One of the downsides of being the most creative, successful and largest vending company in the UK, is that you become a target for weaker competitors who envy our ideas and success but just cannot compete with us on equal terms.  The consequence of this situation is that they attempt to ride our coat tails by copying everything we do.  This in itself is of no concern to us, in fact it is a massive compliment, as the adage says "Imitation is the sincerest form of flattery".  Unfortunately, the problem is that knowing they cannot compete with our faultless reputation and 19 years experience in the industry, they resort to making claims that they cannot live up to in an attempt to lure the unwary – this not only damages individuals but also the industry.

Over the past 19 years we have experienced several "me too" competitors, for whom, it is relatively easy to copy an idea or concept that another company has created, in fact we have even had the style and look of our website imitated as they attempt to give the impression of a well established professional company. Fortunately, what cannot simply be replicated is the in-depth long term development, and most importantly, the business philosophy and back office expertise we possess that actually makes it work.  Eventually our imitators fail, leaving a trail of countless individuals who have been parted from their hard earned cash. Over the years we have attempted to assist many of those victims who have approached us when it is too late.

We cannot stress too strongly how important it is for a prospective franchisee to research their short list of companies before they commit themselves, and certainly never sign a letter commitment or part with any deposit.

Conduct searches at Companies House and buy their latest accounts, it only costs £1. Check their date of incorporation and see if it conflicts with their claims of many years trading, and if it does ask why, the chances are they have had a previous business that was wound up leaving suppliers and customers out of pocket. Companies that do not file accounts do so to avoid the facts coming to light and to hide their past, it is also prudent to search the directors names too, and it is worthwhile to check the 'London Gazette' for details of previous business failures, winding up orders and CCJ's, we know of one such Mini Can company who has wound up several past companies and has set up yet another new company on the 27th October 2009, these type of companies are known in the the business world as 'Phoenix Companies' - rising from the ashes of a previous incarnation! Finally, check business forums in persuit of the truth - the facts are out there - don't get caught!



Avoid being the next victim

Fortunately, the majority of prospective franchisees do their research and soon establish the truth. Unfortunately, a small proportion still get caught in their nets and become victims. Our objective is to ensure all prospective franchisees are made aware of these ruthless companies and their unethical practises.

A good starting point is our famous Whistle Blower section and its check list, here are some other specific points to watch out for:

1. Do they make excessive claims that they will not confirm in writing?
If they say their mini-can vendors take £20 per week, get it in writing – if you can!

2. Do they try to make out they are bigger than they are?
Is their claimed massive Head Office and production warehouse just a modest business start-up unit?

3. Do their profit claims stack up?
How can giving away 20% or 25% in site commission be more profitable than only giving 5%?

4. Do they give only the answers you want to hear?
Nothing is perfect – are inflating the truth or missing it all together?

5. Do they have a large "sales" department?
Are they 'Sales' driven or 'service' driven - now prove it!

6. Do they constantly contact you after you have made an enquiry?
Have they started to pressure you with constant emails and phone calls?

7. Do they tell you one thing and then contradict it later?
Are they consistent with their answers when you question their claims?

8. Do they make boasts that don't add up?
If they claim to have invested £1/2million - check their balance sheet, if they have one!

9. Does their website make them look bigger and more impressive than they are?
Visit them and observe the reality.

10. Do they claim to manufacture their own vending machines?
Or are they just simply a re-seller of new and used vendors trying to make themselves sound bigger than they actually are?

11. Do they claim to have been the FIRST to create and trial Snack-a-Can type products?
Get them to put the answer in writing – we will do the rest, and give you our awarded damages!

12. Do they ask for payment or a deposit up-front?
A financially strong company would not ask for non-refundable deposits - for ANY reason, warning bells!?



The above twelve pointers are not a comprehensive list but gives you an idea of what to look for and ask to ensure you do not become the latest statistic. The best advice I can give is to use your common sense, instincts and observations and remember the adage... if it seems too good to be true – it normally is!

Don't get caught in their web

In these days of internet cyber business, even a small one man business working out of his spare bedroom can create an impressive professional website, so just imagine what a company spending a few thousand pounds can achieve to convince the visitor they are large sophisticated and successful organisation! Unfortunately, with poor policing and regulation of websites, they are free to mislead and misinform.

Therefore, do not be taken in by an impressive, expensive looking website – that is full of simple spelling and grammar mistakes! A professional looking site with "organisational charts" and "recruitment sections" may look impressive and Big Company in style, but the only test is to visit and fully check them out (and us!) Use your eyes and don't be afraid to ask direct questions and don't get fobbed off with fluffy imprecise answers, push for a factual, specific answer – if you don't get one, ask yourself why not?

It's not all bad

Do not let the above put you off the vending industry, or for that fact franchising in general. There are many reputable and honest vending companies out there, we just want to ensure you avoid the one or two that exist purely to exploit and ruin the reputation of an industry we are very proud of. So go ahead armed with our tips, experience and shared thoughts, and get yourself a really successful and enjoyable vending business that will change your life … for the better.

© Peter Fellowes
Managing Director
The Vending Revolution Ltd