Complaints

This profile includes complaints for Beauty Supply Institute's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Beauty Supply Institute

  Mableton, GA 30126

• 

  Beauty Supply Institute

  Atlanta, GA 30339

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:04/03/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On 6/6/22 I paid $5k into the $30k Full Implementation package. In May 2023, I began working with *** to find funding for the remainder of the package fee and holding account. They connected me to Torro, who applied for credit cards on my behalf to pay ***. In June 2023, I received phone calls daily from **** consultant to see if I received the credit cards. Once I received the cards, she would take payment over the phone, maxing out nearly every card. Payments were made for the package fee in June 2022 and June 2023 totaling $30,000 and for the holding account of $13,500 in June-July 2023. By July 2023, all of the credit cards Torro applied for on my behalf were maxed out or near the limits. *** said they couldn't move forward with services until I funded the holding account to $40K. I started working with *** to apply for loans but my credit score was severely impacted by the maxed out credit cards. On 8/1/23, *** offered a credit enhancement service for a fee. I declined since it was ***'s practices in seeking funding that caused my credit score to drop from excellent to poor. In February 2024, I emailed a *** representative for receipts I did not receive for payments made over the phone. The team provided a total less than the $43,500 paid. The team finally reconciled the amounts after many emails. On 3/26/24, I requested a contract termination, a refund of my holding account funds, and of the package fee less fees for ***'s training, business *********** analysis I received. I received a letter in September 2024 detailing **** new policies, stating that **** legal team would be reviewing each refund request. Per the letter I received, the companys new policy is that transactions will now occur directly between clients and vendors without *** managing holding accounts, which entitles me to my holding account funds. On 12/18/24 my lawyer filed a demand letter on my behalf for a refund of $38,500. *** won't answer the phone or emails so this is my last resort.

  Business Response

  Date: 04/11/2025

  Response to Clients Allegations
  Beauty Supply Institute (BSI) appreciates the opportunity to respond to the concerns raised by Ms. **** ******** (*****). We take all customer inquiries seriously and strive to provide transparent communication and professional service.
  

  Clarification Regarding Scope of Services
  We respectfully wish to clarify that Beauty Supply Institute (BSI) does not facilitate, assist, or arrange any credit, loans, or funding decisions. Any activities related to credit card applications, loans, or funding were not conducted or arranged by ***. These matters are entirely outside of the scope of **** consulting and educational services.
  

  Refund Process & Policies
  Regarding the client's refund request, we want to ensure that she is fully informed of the process and the next steps:
  
  Agreement Terms: As outlined in the ************************************** Agreement, the retainer payment is non-refundable beyond the 72-hour rescission period following contract execution.
  
  Legal Review: Refund requests are not processed internally but are instead forwarded to our legal department for review. Each request is handled on a case-by-case basis in accordance with the contract terms.
  
  Processing Time: Any potential refund, if applicable, undergoes a financial audit. However, there is no guaranteed timeframe for completion.
  
  Deductions & Adjustments: If a refund is approved, deductions may be applied for services rendered, operational costs, and any outstanding fees as outlined in the agreement.
  
  ********************* The legal team does not engage directly with clients. All updates regarding the client's refund status will continue to be communicated through this office.
  
  At this time, we do not have any new updates regarding the client's refund request. We will notify the client immediately once we receive further information from the legal department.
  
  We understand that this process may be frustrating, and we appreciate their patience.
  

  Additional Clarification Regarding Payment and Funding Arrangement
  It is important to note that Ms. **** ***** did not complete full payment for her services with *** for complete services to be ***********. ***** signed a contract for funding to be acquired on her behalf, as she was unable to raise the necessary funds independently. These funds were specifically allocated to be used for opening a beauty supply store using *** services.
  
  The companies that provided funding to Ms. ***** require that she work with ***, and prohibit any refund that would allow her to circumvent that agreement.Refunding these funds to Ms. ***** would result in *** defrauding the funding company's arrangement with us, as she could then use those funds for any purpose outside of the intended store opening, which the signed agreement explicitly outlined.
  
  Throughout this process, the funding team has continuously provided Ms. ***** with credit and funding services. *** has not delayed the delivery of any services she has paid for. Ms. ***** has received services that align with what has been paid for thus far. However, due to the complexity of her funding arrangement, the resolution of her request requires additional time to ensure *** remains compliant with its contractual obligations to the lenders involved.
  
  This necessary review ensures that *** is not liable to Ms. ***** or to the agreements *** has signed with the lenders should her agreement be terminated.
  

  
  Detailed Record of Communication with Ms. ***** with Beauty Supply Institute ********************* and staff: 
  April 2, 2024: Ms. ***** submitted her formal request for contract termination via email to ***************************************************************.
  April 8, 2024: Ms. ***** followed up via email and voicemail. Response from ********************* at 4:36 PM acknowledging receipt and outlining the next steps.
  July 10, 2024: Email from ********************* at 4:31 PM explaining refund review process and internal audit.
  July 29, 2024: Ms. ***** followed up requesting a status update.
  July 30, 2024: Response from ********************* at 5:00 PM informing Ms. ***** that the matter has been referred to **** legal team.
  August 27, 2024: Ms. ***** called for an update. ********************* informed her there was no new update and left a message for operations.
  August 30, 2024: Email from Operations Support at 3:28 PM regarding mailing of a letter referenced by our CEO.
  October 4, 2024: Note by ********************* indicating that the Cancellation Request Letter was sent via Certified Mail.
  October 7, 2024: Ms. ***** called again for an update. ********************* informed her that additional information would be mailed and may require her signature.
  April 2, 2025: Ms. ***** sent an email requesting a further update on her refund request.
  April 4, 2025: Response from ********************* at 11:11 AM confirming that her request was submitted and under legal review.
  
  Final Position
  BSI maintains that:
  - We have responded professionally, consistently, and timely to Ms. *****inquiries.
  - We have followed the internal procedures outlined in our signed agreement with ******************** refund determination is pending legal review and subject to contract terms.
  - We do not engage in funding, loan facilitation, or credit card arrangements those matters fall outside of ***'s responsibility.
  
  We remain open to completing our internal review and will notify Ms. ***** once a final decision has been reached in accordance with her signed agreement.
  

• Initial Complaint

  Date:03/12/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I Ernelie ****** sent a cancellation request letter to the company to get my refund back because I am not getting the services they promised to deliver to me and this is what I received in return from them Good morning Ms. ************** send all refund requests to ************************************** Thank you.We need to inform you of a few important points:We no longer handle refunds in-house for clients with executed agreements. Refund requests are now managed by our legal offices.Any work we have been doing for you will cease immediately.Delays in the completion of your project may occur.For agreements with no refund clauses, there is no guarantee you will receive a full refund, if any.There is no specific timeframe for confirmation of the outcome of your request.Your request may go to court for ************** can no longer communicate with your service provider during the processing of your request; you must communicate with your assigned point of contact.We reserve the right to deduct funds from your payment for services rendered and damages due to breach of contract..Your assigned point of contact for this process will be ************************************** Please I need I help because this company lied to me since the beginning about their credit card now I have so many debt because of this company.Thank you.

  Business Response

  Date: 03/18/2025

  Dear Customer Relations Representative:
  I am writing on behalf of Beauty Supply Institute (BSI) in response to the complaint submitted by Ms. ******* ******. Below is a factual account of our communications and policies, along with clarifications regarding a purported credit card issue.
  
  1. Acknowledgment of the Complaint
  We acknowledge that Ms. ****** is dissatisfied with her contract and wishes to terminate the agreement with ***. We appreciate the opportunity to provide our perspective and look forward to cooperating with the BBB to find a suitable resolution.
  
  2. Notifications Sent to Ms. ************ March 7, 2025, Ms. ****** received an email from our project management team explaining that:
  Refund Requests Are Handled Externally: Refund requests for executed agreements are processed by our legal department.
  Work Ceases Immediately: We halt all project-related activities to prevent further costs if a refund is requested.
  Potential Delays: Termination at this stage may delay completion of previously scheduled deliverables.
  No-Refund Policy: If the agreement includes a no-refund clause, Ms. ****** may not qualify for a full or partial reimbursement.
  No Specific Timeline: There is no defined timeframe within which a determination about refunds must be made.
  Restricted Communication: Ms. ******* point of contact for all refund discussions is now our operations department.
  Right to Deduct: *** retains the right to deduct fees for services rendered and potential damages caused by premature termination of the contract.
  These points were reiterated in an additional notification from our operations team. We have directed Ms. ****** to forward all refund requests to our operations department for further legal review.
  
  3. Services Rendered and Contract Terms
  Prior to her termination request, Ms. ****** had an active agreement with *** that specifically detailed the services to be provided,associated timelines, and refund-related terms. Our records show that:
  Services Commenced: Our team began working on her project in accordance with the signed contract.
  Funding Model Clarified: We consistently communicate that our process, akin to a financed purchase, can result in potential non-refundable costs should the client discontinue services mid-contract.
  Contractual Obligations: Ms. ******* agreement may contain provisions limiting or excluding refunds, and may allow for offsets or deductions relating to labor and other expenses already incurred.
  
  4. Company Policy on Refunds
  Our policy for handling refund requests is governed by the terms of our client agreements, supplemented by documented procedures to ensure consistency and fairness. Once Ms. ******* request was received, we halted all further work on her behalf to avoid accruing additional costs. Any partial or full refund that may be considered will follow:
  Legal Review: An internal assessment by our legal department to determine which, if any, refunds apply.
  Deductions: Possible deductions for services provided or damages due to early termination, consistent with contract terms.
  
  5. Unrelated Credit Card Matters
  Ms. ****** also mentions concerns related to a credit card or financing arrangement. We want to clarify:
  No Credit Card Issuance: Beauty Supply Institute does not issue, manage, or facilitate loans or credit cards.
  Complaint Scope: As *** does not provide credit services, any dispute regarding a credit card or financing notice is outside the scope of Ms. ******* agreement with us and should not be included in this complaint against ****
  
  6. Proposed Path Forward
  While Ms. ******* termination request is under legal review, we remain open to any additional information or documentation she may wish to submit. Our goal is to handle this matter in a fair and transparent manner and, if possible, resolve any outstanding concerns through constructive dialogue.
  Should Ms. ****** wish to provide further clarification or supporting evidence regarding her refund request, we encourage her to communicate directly with **************************************** will respond in a timely manner and keep the BBB apprised of any developments.
  
  7. Conclusion
  We appreciate the BBBs assistance in facilitating communication. Please let us know if you need additional documentation or information regarding this matter. We look forward to resolving the complaint as efficiently and professionally as possible.
  
  

  Customer Answer

  Date: 03/18/2025

   
  Complaint: 23054726
  
  I am rejecting this response because, BSI was force me to get some credit card which I have witnessed in this situation and told me I will not pay interest fees or if I pay late they wont be any charge (late fees$ it was all lies. I spent so much money and this *** hasnt provided any service for them to charge me a *****. I sincerely not going to sit back to let my money that I worked hard for years to let this rich people get away with it. I want a dream to come to reality but they not reaching out as even when I called them I cant leave any voicemail or nor pick up my calls.

  
  Sincerely,
  
  Ernelie ******

  Business Response

  Date: 03/20/2025

  Dear Customer Relations Representative:
  We write to offer further clarification regarding Ms.******* complaint. We appreciate the BBBs continued facilitation and respectfully present the following:
  1. Timeline of Cancellation and Notification
  March 4, 2025 (3:02 PM): Ms. ****** notified our ***************************** that she wished to cancel her agreement.
  March 7, 2025 (9:59 AM): The ***************************** emailed Ms. ****** with instructions to direct all refund requests to our operations department *************************************** for further handling.
  

  2. Alleged Forced Credit Card/Financing
  Ms. ****** claims Beauty Supply Institute (BSI) required her to obtain a credit card and misled her about interest or late fees. We reiterate:
  No Issuance or Management of Credit Cards: *** does not issue or manage credit cards. Any financing arrangement, including fees or interest, is between Ms. ****** and her chosen financial institution.
  

  3. Services Commenced
  Ms. ****** contends she received no services, yet internal records and email communications show:
  Site Selection Assistance
  On December 3, 2024, we provided Ms. ****** with a Site Analysis Report containing at least one viable location within her chosen zip codes, and we noted that more analysis could be done for an additional fee if suitable options were limited.
  Multiple email exchanges in December 2024 detailed potential locations and negotiations, including a December 5 message explaining the cost of a second site selection if needed and a December 10 message clarifying the zip code allocation.
  Ms. ****** responded on February 20, 2025, indicating she was actively looking for a retail store space and anticipated opening in July, to which our ****************** team replied on February 21, 2025 with an offer of continued support.
  All of these communications illustrate BSIs efforts to assist Ms. ****** with site analysis, location options, and negotiation processes consistent with her agreement.
  Project Preparation and Coordination
  Our team performed preliminary research and market analysis, as documented in ongoing emails. Until Ms. ******* request for cancellation on March 4, 2025, these activities continued to progress.
  

  Once Ms. ****** indicated she wished to terminate, we paused all remaining work to avoid incurring further expenses, per our standard policy. 
  We are advising Ms. ****** to retrack these statements as they are defamatory and prosecutable, which our legal team could choose to pursue. 

  
  

• Initial Complaint

  Date:03/05/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Beauty supply institute promises to help me open beauty store as me a downpayment of $70000 i have being back and forward after they collect all of their downpayment. we got came to fine out at the end he has lots of problems with other customers like myself at this we ask for full refund. up to now i have not get my refund. i need help

  Business Response

  Date: 03/18/2025

  Dear Ms. ********** acknowledge receipt of your complaint regarding your agreement with Beauty Supply Institute (BSI) and appreciate the opportunity to address your concerns.
  Review of Your Agreement & Payments
  Based on our records, you entered into a legally binding agreement with *** for ****************************************** on July *******. Your agreement included site selection, lease negotiation, online training courses, store setup, and marketing services.
  As outlined in your signed contract, the agreement became binding after the 72-hour Right to Rescind period. This contract states that:
  The retainer and payments made are non-refundable after this period.
  If a client chooses to discontinue services, their funds may be applied as credit toward other *** services but will not be refunded.
  Any refund, if applicable, is subject to deductions for services rendered.
  According to your payment records, you made payments totaling $55,000 toward the store opening package, with additional funds placed into a holding account for store-related purchases.

  
  Services Rendered & Communications
  *** has provided the following services as per the agreement:
  Conducted business consultations and provided training opportunities.
  Requested necessary waivers and documentation for your site selection process.
  Provided continuous communication regarding your agreement and project status.
  Our records show that you inquired about a refund on November 13, 2024, stating that online reviews made you uneasy about continuing. However, dissatisfaction based on external factors does not qualify for a refund under the terms of your agreement.
  On November 25, 2024, you were informed via email that refund requests for executed agreements are handled by our legal team and that there is no guarantee of a full refund. You were also notified that any refund consideration would factor in services already rendered and potential damages due to contract termination.

  
  BSIs Position on Your Request
  As per the agreement, a full refund cannot be issued because services have been rendered.
  If there are remaining funds in your holding account, these will be reviewed and disbursed after deducting applicable fees for services provided.

  
  We regret that you feel unsatisfied with the process, but we remain committed to providing services in accordance with the agreement you signed. If you would like to explore alternative resolutions, such as credit toward other *** services, please let us know.

• Initial Complaint

  Date:02/05/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  June 2022 I paid $3,000 for an online course. Once completed, I attended the summer conference in *******, ******* June *****, 2023. On November 14, 2023, I signed up with the credit enhancement to improve my score. I paid $69.00 a month to Beauty Supply *************. They had me to sign up Smart Credit for credit monitoring. That was an expense of $24.95 a month. Once I stated paying, I NEVER heard from anyone UNLESS it was soliciting for money. They NEVER did anything to fix my credit. When I would ask to see what they have done, they showed me generic letters that they said they sent out. Nothing was ever sent. I started doing things on my own. I started complaining because I wouldnt hear anything for months unless I contacted them. Then every time I called, I would have a new representative that promised me to do better than the one before which was false. On January 26, 2024, I signed a contract with Beauty Supply Lending Institute. They had several loan companies contact me offering me small personal loans. Once I told the loan companies it was for a business, I got denied because they didnt do business loans. Since I was denied, I was told I owe them $1260.00. I told them that its not my fault and they sent me to companies and wanted me to get a personal loan for business purposes without being fraudulent. On November 21, 2024. I was sent a certified letter saying I needed to contact them to resolve the matter within 7 days and do not listen to the fraudulent claims being made against them. On this letter, there was no information for me to contact them: phone number or email. The name on the letter was **** R. ******. The numbers I had from past communication were all disconnected. On January 14, 2025, I received an email with a welcome letter for my new loan with payments attached. I didnt notice until I seen the email with a 10 day late notice. I do have bank account statements for all expenses I have paid.

  Business Response

  Date: 03/06/2025

  Dear BBB Representative,

  
  We are responding to the complaint submitted by Ms. ***** *******. While we acknowledge her concerns, we will only address matters related to Beauty Supply Institute (BSI) and the services we provided under the agreed-upon contract terms.
  1. Online Course and Conference Attendance (June 2022 June 2023)
  Ms. ******* states that she paid $3,000 for an online course in June 2022 and later attended the BSI ***************** in ******* on June *****, 2023.
  Ms. ******* was granted full access to the online course upon payment, which provides instructional material designed to assist entrepreneurs in opening a beauty supply store. At no point did Ms. ******* report technical issues or restrictions in accessing the course.
  Additionally, she successfully attended the 2023 Beauty Supply Institute *****************, which was conducted as scheduled and included business insights, networking opportunities, and guidance on store opening strategies.
  All services related to the course and conference were provided in accordance with the agreement, and there were no contractual violations or service deficiencies.

  
  2. Certified Letter, Phone Communication & Project Status Update Webinar Invitation
  Ms. ******* states that she received a certified letter instructing her to contact *** within seven days but claims that there was no contact information on the letter, and prior contact numbers were disconnected.
  *** maintains detailed records of all outgoing communications, including certified mail. We can confirm that the letter was properly issued, and our standard procedure ensures that all formal communications include appropriate contact details.
  Our records indicate that Ms. ****************** communication with a *** representative was on Tuesday, December 3, 2024. At that time, she did mention her difficulty with the numbers associated with BSI. The staff member confirmed that she could reach out to the operations team email as well as the number they were currently speaking on.

  
  Regarding phone communication, we have publicly addressed this issue on our website, where we state the following:
  ATTENTION!
  We've been experiencing phone issues due to an upgrade underway by Xfinity. For immediate assistance, leave a message and we will return your call as soon as possible. We expect our upgrades to be completed within the next 30 days.
  Additionally, our website features a "Contact Us" section where clients can submit their information for us to follow up with them directly. This provides an alternative method for clients to communicate with our team if they are unable to reach us by phone.

  
  To ensure continued transparency and engagement, *** invited Ms. ******* and other clients to a webinar on February 14, 2025, where we provided important details regarding the status of projects and upcoming store openings. The client received an email invite to the February 14, 2025, Project Status Update Webinar, where store opening updates were discussed.

  
  Webinar Details:
  Date: February 14, 2025
  Time: 3:00 PM Eastern Time (US & ******)
  Topic: Beauty Supply Institute Status Update Store Opening Clients 2025
  Purpose: To provide updates on store openings and answer any outstanding questions.
  This invitation demonstrates **** continued efforts to provide timely updates and support to its clients, including Ms. **************** contact information remains unchanged and is readily available on our website, prior correspondence, and contractual agreements. If Ms. ******* had difficulty reaching us, she was provided with multiple communication avenues, including email, the "Contact Us" section of our website, and webinar participation. If Ms. ******* requires another copy of the letter or clarification regarding its contents, she may submit a formal request to our support team.

  
  Conclusion
  Ms. ******* received and accessed the online course as agreed upon.
  She attended the BSI ***************** in 2023 without issue.
  Her last communication with BSI was on December 3, 2024, at which time she was provided with alternative contact options.
  The client received an email invite to the February 14, 2025, Project Status Update Webinar, where store opening updates were discussed.
  The certified letter was properly sent, and our contact details remain available.
  Phone communication issues have been publicly addressed on our website, where we have provided clear guidance for clients needing assistance.
  The "Contact Us" section of our website offers an additional way for clients to reach us and request a follow-up.
  BSI does not facilitate or assist with credit arrangements, loans, or funding decisions, and any disputes related to such matters fall outside of our scope of services.

  We respectfully request that all concerns unrelated to *** be directed to the appropriate entities.

• Initial Complaint

  Date:01/13/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Refund Request! 1. A full refund of my investment totaling $41,900 for the delivery package and $2,500 for the Holding account. 2. Any additional compensation or support deemed appropriate to address the financial/emotional harm caused. Prior to investing in ***, my credit scores ranged from 640 to 741 ("very good" classification). *** guided me in the process and I secured five credit cards and a personal loan so I could purchase the *** delivery package in the amount of $41,900. The total amount of funding I acquired is about $75,000. Shortly after I received the funds, *** contacted me with urgency and I wire transferred a total of $41,900 to BSI. *** staff indicated that in the past, investors had received their funding and "ran off," and never finalized the transaction.Afterwards, I realized that this arrangement also obligated me to secure more funds for the "Holding or Product" account; I needed about $40,000+ for inventorya critical step misunderstood. Without fully funding the holding account, I could not proceed with opening my store. *** offered internal funding opportunities for more funds I could use for the Holding account, but I was unable to secure the funding. The $2,500 I paid when I applied for the funding was instead allocated to my Holding account, but this was far from sufficient. Since September 2024, I have been unable to continue to make the monthly payments on the credit cards and personal loans secured under **** guidance and I still have no store. The introductory rates on several credit cards have doubled, further compounding my financial hardship. My credit scores have dropped significantly (Equifax: 478; Experian: 548). I am now facing:Harassing calls and emails from creditors Potential lawsuits, wage garnishment, and liens on my home Exploring bankruptcy and debt management programs Considering taking a second job to manage this debt. I have email documentation and receipts starting in 2022-to date to support my claim.

  Business Response

  Date: 03/06/2025

  Dear BBB Representative,

  We are writing in response to the complaint submitted by Ms. ****** ***** (formerly *******) regarding her request for a refund. This response will specifically address matters related to Beauty Supply Institute (BSI) and its contractual obligations. *** does NOT issue, NOR facilitate the arrangement of loans or credit. Any disputes related to financial hardships, credit agreements, or third-party funding sources are unrelated to *** and fall outside the scope of this response.
  
  1. Refund Request for $41,900 (Delivery Package) and $2,500 (Holding Account)

  Ms. ***** has requested a full refund of the $41,900 Store Opening Package and $2,500 Holding Account contribution. However, as outlined in the agreements signed by Ms. *************** does not provide refunds once services have been initiated.
  Excerpts from Agreement:
  The Full Implementation Store Opening Agreement (Section C: Retainer) explicitly states:
  The retainer is fully earned and non-refundable once paid. The Client shall have no right to have any part of the retainer returned even if the Client subsequently terminates this Agreement prior to its full completion.
  Regarding the Holding Account contribution, the agreement (Section D(2): Holding Account) states:
  Clients holding account is established to cover all expenditures related to store opening purchases, including inventory, fixtures, and ************ The Client is responsible for ensuring their Holding Account is sufficiently funded.
  *** has fulfilled its contractual obligations by providing services as agreed upon. There is no contractual basis for a refund request.
  
  2. Allegation of Urgent Payment Request for $41,900
  Ms. ***** claims that *** contacted her with urgency regarding the $41,900 payment after she obtained funding.
  Excerpts from Agreement:
  The Full Implementation Store Opening Agreement (Section F: Funding) states:
  Once funding has been obtained, clients have 5 business days to pay a minimum of 15% of their total funding received to ***. Clients must pay the full balance of the Store Package and Holding Account within five business days of receiving the final funding amount.
  Ms. ***** voluntarily proceeded with the wire transfer, confirming her understanding of the non-refundable payment structure. There was no undue pressure, only adherence to the agreed-upon process. In addition, our agreements outline a 96-hour Right to Rescind period where clients can cancel their agreement with no penalty. Ms. ***** decided to allow that time to elapse.
  
  3. Misunderstanding of the Holding Account Requirement ($40,000+ for Inventory)
  Ms. ***** states that she did not fully understand that she needed an additional $40,000+ in the Holding Account for inventory, which prevented her from proceeding with store opening. Holding funds are the client's monies to construct their business. It is not a BSI charge.
  Excerpts from Agreement:
  The Holding Account requirement was clearly outlined in the Full Implementation Store Opening Agreement (Section D(2): Holding Account), which Ms. ***** signed and acknowledged:
  The Client must fund a Holding Account for inventory purchases, and a minimum of $50,000 is due if the total budget exceeds $50,000. *** is not responsible for funding this amount on behalf of the Client.
  *** provided multiple consultations and documentation detailing this requirement prior to her payment. Failure to fully fund the Holding Account does not justify a refund request.
  
  4. **** Internal Funding Offer and Clients Inability to Secure Additional Funds
  Ms. ***** claims that *** offered internal funding options for the Holding Account, but she was unable to secure additional funds.
  Excerpts from Agreement:
  *** does NOT issue, NOR facilitate the arrangement of loans or credit.
  The responsibility to secure additional funding for the Holding Account was solely the clients, as outlined in the contract.
  The Full Implementation Store Opening Agreement (Section F: Funding) states:
  *** does not guarantee that a client will obtain a specific amount of funding; a financial services representative will assist the client until they become bankable/creditworthy. *** is not responsible for securing funding on behalf of the client.
  Her inability to secure additional funding does not entitle her to a refund.
  
  5. Claims of Financial Hardship and Impact on Credit
  Ms. ***** states that she is facing creditor harassment, financial distress, and a decline in credit scores due to loans and credit cards secured for BSI services.
  Excerpts from Agreement:
  *** does NOT issue, manage, or provide guidance on personal or business credit.
  *** is not responsible for a clients financial standing, credit management, or interactions with creditors.
  The Full Implementation Store Opening Agreement (Section J: Outcomes Not Guaranteed) states:
  *** makes no guarantees regarding return on investment, revenue, income, profitability, or business success. The Client acknowledges that business outcomes are unpredictable and not guaranteed by ****
  ********;has no involvement in credit agreements or financial decisions made by Ms. ****** and these issues are unrelated to the scope of services *** provides.
  
  Final Position on Refund Request
  *** has fully upheld its contractual obligations by:
  Providing store opening services, consulting, and vendor guidance as outlined in the agreement.
  Ensuring Ms. ***** acknowledged the Holding Account requirement before proceeding.
  Following a structured payment process, which the client voluntarily agreed to.

  Final Position:
  No refund is due. Payments were contractually non-refundable once services began. ****** begin receiving and participated in services.
  *** does not get involved in funding and is thereby not responsible for the clients financial struggles, credit agreements, or third-party funding decisions made on their own accord.
  The Holding Account requirement was disclosed, acknowledged, and signed for by the client.
  ********;has been fulfilling its obligations under the agreement, and the clients financial hardship does not constitute grounds for a refund.

  Customer Answer

  Date: 03/10/2025

   
  Complaint: 22807222
  I am rejecting this response because: Dear BBB and Beauty Supply Institute,I am writing to formally request a refund from Beauty Supply Institute (BSI) for the Store Opening Package. Despite **** denial of my initial request, I have yet to receive the services I paid for, specifically regarding the delivery package. Additionally, all phone numbers I have for *** are now disconnected, making it impossible to discuss my store opening plans.This lack of communication constitutes a breach of contract, as I, as a client,should have access to a *** representative to discuss my business plans.
  Furthermore, I have come across public complaints and legal actions filed against *** that raise serious concerns about its business practices. The Summary Order to Cease and Desist and Order to Show Cause (Case No. *********) issued against ***, as well as past Consent Orders, highlight violations of the Maryland Business Opportunity Act related to the sale of business opportunities in ********. Since I purchased my delivery package in December 2022 and reside in ********, I would like clarification on whether I was legally entitled to receive a disclosure document (Count Two of the case).If so, I request a copy of the signed document. In fact, there are five counts addressed in the case that are disturbing: Count One (Violation of Registration Provision); Count Two (Violation of Disclosure Provision); Count Three (Violation of an order of the Securities Commissioner), Count Four (Misrepresentation in connection with the offer or sale of business opportunities), and Count Five (Unlawful Income or Earnings Representations); all of which may apply in my case and do raise major concerns. Again, the cases presented is allegations and I do not know the outcome of the cases, or if BSI was ultimately vindicated, or if BSI is legally required to register in the state of ********. I will continue to research this information. I also provided a link for the Consent Order - Case No *********.
  Public Information about the Beauty Supply Institute:
  *You Tube Inside 11Alive News Investigates | Delving into BSI Client Complaints ******************************************* (at least four complaints in **************)
  *January 7, 2025 ***************** article ******* Beauty Supply Company Fights Lawsuits Amid Accusations Of Scamming From Scorned Customers ******************************************************************************************************************************************************************
  *Summary Order to Cease and Desist and Order to Show Cause
  *****************************************************************************************
  *Consent Order - Case No ********* ************************************************************************************************************************************************
  Additionally, in the Holding Account section located in (C: 2) of the agreement it does not provide a specific dollar amount upfront, which was only disclosed to me after I had already purchased the delivery package, through a conversation with Mrs. *************** By that time, the rescission period had passed, leaving me financially obligated in a way I had not initially understood. However, the Holding accounts funds are unrelated to the delivery package. Those funds can only be released with my approval. Therefore, I am formally approving the release of these funds back to me.
  I acknowledge my own responsibility for not fully understanding all aspects of the agreement. However, as a business claiming industry leadership, *** has an obligation to provide transparent and ethical business practices. The logistical changes announced by ***** ********,Founder, CEO, in the August 1, 2024, letter and the follow-up email on October 1, 2024, address some of my concerns but come too late to benefit my situation in part. The letter does indicate that there are no more holding accounts. The full letter is attached.
  Another alarming issue was receiving late payment notifications for a $25,000 loan that I never applied for or received. While *** later confirmed that I did not owe this loan, the mistake caused unnecessary distress and further eroded trust in the companys credibility and handling of personal information.
  In closing, I respectfully request a refund (in full or in part) for the delivery package $41,900, along with the funds held in my holding account $2,500. While I still aspire to open my beauty supply store in some form, my experience with *** has led me to serious reservations about moving forward with your organization. My concerns are not unreasonable: I firmly believe that a company should not only prioritize its own financial success but also ensure that investors from diverse backgrounds receive full disclosure regarding all aspects of the investment opportunity, including potential financial ramifications that could significantly impact their personal finances and creditworthiness.
  ***** ******** and *** must acknowledge these concerns and do better. When I secured credit cards and a personal loan by following the *** and its affiliates process, each of these companies benefited ************** that time, I genuinely believed my store would be operational within six to nine months because I was not fully aware of the complexities and long-term commitment involved. I had immediate concerns about managing credit card payments before my store was open, so I reached out to *** for guidance. A representative (whose name I will not disclose) advised me to utilize an industry "secret" to navigate this periodan approach that ultimately proved costly for me.
  Reputable companies ensure that investors are fully informed and adequately prepared. The financial hardship I now face is directly tied to my investment with Beauty Supply Institute, and I know I am not alone in this experience. Given these facts, I respectfully request for ****** ******** (BSI) to act with integrity and compassion and reconsider my refund request.
  Respectfully,
  ****** ***** (formerly *******)
  Attachments:
  Logistical Changes to *********************** and Transactions (August 1, 2024)
  Holding Account Balance (October 10, 2023)
  Your Beauty Supply Funds Are Approved (April 26, 2023)
  40-Day Late Notice Emails

  Business Response

  Date: 03/18/2025

  Dear BBB Representative,
  We are writing in response to the additional correspondence submitted by *** ****** ***** (formerly *******) regarding her complaint against Beauty Supply Institute (BSI). We appreciate the opportunity to provide further clarification and reaffirm our original position.
  As stated in our previous response, *** does NOT issue, NOR facilitate the arrangement of loans or credit, and any claims related to financial hardship, credit scores, or external funding are beyond the scope of our services. Our response remains strictly limited to the terms outlined in the signed agreements between Beauty Supply Institute and *** *****.
  

  1. Store Opening Package Services Rendered
  *** ***** claims she has not received the services she paid for regarding the Store Opening Package. However, *** has fulfilled its contractual obligations as outlined in the Full Implementation Store Opening Agreement signed by *** ****************** from Agreement Supporting **** Position:
  Section A: Scope of Work
  *** shall provide business consulting and store opening services, including business planning, vendor engagement, and training as outlined in this agreement.
  Section C: Retainer (Non-Refundable Clause)
  The Client acknowledges that all payments are fully earned and non-refundable upon execution of this Agreement.
  *** has provided business consulting, vendor recommendations, training, and planning services per the agreement. Lack of personal funding to complete the process does not entitle the client to a refund.
  

  2. *** Communication Phone Number Disconnection &Client Outreach
  *** ***** claims that she has been unable to reach *** due to disconnected phone numbers. However, *** has multiple communication channels available, which have been actively used to communicate with clients, including *** ************* publicly addressed phone issues on its website, stating:
  We've been experiencing phone issues due to an upgrade underway by *******. For immediate assistance, leave a message and we will return your call as soon as possible.
  Our website also includes a "Contact Us" section, where clients can submit inquiries for a response.
  *** ***** was sent an invitation to the February 14, 2025, Project Status Update Webinar, which she could have attended to receive direct updates on her project.
  There is no contractual breach regarding communication, as multiple avenues remain open for clients to reach ****
  

  3. Legal Claims & Public Complaints Against BSI
  *** ***** references external legal actions, news articles, and other public complaints against *** that are unrelated to her specific case.
  *** is responding only to this individual contractual dispute.
  If *** ***** has concerns regarding legal matters, she should refer to the appropriate state regulatory authorities for further clarification.
  These external matters have no bearing on her contractual agreement with *** and are not relevant to this BBB complaint.
  

  4. Holding Account Refund Request & Contractual Obligation
  *** ***** asserts that the Holding Account did not have a specified amount upfront in the contract and that she is now approving the release of her funds back to her.
  Excerpts from Agreement Supporting BSIs Position:
  Section D(2): Holding Account
  The Client must fund a Holding Account for inventory purchases, and a minimum of $50,000 is due if the total budget exceeds $50,000.These funds are allocated exclusively for store-related purchases.
  Section C: Non-Refundable Payments
  The Client acknowledges that all payments made are non-refundable and allocated to the service costs and required expenditures associated with the store opening process.
  If *** ***** wishes to formally request documentation regarding the status of her Holding Account, she may do so through **** customer support channels. ***************************************************************
  

  5. Unrelated Loan Issue
  *** ***** claims that she received late payment notifications for a $25,000 loan she never applied for.
  Beauty Supply Institute does NOT issue, manage, or facilitate loans.
  Any loan-related concerns should be directed to the financial institution that issued the notice.
  This matter is unrelated to BSI and should not be included in this complaint.
  

  Position on Refund Request:

  BSI no longer handle refunds in-house for clients with executed agreements. Refund requests are now managed by our legal offices.

   Any work we have been doing for you will cease immediately.

  Delays in the completion of your project may occur.

  For agreements with no refund clauses, there is no guarantee you will receive a full refund, if any.

  There is no specific timeframe for confirmation of the outcome of your request.
  

  Your request may go to court for litigation.
  

  You can no longer communicate with your service provider during the processing of your request; you must communicate with your assigned point of contact.
  

  We reserve the right to deduct funds from your payment for services rendered and damages due to breach of contract..

  Final Position:
  *** has provided services as outlined in the agreement.
  Any concerns regarding external legal matters or financial issues should be directed to the appropriate regulatory or financial institutions.
  

  Conclusion
  We do not issue loans, nor are we responsible for a clients financial decisions.
  If any additional documentation is required, we are happy to provide copies of the signed agreements, email communications, and proof of services rendered.

  Customer Answer

  Date: 03/23/2025

   
  Complaint: 22807222
  
  I am rejecting this response but not pursuing a refund of the delivery package at this time. Per my reply below, I am requesting the use of the $2,500 funds in my holding account for the purchase of beauty supply products for my store.

  March 23, 2025
  
  Dear BSI/BSLG Representative,

  
  Re: Replies to Items 2, 4, and 5
  2. *** Communication Phone Number Disconnection & Client Outreach
  Its possible communication about the phone system upgrade was sent, but I did not receive or see it. The emails Ive received from BSLG list ************ as your business phone number. Ive used this number in the past to speak with a *** representative. As I mentioned, all numbers I have on file are currently disconnected. As shown in the attached screenshot, I accepted the invitation to the February 14, 2025, meeting but was unable to attend, even after sending two emails requesting assistance.

  
  4. Holding Account Refund Request &Contractual Obligation
  Section D (2): Holding Account
  Based on the holding account receipt I submitted, I need $30,000 to open my Wig & Accessories store. Ive already paid $2,500, leaving a balance of $27,500. Im aiming to open the store this year and have an idea that could help me reach that goalbut I need to speak with someone at ***. Should I email ************************************* to schedule a call, or can you please provide the name and phone number of a contact person?"

  
  5. Unrelated Loan Issue
  For the Record: While the loan is not tied to my contract agreement,it is still a serious communication concern. As shown in the attachment, on December 27, 2024, I received a welcome email from **** stating, Welcome to your new loan! I replied immediately. On January 10, 2025, I received a follow-up email showing a Principal Balance: $50,000.00 and Next Payment Amount: $25,000.00.

  
  I called to clarify the issue but discovered that all listed phone numbers were disconnected. As a result, I continued reaching out via email. On January 28, 2025, I received a response acknowledging my emails and offering some clarification. I believed the matter was resolveduntil I received a reminder email on February 17, 2025, stating, Your payment is 40 days past due.

  
  As a client of ***, I hope you can understand that this would cause significant concern, especially since I never applied for a $25,000 loan.
  I look forward to hearing from you soon. I can be reached at ************** or by email to schedule a call.
  Sincerely,
  
  ****** ***** (formerly *******)
  Attachments:
  Meeting Invitation Screenshot
  Loan Welcome Letter Email
  

• Initial Complaint

  Date:11/14/2024

  Type:Customer Service Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  In April 2023, I signed a contract with ***, agreeing to pay a total of $25,000 for their services, plus an additional $6,000 for employee handbooks, salon upgrades, and brokerage fees, which were intended to assist me in launching a beauty supply store and salon. The contract promised support, including enrollment in the Beauty Supply Academy Course Online, the 90-Day Enterpriser Online Course, site selection, funding assistance, and a business plan. While I fulfilled my financial obligations, I have been profoundly disappointed with the services provided. Although I received business courses and a business plan, *** failed to deliver on their promise of funding assistance for inventory procurement, critically hindering my business establishment. Over the past two years, I have made numerous attempts to resolve this situation: I have made multiple phone calls to BSI, most of which went unanswered or resulted in unreturned messages. I have sent several emails to both general *** email addresses and directly to ***** ********, with no response. No calls or show-ups to scheduled meetings have occurred. I have formally requested a full refund multiple times. Discussions with *** employees, including ***** ********, assured me that a refund would be processed, yet I have yet to see any reimbursement. ***'s non-compliance with our contract has led to substantial financial losses, increased debt, and significant stress and anxiety related to my financial situation, adversely affecting my mental health and overall well-being. BSI Beauty Supply Institute has breached our agreement and appears to engage in practices that exploit individuals seeking legitimate business support. Given the lack of response and resolution despite my numerous attempts to communicate, I formally request a full refund of the $30,000 I paid.

• Initial Complaint

  Date:11/01/2024

  Type:Service or Repair Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am seeking a refund in the amount of $55,000 that I gave the Beauty Supply Institute to help me create my dream of opening a beauty supply store.. I have been working with the *** for 5 years.. Their packages ranges in price, but the package that I chose cost $20,000 for the contractors to build the store and $35,000 in a holdings account for products... I have been reaching out and requesting this from the *** since August ***************************************** opening a beauty supply store.. They was suppose to put me in project management and that never happened.. To be honest, they never did any work for me at all.. So for the lack of services provided I am requesting my refund back.. I have contract agreements and receipts and messages between the *** and I throughout this whole process.. I just want my money back at this point..

• Initial Complaint

  Date:10/22/2024

  Type:Product Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am a disabled veteran who has been taken advantage of by ***** ******** (Beauty Supply Institute in ********, **). We invested $80K with *** to start a beauty supply store. Since June 2024, I have sent a dozen emails/calls to Mr. ************** with no response. July 2024 we began paying rent on an empty building, because *** ignored/delayed contact with me. I want my money back, accountability for suffering/damages. *** has no intent of returning or responding to the status of my money $80,000.00. They purposefully withheld pertinent information from us, and the owner knew prior to my enrollment he was not able to fulfill his obligations to me as his client. This information would have made a significant difference in my decision to do business with ***. His sole intent was to defraud me for professiona/ financial gain. He scammed us out of our retirement money and committed Economic Crime Gain/Fraud against me with no intention of opening a beauty supply business. I am requesting to receive all my monies through ACH within 10 days, interest he has received from my funds, through ESCROW, investment/ savings. I am requesting loss and damages, 4 months of rent towards the space that was empty due to their fault/delay. Refund in full for all store shelving I purchased and built. If you review my records, you will see that *** caused significant delays by not responding to emails timely, not returning calls and not acting as my consultant. *** neglected many of the required actions as promised and has failed to meet its contractual obligation on my behalf. It's apparent that ***/***** ******** will continue breaching their obligations to me and other American citizens. Unfortunately, in order to avoid further financial hardship. it is up to us to mitigate the delays *** has caused t We must now seek third-party assistance to perform the duties *** outlined in our original contract. Their lack of actions has cost our business/ family to suffer financial hardship

• Initial Complaint

  Date:09/30/2024

  Type:Service or Repair Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Hi, I dont wish for any black business to close or shut down, but they need to be stopped. All of what the other complaints are, I ditto. They are exactly right. However, I can attest that for me, they did do most of what they promised, i.e. classes, help find a location, and negotiate lease terms, but when it came to placing the orders for the products and accessories nothing happened. And instead of them trying to make it right, which a reputable company would do, they have only strung me along for a year with no products and no refund. They cannot and will not continue to do me (people) this way. This is more than a hiccup in the process or a handle of people, these are people and their livelihood. Ive been told (1) it was vendor delays, (2) then he was sick and ill and didnt have people in place to handle his absence (he teaches you to develop a system so that your store can run without you- so????) , then (3) it was -weve had so many clients that we couldnt handle them all and had to make changes to our process and technology. All while Im still over here paying rent, getting further and further in debt, and freaking losing my marbles(mind) and stressed beyond belief. Ive read other reviews and they (BSI) try to spin it and put it on the person, but I have done everything they have asked me to do to the tee and they have done me like this. I have asked for my money back, I have asked for my products and have gotten neither. I began with *** in 2020, got my store built out by the end of 2022 and I've been waiting on my products since 2023. Its terrible, disgusting, and sad that a company in business to support and help black business is black-owned and does this to other black people. I just want my money back. Hebrews 10: ***** Thats it Thats all!

• Initial Complaint

  Date:07/27/2024

  Type:Product Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Please remember the following information:Over the course of a year, I paid Business Supply Institute (BSI) $50,000. The agreement was for BSI to negotiate my rental agreement with the landlord for a space I intended to rent. Once I rented the space, BSI was supposed to come to ******** and assist in setting up my store, ordering beauty supplies, and connecting me to the vendors for supplies. However, BSI has not fulfilled any of these obligations. In fact, I was informed that they did not have the necessary credentials to conduct business in ********. I gave them one month to obtain the required credentials, but my attempts to contact them via phone and email have been unsuccessful. At this point, I am seeking a refund of the $50,000 I paid to BSI.