You’re just one sales pitch away from your new TRAVELHOST business!

Jeff Loudon told the story well in his “Travelheist Investor Blog” that he had going in the earlier part of the year. He tells the story quite well, and explains the circumstances better than I could, so why not just quote Loudon on this one. I copied that blog before it disappeared, thankfully, so I can bring you the info you need to know…Before you invest!

“The sales technique.”

“Upon reflection, the biggest deception is the TH sales technique. I must say it is a thing of beauty. I get called by a person from TH that has reviewed my resume on Monster. “You know Jeff, we were very impressed with your unique credentials, you know, we are extremely selective, but you just might have what it takes to become a Travelhost AP.”

In a subsequent conversation I’m told that about 1 out of 100 “applicants” are invited to Dallas and “about 1 out of 10” of the interviewees are “offered a distributorship.”

The concept sounds great so I head to Dallas on my own nickel for an “interview” for a perfect sounding endeavor. Pre-interview I get nothing but a slick brochure talking about how TH is such a great deal if you have what it takes. (Well, I also received a sample of “good magazines.” These were Ft Lauderdale, Orlando, Daytona Beach and several others…strangely, upon reflection, these were “successful” magazines….they must print many extras of these!). Note: I also received the contracts in advance of the “interview.”

Obviously, I have received no franchise disclosures and I’m pretty excited because this really sounds perfect. I have the initial interview with two nice guys who tell me more about TH and then comes the moment of truth…an hour and a half interview with the company chairman, “Mr. Buerger,” to see if I can persuade him to let me become a distributor…absolutely a beautiful set-up.

Phew…I find out early next week that I made the cut and am being offered the opportunity.

Here’s the beauty of it: How many of you in a “job interview” that you’ve paid the better part of $1K to attend, are going to ask the “Chairman” :

* How many times have you been sued?
* What’s the failure rate?
* Please give me names of everyone who has failed nationally?
* How many times has my market gone dark? Who were they?
* Gee, the plant tour where you showed me how cheaply and efficiently you can mass-produce Travelhost was impressive. I take it based on your unambiguous promise in the AP agreement about getting wholesale pricing, that you aren’t going to charge 2.5- 3 times wholesale for printing?
* What is the real success rate in selling these 2 pages of free national ads?
* How many APs in the last 5 years have collected the supposed 40% commission for placing national ads?

My guess is that some smarter people than I asked those questions and were summarily booted out the door, minus the “opportunity” and minus $1K

My point is, this is the essence of deceit, all of it in my opinion. If it’s a franchise, it is unlawful deceit. I also believe that it might be “unlawful deceit” even absent franchise law protection.

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