- Report: #534514
Complaint Review: DoubleTakeAuction.com - Cleveland, Ohio Internet
Reported By:
Mike -
Ringgold, Georgia, United States of America
Submitted:
Updated:
-
Author Not Confirmed
Why?
DoubleTakeAuction.com
3190 West 63rd St. Cleveland, Ohio, 44102 Internet, United States of America
Phone:
888-916-0008
Web:
www.doubletakeauctions.com
Categories:
Business Rating:
(0)
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DoubleTakeAuction.com Russell Heidenreich (Owner) Possible Franchise Scam (Possible) Cleveland, Ohio, Internet
Recently I purchased a small amount of merchandise from this company and showed up to pick it up with cash 2 days after the auction had closed and was told that I had already been charged to my credit card. I had emailed and told them when I would pick it up (according to their rules). Yes they did not take the money 2 times but, after the transaction the owner approached me and offered to sell me a franchise. $20,000.00 would get me the franchise for 6 states to handle for this company. As a retired person I started asking questions and was interested. The owner just kept sweetening the pot to entice me into the sell by offering me the commission on 3 upcoming auctions and finally there were about 6 auctions that the commissions would be mine within just a few weeks.
I went and spent 1/2 a day with the owner at Crossville TN to see what it was all about. I was presented with a franchise agreement contract and he offered to finance $10,000 of the payment. After a few hours of watching and learning how business was done I had some major doubts. Who would be offering to sell a franchise for $20,000 and give you about $60,000.00 in commissions to get you to do it? I started asking his employees questions about him and the company to get the facts. I have to admit I was hooked, I even had the funds available to make the transaction. He went to lunch with his employees and returned to go off to the back of the warehouse on the telephone for a while. In a few minutes he sent a clerk that worked for him out to me and said "Russ said that you could go ahead and go, he does not want to business with you." She then said "Let me walk you to the door." I insisted on finding the owner to ask what was going on and all I could get out of him was "after hearing you today I no longer want to do business with you."
Had I asked too many questions, was I getting too close to finding out something I was not suppose to know, or had I personally said something that he just did not like? I do not know, but I have thought over and over the day and something just does not smell right to me. I retired at age 40 after owning several successful businesses so I think I have a good eye for things in business. I was asked several time for the money for the franchise and for me to just go and sign the paperwork. I had been told in the conversations during the day that "we can control the outcome of the auctions." This was after I had asked about purchasing items from my own franchise if I purchased it. I found this very strange, were they controlling the outcome of the auctions regularly?I also heard over and over how they were charging the clients for everything even driving cost to the client to go make the sell, removal of the equipment, percentage of the sell and other things. If this is all true then the client sure does not end up making much off of their auction and the people purchasing are also paying 15% just for the privilege of doing business with this company.
I am left with more questions than answers after these dealings.
NOTE: I AM NOT SAYING THAT ANY OF THIS WAS FRAUD!
But I am saying for everyone to be careful with your dealings with this man and his company. I am just telling my story and the way things transpired. Please take the time to go read the (BBB) Better Business Bureau reports on his company, as of the time of this posting they have an "F" rating with 4 complaints and no responses to the complaints. I hope and pray that this company and man are totally legitimate and if so that they do well in their business but I also hope that if not they will be found out.
I plan on Monday to contact the Federal Trade Commission and see if they are registered to sell franchises, especially since I was told that he had sold 2 already.
As for myself I am glad things ended when they did because my gut feelings were that something just was not right. All I needed at the time was an explanation of why but did not get it.
2 Updates & Rebuttals
Dr. M
Ringgold,Georgia,
United States of America
Response to Companies Reply
#2Author of original report
Sun, January 10, 2010
In their reply the excuse was given that I had snooped on their computer, this was a total lie, I never even got near their computer. Actually having worked in the computer industry for 25+ years I had offered to assist with a problem they were having when we first arrived at the location but other than that I never even got close to a computer. I did look at an empty laptop computer box that was in the floor at one time and admire the computer that came in it. As for comments about the owner, What comments? My son and I ate lunch and never said anything about the owner that was bad.
When the deal fell apart Russell refused to discuss what his problem was with the deal, which I was amazed at.
After hearing their reply this is my conclusion.
I was going to move the location from Crossville, TN to Chattanooga TN (Which was discussed up front), I did tell a lady that during lunch and she probably got mad that in a few months she would be loosing her job so she made up things to make the deal go south. For the lady I understand that she was upset but she did not know that I had already spoken with a partner about paying her 3 months severance when it was moved. She got what she wanted and evidently kept a job in that location and I wish her well, I pray she gets a great future with this company.
This does not speak well of the owner though because rather than asking about her actuations he swallowed her story completely without ever checking anything out. To me this does not make much business sense.
Oh Well, with this kind of attitude I am glad to have not done business with them because in my opinion it would have gone south down the road if he (Russell) did not follow up on problems as they arise. Too bad for them I had a check in my pocket to purchase the so-called franchise.
Good riddance and for everyone that reads this good luck in your dealings with this company. As for me spring is coming and I got a wonderful place to fish set up on the creek bank ready to spend the nice spring days. I retired at age 40 and am now 50 so I guess it was just not meant for me to go back into business.
techsupport
painesville,Ohio,
United States of America
Rebuttal...
#3UPDATE Employee
Sun, January 10, 2010
First off - this company is legitimate. I'm glad you put a note in your story how there was no fraud committed. At least you are not making things up here which is somewhat appreciated. To answer your statements/questions:
The reason you were told to leave the warehouse/office was due to the fact you were snooping on the computer when the attendent went to the restroom coupled with the fact Russell was told what you had said about him when you were speaking with workers there. I know this because I was on the phone with him when he got back from lunch when this situation played out and heard everything (him telling you to leave, not wanting to do business with you thank you very much)
You really did blow it. Yes he was willing to give you control over that warehouse. The money is more like a safeguard in case you decided to just take in money from a sale and then disappear with it. This company is trying to expand and it is very difficult to find reliable people to independently run a warehouse that is 500 miles away.
As for your other statements -
4 bad reports on the BBB over the course of a few years is what it is. Items are being liquidated on this website at no reserve prices and are sold AS-IS where is with no warranty. You sorta hinted there was some fraud with "controlling" the auctions. This is not the case. These are asset liquidation sales and items sell for whatever they sell for. Look through previous sales and you'll see very nice items sell for pennies on the dollar. The control you mentioned is that we administer the back end of the website and you wouldn't have had to do that. This is due to sensitive customer information that must be kept secure at all times.
Your credit card was charged for your purchase because you showed up 2 days late to the removal date as you mentioned. There was no problem with you picking up an item located in the warehouse but the money isn't the company's - it's the clients - and they don't want to wait an extra day for you. If you had read the terms and details which you agreed to before registering you wouldn't have been surprised. This is common in the industry. All of our competitors do this.
If you have any other doubts pickup the phone and call Mike at that Crossville warehouse. He's the one that took the "job" you were offered. The 3 auction sales in question just recently ended. Ask him how they went and if he's at all regretting his decision to work with us.
Good day and god bless and please don't snoop around on anyone else's computer.
