I stopped to read this press release because I’ve never heard of a retail radiator franchise before…1-800 Radiators looks interesting for those who enjoy autos and cold-calling sales. But, is it too narrow of a niche?
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
This is some of the funniest shit i’ve read in years!!!! Since day 1 the sinking of 1800 radiator was very predictable. The great RADIATOR PONZI SCHEME! They sold a bunch of franchise dreams then took that $$$$ and bought out some competition but as in all PONZI SCHEMES the $$$$ RUNS OUT!!! But guess what ? Joe and Ted Rippi have misused enough funds that they get to run around play “the boss” on cocaine!!!!!
Hows it make you feel that you run around all day long to make 40-46% , pay out 10-18% royalty fees of that , rent, insurance , employees , salesman , car payments , salesman and candy (lol) just to go more in the red while the RIPPI’S mis-use funds and live the HIGH LIFE
ITS GOTTA SUCK!!!!!!
Is anyone here honestly surprised about rent, insurance, employees, salesmen, and car payments? What business are in? Can I invest?
You really dont know crap. Own one then talk.
Don’t hate the player hate the game!!!! I’m rich!!!!!!
no knowone is suprised about rent, ins., employees etc. but I know for a fact that after you pay that most franchises are bust and cant afford the 10-18% rippi cocaine fund!!!!
This 10-18% range for fees you keep throwing out is just wrong and how do you know for a fact that all franchisees are going bust? Seems tough to believe given the big turn out at the conference this year.
The 10 to 18% is a conservative range as the franchisor charges additional if they buy out a competitor in your area. This is done without your input and has put alot of pressure on struggling franchisees.
This is a COMMODITY business. They offer no pricing, technology or manufacturing advantage. Selling a commodity with a 10 to 18% expense disadvantage over your competition does not, in the end run, make sense.
You are just stupid. Do you OWN a warehouse? If not, you have no CLUE about the real expenses.
Call me names – but I don’t hear a response to my points. Maybe you have none.
I may have lost a bunch of money on my franchise but it sure tickles me to see those arrogant spoiled rippi kids getting what they deserve
yon know what they say He who laughs last ….. laughs best!
still waiting for joe to overdose so I can piss on his grave
At what point do you take responsibility for your own failed business ventures? Can you honestly say you work the franchise model to a T?
If they had not lied to everyone and told us that they got “BEST PRICING” in the industry and that “THERE WERE NO FAILURES” and that it “WAS A GREAT OPPORTUNITY” and that the work hours were “LOW” then I would not have gotten into the business. Their claim until recently has been “our pricing is so good that even with our royalties you will still have the best pricing in the industry”.
Not true and many failed franchisees later, alot of people have lost alot of money.
The market only cares about pricing!! Period.
[comment deleted by Franchise Pundit --- please keep the conversations respectful and intelligent. Do NOT talk about people's family.]
If this business was 100% price sensitive then why don’t repair shops wait 5 days to receive parts ordered on eBay or 2 months to be brought in by containers from China? The reason is because AVALIABILTY (not price) is the #1 factor. When a person takes their car to a shop to get fixed they want it same day and people pay more for that SERVICE so they can get to work, grocery store, etc..
How about body shops; why don’t insurance companies always push for aftermarket parts (cheaper) instead of the OE quality parts? The reason is insurance companies don’t want a part failing a 2nd and 3rd and 4th time on their dime – and risk the relationship with the insured – so here it’s QUALITY, not price, that determines who gets the business (body shops aren’t as concerned with availability as repair shops since the car owner is in a rental until the car is drivable again).
2 examples where price is trumped. Blaming price for failing is too easy a cop-out.
At least their is admission in your post that 1-800-Radiator is more expensive than others. Now all you have to admit is that other competitors offer same day service. In fact, same day service is the norm not the exception. So if 2 competitors offer the same part at the same time but 1 is 10 to 18% more expensive, who do you think is going to get the sale.
From the perspective of the franchisee, if he needs the sale to stay competitive what does that do to his bottom line.
As to OE quality, give me a break. Now I know this is an insider posting to this board. 1-800-Radiator carries the same chinese crap.
For you to blame the many franchise failures at 1-800-Radiator on lack of effort by well intentioned individuals who forked over their hard earned money to a bunch of crackheads is less than genuine. Price is the only thing that matters for a commodity like a radiator or condensor.
To say it’s “all price” is ridiculous. When you buy tires for your family vehicle do you ALWAYS buy the cheapest set? No. Same with a cheeseburger; whenever you want one do you go to McDonalds? Of course not. The commodity argument doesn’t work here either. There are many different quality manufactures (Chinese/cheap, oe/not cheap, mid-range guys, etc), even more shop types (junk yards, high end import shops, part shops, fleets, garages, collision, etc) and even more vehicle owners (you types, and everyone else).
Price matters to some, quality to others and availability to the rest. Just like any product. Anyone who truly believes it’s always price is doomed for failure. No surprise there.
Also, “well intentioned” individuals do not equate to good business owners. You need to follow the model.
Are you indicating the franchisor has not sold bad territories? In other words, is success guaranteed in this business if and only if the franchisor follows the “model”?
Give me a break! The 70-80 locations that have already closed or been taken over by corporate – none of them were good business owners? How about the 40-50 that are on the brink of closing now? All of them are bad business owners?
All your double talk about pricing/quality, etc.. none of it is convincing. In most markets, the same quality (the same exact vendor and product) is readily available from other sources only at a substantially better price.
100% untrue….please explain enlighten us how you’ve come to believe this….at the conference and in the ufoc you can see at the failed franchisees, it’s a small fraction of this #
I can’t understand your broken written English. What does “see at the failed” mean?
All not at
The don’t disclose failed franchises because they close them down before they “technically” fail to avoid disclosing the failure. In other words, they get you so into debt with them and then when you become a problem they close you down.
“they get you into debt”. Hilarious. They also forced you to write the check to buy it, right? What else do you have zero control over?
FRANCHISEES: If you are following this thread, there is a real lesson to be learned here. One trick used by this Franchisor that can quickly get you in trouble is getting into a situation where you owe them money. Be careful with your product purchases. Try to pay your weekly ACH as soon as possible and, if at all possible, when it is due. Avoid loans from this franchisor. Avoid anything that seems like they are doing you a favor.
Your agreement allows termination for failure to pay.
the fall of 1800 radiator was very predictable but it did’nt take Joe Rippey long at all! I guess that’s what happens when you start out on top and don’t work for anything.
What fall? 1800rad isn’t going anywhere? The purpose here should be to state facts with backup, otherwise you’re a fraud
quick question is the radiator franchise this bad? I was considering the purchase of one but after finding this info i’m backing down. Does anyone have anything good to say or is it pretty much all bad news? How can these people still sell franchises and not get shut down by our govt.?
There are MANY franchisees that are doing very well. There are also many territories that are struggling, just as with most any franchise system out there. Always do your due diligence. Visit a couple of successful locations and a couple that are struggling. Understand your market as best you can. How will you make a difference? Can you get the volume necessary to get traction and momentum?
As you can tell, some of the posters on this site have had serious issues to deal with and therefore can only see the negative. I’m sure that if I had experienced some of the issues that they have, I would have a different perspective, however, I haven’t. They tell me on here that I’m just stupid and naive or say that I’m not who I am.
Again, if you are going to invest in any franchise, visit/meet with both successful and struggling locations and make your decision.
Visiting both sides of the spectrum? Are you crazy?! Then that would allow the prospective buyer to make a well researched decision like all the other successful owners did. Keep your good ideas to yourself..
I think there are territories that are doing well as every market is different. However, if a franchisee is doing well he/she is only 1 good competitor from a change in fortune. If you remain interested in thie business, I would open a competitive business in a successful 1-800 territory and compete with them straight-up. There is nothing special about the 1-800-Radiator model and you can always beat them on price. Instead of plunging 300k-500k into an existing location, find a rental space (about 2500 sq.ft that rents for 1500.00-2000.00/month), buy about 150k of inventory (any ex-franchisee can provide you with vendor contacts and part numbers and they are available directly from vendors anyways) and go out and tell the market “Don’t pay franchisee fees, pay the best price for the best part.” Since franchisees pays 10-15% more for their parts, in a few seasons you will have the lion’s share of the market and keep the 10-15% in your pocket.
If you focus on service and marketing your business, you will not have to deal with these creaps and in the end run have a business that is truly your own. Also, since you won’t be limited by territories, you can choose and pick customers as you wish. Focus heavily on body shops that do insurance work and offer monthly rebates that undercut 1-800-radiator by 5% or more – most body shops don’t care about where they get the parts (they are the same parts anyway). They do care about bottom-line and they have no loyalties.
In a couple of seasons you can start purchasing product by container and really take over a market. Since franchisees are so squeezed, most can only buy products by pallets. Another competitive advantage for the independent.
By the way, when I say that franchisees pay 10-15% more for their products that is a conservative estimate. They actually pay more as the formula is: cost of part + 10-15% of the gross sale. For example, you buy a part for $50.00 and sell it for $100.00. As a franchisee you pay $60.00 to $68.00 for the part. As an independent you pay $50.00. That’s 20% to 36% less than a 1-800-radiator franchisee.
They do not pay less for their parts and so independents always have the advantage. What they bring to the table is customer service and promises of lifetime warranties and candies, etc… The costs of lifetime warranties are born by the franchisee as they get the pleasure of paying for replacements and, in some instances, paying a labor claim. This does not effect the corporation at all – only franchisees. You can decide if you want such policies in your business as your success will depend on you and your motivation to service your customers. In territories with good competitors, 1-800 either buys the competitor out (and sticks its local franchisees with the price tag) or they do poorly.
If you become a good competitor the market will filter out the 10-15% charged by the franchise model. Also, there are plenty of ex-franchisees who would probably be interested in consulting with an independent and you would have $$$ to pay them a good salary. Many that have failed like the business but hate the tactics of the franchisor and could not survive the additional expenses compared to their competition or were sold a poor territory. Look around.
This is a recipe for disaster. If you were serious about this, why don’t you do it? The 1800 system is light years ahead of anyone or anything else. You can’t argue it, you can however make things up that aren’t true – you seem to be great at that.
Advice to anyone interested in this franchise; call current franchise owners, call ALL the x-franchisees, and do a lot of diligence into the model and what it requires. Very simple. As you call the current and past owners ask why they failed/succeeded. You’ll see quickly what separates the good from the bad.
This business can work great if YOU work it, if you plan to buy something and have someone else do all the work for you (like the guys on this site planned on) then keep looking and email me when you find it, because I want one
And you say 70-80 locations have closed. Where is the backup for that?
not closed changed hands or been taken over by corporate forcefully.
challenge post the name and #’s of every single original franchise owner so we can call them for there opinion
original owners not current!!!!!
then we can find out why they got rid of the franchise—-that’s supposed to be so profitable
So what is this great system that is light years ahead of anyone or anything else? Stop talking generalities and get specific.
read the previous 200 threads and you’ll see it’s nothing special just a way to get your 10-18%
Don’t be afraid of a little competition. After all, if they are light years ahead, no need to worry.
He is corporate.
point is he’s a crack head taking my money, bullying me and the world needs to know it!
Cry baby
yeah up our ass’s the franchise owners!!!!!!
How’s your wife?
as good as the mayor of san frans is!!!!
Wow, you too? I guess we are all in the same sinking radiator boat.
Is the radiator boat still sinking?? How is it going for everyone?
my boat is hardly floating….
SOMEONE SHOULD TELL THE RIPPEYS ABOUT THIS
Saturday is a national holiday that doesn’t get much fanfare — Juneteenth, the commemoration of the end of slavery in the United States.
What’s the deal with these $35 coupons I see everywhere? Who’s pocket does that come out of?
Why are you so curious? Losing customers because of them?
nope gaining em thank you though!!!!!!
keep up the good work every campaign 1800 comes up with boosts my business up!!!!
Thanks!!!!!
That’s believable
the $35.00 coupons are for NON BUYING 1800 customers only
it’s 1/2 paid by corporate and 1/2 by the franchise. key here is take a $100.00 rad. but knowing the coupon is coming by flagged customer type jack the price up to $117.50 then the franchise cover most of his exspense other than the 10-18% on the $17.50 then corp pays the other 1/2 – the extra corp. profit on the royalty off of the extra $17.50 Basically the coupon is zero cost to knowone because corp. doesnt get the royaly as it’s a wash on there 1/2 the coupon but they don’t care because it’s for business they don’t have anyway so it’s royaltys they wouldn’t have recieved without the coupons. The franchise is charging an extraordinarily high price to cover there 1/2 the coupon at any rate. The down side for franchises of the coupons are 1-customers use the coupons but see the price of rad is too high without the coupon thus they won’t buy after the book is done
2-each franchises good customer base that doesnt get the coupon book is pissed that he didnt recieve coupon books. So the end result 1800 gains a new temporary customer due to coupons but loses there loyal customers as a direct result of this wonderful coupon idea!
It is not half by corp and by franchisee. Its almost 100 percent by franchisee. Its a very vague formula that benefits corp. I know because I am a franchisee and have argued with them over it. I didnt participate in the program.
Looks like someone is trying to get this tread shutdown.
Now who in the world would want to do that?
Stick to discussion of this franchise.
Lets not talk this way. It makes all of us who really have complaints look bad. Not good….
I agree clean it up this is someone daughter
She didnt sell these franchises Mike Ted and Joe sold them
Yes, by all means. Please keep the posting professional and focused on the franchise and issues related to the franchisor.
bottom line is the franchise is a bad investment. It’s a sinking ship avoid at all costs!
you are so right. We all feel the same way. There has got to be way to do something about it.
Is anyone still stupid enough to be buying these franchises? I mean really!!!!!
There’s one born every day.
if theres one born everyday name the new ones since march1st 2010
Does anyone have any idea how many are still open and owned by franchisees?
i think it’s more realistic to say there’s one closing per week or if not closing being taken back by corporate!!!!
9 in 2 years, not quite but your close i Guess
i doubt the joe rippey poster is actually joe rippey. you can put anyones name you want
I also doubt it is the Owner. This is certainly bad press for these guys. If things are as bad as most say it is, well I would suppose they could go Bankrupt.
What would happen if this did happen? What about the franchises? I doubt their would be any recourse for them. Would they be able to operate? Would another company buy them out of BK. Then close down to service their own distrubution networks? Looks pretty grim at the least. Even if the owners did go to jail for fraud their would be nothing left for the ones that invested their life savings. I sure it works out well for you guys.
I deleted the irrelevant and vulgar posts. Please keep your comments substantive and factual.
Just curious: Did you get requests/pressure/threats from the franchisor to do this?
I did receive complaints from various people about some posted comments to this blog post, as I often do on other posts as well, but that had nothing to do with my determination to remove those containing silly personal insults. I welcome your insights about your experiences, good or bad, but please keep it civil.
Thank you Mr. Knoll for honoring your site and removing the vulgarity. The purpose here is to disclose RELEVANT information about the franchise for others.
Thank you for paying attention to these things
Mr Knoll thanks for removing the vulgar posts but it doesnt change the fact that the people at 1800radiator (joe rippey and family) are dirty business boys and there con artists. but good info here i like them exposed!!!!!!
Mr Knoll–vulgar posts are still up. To preserve the integrity of this site you may want to take a closer look…
Nothing vulgar here. Just truthfull honest facts about this franchisor.
Why is the vulgar post still up?
He’s removing vulgar posts not truthful ones.
Not sure who this SPI company is but it looks like after the bank this SPI company would be next in line for any payouts if the bankruptcy is filed
at the conference it was brought up that the SPI lien was discharged last summer
So why did Mike Rippey pledge all of Radiator Express’ assets plus agree to a $500k guarantee in order to satisfy a $1.4Million judgement plus interest? Even at a conservative 10% royalty, the company should (based on published sales) be making $12 Million or so. They have very few employees, low overhead and run a real lean operation. That kind of doe will buy alot of grain!
A few years back they were factoring their receivables with some outfit called “World Capital Group” or something. The CFE, Gabe Mendoza, sent out a letter to some franchisees on letterhead from this group asking them to send their weekly payments directly to this group. You wonder how Radiator Express was paying vendors for product purchases made by these franchises if, instead of paying Radiator Express, they sent their payments to World Capital. And what does Mr. Mendoza have to do with World Capital?
Anyway, the big question: Where is the money going?
Maybe Mr. IRS will be the only one that can answer that question?
I thought World Capital was funding 1800 Radiator when they did these acquisition
not sure
Do a “Google” on World Capital – not really a big outfit are they? I mean they are not GE Capital or Bank of America.
It would worry me that these guys can only get financing from a lender one step up from (or maybe equal to) the mob. Would hate to be late on a payment.
SPI IS A TOP MANUFACTOR OF RADIATORS GAS TANKS,INDUSTRIAL HD CORES AND OTHER COOLING SYSTEM PARTS. THEY SELL TO WD’S AND PARTS STORES.1800 RADIATOR LEVERAGE THEM BY NOT PAYING THE PARTS BILL OWED BY 1800 RADIATOR USING A SCHEME TOLD TO ALL THE 1800 RADIATOR FRANCHISE OWNERS THAT SPI BROKE UP A BUY OUT OF A COMPANY THEY WANTED TO PURCHASE.1800 RADIATOR LEADERSHIP DID NOT HAVE THE MONEY TO PAY VENDORS WITH IN TERMS AND TOOK ADVANTAGE OF THEM.1.9 MIL WAS THE PRICE ON THE LAWSUIT.THE SUIT SHOWS THE LEADERSHIP BOLDNESS TO RIPPOF ALL WHO STAND STRONG.MAKES YOU WONDER WHAT VENDOR IS NEXT TO THESE SCHEMES TO GET MONEY BY ANY MEANS.IF I WAS A VENDOR GUARDING MY INVENTORY ASSET BECOMES MY MAIN FOCUS AFTER I SEEN THE MISTREATMENT OF SPI .THE MAIN QUESTION IS HOW LONG WILL 1800 RADIATOR SUFFER ALL WHO ARE DOING BUSSINESS WITH THEM BY NOT PAYING IN TERM AND THE RISK OF LAWSUITS FROM 1800 RADIATOR IF THEY OFFEND 18OO RADIATOR LEADERSHIP AS TO PAYMENT OF PRODUCT .1800 LEADERSHIP LEVERAGE OF VENDORS WITH THE USE OF FEAR OF LOSS SALES CHEAPENS THEM.VENDORS KNOW PARTS HOUSES OUT SALE THEM EVERY DAY AT 20,000 STRONG WHAT CAN THEY DO? NOT A THING.VENDORS NEED TO BE AWARE TO THE TREATMENT OF FRANCHISE OWNERS AFTER ALL IF THEY ABUSE THEM WHAT MAKES YOU THINK YOUR ANY BETTER JUST LOOK AT SPI AS AN EXAMPLE.THEY BRAGED HOW THEY GOT OVER ON SPI WHAT A ZOR.
FOR ALL THAT ARE SICK OF THIS CORPORATION, FRANCHISEE OR EX. LETS DO SOMETHING FOR THE GOOD OF THE PEOPLE. LETS STOP COMPLAINING AND STICK TOGETHER AND MAKE A CHANGE, FOR THE BETTER.
I URGE YOU ALL, EMAIL RICHARD SOLOMON WITH YOUR STORY. WHETHER CURRENT FRANCHISEE, OR THOSE ALREADY OUT.
HE IS THE CURRENT ASSOCIATION LEGAL COUNSEL AND NEEDS TO HEAR YOUR STORY.
WE ALL NEED TO STICK TOGETHER AND MAKE THIS WRONG A RIGHT! EMAIL HIM YOUR EXPERIENCES. IT WILL NOT HURT, IT WILL ONLY HELP YOUR FELLOWS, BUT BE READY TO STAND BEHIND YOURSELF AND YOUR INTEGRITY. BE READY TO FOLLOW THROUGH. IF YOU KNOW WHAT YOU ARE DOING IS RIGHT, THEN THERE IS NOTHING TO FEAR.
RICHARD A. SOLOMON
ATTORNEY
11502 OVERBROOK
HOUSTON, TEXAS 77077
Telephone 281-584-0519
Fax 281-597-8250
Email: franchiseremedies@sbcglobal.net
I URGE ALL 1800 RADIATOR FRANCHISE OWNERS TO READ THE HAND WRIGHTING ON THE WALL FROM ALL THE FAILED FRANCHISE OWNERS WHO ONCE WALKED IN THE SHOES YOU NOW WEAR TAKE NOTICE TO THE STORIES AND UNDERSTAND YOU VERY WELL MAY BE NEXT TO FALL.UNLIKE THOSE THAT FAILED BEFORE YOU TAKE THE STEP TO PROTECT YOURSELF AND CONTACT RICHARD SOLOMON AND JOIN THE FIGHT TO PROTECT YOUSELF AND YOUR FAMILY FROM THE LOSS THAT SO MANY OTHERS HAVE HAD.DON’T GAMBLE YOUR FUTURE TAKE CONTROL NOW AND JOIN THE ASSOCIATION BEFORE YOU END UP SPENDING AS MUCH MONEY TO DEFEND YOURSELF AS THE COST OF THE FRANCHISE INVESTMENT.EX FRANCHISE OWNERS PLEASE SEND YOUR INFORMATION TO RICHARD SOLOMON AND BY DOING SO YOU HELP OTHERS OVERCOME THIS TRAP AND SNARE THAT WE ALL BECAME A VICTIM OF.BUSSINESS MUST ALL WAYS HAVE THE CONSUMERS WELL BEING AT HEART. I CHALLENGE ALL TO NAME 10 EXAMPLES OF HOW 1800 RADIATOR HAS IMPACTED YOUR BUSSINESS LIFE AND FAMILY LIFE GOOD OR BAD AND POST IT HERE AND EMAIL IT TO RICHARD SOLOMON.1800 RADIATOR FRANCHISE OWNERS ARE LEVERAGED RIGHT OUT OF THE GATE AS OWNERS WITH THE CARDS STACKED AGAINST THEM THEY CAN NOT AFFORD TO DEFEND THEMSELVES IN LEGAL ACTION AS THEY FIND THE COST SO HIGH BY THE TIME THEY FAIL THE MONEY IS GONE.GARY YOUNG SPENT 400K TO STOP 1800 RADIATOR FROM KILLING HIS BUSSINESS INVESTMENT HOW MAYNY FRANCHISE OWNERS CAN AFFORD THAT KIND OF MONEY? THE ANSWER FEW OR NONE.1800 RADIATOR HAS PROFILED EVERY OWNER GOT BIG TIME LAWYERS JUST WAITING FOR THE CHANCE TO DO YOU IN BECAUSE THEY KNOW YOU CAN NOT BATTLE THEM IF YOUR BROKE AND POOR.THEN THEY TAKE OVER YOUR FRANCHISE BUY YOUR INVENTORY FOR PENNIES ON THE DOLLAR AND CYCLES BACK TO NEW FRANCHISE INVESTORS WHO HAVE NO IDEA AS TO WHAT SCHEME THEY HAVE FELL INTO.THE CURRENT FIANCIAL PROBLEMS FACED IN ALL MARKETS TODAY COMPOUNDS THIS MODEL AS NO REAL VALUE.OUTSOURCED COOLING SYSTEM PRODUCT VENDORS ON EVERY CORNER.DISTRIBUTION STREAMS THAT 1800 RADIATOR HAS MAY SUDDENLY VANISH AS 1800 RADIATOR DEMINISH THE FRANCHISE OWNER WITH GREED AS A TOOL TO DESTROY THE FRANCHISE OWNER .IT STANDS TO REASON THAT KEY PLAYERS THAT’S BEEN IN THE GAME FOR SO LONG GIVES NOTICE TO THE 1800 RADIATOR FRANCHISE ABUSE AS THEY BECOME WEAKER TO PRODUCE SOLVENT OWNERS THROUGH THE KNOWN FRAUDLENT ACTIONS TO NOT ONLY THE FRANCHISE OWNER MOREOVER THE VENDOR JUST LOOK AT THE SPI CASE .WHEN VENDORS GET RIPPED OFF ALL THERE BROTHER VENDORS SEE AND TAKE NOTE.1800 RADIATOR CAN BRAG HOW THEY RIPPED SPI OFF BUT IN THE END IT CAUGHT UP WITH THEM.FAILED VENDOR RELATIONS FROM SCHOOL GANG MENTALITY SCHEMES TO BEAT THEM OUT OF PAYMENT FOR PARTS DIRECTLY REFLECTS THE CHARACTER OF 1800 RADIATOR LEADERSHIP THAT FILTERS TO THE PERSONAL LIVES AND ADDICTION THAT THEY HAVE SUCCUMB TO.BOTTOM LINE THE SOONER FRANCHISE OWNERS UNDERSTAND THIS IS THE TRUE NATURE OF THE BEAST THE BETTER OFF THEY ARE.AT THAT POINT TRUTH OF THERE ACTIONS ENLIGHTENS ALL.I CHARGE ANYONE THINKING ABOUT BUYING ONE OF THESE LOCATIONS TO DO YOURSELF A KINDNESS AND SPARE YOURSELF THE GREIF AND STRESS THAT SO MANY BEFORE YOU HAVE GONE THROUGH. CALL RICHARD SOLOMON.
i agree whole heartidly with this post. is there not a govt. consumer protection dept. we can contact to step in and protect us? there big time lawyers wouldnt be much scare to the govt. There has to be strict franchise laws in place maybe we could get the ball rolling faster.
also the govt. started offering rewards for informants to come forward with info of known tax evasion why doesnt everyone come together with there info on 1800 radiator joe, mike and ted rippey and become an informant.
remember how they got al capone????? they couldnt get him with murder so they got him on TAX EVASION!!!!!! i challenge all to come forward if the govt. gets enough calls on 1800 and the rippeys they’ll take action and tear the company books to threads!!!! please come forward all with any info of known tax evasion and misuse of funds!!!! lets get em!!!!
You guys should focus on the “World Capital Group” thing. There is something not right with the way that was done. Perhaps that was a shell company used by the Rippeys to funnel funds away from Radiator Express and to the “World Capital Group” – who knows? It just never seemed right that payments from franchisees for royalties/products could be legally diverted to a third party. Also, why was Radiator Express’s CFE, Gabe Mendoza, signing letters with “World Capital Group” on the letterhead?
Something really stinks about this whole mess.
Is “World Capital Group” the same company as “One World Capital Group?”
I think so. Somewhere I have a copy of one of the letters. I wish I could post it here.
The important thing here is to provide true unbiased information about this franchise opportunity. The franchisor will not and, due to their poor track record and desperate financial condition, they are likely to use all their tricks to continue selling franchise locations at any expense. It is their lifeblood and their inability to sell franchises will ultimately be their downfall. Remember, before entering the franchise arena, they tried and failed to run warehouses across the nation. They know they cannot operate this thing on their own so franchising is the best way to shift the many burdens of this business unto others while at the same time minimizing their own risks.
Having said that, I am sure that some location are doing well and in that instance a franchisee should have the ability to sell their franchise for a fair asking price. However, even in this situation a prospective franchisee should know what they are getting into in terms of the treatment they are likely to be subjected to and the overall underhanded tactics of this franchisor. So it’s not just that many locations are unlikely to do well, it is also that locations doing well are still subject to the whims of this tyrant. Until the franchise association website is up and running, this site is the only source for this information.
Remember, the next largest competitor of 1-800-Radiator, Performance Radiator, has about 40 warehouses nationwide. If they felt there was room in the market for 250 locations, I am quite positive they would have expanded. It was reckless, irresponsible, and downright wrong for 1-800-radiator to sell 250 locations in this market when they knew they themselves had a hard time competing in more that 40-50 locations and when they know they had no pricing advantage over their competition and would be putting a 10% disadvantage on their franchisees.
THIS STATEMENT REFLECTS THE TRUTH OF HOW THE 1800 RADIATOR FRANCHISE MODEL PRODUCES THE FAILURE OF 1800 RADIATOR FRANCHISE OWNERS.1800 RADIATOR PLANNED THIS WHOLE CYCLE OF FAILING FRANCHISE OWNERS AND FLIP THEM FOR NEW FRANCHISE INVESTORS.
180K IN FRAUDULENT CHARGES TRIGGERS A FULL BLOWN FBI INVESTAGATION IF YOU HAVE ACH CHARGES THAT ‘S BEEN TAKEN FROM YOUR BANK ACCOUNT THAT CAN TOTAL BETWEEN ALL FRANCHISE OWNERS YOU HAVE A CASE AND THE US ATTORNEY UNDER THE NEW GUIDELINES WILL GO TO WORK FOR YOU.IF YOU DON’T THINK THATS A TRUE STATEMENT CALL THEM YOUSELF I DID.CHECK OUT IF MONEY IS REMOVED FROM YOUR BANK ACCOUNT AND TRANSFERED BY WIRE AND IF THE 180K MARK COMES IN BETWEEN ALL THE FRANCHISE OWNERS AND EX FRANCHISE OWNERSTHE FEDERAL FRAUD CHARGES CAN BE BROUGHT UP.I’M WILLING TO GET A WEB SITE AND GET THE INFORMATION FROM OWNERS AND EX OWNERS OF 1800 RADIATOR FRANCHISES.EVERYONE INVOLVED IN THIS SCHEME TO DEFRAUD CAN BE SUBJECT TO AN FBI INVESTAGATION.LOOK FOR YOURSELF AT HOW MUCH TIME YOU CAN GET FOR WIRE FRAUD LET ALONE RICO.THEM BOYS CAN’T SLEEP NOW JUST THINK WHAT A FEDERAL FRAUD CASE CAN DO TO THERE SLEEP.WHAT EFFECT CAN THAT HAVE ON YOUR CONTRACT?MAYBE NULL AND VOID.DON’T FORGET THERE IS MORE OF US AND LESS OF THEM.SO SHOW NO FEAR AND START WORKING TOGETHER YOU HAVE EVERYTHING TO GAIN MOREOVER PEACE OF MIND.THE CURRENT GOVT. NUMBER 1 DUTY IS TO STOP TERRORISM THATS WHY THE 180K MUST BE MEET.SO IF FALSE BILLING RESULTED IN AN ACH WIRE FROM YOUR BANK TO 1800 BANK WE NEED TO SEE THE PROOF FOR THE FEDS.EVERYONE WHO HAS BEEN CHEATED THROUGH THIS SCHEME TO FRAUD YOU STAND UP NOW AND BE COUNTED.REVIEW THE FACTS OF THE MONEY TAKEN FROM YOUR ACCOUNT AND SEE IF FRAUD OCCURED.
1800radiator does not pay there bills owing millions to vendors if they fail what burdon is it going to be on franchise owners you are paying for parts to 1800 corp but they are not paying bills timely
How can you be sure they are not paying their bills? Aside from the SPI thing.
From what is being said here, its aparant that we continue to get product by not paying our bills.
How do you know for sure that they are not paying their bills? Aside from the SPI case.
How do you know that they are paying their bills? Is there any reason to suspect they have changed their ways?
Lets not start looking for excuses for them. They have plenty themselves.
How do you know for sure they are not paying their bills? Sorry if this post shows up more than once,I’m just now trying to figure out how to post on this site.
This is sad, sad, sad. I hope noone else ever falls victim to this racket.
Well it sure looks like their going to be finished real soon. Word out on the street is they are a terrable company and corp is falling apart st the seams as we speak.
With a little luck SPI will pick up what is left of the company. Looks like a long slow death for this company.
The good news is the Rippies will go to jail when the time is right.
What has happened?
“word out on the street”? Please!
wouldn’t be surprised if you worked for a competitor–performance or SPI maybe?? ha. this site is a joke.
Maby maby not. But at least I offer my insight punk like you dont already k now. Dont think you would want to meet me out in the street. You should get your teeth fixed you crack head and a new shirt for pops but you both will be wearing prison barb soon anyway. I doubt you can not make the company any more of a mess then it already is before they come take you over.
How long will this franchise be operating.
APDI will supply directly without corp under their wd program the first few orders need to be prepaid until credit history is established. This is at about 15% lower then corp pricing. So if you have cash for prepayment you can save a bundle and not have to deal with corp. If anyone needs the contact info at APDI ill post it if needed.
Terrific. I have a feeling that other vendors will do the same. Much better to work out a prepayment arrangement with the vendors. Do what you can to save your businesses!! Take control!
PLEASE POST CONTACT
How sure are you about this? If you havent done so, can you please contact Richard Solomon?
I AM THINKING ABOUT BUYING A VERY PROFITABLE RESALE WITH THIS COMPANY, I WOULD INTEND TO DO MY DUE DILIGENCE BUT WOULD PRESENT FRANCHISEES OPEN UP AND TELL THE TRUTH OR FEAR TO DO SO
Which location are you looking at? Have the profits been certified by a CPA?
Remember this – no matter what you are told. Sales does not equal profits. There was a guy in this thing that had the second most sales in the system. Over 2Million. He went bust!!
well looks like their is still hope with APDI and CSF Cooling Systems suppling us directly. both with very quick turn around time.
I’m sure you could work out something with many of the other vendors as well. Someone in the franchise association should take a lead on this.
I would also think most any supplier would supply product without corps involvment. The suppliers see the writing on the wall they will be very happy to supply us.
Look like RIP and Corp is on its last leg any way well I suppose they deserve it.
I would think they would be terrified to show you.
Who would be terrified? The franchisees?
Yes I would not think the numbers look very good for them to even try to get out of the busniess. Betterto buy from others for a while grab the extra 15% on the product cost. By doing this for a year then can show good books to be able to sell.
who is this soloman guy?
Attorney for the franchise association. Look at other posts.
Another day another lost dollar.
I also heard these guys are in serious trouble. Could be worst. Instead of a 1800 Radiator Fran. it could have been a Bennagins. Just tring to make some of you feel better. Good luck
from who? – because so far everything on this site has not been verified with anything substantive….no backup whatsoever. not saying its untrue, but without backup its not credible and should not be used to guage the health of this franchise.
To Anonymous, I would rather not say at this time what location , but I have spoken to other profitable franchisees, as we all know there are good locations and bad ones in all franchises. I have been looking for some time and found many bad franchises, some auto some not but many No dont do it ones!! Can you say what state or west coast east coast midwest what area you had owned one and why you are out if you are, if not here I understand
If you want, I could call you. Just post name and #.
these people are dirty dont do it its a sham.
http://WWW.BLUEMAUMAU.COM
This looks serious. I hope the IRS gets these guys.
Wow that is big news. Looks llike just about everyone is going to get the shaft big time. This will be good for the competitors im sure.
If there was ever a time for the franchise association to start preparing its members for a time after 1-800-radiator, then this is it.
I agree this fourm should be a place express views not get lost in anger due to a poor busniess enviroment. From what I see about researching this companies track record I would be leary about them and the whole setup they have. For what it is worth I fould this websight very helpful in judging this company
I questiioned their filings back on Sept 9, 2009–the last franchise renewal in CA was filed on March 28, 2008.
That’s why I lost interest in this franchise–still looking………
I had a franchise a few years ago. I lost everything…House, rental properties, cars, etc. I have to take over 50% of the blame for not properly looking into it enough to begin with. But the bottom line is that they mis-represented themselves as good ole boys that were there no matter what. They would NEVER allow a franchisee to go bankrupt! WRONG! once you owe them money you are toast. They bring in a new owner and new money! I enjoyed the business for the couple of years I stayed afloat, but there is just not enough rads being sold to sustain the business.
Feel bad for you. I knew the previous owners of Rad express long before RIP was even involved. Back then they were a good customer of mine. Then RIP bought the company, This is before franchising started. They burned me for about 100k. I never heard anything good about them since the old owners were involved like almost 15 years ago. Your right the market is not that big and they are crooks. The big issue is the misrepresentations. Most people in this busniess knows it inside out, like the back of their hands. Just 1800 has all these locations with other peoples money thinking it will be supported by a real company and depending on them was a mistake. You guys better start moving your purchases becuse I wouldnt depend on them. Cut your losses and do the work yourself or higher someone otherwise you will go down with them.
can i ask what state you were in
EX FRANCHISEE – take solice, you are not alone. These snake-oil salesmen can really make this thing sound like the best thing since sliced bread. Then when you look at the UFOC it seems like an easy business since it states that you can break even by selling as few as 5 parts a day. Then you look at it even closer and realize how easy it is to sell 5 parts a day and that you should be able to sell twice or 3-4 times that many. Then you fall for the “BEST PRICE” in the industry crap that they sell you on and next thing you know you find yourself signing on the bottom line and handing over a few hundred thousand of your hard earned dollars.
You were never told that pricing is the same as any other competitor. You were never told the parts are the same. You were never told that 10-15% off the gross sale will absolutely destroy your profit margin. You were never told about all the problems with parts/vendors and customers. You were never told about their failures before franchising. You were never told about the extremely long work hours.
And worst of all you now have to deal with a couple of crackhead kids who, when sober, don’t know anything about business or don’t know how to tell the truth. They manipulate you, lie to you, abuse you, confront you, and blame you for all the problems while laughing it up all the way to the bank.
No you are not alone.
You are so right They dont even have a structure other then their customer list and software along whatever they promise you. In no way it this worth the greif and finiancial drain they will get you into. I doubt not too many locations can even get their money back even if they could sell them. I doubt the name (1800Radiator is really worth anything in its current state). So I would fully agree go save 15% or more start your own radiator busness for when they corp folds you are prepared to resume busniess with open accounts with the same suppliers you already have. This is the only way out that I can see untill a company like SPI takes them over.
Well This is the email I got From Mr Marks after I spoke with him
Please send me details of the 1 800 Radiator problem.
Thank,
Jerry Marks
Marks & Klein, LLP
63 Riverside Avenue
Red Bank, NJ 07701
Phone: (732) 747-7100
Fax: (732) 219-0625
jerry@marksklein.com
http://www.marksklein.com
YES I also lost my home and investment too. How could I have been so stupid. Would have been better to buy a low cost maid cleaning service franchise.
Good thing I have morals and have the lord in my life becuse it would be so easy to mess him and his famly up they would have to eat with straws for what they did to me and my loved ones. I hope they read this and consider hiding.
Sooner or later the franchisor will have to meet the registration requirements or fold. If they file the necessary documents for registration it will be easier
to determine their financial condition. Current info is a must if you are considering investing in any franchise.
That’s my $ .02 worth.
http://www.franchise-info.ca/supply_chain/2010/06/
Could anyone tell me are you all present or past franchisees, or suppliers. Sounds like many are disgruntled with this company. I was considering buying a franchise. this company seems like a good one after I have looked at many others that are lousy. Who is the owner of this company, the father seems like the kids are running it or? Can this attorney be contacted to ask questions that you mention. Are the franchisees sueing the corporate company? How could I get more info other than from franchisees? Is the new FDD much different than the older ufoc. Can anyone comment professionally and honestly, thank you
Run away as fast as you can and never look back.
Anonymous ,can you say more? what exactly is going on with this company? Are you presently a franchisee or previous.Can you say here or e-m me some more info, thanks
Just read through these threads. That should give you a fairly good idea of what is and has been going on with this company. Take a look at the lawsuits.
No one on this site will answer you. Its a hand full of disgruntled owners and most likely competitors venting. If you read closely there is no backup provided. with sites like this only the bad owners post their stories. this is the same as any review site. If you are happy why bother posting? get the list of all current and former owners and call them-that is the only way to know the true story.
Where is this list?
Ryan;
I recently wrote about the some of the concerns that I had with their financial disclosure documents:
http://www.franchise-info.ca/supply_chain/2010/06/fdd-financial-disclosure.html
Also, Richard Solomon who is representing the franchisee association, believes that the franchisor’s registration in California has lapsed.
http://www.bluemaumau.org/1800radiator_franchising_fails_renew_its_franchise_registrations
Is there more than 1 anonymous seems like 2 but it seems to be true that people here posting are disgruntled and probably franchisees who didnt make it, had a bad territory or what corporate would probably say they didnt follow our system but from previous business experience not everyone is cut out to run a successful business. Is there anyone here willing to speak via e-mail so I could get more info as I was looking into buying a franchise. I have looked at other franchises and found , naturally you will pay royalties anywhere from 4% up to about 13% and no matter what the owners do with their profits , whether gambling or drugs doesnt matter as long as you receive support from them when you need it. If they fail on their end they could threaten you all they want but a good businessman could stop them cold if they dont deliver. all you need to do is go to the attorney general in your state file a complaint or the similar department if not this one and you would not incur expensive attorney fees. For the franchisees that are starting this association I personally would like to get more info on this. If not purchasing this franchise at least the knowledge of whats being done wrong to the franchisees would give me great insight in another opportunity. I know from previous looking that franchise agreements are always towards the franchisors benefit, some are negotiable as I had negotiated one but this particular other company tried to slip something in on me at the last minute and I got my f/fee returned.
Just buy it. Trust everything they tell you. They do get the best price – their prices are so good that even after their 10-18% of sales, you will be way ahead of the competition. They can’t prove it, but trust them. In fact, they are the competition. You will work low work hours and have no risk. This is an excellent opportunity and they have not had any failures. Their technology is way ahead of the competition and makes it easy for you to succeed and you will instantly be number 1 in the industry. Also, they will make sure you get the right product mix for your territory. All the things in the franchise agreement that seem to favor them, don’t worry about that. You will have the best quality and the best price. Also, the number of customers they represent to you as being in your territory is accurate as they are excellent at generating excel spreadsheets. If they say 1500 PIDS, you better believe it and, if you trust them, you probably are getting many more than that as a huge part of your territory will be unexplored.
Just follow the model and you will succeed as no one has ever failed that has followed the model. They always sell great territories and your failures, however unlikely, will be your own. They have been No. 1 in the business for many years and know what they are doing.
They pay their vendors on time and their vendors are the best in the industry. They tell you everything you need to know to succeed. Ted and Joe are great to work with and they always have the best insight/advise and recommendations to ensure your success. They are straight shooters and standup young men. Remember, the more you sell the more you make and even if you have to cut your margins (not their royalties) just think that you are taking away a sale from your competition. When customers call for warranties, please smile and remember that your competition doesn’t have the privilege of paying for the warranty and their labor claim. When you get that lowball Ebay sale that you sell below your cost, don’t worry as your competition will be hurting because of it.
Also, when they buy our one of your competitors and stick you with the bill don’t worry that you didn’t have any input and that they are not giving you the documentation behind the transaction. If they say they paid 1Million, just believe it and shut up and pay them. If they say AC parts are a winner and they will add 2 Million to your revenues, again don’t question them. If they forget to get non-competes from them, and then the competitor goes out and starts all over again, don’t worry they will sue on your behalf. They have your best interest at heart even if they can show no ducuments or jusitfy the decision in a rationale business form.
You can’t go wrong. Good luck.
Oh yea, and you better jump on it quickly as they are getting so many requests for territories that they can’t keep up.
Now that’s some funny stuff. The franchise owner that I worked for some time ago said he bought into all of it and been sorry ever since. Corporate has the store now along with another in the state and he has lost everything- such a shame.
We should all invest together and buy a vending machine franchise or a curves. Those sound like fun. Little work is required. Anyone have experience in either these?
Your way off topic, but hotels are the best investment. Forget the vending stuff and the fitness stuff, most women are fat forever so stay away from the all womens fitness stuff. Super 8 or days inn for sure. I could be talked into investing in another one of these. What state are you in?
This website changes order every 5 days it seems like. it is impossible to keep up with whats going on. All of the posts are out of order. I do appreciate the space for information however.
http://www.franchise-info.ca/supply_chain/2010/06/
scroll down
what happen to all the comments? I thought this was a place to share open views of 1800 Radiator. Looks like censership to me.
Just got my 4th APDI order in only 50 units didnt need that much but saved 17% then buying from corp. Next i order from company called Silla. Yes things are looking better now that im not loosing as much money in a few more months i should be out of the red. Are these guys really drug addics?
I agree Mr. Rippey looked like he was on coke or crack at the convention
I want in on this action. How can we get in touch?
ill give you a phone number you just call him and explain your situation this guy will help you As for anyone that wants to buy from apdi just call 630 806 6033. i am not affilated with the company but enjoy saving the 15%.
Called the 630-806-6033 number. Got Kevin O’Conner with APDI. He stated that he would never sell to anyone direct. So maybe you are not buying direct with the great savings. What say you?
This site got quiet. What happened?
As used in this chapter—
(1) “racketeering activity” means (A) any act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), which is chargeable under State law and punishable by imprisonment for more than one year; (B) any act which is indictable under any of the following provisions of title 18, United States Code: Section 201 (relating to bribery), section 224 (relating to sports bribery), sections 471, 472, and 473 (relating to counterfeiting), section 659 (relating to theft from interstate shipment) if the act indictable under section 659 is felonious, section 664 (relating to embezzlement from pension and welfare funds), sections 891–894 (relating to extortionate credit transactions), section 1028 (relating to fraud and related activity in connection with identification documents), section 1029 (relating to fraud and related activity in connection with access devices), section 1084 (relating to the transmission of gambling information), section 1341 (relating to mail fraud), section 1343 (relating to wire fraud), section 1344 (relating to financial institution fraud), section 1425 (relating to the procurement of citizenship or nationalization unlawfully), section 1426 (relating to the reproduction of naturalization or citizenship papers), section 1427 (relating to the sale of naturalization or citizenship papers), sections 1461–1465 (relating to obscene matter), section 1503 (relating to obstruction of justice), section 1510 (relating to obstruction of criminal investigations), section 1511 (relating to the obstruction of State or local law enforcement), section 1512 (relating to tampering with a witness, victim, or an informant), section 1513 (relating to retaliating against a witness, victim, or an informant), section 1542 (relating to false statement in application and use of passport), section 1543 (relating to forgery or false use of passport), section 1544 (relating to misuse of passport), section 1546 (relating to fraud and misuse of visas, permits, and other documents), sections 1581–1592 (relating to peonage, slavery, and trafficking in persons).,[1] section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering), section 1953 (relating to interstate transportation of wagering paraphernalia), section 1954 (relating to unlawful welfare fund payments), section 1955 (relating to the prohibition of illegal gambling businesses), section 1956 (relating to the laundering of monetary instruments), section 1957 (relating to engaging in monetary transactions in property derived from specified unlawful activity), section 1958 (relating to use of interstate commerce facilities in the commission of murder-for-hire), section 1960 (relating to illegal money transmitters), sections 2251, 2251A, 2252, and 2260 (relating to sexual exploitation of children), sections 2312 and 2313 (relating to interstate transportation of stolen motor vehicles), sections 2314 and 2315 (relating to interstate transportation of stolen property), section 2318 (relating to trafficking in counterfeit labels for phonorecords, computer programs or computer program documentation or packaging and copies of motion pictures or other audiovisual works), section 2319 (relating to criminal infringement of a copyright), section 2319A (relating to unauthorized fixation of and trafficking in sound recordings and music videos of live musical performances), section 2320 (relating to trafficking in goods or services bearing counterfeit marks), section 2321 (relating to trafficking in certain motor vehicles or motor vehicle parts), sections 2341–2346 (relating to trafficking in contraband cigarettes), sections 2421–24 (relating to white slave traffic), sections 175–178 (relating to biological weapons), sections 229–229F (relating to chemical weapons), section 831 (relating to nuclear materials), (C) any act which is indictable under title 29, United States Code, section 186 (dealing with restrictions on payments and loans to labor organizations) or section 501 (c) (relating to embezzlement from union funds), (D) any offense involving fraud connected with a case under title 11 (except a case under section 157 of this title), fraud in the sale of securities, or the felonious manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), punishable under any law of the United States, (E) any act which is indictable under the Currency and Foreign Transactions Reporting Act, (F) any act which is indictable under the Immigration and Nationality Act, section 274 (relating to bringing in and harboring certain aliens), section 277 (relating to aiding or assisting certain aliens to enter the United States), or section 278 (relating to importation of alien for immoral purpose) if the act indictable under such section of such Act was committed for the purpose of financial gain, or (G) any act that is indictable under any provision listed in section 2332b (g)(5)(B);
(2) “State” means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, any political subdivision, or any department, agency, or instrumentality thereof;
(3) “person” includes any individual or entity capable of holding a legal or beneficial interest in property;
(4) “enterprise” includes any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity;
(5) “pattern of racketeering activity” requires at least two acts of racketeering activity, one of which occurred after the effective date of this chapter and the last of which occurred within ten years (excluding any period of imprisonment) after the commission of a prior act of racketeering activity;
(6) “unlawful debt” means a debt
(A) incurred or contracted in gambling activity which was in violation of the law of the United States, a State or political subdivision thereof, or which is unenforceable under State or Federal law in whole or in part as to principal or interest because of the laws relating to usury, and
(B) which was incurred in connection with the business of gambling in violation of the law of the United States, a State or political subdivision thereof, or the business of lending money or a thing of value at a rate usurious under State or Federal law, where the usurious rate is at least twice the enforceable rate;
(7) “racketeering investigator” means any attorney or investigator so designated by the Attorney General and charged with the duty of enforcing or carrying into effect this chapter;
(8) “racketeering investigation” means any inquiry conducted by any racketeering investigator for the purpose of ascertaining whether any person has been involved in any violation of this chapter or of any final order, judgment, or decree of any court of the United States, duly entered in any case or proceeding arising under this chapter;
(9) “documentary material” includes any book, paper, document, record, recording, or other material; and
(10) “Attorney General” includes the Attorney General of the United States, the Deputy Attorney General of the United States, the Associate Attorney General of the United States, any Assistant Attorney General of the United States, or any employee of the Department of Justice or any employee of any department or agency of the United States so designated by the Attorney General to carry out the powers conferred on the Attorney General by this chapter. Any department or agency so designated may use in investigations authorized by this chapter either the investigative provisions of this chapter or the investigative power of such department or agency otherwise conferred by law.
Racketeering Activity – A RICO claim must be based on the defendant’s commission of criminal actions specified in 18 U.S.C. § 1961(1). The RICO Act refers to the specified criminal actions as “racketeering activity” or “acts of racketeering.” Sometimes these acts are called “predicate acts” because all RICO claims must be predicated on the commission of one or more of these crimes Open-ended Patterns – The Supreme Court has held that, under RICO, a pattern of racketeering must be sufficiently continuous. Wrongful acts that threaten to continue indefinitely give rise to open-ended patterns. For example, a mobster’s single extortionate threat to break the legs of a store owner unless the owner pays the mobster $1000 per month constitutes an open-ended pattern of racketeering. An open-ended pattern may also arise when criminal conduct becomes a regular way in which the defendant does business.
Sec. 1962. Prohibited activities
(a) It shall be unlawful for any person who has received any income derived, directly or indirectly, from a pattern of racketeering activity or through collection of an unlawful debt in which such person has participated as a principal within the meaning of section 2, title 18, United States Code, to use or invest, directly or indirectly, any part of such income, or the proceeds of such income, in acquisition of any interest in, or the establishment or operation of, any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. A purchase of securities on the open market for purposes of investment, and without the intention of controlling or participating in the control of the issuer, or of assisting another to do so, shall not be unlawful under this subsection if the securities of the issuer held by the purchaser, the members of his immediate family, and his or their accomplices in any pattern or racketerring activity or the collection of an unlawful debt after such purchase do not amount in the aggregate to one percent of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to elect one or more directors of the issuer.
(b) It shall be unlawful for any person through a pattern of racketeering activity or through collection of any unlawful debt to acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce.
(c) It shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt.
(d) It shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of this section.
Sec. 1963 . Criminal penalties.
(a) Whoever violates any provision of section 1962 of this chapter shall be fined under this title or imprisoned not more than 20 years (or for life if the violation is based on a racketeering activity for which the maximum penalty includes life imprisonment), or both, and shall forfeit to the United States, irrespective of any provision of State law –
any interest the person has acquired or maintained in violation of section 1962;
any –
(A) interest in;
(B) security of;
(C) claim against; or
(D) property or contractual right of any kind affording a source of influence over any enterprise which the person has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962; and
any property constituting, or derived from, any proceeds which the person obtained, directly or indirectly, from racketeering activity or unlawful debt collection in violation of section 1962. The court, in imposing sentence on such person shall order, in addition to any other sentence imposed pursuant to this section, that the person forfeit to the United States all property described in this subsection. In lieu of a fine otherwise authorized by this section, a defendant who derives profits or other proceeds from an offense may be fined not more than twice the gross profits or other proceeds.
(b) Property subject to criminal forfeiture under this section includes –
real property, including things growing on, affixed to, and found in land; and
tangible and intangible personal property, including rights, privileges, interests, claims and securities.
(c) All right, title, and interest in property described in subsection (a) vests in the United States upon the commission of the act giving rise to forfeiture under this section. Any such property that is subsequently transferred to a person other than the defendant may be the subject of a special verdict of forfeiture and thereafter shall be ordered forfeited to the United States, unless the transferee establishes in a hearing pursuant to subsection (1) that he is a bona fide purchaser for value of such property who at the time of purchase was reasonable without cause to believe that the property was subject to forfeiture under this section.
(d)
Upon application of the United States, the court may enter a restraining order or injunction, require the execution of a satisfactory performance bond, or take any other action to preserve the availability of property described in subsection (a) for forfeiture under this section –
(A) upon the filing of an indictment or information charging a violation of section 1962 of this chapter and alleging that the property with respect to which the order is sought would, in the event of conviction, be subject to forfeiture under this section; or
(B) prior to the filing of such an indictment or information, if, after notice to persons appearing to have an interest in the property and opportunity for a hearing, the court determines that
(i) there is a substantial probability that the United States will prevail on the issue of forfeiture and that failure to enter the order will result in the property being destroyed, removed form the jurisdiction of the court, or otherwise made unavailable for forfeiture; and
(ii) the need to preserve the availability of the property through the entry of the requested order outweighs the hardship on any party against whom the order is to be entered: Provided, however, that an order entered pursuant to subparagraph (B) shall be effective for not more than ninety days, unless extended by the court for good cause shown or unless an indictment or information described in subparagraph (A) has been filed.
A temporary restraining order under this subsection may be entered upon application of the United States without notice or opportunity for a hearing when an information or indictment has not yet been filed with respect to the property, if the United States demonstrates that there is probable cause to believe that the property with respect to which the order is sought would, in the event of conviction, be subject to forfeiture under this section and that provision of notice will jeopardize the availability of the property for forfeiture. Such a temporary order shall expire not more than ten days after the date on which it is entered, unless extended for a longer period. A hearing requested concerning an order entered under this paragraph shall be held at the earliest possible time, and prior to the expiration of the temporary order.
The court may receive and consider, at a hearing held pursuant to this subsection, evidence and information that would be inadmissible under the Federal Rules of Evidence
HAS 1800 RADIATOR BROKE WIRE FRAUD AND RICO LAWS READ THE POSTED LAW AND CHECK IT OUT.