Hollywood tans monthly charging service scam
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Hollywood tans monthly charging service scam I joined Hollywood Tans when they ran their $19.99 a month deal. I joined at the end of the month, the 26th of March. They told me that I would be charged for March, and since it was still March I really didn't have a problem with it. They also told me that the deal requires a 3-month commitment, and since I was in the area only until the beginning of May I didn't mind.
So I figure that they are getting the best of me, pretty much charging a customer for 3 months when they were only going to be there a little over 1. This isn't what really bothered me. What bothered me was that when I went to cancel at the end of May, my 3rd and required month, I was informed that I would have to pay for a 4th month of service.
I was a little confused, but they told me that when a person cancels they must cancel by the 25th of that month or be charged for the next month. No mention of this was presented to me at the time of purchase and I have the paper I signed and it too mentioned nothing of the sort. I talked to the person and explained that by that structure that I shouldn't have been charged for the first month, as it was past the 25th of the month and they told me that it didn't work like that. So I ended up being charged for 4 months when I only used 1.
I had every intention of being a customer again when I return to the area in September, but they lost a customer over a couple bucks. What a business strategy. I'm going to make sure that my membership more than pays for itself in June, just to make sure they don't make a dollar on this deceptive business practice. I will not reissue my membership in the fall. They lost a customer for the next 4 years over $20, when will they learn. From: Message Author (click here to email author)Date: Wednesday, 31-May-06 16:44:32 CDT Business: Reply Online Consumer: Comment On This Comment On ThisHOLLYWOODTANS FRANCHISE SYSTEM1120 Route 73 South MT LAURAL, NE 065122 HOLLYWOODTANS.COM HOLLYWOOD TANS IS A FRANCHISE RIPP OFF! Please respond and let us know if there are more Hollywood Tans salon owners and existing franchises complaints! I have 7 franchise store owners who have purchased Hollywood Tan Franchise System and have been lied to and scammed! We have merging to prepare and file a suit against this company and new owners! I am on a mission to expose the falsehearted actions of this company! I will be adding other franchises to this list as there are more salon owners beginning to seek help with their financial sate of affairs and join us with the preparation a corporate suit as they learn about their fellow franchises owners beginning this complaint! This companies dishonesty regarding projected cash flow, false stated profits and the deceitful business opportunity statements have financially hurt many franchise owners. They have taken my money (Franchise Fee of $34,500.00). April of 2006 and tell me that they will refund the fee and have not yet to this date. They instructed me to lie to the SBA via e-mail about cash projections in reference to my sales projected figures in order for me to secure the loan. That is when I decided that I wanted my franchise fee returned and they keep telling me that they now have to re-sell the territory! I have e-mail proof of the chief financial officer telling me to up the sales figures so I would obtain the SBA loan. The additional franchises and HT salon owners that I have been getting statements from have verified this information and other horror stories about HT not listening to salon owners problems and not caring for from them as well. Some have already gone out of business and lost a fortune! I have kept all e-mail information as proof and have several witnesses that will verify all I have said. I have contacted the owners, and managers of the Hollywood Tan corporate headquarters and they will not answer my letters phone calls or my e-mail! Recent Update! My group is not suing HT! We are waiting for answers and solutions from the HT company! We have not retained any attorneys and we are not working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.! I THOUGHT THAT I WOULD POST DETAILS TO ANSWER SOME QUESTIONS AND CONCERNS AS WELL! I have been extremely frustrated with the HT lack of communication. I do believe that HT has not considered nor taken any time to at least listen to all the facts here! I also trust that they do not take the time to support their present salon owners. My contentions can be confirmed by several present and past HT salon owners. HT seems to be more interested in building their franchise store base then in helping those that represent their company. HT did in fact make representations about profits and cash flow before we signed our franchise agreements. I was told to send a franchise deposit fee as soon as possible because there were other customers very interested in my area! So we sent them their $34,500.00 franchise fee. I was told not to worry about SBA funding because HT had a company that was familiar with their company. I was told not to worry about the franchise fee it would be returned if we didn�t secure funds from SBA.I then began my cash flow projections. I went to other salon owner and acquired their present and past sales figures, overhead. I utilized the actual figures with a 10% increase in sales every year. They were horrible not profitable! I sent the sales figures via email to the CFO before I sent them to SBA. The CFO emailed me and calculatingly said to UP the sales figures because SBA would not fund me with this projection! Yes! I did believe that this would be lying to SBA and dishonest! And imprudent on my part to buy into a non profitable business! At that time I realized that HT would not be a company that I could work with. I had a partner who then backed out of the partnership, and I asked for my franchise fee back. The franchise operations manager said not to worry HT has never been know to keep a franchise fee. I was never told that they would have to re-sell the territory before they would consider giving my hard earned money back minus their numerous fees! I have been waiting ever since. Going on two years! I do remember signing a statement that the franchise fee was non-refundable but only if funds were not secured for outside sources. I was told not to worry about signing that. I have the email proof. HT never secured a lease nor spent any money for my North Haven Ct location! Has anything changed since the new owners have taken over? NO! I have made many attempts to speak with the new management and new owners but I never received any communication. I did recently receive a cold certified letter reiterating the old companies stand. Hopefully this details my situation, but not the existing HT salon owner�s state of affairs! I will continue to contest for them as well as myself. Oh by the way, I understand that HT closed on another CT. salon, yesterday. Branford Ct is CLOSED down! He opened the salon not even one year ago! He also lost his initial investment over $250,000.00! I will continue to update! From: Message Author (click here to email author) Date: Monday, 21-Jan-08 08:15:38 CST Business: Reply Online Consumer: Comment On This |
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