Aussie Pet Mobile Corp Franchisee Ripped off Dana Point, California

I have ceased and desisted.

I've been an Aussie Pet Mobile franchisee in the Seattle area for 4 years.  I wanted to respond because there is some incorrect information in this posting.  I purchased my franchise from Aussie Pet Mobile in January 2006.  In addition to the purchase of the franchise territory, I agreed to purchase

3 vans as part of the Aussie agreement.  All franchisees paid an up front fee of $25K for the Aussie equipment upgrade on each van.  So, along with my franchise fee, I gave Aussie $75K.  As I purchased each van, Aussie used my $25K per van to pay for the Aussie equipment that each van comes with.  I purchased my vans from Chrysler on a standard payment plan for 72 months.  Once I fulfilled my 3 van agreement, if I wanted more vans, I'd still pay $25K per van to Aussie for the equipment.

A year or so later, as money got tighter and it became more difficult for new franchisees to finance their vans, Aussie worked with Chrysler to offer a lease program as an alternative to straight financing.  Franchisees still had to pay Aussie the $25K per van for the Aussie equipment but, Chrysler agreed to allow qualified franchisees to roll that $25K into each van's lease so they could use the $25K to kick start their business.  For the first van leased, Chrysler increased the van lease by $25K (so the lease was around $90K instead of $65K) so the franchisee would not have to pay the initial $25K to Aussie and could use it for their start up.  For future van leases, Chrysler was going to add $25K to each lease and pass the money through Aussie back to the franchisee.  This was not a "rebate" and the funds did not come from Aussie.  Chrysler ran this program and simply increased the value of the lease and then passed the money back to the franchisee through Aussie.  All vans initially purchased include $25K paid to Aussie for the grooming equipment package.  Aussie did not take $50K ($25K per van) in "rebate" money from any franchisee.  They required $25K per van to be paid up front for the Aussie equipment package.  The franchisees who participated in this program got the advantage of not having to pay the first $25K up front because Chrysler included it in the lease and paid the money to Aussie for the equipment.  So the franchisees that participated traded a lower entry cost for a higher lease payment.

Nobody could have anticipated the economic issues that hit this country and Chrysler's resulting bankruptcy and their break-up with Mercedes.  With the tightening of credit, Chrysler no longer offered the higher lease and the $25K pass back because the numbers could not be supported.  This had nothing to do with Aussie Pet Mobile or the franchise agreement.  Nothing had changed, franchisees still had to pay $25K in equipment fees for a new van and they had to buy their van through Chrysler either as a purchase or a lease with payments and down payments based each individual's personal financial position. 

The franchisee in this posting had agreed to buy 3 vans just like I did.  Aussie even improved their program by allowing franchisees to buy new vans based on hitting revenue levels instead of a time based program which made things easier on new franchisees.  The $50K they talk about is $25K Aussie equipment fee for vans 2 and 3 which they agreed to eventually purchase.

There was never an Aussie rebate program, ever.  There was a Chrysler program where they increased the lease on one side and in effect "loaned" that money to the lessee.  When Chrysler ended that program it was their decision and Aussie had nothing to do with it.

Aussie Pet Mobile is a good company and a good franchise opportunity for somebody willing to work hard and invest the effort.  If you're going to post a complaint, it's only fair that you should have the real facts.

Aussie Franchisee - BEL-RED Washington