Report: #549141

Complaint Review: Advanced Fresh Concepts Franchise Corp. - Rancho Dominguez California

  • Submitted:
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  • Reported By: Lucy Wang — Saginaw Michigan United States of America
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  • Advanced Fresh Concepts Franchise Corp. 19205 South Laurel Park Road Rancho Dominguez, California United States of America

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My name is Lucy W,I signed a five-year franchise agreement with Advanced Fresh Concepts Franchise Corp. (hereafter called AFC) The business model is, AFC, the Franchisor, will contract the SUSHI BAR in Kroger Supermarket to me as a Franchisee which located in Saginaw of Michigan. Every month, I order all the seafood and package from AFC. And at the end of each month, Kroger Market will distribute the gross sales directly to AFC.AFC will deduct the costs of my orders and 33% of the gross sales and then send the rest back to me.
From December 10th 2008 to August 1st 2009, AFC provided me false figure of gross sales, short of USD300 to 800 each week, in order to lower the percentage of my income. For example, in the weekly statement January 3rd 2009, the true gross sale shall be $7,368, but AFCs figure was $6,552, which is $816 less. Such kind of false statements were sent to me in each of the following weeks. 

From the first statement I received from AFC in January 2009 till now, I kept contacting the relevant staff of AFC by emails, faxes and calls (I cant go directly because of the long distance from Michigan to California.). AFC admitted that they received the Discrepancies Forms I faxed, but they refused to solve the problem by giving me the following pretexts:
1.All the representative are busy right now, we dont have time to calculate, please wait patiently;
2.Please try to call 2 or 3 weeks later;
3.There is no IMR (Item sold/loss Movement Reports) to prove and it might be the system digital error of Kroger Market;
Not every franchisee is so lucky to be able to either see or get the IMR to get the correct figures. As most other unlucky franchisee, we have no other means to find out the figures except: the statement from AFC and our own record. 

I asked help from the store manager in Kroger Market and printed out two reports: IMR and the weekly sales amount.

Surprisingly, the reports illustrate that every week AFC embezzled my gross sales ranged from as low as $300 to as high as $864. As of August 1st 2009, the total is $13372.46. Such a high amount is a shock. And it also shows clearly that there is nothing wrong with the figures provided by Kroger, which performs its duty honestly by sending the correct figures   to AFC. It is AFC that intentionally and maliciously tampered those falsifications.
My supporting evidence for my above assertion is:

1.The statements of each month received from AFC.
2.The two reports printed out from Kroger Market: IMR and the weekly sales report.
3.All the emails to AFC concerning about the negotiation of this matter.
4.The contract and agreement I signed with AFC.
All the evidence support my assertion: AFC is cheating and embezzling by entitled income. According to the contract, AFC has the responsibility and obligation to provide me the correct statements. There is no excuse or reason for AFC to embezzle my money and do anything unlawful, immoral or dishonest. 
Respectfully yours,

Lucy W

This report was posted on Ripoff Report on 01/03/2010 01:18 PM and is a permanent record located here: https://www.ripoffreport.com/reports/advanced-fresh-concepts-franchise-corp/rancho-dominguez-california-90220/advanced-fresh-concepts-franchise-corp-afc-sushi-afc-sushi-embezzled-my-money-rancho-domi-549141. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#4 Consumer Comment

Franchise Slavery.

AUTHOR: Bobslink2u - (United States of America)

POSTED: Thursday, September 06, 2012

Here are some figures to maul over--->

They rip off franchisees for a little each month. It is done in a lot of franchisee deals.

Whether a Mike's convenience store or Becker's or a lot of businesses which control the value of inventory and monitor it.

Let's say they have 1000 franchisees. They rip off each for the tune of $600.00 per month.

= $7200.00 per year, x

1000 units... $7,200,000.00 straight profit. Why? Who loses? Who wins? Mafiosa? Organized Crime laundering money.

Good way to launder money for orgaized crime... usually if you complain you get eased out. If you complain too loudly you may be inventoried out and police come to help them because, you have been stealing from them.

Franchises sometime means organized crime is there, even common everyday franchises have the same problems that you have. I have two friends plus my sister who have the same experiences with nationwide franchise companies.

So Beware of the franchise contract, and be sure to check like Lucy did what the true statements are:

So if AFCSUSHI has 4000 franchises think of how much they are pocketing on the backs of those who do not have access to the true sales amounts...

4000 x 600 x 12...= $ 28,800,000.00 So don't complain too much, you might just have an unfortunate accident.

Wishing all prosperity with their franchises, but look out for false sales and inventory figures.

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#3 Author of original report

Respond to Mr.Jay

AUTHOR: Lucy Wang - (USA)

POSTED: Thursday, January 19, 2012

Hello Jay,

Thank you for your reply. feel free to email me : nice4lucy@qq.com



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#2 UPDATE Employee

Hello fellow Member

AUTHOR: HawaiiSUSHI - (United States of America)

POSTED: Tuesday, December 13, 2011

Hello, I was searching and ran into your report.

I am also a AFC sushi bar owner in Hawai'i, and feel the SAME way as you mentioned in your story.

I wanted to know what did you do to resolve this issues..
Is there something I can do cause it feels like SLAVERY.

thank you for your time, Jay.

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#1 Author of original report

The Issue Has Been Resolved.

AUTHOR: Lucy Wang - (United States of America)

POSTED: Friday, October 07, 2011

This issue has been resolved.

I tried to remove the report but impossible,because the site only allows  to UPDATE event.

Is there anyone can help me to remove the report?

Lucy W.

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