Grill Owners Burned By Scam
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Grill Owners Burned By Scam
Money paid to consultant who fails to deliver
A Carroll, Nebraska couple has a dream to take their restaurant nationwide through franchising, but a business consultant they paid thousands of dollars to months ago still has nothing cooking.
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A Carroll, Nebraska couple has a dream to take their restaurant nationwide through franchising, but a business consultant they paid thousands of dollars to months ago still has nothing cooking.

An east coast business consultant convinced Mike and Cheryl Smyth, owners of the Moose Creek Grill, their menu would attract hungry diners far beyond the 200 residents of Carroll in northeast Nebraska.

"He dangled a carrot out there and said listen, here's what we can do, we can sell x amount of franchises for this amount of money," says Mike, who sent the consultant $2,500.

The business developer promised Mike that by now he would have three franchises in other states. "Once he got his money he got harder and harder to get a hold of."

Instead of checks from franchisees, the Smyths have received only a folder full of papers and a serving of humble pie. “Egg on my face, a dent in my pride, humiliation," says Mike.

"You have the dream, send all the money, then your money's gone, then what do you do?" says Cheryl.

After Six On Your Side started investigating, the business consultant called the Smyths and promised a refund, but they're skeptical a check will ever come.

"Kind of builds the hope and dreams of franchising a system in a restaurant, it didn't work out that way so hopefully other people won't make the same mistake a number of us have."

By phone from Florida, franchise consultant Alan Fifer of Robert Ames Development says he offers no guarantees with his franchise contracts.

Still he promises to refund money to the Smyths and to another Nebraska restaurant owner with the same complaint.

The postal inspector is investigating.