An investor wanted to open a hardware store, so he searched for relevant hardware information on the Internet, and was quickly attracted by an advertisement from a hardware company attract.
The hardware company claims to be a high-tech enterprise focusing on new product research and development, industrial upgrading and transformation, and integrated marketing in the hardware and electrical appliance industry. The "XXX Hardware" brand is characterized by "selected hundreds of world-renowned brand products", "one-stop service system, low cost and high profits", "hundreds of brands, thousands of products", "direct supply at factory prices, no intermediate links, With the concepts of "quality assurance" and "international cutting-edge concepts", it has become the most representative brand in China's hardware stores. Intelligent franchise chain system, ISO quality system certification + EU environmental protection certification, multiple utility model patents, independent production of cutting-edge quality and international standard production lines and many other product advantages can provide franchisees with nanny-like full-process support, intensive advertising promotion, All-weather after-sales service and other cooperation advantages.
More importantly, the hardware company also promised investors that "the purchase price is 40% of the market price" and "you can get goods worth more than 100,000 yuan by paying tens of thousands of yuan in advance", " "Based on the amount of the advance payment, the headquarters will provide products equivalent to 20%-30% of the advance payment amount", "the headquarters will provide shelves and cash registers", "enjoy the rent and decoration subsidies from the headquarters", and "free full-time support from the store".
At the invitation of the hardware company, the latter investors visited the showroom of their business premises in Baiyun District, Guangzhou.
Since the supply price promised by the hardware company is far lower than the market price, there will be a 10% rebate for later purchases. The hardware company promises to give away shelves and cashier systems, rent and decoration subsidies, and provide site selection and decoration. Free services such as design and promotion planning support franchisees to keep opening stores. The conditions for cooperation are very favorable. On the day of the inspection, the investor signed a cooperation agreement with the hardware company and paid an advance payment of RMB X million to the hardware company.
After the inspection, the investors quickly rented the store, decorated and maintained the store, and planned to do something big.
At this time, ladle after ladle of cold water came towards me.
The first is shipping costs and product gifts.
Before signing the contract, the company promised to provide shipping subsidies and free shipping for the first batch of goods. When investors received the donated goods from the company, they found that the donated items were all worthless (the price tag was as high as 15,000, but the actual value may be only more than 2,000), and the shipping fee was charged separately (the value was more than 2,000). shipping costs up to 1.000). The investor came to the company to discuss the matter, and the company said that the investor had to pay for the freight first, and then the company reimbursed the company based on the documents, and the process was approved (this is another routine, the investor has not yet received the reimbursed freight).
The second is that the payment for goods becomes an investment advance.
Before signing the contract, the company said that the advance payment was the payment for the goods, and the goods could be deducted directly in the future. When investors order goods from the online mall platform provided by the company and ask the company to deliver the goods, the company states that payment must be made first to purchase the goods. What I paid before was an investment advance (money to obtain the qualification to sell brand products, similar to a franchise fee), not a payment for goods. When the investors excitedly took out the contract and planned to have a good discussion with the company, they were dumbfounded. The contract does say "investment advance payment".
Third, there is the issue of purchase discounts and prices.
Before signing the contract, the company made it clear that the purchase price was 40% off the company’s pricing. If investors want to purchase goods, not only the advance payment cannot be deducted, but they also have to pay according to the company's pricing, which is even higher than Taobao's retail price. Wait
When the investors planned to take out the contract and discuss it with the company, they could not find any agreement on purchase discounts in the contract.
Finally, there is the issue of contract rescission and liability for breach of contract.
After the above routine attacks, the investors finally woke up and found that they had been cheated, so they contacted the company and asked to terminate the contract and refund their money. At this time, the company didn't even want the last fig leaf, and said directly: the contract is not a franchise contract, but a distribution contract; the contract does not stipulate a 40% discount on the goods; there is no stipulation in the contract that the advance payment can be paid directly, but it is clearly stipulated that the advance payment is The investment advance payment is the consideration for selling brand products, which will be returned to the investor in batches later based on the purchase amount. If the investor terminates the contract now, it is a breach of contract and needs to pay 50% of the liquidated damages.
In summary, after the entire scam was implemented, investors lost all their money.
If it is true that according to the contract, the investor must obtain goods from the company at a price higher than the retail price, and the quantity of goods obtained is 10 times the investment advance, then it is possible to get back the investment advance paid in batches. The more goods they take, the more they lose and the deeper they sink.
After many unsuccessful attempts to communicate with the company, the investors approached Gu Dongling’s legal team. After being entrusted by investors, Gu Dongling's legal team collected a large number of evidence of illegal activities and suspected contract fraud by the company and brand, filed a civil lawsuit with the court, and applied to the court to transfer the case to the public security for investigation. Currently, the case is still being processed.
If you have encountered similar franchise scams or routines, be sure to keep all evidence materials (including contracts, receipts, payment records, WeChat chat records, brand manuals, phone recordings, etc.) and Contact a professional to claim rights as soon as possible.
This case is very similar to another customized home franchise case handled by Gu Dongling’s legal team. In the early stage, gimmicks such as low prices, low discounts, high rebates, and many gifts were used to attract investors. The investor signed the contract and paid, only to find out that he had been cheated when he wanted to take delivery of the goods. The customized home entry franchise case has been successfully applied to the court for transfer to the public security agency. The company's legal representative, shareholders and other personnel have been criminally detained by the public security organs on suspicion of contract fraud, and the procuratorate has also agreed to arrest them. Currently, the criminal case is still under trial in the first instance.