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The Better Business Bureau is cautioning consumers about numerous complaints filed against “Beauty Supply Institute, LLC” (BSI), a company offering services to aspiring beauty supply store owners. Complaints filed with BBB allege issues related to contract fulfillment, refund requests, and poor customer service. Consumers report after paying significant fees for BSI's services—such as lease negotiation, product ordering, and store setup—many are experiencing delays or incomplete services, while others did not receive the promised services at all.
One consumer complaint to BBB stated, "BSI was supposed to assist with lease negotiations and store setup, but after paying $50,000, they failed to fulfill any of their obligations, and I couldn't reach them for weeks. I’m now seeking a refund." This is just one of many accounts from individuals who have been left with unfulfilled contracts and debt.
In July 2024, BBB Atlanta & NE Georgia initiated an investigation into Beauty Supply Institute’s business practices after receiving inquiries and consumer complaints. Some consumers invested amounts ranging from $2,500 to $87,000 for business opportunities that allegedly included services such as business plan development, loan acquisition, and comprehensive training. However, numerous consumers claim that BSI failed to deliver the services as advertised and has refused to provide refunds.
As of September 12, 2024, BBB reached out to Beauty Supply Institute, LLC to request voluntary cooperation in resolving the unresolved complaints and addressing the recurring pattern of consumer issues. BSI did not respond, and the company currently holds an "F" rating with BBB Atlanta & NE Georgia because of unanswered complaints and a failure to address the concerns raised by its customers.
In addition to the ongoing complaints, Beauty Supply Institute, LLC is currently facing legal action in Maryland. For more details on this legal action, visit: Maryland Securities Commissioner's Order.
BBB offers the following advice for people considering investing in business opportunities:
- Do your research. Before investing, check the company's profile on BBB.org and review customer complaints and ratings.
- Verify licensing and registration. Ensure that the company is registered to operate legally in your state and complies with applicable business opportunity regulations.
- Understand the contract. Review the terms of any agreement carefully and ensure that services and timelines are clearly outlined.
- Demand transparent communication. Maintain clear records of all interactions with the company and insist on regular updates regarding timelines and services.
- Beware of high-pressure sales tactics. Be cautious of any company that urges you to make quick decisions or large upfront payments. Reputable companies will give you time to do your research and make a decision.
For more information Report scams to BBB Scam Tracker. Read more about BBB Accreditation Standards and BBB Standards for Trust.
Better Business Bureau® (BBB®) Atlanta & NE Georgia contributed this warning.