We had some business dealings with Dine and Discounts corporate, and the Territory Owners. In our experiences with Mike Gerken, the CEO of Dine and Discounts, we found him to be an unethical, dishonest, and incompetent business person.
Mr. Gerken negotiated agreements for services, then violated this agreement within a few weeks behind our backs. We were informed of this violation by one of the Territory Owners who had the decency to inform us about it, and to let us know Mike Gerken had no intention of honoring our agreement. Mr. Gerken didn't have the moral and business ethics to inform us himself. The other company that he formed a new agreement with regarding the same services, also had bad experiences with Mr. Gerken and withdrew their services within a matter of weeks, and they filed a lawsuit against Mr. Gerken and Dine and Discounts. Comically, Mr. Gerken then tried to re-engage our company to provide the same services we had originally forged and agreement to do. Due to our experience with Mr. Gerken, we declined to re-establish any sort of business arrangement with Dine and Discounts.
Mr. Gerken also lied to Territory Owners about having a contract with Perkline / Abenity to provide their offers to the Dine and Discounts package. The CEO of Perkline / Abenity confirmed in a phone conversation that they had never entered into a contract with Dine and Discounts to provide their national discount offers as part of the Dine and Discounts offering and package.
As part of the sales pitch, Territory Owners and prospects who were considering buying a territory were informed by Mr. Gerken that Dine and Discounts did have a contract with Perkline, which they did not. Some of the current Territory Owners at the time saw this as a very positive development, and thus purchased additional territories under the false premise propagated by Mr. Gerken that there was a contract with Perkline / Abenity. Potential new territory owners also purchased territories thinking there was a contract with Perkline / Abenity.
Eventually, Mr. Gerken had to remove the Perkline / Abenity offers that were appearing on the Dine and Discounts website as part of their coupon discount offers because they were not valid, represented false advertising, and Perkline / Abentity's legal department demanded that this information be removed from the Dine and Discounts website and Territory Owners local market websites.
As part of the sales pitch, Mr. Gerken also provided Territory Owners and prospective Territory Owners with false data regarding dollar amounts raised in fundraisers by existing Territory Owners. For example, he had printed and digital (web) statements and testimonials that indicated a junior hockey team in Minnesota raised $250,000 in a fundraiser. This turned out to be a false statement, and had to be removed from the Territory Owner's websites and the corporate Dine and Discounts website, and all printed material.
Many of the current Territory Owners are attempting to get out of their territories and franchise agreements because this investment in a Dine and Discounts territory turned out to be a bad business decision. Mike Gerken has promised many of the Territory Owners that he will refund their investment because he misrepresented numerous things about the business, fundraising data, contracts with discount providers, etc. Mr. Gerken has promised to refund their investment when he "resells" these territories to someone else. However, no Territory Owners have recouped their investment to date.