In September 2007 we purchased a Sure Step Non Slip Distributorship for $ $24, 750 from Interlake Chemicals for Southern Ontario, Canada.
Unfortunately, rather than follow our own instincts we allowed ourselves to be smoothed talked by their sales rep Naomi Saucedo/Stroud (note the name) and did not take the Distributor Agreement to a lawyer. If we had, we would have very quickly discovered that the Distributor Agreement was NOT legal without Disclosure Documents in Ontario, Canada.
A Disclosure Document is 10 pages of requirements that became law/regulation under the ARTHUR WISHART ACT (Franchising/Distributorships Disclosure) in Ontario, Canada in January 31, 2001. Just some of the info that the Disclosure Documents would include:
background information about the company
business background of the directors, the general partners and the officers of the company
a statement, including a description of details, indicating whether, during the ten years immediately preceding the date of the disclosure document, the companies, the company's associate or a director, general partner or officer of the company has been convicted of fraud, unfair or deceptive business practices, or a violation of a law that regulates companies or business or if there is a charge pending against the person involving such a matter
an audited financial statement for the most recently completed fiscal year of the company's operations
the name, last known address and telephone number of each franchisee in Ontario who operated a franchise of the type being offered that has been terminated, cancelled, not renewed or reacquired by the franchisor or otherwise left the system within the last fiscal year immediately preceding the date of the disclosure document
To make an already long story short: after months of trying to get jobs with very little success, yet another misrepresentation by Interlake Chemicals, we decided to sell the Distributorship to recoup our money. Both Glen Stroud and Dan Hammond were both made aware of this. Dan even went so far as to tell us that Interlake Chemicals has in the past helped other Distributors sell their Distributorships for a small commission. We agreed. After several weeks we made several phone calls to Dan Hammond to get an update however he NEVER did return any of our calls.
From various Internet Advertising, we did in fact have two different prospective buyers for our Sure Step Non-Slip Distributorship however, after they did there own initial investigation into Interlake Chemicals what they read and found out on the Internet they both back out.
It turns out that Interlake Chemicals has been sued by the State of Washington for violations of the Business Opportunity Fraud Act of Washington. According to the allegations, "Glen Stroud, Dan Hammond, and Interlake Chemicals International Ltd. Corp., and their agents and employees, have violated the Business Opportunity Fraud Act of Washington, RCW 19.110, and that their violations justify the entry of an order of the Securities Administrator under RCW 19.110.150 to cease and desist from such violations."
It turns out according to Michael Webster a Franchise Lawyer in Toronto that and I quote: For the record, Glen Stroud was involved with Paul Beaupre - who masterminded the largest single business opportunity fraud prosecuted in Canada. (Your humble scribe appears on the W-Five's expose of Beaupre.)
Once we where made aware of this information from our two prospective buyers we began to do some more research (although we did in fact do research before we bought this Distributorship the only negative at that time was one complaint at complaint with what we believe was a viable response from Dan Hammond, most of what is now on the internet came on a month or two after we had already bought the Distributorship) and this is also what spurred us on to FINALLY take our Distributor Agreement to a lawyer and he did in fact confirm for us that it is FRAUDELENT! Therefore, we cannot sell our Distributorship - as we will then be selling a fraudulently Distributorship!
We have contacted both Glen Stroud whom it appears may actually be an owner of Interlake Chemicals and Dan Hammond and have asked for a FULL REFUND. The remaining non slip product (approx. 97%) and all the equipment would then be returned to Interlake Chemicals via a courier of their choice at their cost. However, they have NOT contact us to either make the arrangements or to make excuses - they have just ignored our letters.
In our letters we did forewarn them that without a Refund we would not go away and that we will get the word out about them and their company Interlake Chemicals.
We have already begun: filed a complaint with the Better Business Bureau, ads have been place on the internet looking for people who are possibly looking at buying a Distributorship, we will begin to take legal action, as well as notify appropriate Government Agencies, either our local Fraud Squad and/or the RCMP, contact various media such as; W-Five, Marketplace and National Newspapers and contact via email current distributors.
Any one looking for more information on this company need only to Google Interlake Chemicals!!! Be aware be very aware
It will be interesting to see the response from either Hammond or Stroud and what BS they will concoct!
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