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If you are considering investing in a vending machine franchise, it's important to be aware of the potential scams out there. Unfortunately, there are some unscrupulous companies that take advantage of unsuspecting individuals looking for a way to earn passive income.
One of the most common tactics used by vending machine franchise scammers is to entice participants with free trips or other incentives. They may promise that by investing in their franchise, you'll be able to earn thousands of Ringgit per month without much effort.
However, the reality is often far from these overpromised earnings. Many participants have reported paying a deposit for their vending machines, only to never receive them. Others have received the machines but were never able to find a suitable location to place them. And even those who did manage to find a location often found that they weren't making anywhere near the amount of money that was promised. For some, the vending machines were charge RM30,000 to RM40,000 when it can be bought online for RM10,000-RM20,000. The returns promised are also rarely what is promised as RM3,000 per month. In addition to that, some people got scammed when the location promised (eg at shopping mall) is changed to another location (outside a shophouse). Sometimes, some vending machine sellers will sell fractional investments in a vending machine at a location, meaning to pool many investors to fund the operations of 1 single vending machine, this is also consider red flag and high risk.
One of the most concerning aspects of these scams is that the companies often encourage participants to take out personal loans or max out their credit cards to buy the vending machines by promising them high returns. This can leave individuals in a difficult financial position, especially if the company suddenly shuts down and disappears, as often happens.
Below are the common vending machine business opportunity scams :
Fake vending machine investment opportunities: Scammers may offer investment opportunities in vending machine businesses that promise high returns on investment. However, they may not actually own any vending machines, or the machines may not be profitable. They may also ask for upfront fees or require you to purchase vending machines from them, which are often overpriced.
Nonexistent vending machines: Scammers may sell vending machines that do not exist, or they may claim to have placed vending machines in high-traffic locations when they have not.
Overpriced vending machines: Some scammers may offer vending machines at inflated prices, often using high-pressure sales tactics to persuade buyers to make a quick decision.
Vending machine route scams: Scammers may offer to sell you a vending machine route, which involves purchasing an established route of vending machines in various locations. However, the route may not be profitable or may not exist at all.
Maintenance and repair scams: Scammers may offer maintenance or repair services for vending machines, but they may overcharge for services or provide low-quality work.
So, how can you avoid falling victim to a vending machine franchise scam? First, do your research. Look for reviews of the company online and ask for references from other franchisees. If something seems too good to be true, it probably is.