Legal Question in Business Law in New Jersey

Bought Snack Distributorship - Did not get what I paid for

I purchased a full time snack distributorship ($30K). The contract specified area but the website showed types and amounts of accounts you would be given. I got 75 accounts instead of 125-150. I was told I would get Chain accounts as well as independent accounts. I got NONE. I was told that they are still trying and it takes a while. They do not accept certified mail. I contacted the Atty General in NJ and they told me to get an attorney. I can't afford it. I have stayed with it for a year and have had to strip my savings to survive. I knew the contract was vague (my stupidity)but the website was very informational. The VP I have been dealing with was a very good salesman. I am just trying to get half my money back, since what they have sold me is a part time distributorship with no chain store accounts, which is half the price. I wrote the BBB in Trenton, NJ and they are unable to make contact with the company.I feel this is a scam and they make their money by reselling distributorships as opposed to selling snacks.


Asked on 2/02/05, 8:59 am

3 Answers from Attorneys

Re: Bought Snack Distributorship - Did not get what I paid for

If you are located in MA and the distributorship is in MA, I suggest you contact the MA Attorney General's Office. Also, were you provided a UFOC, if not the company may be in violation of the FTC rules on franchises and business opportunities. You can file a complaint on-line with the FTC. Even if they have given you a UFOC they may be in violation of the FTC rules any way.

You should contact an attorney in your area that litigates franchise matters regularly.

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Answered on 2/12/05, 7:11 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Bought Snack Distributorship - Did not get what I paid for

This sounds like a possible violation of the NJ franchise laws, as well as a breach of contract, plus fraud and misrepresentation. I suggest contacting your local bar association to get names of attorneys who specialize in these matters. There may be enough at stake for one to consider taking the case with a low fee/cost arrangement and the fee based on the contingency of winning and getting a large damage award. BBB is good, but cannot help you get your money back. What does the contract say must be done if there are disputes? Do they have a provision for arbitration of claims? If other NJ consumers have been similarly "conned" as you suggest, maybe the Division of Consumer Affairs (part of the Attorney General's office) can get involved on your behalf.

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Answered on 2/02/05, 11:00 am
Barry Levine Law Office of Barry R. Levine

Re: Bought Snack Distributorship - Did not get what I paid for

You raise many issues, but without a review of the contract in question, it is very difficult to give an opinion on your rights and remedies. I would be happy to meet with you to review the contract and discuss what avenues of recourse you may have.

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Answered on 2/02/05, 2:14 pm


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