RED BULL VENDING: Mallory’s Story

Unhappy Franchisee Mallory comments:

We did do our “homework” before purchasing our Red Bull vending machine franchise. And yes, we were told it was a franchise. I contacted the BBB, state and local officials in Florida, and could not find anything derogatory about CCA. I phoned Red Bull North America and was told they had an exclusive agreement with CCA to sell these vending machines. I was told by RBNA this was a legitimate business venture. I was presented with a letter from RBNA confirming their business relationship with CCA. I would never have thought in a million years, with such a big name and strong corporation, RB would be part of a scam like this one.

We bought 3 machines and had no help from RBNA. Although I had 5 people from the local distributor come to my home and make a lot of empty promises.

We placed one of them after sitting in the garage for 7 months. A year later we placed the second one. It was stolen a few days after placing it. The machine, the money inside, and all the product in it, gone. Now we were suppose to have a theft and vandalism policy that would replace that machine but of course with the bankruptcy of CCA and the denial from Red Bull that they are in no way responsibile, we are out money and pay on a loan each and every month for something we no longer have. Our third machine we placed has sold 2 cans in 6 months. Far cry from the $7,000 a month profit we were told we would make.

And the buy back program. What a joke that was. We were offered $1,000 for each of our machines. Some did sell their machines back to CCA and never got paid. CCA then sold those machines to other unsuspecting individuals. Well then RB came along and did a buy back program. RB did not follow the chain of custody on those machines so some of the machines they bought are now considered stolen. This is all documented through law enforcement.

I must say it seems we lost “peanuts” compared to what other victims have lost and my heart goes out to them. I spoke with a victim in NY yesterday who’s home is now in foreclosure due to this scam. Many have already lost their homes, retirements, savings, inheritances, and some divorces due to this scam. We estimated a total loss to all victims of approximately 25 million dollars.

How can a billion-dollar company like Red Bull allow this to happen? I bet this would never happen in Austria where Red Bull originated from, so how and why did this happen in AMERICA?

You would think that the owner of Red Bull, with all his billions would step up to the plate and pay each victim of this scam. It would be pennies to him.