Public Mediation

My Claim vs. Cai Financial Dispute

S. F. vs. Cai Financial
11445 124 St NW, Edmonton, Alberta, T5M 0K4, Canada
Amount Involved: $30,000.00
    • Status: In Negotiation
      This claim has posted for public comment and negotiation. It will remain posted until resolved to the claimant's satisfaction. Suggest a resolution to help these parties reach a settlement.
       (seeking public comment)
    • Claimant Seeks: View.
    • Claim #: 3197433
    • Amount Involved: 30,000.00
    • Filed On: Jul 14, 2015
    • Posted On: Jul 25, 2015
    • Complaint(s):
      • Commercial / Other dispute
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Statement of Claim
Complaint Involved (1) - View
Claimant says:
"I bought a CAI Franchise that was illegally operating in Saskatchewan. All contracts and agreements were not admissible in a court of law in Saskatchewan. The Franchise owner pocketed $30,000 plus GST/PST and is refusing to refund me the fee despite official letter from the government of Saskatchewan stating that the operation does not meet the legal requirements based on the nature of the business. I have 2 other franchisees making the same claim and are willing to pursue him legally.

All contracts and agreements are fraudulent and misleading.

Looking for a refund of the franchise fee of $30k plus GST/PST.
"
...
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Additional Communication Between Claimant and Cai Financial Hide
  • Jul 17, 2015, CAI Financial (responding party) added:

  • I have spoken to a representative from the Financial and Consumer Affairs Authority. The business was never illegal, and they never ever told you that it was illegal. Instead they wanted a full disclosure with the deal you made with Mr. Manning.

    Mr. Manning was a customer of yours, i have not included his first name due to the privacy act, non-disclosure and confidentiality agreement. Mr. Manning claims you misrepresented yourself and you did not follow C.A.I Financial's proper procedures in concluding the agreement with Mr. Manning. This resulted him in putting in a complaint with FCAA. FCAA contacted you and requested that you to submit a full disclosure of the deal with Mr. Manning. At the same time from their investigation the FCAA suggested that you were to apply for the license to operate the business as a financial lender. We stopped operations in Saskatoon to do our own investigation. We then re-created the contract and the concept to exclude ourselves from their trust and loans act to make it easier on you.

    We then gave you the new contracts and concept training, you then told us that you could not continue the business and that your partner needed out of the franchise because he was having problems with his business in NJ. I spoke to your partner, he repeatedly told me that the business is great and the only reason why its not operational is because you had dropped the ball in Saskatoon and were too inadequate to continue operations. At this point i allowed you to sell the business and even assisted in selling the business to another buyer who was more suited to operate the business. I gave you over 8 months time to sell and recover your money but you wanted more than $40,000.00 when you paid only $30,000.00 which would have been possible if you didn't ruin the reputation of the franchise by ignoring customer phone calls, misrepresenting yourself and not paying your employees. Eventually at that point too many franchisees were complaining on your office, which was making the rest of the franchisees all look bad. There was also a complaint letter from an employee you hired claiming you did not pay her and that you were non-operational, instead you were making it look like you were operating as usual. The employee claimed you were idle and just waiting for the company to grow so you could sell the franchise and make money off it because we were showing clear signs of growth.
    Which is a form of fraud in Canada.

    We were never illegal, but sometimes provinces will require you to purchase permits or licenses which is the obligation of the franchisee. We work with every franchisee so that things run smooth and are successful as we did with you. I have received no other notifications at all from the Saskatchewan government suggesting we were illegal or anything of that nature. If there was an issue, then we were never notified, if we were notified about any concerns we would have investigated it and took the proper measures to correct what would be needed to be corrected. We work hard to offer services to any population and treat all customers with respect and give all customers proper detailed information of programs we have to offer.

    I gave you an offer to pay $5,000.00 to extend your 8 months inactive license ownership rights even though you failed your franchise agreement. The $5,000.00 was to pay to hire a proper broker to sell your franchise. You disagreed which forced me to take away your franchise license and now over 1 and half years later Im hearing a completely new story from you on why you think it’s unfair you lost your franchise license and/or purchase money. On top of that, you failed to pay any royalties of the business of when you did make money for over a year before your partnership with your partner failed.

    I have heard nothing from your partner since this incident, because he clearly thinks it was all your fault, this is what he told me numerous times i was with him.

    I tried to help you, but your negligence and poor proper business skills failed yourself and failed us. Even repeated conversations with your partner clearly suggested he froze your assets because of your wrong doings in Saskatoon, SK.

    You continue to slander our name, my name, and you continue to breach your Non -Disclosure agreement with other franchisees, ex franchisees and associates of yours which we do have some disclosure with some of the witnesses. We request that you stop this immediately.

    I am willing to hire an unbiased private investigator to investigate this whole situation, and if im on the wrong then i will pay for the investigator fully and refund your money.

    If you are in the wrong then you need to pay for all damages and pay for the investigators fees.

    This is an amazing business. Since then we now have 10 more franchisees totaling 14 franchises operating across Canada and every one of them showing huge success. All franchisees were given full disclosure of your situation. They are all unbiased witnesses. We continue to grow with custom software, new concept and services and more locations. We thrive to make our business and our franchisees all be successful. I do agree that Saskatchewan was the most difficult government to deal with in Canada, but we have strong lawyers and a very intelligent team that have the patience and knowledge to deal with any Province, including the beautiful province of Saskatchewan. Its an amazing province and it tries hard to work with any business including us. The franchise in Regina, Saskatchewan made massive profits and the current owner has no problem.

  • Jul 17, 2015, Claiming party added:

  • The contracts we're changed few months after I purchased it. The government of SK deemed them illegal. CAI should never have sold the franchise before confirming its legality. This is an act of fraud and deception as per lawyers and government officials and other franchisees. If this is not settled properly, many are on board for a big lawsuit.

  • Jul 28, 2015, CAI Financial (responding party) added:

  • Once again, it was never deemed illegal. Saskatchewans simply wanted you to get a business license to continue operating. If you had any problems you shouldn't have abandoned the franchise and left to Europe. you tried selling the franchise for more money then you purchased it even though you ran the franchise to the ground. Regardless, if you had any problems with the franchise you should have mentioned it in the beginning, instead you did not say a thing and decided to fail your agreement for over 8 months and now you continue to give false information publicly trying to slander our name. You will here from a lawyer very soon.

What Claimant Wants Hide
1. Recovery of Losses: Looking for a refund of the franchise fee of $30k plus GST/PST Jul 29, 2015 $30,000.00
Cash total : $30,000.00
  • 0
Do you agree with the claimant’s demands?  (If you are a party to this claim, click here.)

Respondent's Counteroffer

There has been no response to this claim from CAI Financial. This claim will remain posted until resolved
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