Posted on Sunday, December 30th, 2007 at 11:36pm CST by 164d8563



Location: Address: CSC Plaza Suite 400 1120 Route 73 South
Mt. Laurel,, NJ, 08054, US


Category: Other

PLEASE respond and let us know if there are more franchises complaints!

Please listen to us! I have 7 franchise store owners who have purchased Hollywood Tan Franchise System and have been lied to and scammed! We have merged to prepare and file a class action suit against this company and owners! I am on a mission to expose this deceitful company! I will be adding other franchises to this list as there are more owners beginning to seek help with their financial sate of affairs and join us with the preparation of this new class action 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 $34,000.00). April of 2006 and tell me that they will refund the fee and have not yet to this date. They have told me to LIE to the SBA about cash projections. 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 other franchises that I am getting statements from have verified this information and other horror stories about this company lying to cheating and taking profits 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. We are presently working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.

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!

Also there is already a class action suit against this company from consumers!

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!


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