I entered into an agreement in 7/08 to purchase a discount home decor store from Allied Systems Industries. The agreement contained a back out clause that in the event I could not find a suitable location I would receive 100% of my down payment of $10,000.00. It was also emphasized to me verbally that if I changed my mind for any reason I would get my money back.
In October of 2008, after searching and potentially finding a location, the landlord proved to be difficult to deal with, asking for a signed contract prior to entering the exhibits to the lease. Based on this and the economic downturn, I exercised my right to cancel the agreement and requested a full refund of my deposit. Fred Spindell told me that I needed to submit a loan package to receive my refund.
After consulting with my financial advisor, I told Fred that his request for a loan package to get my refund was unreasonable. He sent a mutual release, which he drew up himself, which did not contain any language referring to the refund. I contacted my attorney, who worked with Fred Spindell's attorney, and a mutual release was agreed upon by all parties and signed. I received the first of three installments on 12/1/08, the second on 1/5/09. After the third payment had not been received by 2/10/09, I contacted Fred by telephone and was told that they were going out of business and packing up the office and moving out. He also said that at that time they were not filing for bankruptcy. He said that if any funds became available I would receive the remainder of my refund.
In spite of what Fred said about being out of business, Allied Systems Industries continues to market their home store plus and dollar stores. Their website is still active and they appear as a business on Franchise Emporium. Fred apparently has since moved on to MCN Dollar Store.
It's interesting that this business and these individuals can repackage themselves and collect money in the form of down payments and then not return money, similar to a Ponzi scheme. I warn anyone seeking to do business with Allied Systems Industries, retailstorebuilder.com, MCN Dollar Store, Marketing Consultants of Nevada and any prinicipals of these business to be cautious.