FOR IMMMEDIATE RELEASE

MEMPHIS-BASED MONA SPA AND LASER CENTER FRANCHISES, LLC FACING MILLION DOLLAR FRAUD SUIT BY TWO FORMER FRANCHISEES

February 4, 2009, Vancouver, WA. Last week the last of the three independently owned Mona Spa and Laser Centers closed its doors after the franchisee, Hassan—Vancouver Park Place, Inc. owned by Dr. Sam Hassan, lost hundreds of thousands of dollars in the Vancouver medical spa business. A Tigard, Oregon location also owned closed in December and the Mattawan, Michigan location closed in May 2008. Another company-owned Mona Spa location in Mississippi was bought out by the physician-owner because of disagreements with Mona Sappenfield, the franchisor owner.

The Washington civil complaint originally filed by Dr. Hassan in July 2008 for $1.4 million dollars alleges that Mona and Bill Sappenfield provided Dr. Hassan with income projections to induce him to sign the franchise agreement that claimed that Dr. Hassan would be profitable by the second or third month of opening the medical spa and that he could expect to make over $200,000 per year. In fact, the income projections were false and providing them to Dr. Hassan violated Washington’s investor protection act. Dr. Hassan also alleges that the Sappenfield’s represented to him that five other Mona franchises were slated to open within the year of the opening of his franchises and that 20 more would be opening up on cruise liners. None of the Sappenfield’s representations turned out to be true. The Sappenfields have not opened a franchise location since Dr. Hassan.

I had heard the VP of Sales for Radiance was also doing for sales for Mona. If that was the case it doesn't surprise me in the least that fraud charges were filed. This knucklehead would take male clients to strip joints and do the male-bonding over sex, booze and money to seal the deal.

I feel bad for the poor franchisee. I hear Bill and Mona are doing a smear campaign on the internet and in the media. I guess stealing his money wasn't good enough.