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post #1 of 14 (permalink) Old 12-10-2016, 11:04 AM Thread Starter
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Property pres/HUD

Just a common question I hope someone can answer. I'm new to industry and someone sold me a so called exclusive territory. No employees mind you. I had to set up my own business name. Acquire my own insurance. Buy my own equipt. Etc. I also had to fill out applications to get on board with other companies under this so called business I bought into. Question is. Does someone have the right to sell an exclusive territory? I understand if someone had built a legitimate business with all equipt. Employees. Etc and has a good reputation and making a good income. How they may have something to sell. But some out of towner selling exclusive territories? Is that legit?
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post #2 of 14 (permalink) Old 12-10-2016, 12:16 PM
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I'm not a lawyer but it appears you were taken. As you have discovered the onboarding process for the nationals is like : your business , your background checks, your insurance, etc. with absolutely no guarantees by the nationals of any exclusive territories. No signed contracts stating you have exclusive anything, but liability ! Did the sellers provide any type of contract stating you have exclusive territories ? for any of his client's ?
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post #3 of 14 (permalink) Old 12-10-2016, 12:59 PM
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Did you look at his books? was he even turning a profit? Makes me sick. I'd say you bought a turd, but you didn't even get that. I have had some loose territory agreements but that was after working with the same office person for a long period of time. We traded favors it worked well, but for a new guy that isn't going to happen.

I'd say it's time for a gentleman's business agreement here. Sit down with him and explain that you know you got hosed and he's going to give you a full refund or you agree to kick his a$$.
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post #4 of 14 (permalink) Old 12-10-2016, 01:25 PM Thread Starter
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The guy sold me a territory saying I have exclusive rights to 6 counties and he would be feeding me business. He not once had the business. He was using me and others to act like he had a bunch of vendors working for him. He doesn't own the rights to be able to sell a territory as he didn't have a book of business in said territory. He has done it to multiple people and is continuing to do this
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post #5 of 14 (permalink) Old 12-10-2016, 02:34 PM
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The guy sold me a territory saying I have exclusive rights to 6 counties and he would be feeding me business. He not once had the business. He was using me and others to act like he had a bunch of vendors working for him. He doesn't own the rights to be able to sell a territory as he didn't have a book of business in said territory. He has done it to multiple people and is continuing to do this
Unflippinblievable! So you are paying him to work for him. You do know he is taking a percentage of what you make, right? What is it..20% 30% 40%? Give us an idea...what's he paying for a cubic yard? a winterization? a snow push? a lock change?

Who are his clients? You can pick up the phone and work for any one of them.
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post #6 of 14 (permalink) Old 12-10-2016, 02:46 PM Thread Starter
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He posed the business as a franchise almost. At first he wanted a percentage of gross income. I'm assuming on top of whatever he was trying to get off top. It was a shady business deal. After i signed contract. Paid him. Etc. then he just sent me applications to other companies to get work from them. Not him. He had access to out PPW. So I'm also assuming after we submitted our work with our bids. He would go in behind and up charge the other companies. His angle to us was that he has been doing it for so long he could get us all this work without having knowledge of the industry and he would train and help along the way. He sent us you tube videos that other companies made to learn everything. From using PPW to doing a winterization. Etc
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post #7 of 14 (permalink) Old 12-10-2016, 11:05 PM
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Dude was freakin brilliant---for a scammer.

Knoxpres, I think it best if you demand a refund (would love to know what the scammer charged you) or you are going to your State Dept of Commerce to see if he is filed to sell franchise. A company has to have disclosures filed at the State to sell franchises or affiliates.
As far as selling a territory isn't anything wrong with that--provided there is something of value.

Good luck
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post #8 of 14 (permalink) Old 12-11-2016, 12:55 AM
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He sent us you tube videos that other companies made to learn everything. From using PPW to doing a winterization. Etc
10 yrs ago I would have said contact whoever made the videos and see if you can work for them, but I am guessing they are just scammers from higher up the chain

sounds like you have insurance and equipment, after you get your money back from the scammer I would look for similar work for real customers, ones that own the property you are working on

hope you can your money back and end up in a better place
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post #9 of 14 (permalink) Old 12-11-2016, 08:46 AM Thread Starter
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This guy had nothing of value to sell. He sold us on the fact that he had all this work and would teach us how to start our business. He made it as though he had an exclusive territory we would get and I'm pretty sure he may have sold the same territory to more than one person. Now in hind site. I fully understand if said person had a fully stocked enclosed trailer with everything you needed to get going and 5 nationals on his books feeding him work with 4 employees and grossing half a million dollars. Or whatever scenario. He would have a legit business to sell. But not a territory. He doesn't own the territory. Maybe he could have worded I will help you learn the business and get you started. Pay me a mentor fee. But he sold me what I thought was an exclusive territory. Super scam **** bag
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post #10 of 14 (permalink) Old 12-11-2016, 12:11 PM
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Now I don't want ANYONE thinking I am defending the scammer but... This could be a matter of interpretation. Let's say I set up a company that has contracts with a couple of nationals and I "sell" protected territories within MY OWN company--there would be nothing wrong with that since the territory is the thing of value. Although that territory is nothing but blue sky.

This reminds me of a business I once purchased 20 yrs ago. A fella I knew of had a line of tanning salon products and was expanding.. I purchased a territory for $50,000. This included ZERO product, ZERO accounts--nothing but territory. All blue sky. I started calling on salons and hired a salesman.. Had that sucker paid for within 4-5 months.. If the owner had paid his freakin taxes I prolly would have been the Swami of Salons This was termed a distrubutorship since I was distributing a product but the legality is the same...the only thing of value was the territory and access to a product line.

The difference is your P&P business I can't see ANYTHING that you would have had to buy to gain knowledge unless your purchasing access to a mentor.
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