Have you heard Island Red Cafe, like Old Town style restaurant? It is multi level marketing which recruiting more members to join then can get commission. You need to invest RM6000 then can enjoy 5% fixed guarantee return each month without recruiting any members. For me, it sounds like a pyramid scheme.
Why I Don’t Dare To Invest?
I took dinner with one of my friend at there last time, food is not very good, services also very bad, and there have a lot of market competition already, plus they do not have something special about their franchise. So, common sense, if food not tasty, for sure business will be affected, so will they still able to pay 5% as fixed guarantee return?
Good Payout Is Not Equal To Company Making Huge Profit
If you are the investor of Island Red Café Business and have received your money successfully then please do not feel so happy and spread the news to others. This is because the money could be come from the new investors. When there is less new investor and more money need to be paid out monthly, the founders will make a report and give an excuse for closing shop and run away.
Island Red Cafe Franchise Business:
Let me summarize the information with you:
1. Whenever the region accumulated 50 slots investment, an Island Red Café branch will be opened. 1 slot = RM6000. The investor will be the shareholder.
2. Shareholder’s benefits:
=> Fixed return RM300/slot each month (5% of the investment) for 1st and 2nd year. So, total that you will get is RM7200.
=> Fixed return RM150/slot each month (2.5% of the investment) for 3rd, 4th & 5th. So, total that you get is RM 5400
=> RM100/slot food voucher will be given every month & will be given for total 5 years which equivalent to RM6000.
=> VIP member discount 15%
=> Birthday discount 30%
Sum up the fixed return & food voucher; the return is equal to RM18600, which is around triple of your investment return.
After 5 years, no more fixed return but the company will distribute 49% of the net profit to share among all the shareholders.
My personal advice: Nowadays, these kinds of businessmen know to come out many creative ideas to getting funds from public to fund their own business indirectly. This is because they know that intelligent people refuse to put into bank FD since the interest is quite low. Anything happened, they’re neither the employee nor shareholder of the company. So, have you considered carefully?