F.T.C. Public Comment 101

I invested $18,500. in November, 1995 for a Scorecard Plus franchise conducting business in Columbus, OH. After losing an additional $10,000. in the eighteen (18) months of operation, and seeing many other franchisees lose substantially more by following the prescribed "system" of building a business, I ceased operations, and was subsequently terminated by the franchisor.

FTC.jpg

U.S. Federal Trade Commission
July 29, 1997

Public Comment
Davie E. Myklebust, franchisee

Request for public comment on possible revisions to The Franchise Rule.

Target Golf Media - 2500 W. Dublin-Granville Rd. - Columbus, OH 43235-5701
Phone (614) 761-1487 - Fax (614) 764-0328

Comment #101

Secretary
Federal Trade Commission
Sixth St. and Pennsylvania Ave., Room 159
Washington, DC 20580

RE: 16 CFR Part 436 / Franchisor Deceptive Practices

Dear Mr. Secretary:

I am writing at the behest of the American Franchisee Association concerning me experience as
a franchisee of BV Paragon, Inc., dba Scorecard Plus, 4150 Belden Village St., NW, #303,
Canton, OH 44718, Stephen Vandegrift, CEO.

I invested $18,500. in November, 1995 for a Scorecard Plus franchise conducting business in
Columbus, OH. After losing an additional $10,000. in the eighteen (18) months of operation,
and seeing many other franchisees lose substantially more by following the prescribed "system" of building a business, I ceased operations, and was subsequently terminated by the franchisor.

This is a result of a number of deceptive statements and practices by BV Paragon including:

1. Franchises were sold to individuals and investors using grossly overstated earnings potential.
Marketing expectations inconsistent with very understated working capital requirements.

2. Restraining trade by requiring services to be purchased from franchisor that are available less
expensively locally, with faster turnaround. Both impact franchisee profitability. Services are
required to be in full, up front, even though revenue from these service are not generated till
much later.

3. Gag orders imposed on outgoing franchisees severely restrict flow of information concerning
operations of franchisor. Gag orders placed on outgoing franchisees that were in debt over
$100,000 by following franchisor's system.

4. Franchisor imposed minimum royalty obligation on some but not all franchisees. Minimums
based on profit projections never obtained by any franchise.

5. Franchisor sold what he claims are "proven systems". Yet in five years of franchising, not one
investor has made a profit and he is still soliciting franchises.

6. Investment in each franchise has been rendered worthless due to barrier to sale created by
minimum royalties, and lack of any positive franchise references.

Please feel free to contact me for additional information. I can be contacted at (614) 885-0315.
Thank you for your time and consideration on this matter.

Sincerely,

Davie E. Myklebust
President, Owner

For Review, see FTC “Table of Commenters”
http://www.ftc.gov/bcp/franchise/comments/tabcomm.htm


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Risks: F.T.C. Public Comments, United States, 1997, American Franchisee Association, AFA, Deceit, False earnings claims, Gag order (confidentiality agreement), Special deals for certain dealers, Termination of franchisee, mass, Must buy only through franchisor (tied buying), United States, 19970729 Comment 101

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