Many of us have seen Toktok’s advert with Alden Richards. Who would buy the “Basta Totok rider ka, Pogi ka!” line? The advert was tasteless and ill-conceived. At the same time, Toktok started selling its franchise less than a year into its operation. Also, Toktok has a referral program that sounds more like a pyramid scheme scam. To those who know better and can see through Toktok, the company’s action exhibits some of the critical signs of an investment scam.
Toktok Sells Franchise Suspiciously Eary In Its Operation
Purchasing a franchise, Investopedia provides, is advantageous because business owners “have access to an established company’s brand name. You won’t need to spend resources getting your name and product out to customers.” In its article, the 11 signs of a franchise scam in the country, Franchise Market Philippines also calls it a red flag when businesses venture into franchising have less than a year of operation.
In 2020, JC Worldwide Franchise Inc. rolled out Totok. It was at the height of the demand for delivery services. The company claims they are the first online franchise operator delivery service company (a wordy label). Although JC Worldwide Franchise Inc., sometimes referred to as JC Premiere, has well-known franchises like Siomai King and Noodle House. However, Toktok is an entirely new business without a proven track record.
Toktok’s Referral Program: A Pyramid Scheme?
If you want to know how Toktok operates without the blinders of celebrity endorsement and grand promises of high earnings, read this review from Cyberbump. You can also watch Neil Yanto’s vlog on YouTube, which explains JC Worldwide Franchise Inc. and JC Premiere, the company’s new franchise package, how to earn, and the advantages and disadvantages.
Also, Invested Lifestyle made two YouTube vlogs about Toktok. In one of the videos, Invested Lifestyle reviews Toktok’s data on its website, explains why it’s a pyramid scheme, and presents four red flags. The video featured some feedback and demands from Toktok riders. On the other hand, the second video featured the franchisees, including no bookings for riders and no riders for operators.
JC Worldwide Franchise Inc. is the same company that sent a cease and desist letter to Doc Adam after he made a vlog about CopperMask PH masks. According to Doc Adam, doctors and medical students in the Philippines also received threats because of their CopperMask PH reviews. CopperMask distributorship is part of the 11-in-1 Toktok franchise package.
If you read the 11 Signs of a Franchise Scam in the Philippines in this article, you may identify other red flags that you can see in Toktok. For example, the blog warns franchisees “…if the company requires or encourages the prospective franchisee to recruit additional clients. It is somehow the tactic of pseudo franchisers to create a pyramiding system that gives bonuses for every successful client referral.” Read and watch the resources above before you say yes to Toktok.