Creative Memories threatens to sue ex-consultants $5000 if they sell their leftover products. Here's my story:
I was a consultant for about 2 years, then when my babies came along I just couldn't commit the time to the business. Besides that, the market had already become so competitive with places like Michaels and Joann Fabrics selling scrapbooking stuff that I wasn't able to compete. I found myself buying just so I can meet the monthly/quarterly quota - which was around $300 every 3 months, even after the 30% discounts received as a consultant. So I ended up quitting - leaving me with over $1500 of product I could not sell.
About a year ago (after quitting consulting for 2 years), I decided that maybe I should sell some of it on eBay - it was collecting dust. Shortly after, I received a nasty note from Creative Memories threatening that as an ex-consultant, selling on eBay or anywhere else (including your own garage) was against the "contract" signed when becoming a consultant. They quoted the contract which said:
"12. Events upon Termination of this Agreement. Upon termination of this Agreement...
b. I will cease all use of Creative Memories Intellectual Property and Confidential
Information and will cease holding Classes, Workshops and presentations or otherwise displaying, offering for sale or selling Creative Memories Products. If I offer for sale or sell Creative Memories Products in violation of the foregoing sentence, Creative Memories will be entitled to recover from me $5,000 as liquidated damages
without having to prove actual harm."
Apparently, this is a LIFETIME contract!! For crying out loud, how can any company hold their ex-consultants to a contract when they don't work for them any longer? We live in a free country where we have the right to buy and sell. What business is it to CM that I sell it now that I'm not a consultant!! I paid for it didn't I? I can understand if I was still a consultant that Creative Memories could drop me as a consultant, but when a consultant has quit for several years? This is outrageous! If anyone is thinking of signing up with CM, I would strongly suggest that you think this through a million times. I would say, if you believe you will succeed in the business and this is the career you will have for the rest of your life, then best wishes in your venture. Otherwise do not sign that contract! You won't even be able to buy from eBay and resell them again. They'll find you.
Los Angeles, California