@Hancock: Everybody deals with Rhino 7. USAMDT contracts them to do the business development and sell territories. John Cohen, co-owner of Rhino 7, is listed on the USAMDT org chart as the VP Franchise Sales. The email signatures and how they present themselves leads a prospect to believe they are all employees of USAMDT. Untrue. They are not. Broker firms like Frannet and Franchoice send prospects to Rhino 7 to close. My broker emailed me a short summary of the franchise and the earnings potential that is listed in the FDD. The same BS listed in the one posted here but I didn’t get the actual FDD until I started working with Rhino 7. I now know that I didn’t get the entire FDD, such as the list of franchisees. That was conveniently left out. I told my broker with Frannet about my experience and she stopped selling the franchise.
Most of the franchisees had Chris Otter as their sales rep at Rhino 7. He would say ANYTHING to sell a franchise, including making various earnings claims. He reportedly told every franchisee he sold over his 2 year track record that he and his wife planned on buying a territory. Many franchisees complained to Joe Strom about his tactics once they were in the network, Joe always said he’d look into it but never did anything about it. Chris allegedly was let go in Oct. 2012. Chris wasn’t the only one that lied and made financial claims to prospects, Neil Weiss reportedly has as well. They are really adamant with a prospect that the franchisees are too busy to take validation calls. It was like pulling teeth to get to talk to even one. They want you to listen to pre-recorded validation calls that are monitored and mediated by the Rhino 7 sales director at the time. Finally I found several through LinkedIn and scheduled appointments to talk with them. They were happy to talk but so many were so knew they didn’t have much to say.
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This is very problematic.
It would be interesting if there are any lawsuits against a franchisor who used Rhino 7. We could then look through court records for depositions of Rhino 7 personnel.
I wonder if the franchisors properly disclose Rhino 7 and any litigation they have in their client franchisors’ FDDs?
Franchise Sales Outsource (FSO) companies operate in the shadows and periphery of franchising.
Franchise Dynamics
Fransmart
Beautiful Brands
Franchise Foundry
Upside Franchise Consulting
All these companies seem to be a bit dodgy.
They are employed by either dubious or under-capitalized fly by night franchisors.
Feels like Vin Diesel in the movie Boiler Room.
I am about to enter in a contract with USA drug to get my drivers into a consortium – I have read all your comments on how bad it’s run but do they follow through with what you need??? so far so good.
Trainwreck,
Your personal attack and allegations regarding Mr. Otter are simply untrue. Chris has an unblemished 20+ track record in franchising and is committed to helping others achieve their goals through business ownership. I have known and worked with him for over 15 yrs and his integrity is impeccable. During that time, he has never made an income claim beyond the legal boundaries of the Item 19.
Furthermore, I know for a fact that he and his wife were very interested in the drug testing business as we have discussed a possible partnership in such a venture, albeit independently as a result of his experience with USAMDT. However, Chris still believes in the underlying viability of a mobile drug testing business and we continue to explore the opportunity.
Unfortunately, he feels that he was also misled by the same information that was provided to many franchise owners and candidates. As a result, he became disillusioned and left the company as he could no longer continue to represent a company that he did not have full faith in the management, integrity and information that had been provided.
In the future, I urge you not to launch your anonymous, personal attacks based on your personal agenda as you may be hurting some very good people with genuine interests in doing best for others.
Well Chris Otter should come here himself and explain. Your comment means nothing since you can’t know what he has or has not done.