Complaint Review: MEDI WEIGHT LOSS CLINICS

June 2007, paid $150,000 towards a purchase price of $500,000 for the rights to sell Medi Weight Loss Clinics in Arizona. Purchased the rights based on earning claims that they now acknowledge were false.

October 2007 - sent Derek Kaloust in the legal department and also my boss, Andrew Cox (both of whom are related to the CEO and President) an email regarding concerns that we were a franchise. They emailed me back and specifically stated we were not.

January 2008 - bought out partner for State rights, brought in a new investor. On the 27th of January we wired $221,080 to buy out the other partner. Again, told we were not a franchise, merely licensees.

February 1, 2008 - Four days after wiring the funds, am notified by Corporate that we are now a franchise effective immediately.

Corporate then went back and forth on pricing etc for a period of 2 months initially. There was no disclosure from them that clinics in Arizona were behind on their payments until we requested information in late April.

Corporate did not understand why we had a problem - under the initial terms of the contract we signed in June 2007 AND January 2008, we were to receive annual residuals from all Arizona Clinics (7 at the time) in the amount of $31,250 in perpetuity (the first year of operation however, we would only receive $25,000 from each clinic). This new agreement changed everything, instead we would receive a far less amount.

The amount corporate stated we would receive intially amounted to more than a 30% loss of revenue, with no reciprocation on their end.

However, when it became clear later during the year that Corporate once again changed their funding (it now became different fees and structures), we would actually be taking more than a 75% cut - yet corporate still wanted us to pay the same amount for the purchase rights. They have structured some clinics to where they are paying just $2000 a month initially, some are at $4500 a month, which is a huge drop from the $10,500 a month their numbers were based on when we purchased the rights

Since then, I have been threatened by Corporate, bad mouthed, lost just about everything, told NOT to talk to anyone, and so much more. They have interfered with my business partner, other clinic owners, my clinic staff and forced me out of my own clinic.

I would warn each and every single investor DO NOT PURCHASE a MEDI WEIGHT LOSS CLINIC. They sold us initially on their earnings claims that were completely false, not certified, contain false numbers - now that they are a franchise, the numbers they sold us on are completely different.

The owners of the Clinics themselves, and the program are good, the owners of the COmpany are fraudulent, pass themselves off as honest and good people..they will take your money and laugh about it (I have emails to prove that).

Rippedoff
Peoria, Arizona
U.S.A.