RHINO7 Franchise Complaints
RHINO7 Franchise complaints include allegations of deceptive sales tactics, improper franchise disclosure, making improper earnings claims and financial representations, trying to keep prospective franchisees from talking to current franchisees, and representing themselves as franchisor employees.
(UnhappyFranchisee.Com) According to the the Rhino7 website:
“Franchisor brand growth (adding franchisees) is Rhino7’s primary focus. We grow existing franchisors by selling franchisees, and we help create new franchisors out of existing businesses.
“In both cases, we start by helping our clients to strengthen their brands and enhance their franchisee marketing systems. We then leverage our knowledge and experience within the franchise industry, providing full-service capabilities, and excellent follow-through and support for our franchisors.
“We do all of this with a level of honesty, integrity, and an all-in commitment to both you and your brand that you simply won’t find anywhere else.”
RHINO7 franchise clients include Go Yo! frozen yogurt franchise, the PRO Martial Arts franchise, and the USA Mobile Drug Testing (USAMDT) franchise opportunity.
An unhappy USA Mobile Drug Testing franchisee, who was sold a franchise by an aggressive Rhino7 salesman, submitted this complaint on theUSA MOBILE DRUG TESTING Franchise Complaints post:
Rhino 7… USAMDT [USA Mobile Drug Testing] 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 [USA Mobile Drug Testing CEO] 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 new they didn’t have much to say.
Owners, employees or clients of Rhino7 are welcome to provide clarification or rebuttal of these allegations below, or by emailing us.
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Tags: Rhino7, Rhino 7, franchise sales, franchise consulting, franchise broker, USAMDT, Doug Schadle, John J. Cohen, Chris Otter, Neil Weiss, Go Yo! frozen yogurt franchise, PRO Martial Arts franchise, USA Mobile Drug Testing franchise
I was reading through the Rhino7 website and saw something interesting.
Under the bio of Careyann Golliver, Rhino7 Franchise Development Manager, it says that “Her skill sets in franchise business and development have brought Handyman Matters great success and growth. As part owner & an independent franchise sales arm for Handyman Matters Franchising Corporation, Careyann’s roles included all aspects of creation on marketing, sales, processes and procedures that has helped Handyman Matters grow beyond the beginning years in the basement of the CEO’s own home to becoming a national & international franchise brand, single-handedly awarding over 249 placements.”
http://r7fdc.com/staff
Rhino7 brags that Careyann Golliver sold 249 franchises, but Entrepreneur magazine states that Handyman Matters has less than half that open – only 115 franchises.
http://www.entrepreneur.com/franchises/handymanmattersfranchiseinc/315331-0.html#
It sickens me when franchise salespeople and franchisors brag about their success in selling franchises that either never open or open and fail. This little factoid about Careyann Golliver sure doesn’t make Rhino7 look like a reputable company.
Franchise Sales Outsource (FSO) companies prey on franchise investors and franchisors.
Here’s how:
1. FSOs find franchisors who are desperate to sell franchises and typically have run out of money to properly recruit themselves.
2. FSOs don’t tell franchisors how they sell and they use out of work franchise sales people on 100% commission.
3 Franchisors don’t ask how FSOs market and sell.
3. Multiple franchise sellers, and buyers don’t have a chance since often FSOs work with franchise brokers who pretend to represent the prospective franchisee.
It’s the perfect confidence game model.
4. FSO sales process is “Boiler Room” program selling. And it works no matter how smart the prospect thinks they are. These FSOs are well practiced.
5. FSO don’t care about federal and state franchise sales law compliance.
6. FSOs will get the prospect an earnings claim in order to sell them. It just won’t be legal. But the prospective franchisees love it and buy anyway. (See Vin Diesel – Boiler Room).
How does this fraud end. It ends when franchisee attorneys successfully unwind these FSO transactions, expose FSOs and win judgements against FSOs and the franchisors who use them.
Once franchisors discover the no so hidden liability of using FSOs the smart ones will stop and the desperate ones will fail.
If you are a franchisor using these rogue companies to sell your franchises you should be very afraid of what these FSOs are doing to you with your blessing.