Candace Owens - The American Trucking Industry Runs on Exploitation — Here’s The Proof ｜ Candace Ep 196

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00:00:30.720 Pop quiz.

00:00:32.140 What year did the United States of America abolish slavery?

00:00:35.700 You might have answered 1865.

00:00:38.640 But are you sure about that?

00:00:40.820 Because today, we're going to talk about the modern mask of slavery in America

00:00:44.820 and the indentured servitude that is creeping into more and more of our biggest industries

00:00:49.620 and trapping more and more of us while the rich just keep getting richer.

00:00:54.700 Welcome back to Candace.

00:01:00.000 We're going to talk about the secret life of groceries, Benjamin Lord has a profile on a trucker that he rode with for a week

00:01:15.780 while he was trying to learn about the shipping and logistics that go into our groceries.

00:01:19.540 And it is shocking.

00:01:21.800 And last time, I covered a story from this book and it involved a lot of reading in order to contextualize the character of Thun Lin,

00:01:27.820 who was a slave laborer in the shrimp industry in Thailand.

00:01:30.120 This time, I won't do as much direct reading, but rather mix together quotations and summary to convey just how absolutely insane and messed up the world of long-haul trucking is.

00:01:40.100 And similar to the last story, this one's going to start out seemingly somewhat mundane.

00:01:45.220 And by the end of it, you'll be rethinking your entire perception of America, the grocery store, and every single product that you buy.

00:01:52.660 Because it turns out, our American way of life isn't just dependent on brutal slave labor in faraway places like Thailand or India.

00:02:00.900 More and more Americans are slipping deeper into what can only be called indentured servitude and bordering on outright slavery as well.

00:02:09.140 And truckers are a vast and underappreciated lot.

00:02:13.800 So, first of all, understand that everything, everything in your life comes to you on a truck.

00:02:21.060 From the big appliances of our lives to the smallest bite of food, every single staple, butter knife, copper wire, or ceramic mug comes via a truck.

00:02:31.000 If you build it yourself, the parts you use for building arrived on a truck.

00:02:35.180 If you grow it, the seeds, organic fertilizer, and baling wire for your compost bin arrive that way too.

00:02:41.860 Trucking as an industry is gargantuan.

00:02:44.800 In America, 10.7 billion tons of freight are moved per year.

00:02:49.800 That breaks down to 54 million tons a day, or 350 pounds of freight per man, woman, and child moving around this country every single day.

00:03:01.040 Today, to support our modern American lifestyle, 350 pounds of stuff got moved from one place to another in our supply chain, just for you.

00:03:12.000 Plus another 350 pounds for me, plus 350 pounds for Candace, and another 350 pounds for baby Roman. 0.88

00:03:18.700 Every single day.

00:03:20.640 Trucking is the most common form of employment in the majority of American states,

00:03:24.760 with more than 12.6 million commercial drivers circulating our highways.

00:03:29.420 That is almost 5% of adults in America working in trucking.

00:03:34.780 Without trucking, life in America ceases.

00:03:37.580 They are like our nation's circulatory system, bringing everything that is needed, where it is needed, when it is needed.

00:03:43.940 And the industry ebbs and flows with minute shifts in our economy or our tastes for the holiday season.

00:03:49.360 And yet, it's also one of the most dangerous jobs, right up there with deep-sea fishermen and timber cutters.

00:03:55.480 Trucking has the highest numbers of deaths per year of any job.

00:04:00.320 In The Secret Life of Groceries, Lohr writes,

00:04:03.120 The trucker is constantly on edge, recalculating braking distance based on the load, expecting and then reacting to major equipment failure,

00:04:11.560 tensing up at the slightest precipitation in a manner that simply has no analog in the modern car.

00:04:16.640 Runaway ramps are meaningful lifelines.

00:04:19.040 Shifting into the wrong lane, merging onto any and every off-ramp, a momentary lack of caution,

00:04:23.760 or just for half a second, treating your truck like a regular car will lead to death.

00:04:28.520 Lynn Riles, the trucker that he's profiling, says,

00:04:32.680 In a car, your blind spot might be a few feet.

00:04:35.640 Mine is 53 feet.

00:04:38.020 Lohr lived in the cab with Lynn Riles for a week, and he describes one load in particular,

00:04:43.400 just any old average trip from somewhere to somewhere else, but indicative of the shape of Lynn's life.

00:04:49.360 And at the end of the trip, they arrive at an Aldi distribution center.

00:04:52.380 This trip was dairy, starting in Charlotte, North Carolina, and was 1,050 miles, stopping at three different distribution centers.

00:05:00.540 For this trip, Lynn was paid $1,231 gross, or $1.16 per mile, which is pretty decent for a brokered load, apparently.

00:05:10.700 On top of that, she was also paid $368.50 for fuel, which doesn't cover the fuel.

00:05:16.260 But all told, for two or three days' work, it doesn't sound so bad, right?

00:05:20.760 Well, as Laura puts it, that's the lure.

00:05:24.360 But here's the hook.

00:05:25.640 The deductions.

00:05:26.880 Right off the top, Cargill, who she drives for, takes 28% of her gross pay and 10% of her fuel pay for the privilege of driving in their fleet. 1.00

00:05:35.680 Then, the $300 weekly fee for leasing her truck.

00:05:39.020 She still owes last week's truck payment, too, because it was a slow week, so it was double this week.

00:05:44.380 Then, she has to pay the guys who unload her truck as well. 1.00

00:05:47.240 There's also a mandatory cleaning fee out of pocket, maybe a couple hundred more bucks.

00:05:52.840 Then, there are the fixed costs that are due each month and year.

00:05:56.300 Lynn pays taxes per mile, per state, and needs to pay an accountant to handle the complexity of all of that.

00:06:01.480 Not a choice for her, as Cargill requires it.

00:06:04.020 They also require her to retain a lawyer to handle billing disputes, then insurance, also mandatory with their approved insurer, then maintenance on her truck, which she doesn't own, which, Laura points out, when you drive 12,000 miles a month in a big rig, it's a whole different thing than for a regular car.

00:06:20.800 Then, she has to pay into an escrow account called her security, which, once again, she is contractually obligated to fill, despite the fact that it is held by the trucking company in case she ever decides to quit on her lease-to-own agreement.

00:06:33.800 And lastly, there are lots of other little fees, like food, cell phones, GPS, and other electronic devices that she is required by her carrier to use, etc.

00:06:42.540 And then, there's risks outside of her control, like the week before this book was written, when a newbie trucker accidentally backed into her and then sped off to avoid liability.

00:06:52.120 It's just one example.

00:06:53.800 Lynn was left with the insurance claim for the damage, and no one on the other end of it.

00:06:57.480 There's a saying in trucking, the open road is unpredictable in almost every way except one.

00:07:03.440 The longer you're on it, the more certain something costly will happen.

00:07:07.520 A hit-and-run might be rare, but it's just one risk among thousands.

00:07:11.500 Trailer brakes failing, tires blowing, reefer lines freezing.

00:07:15.060 Collectively, these risks become inevitable.

00:07:17.900 And in the case of this hit-and-run, the damage was minor, and so her deductible didn't even cover it, and she had to pay out of pocket.

00:07:25.280 Lynn said, quote, 0.99

00:07:26.180 If I need a repair done, and I actually have the money, I just pay for it.

00:07:29.760 But that is never the case.

00:07:31.200 Instead, I gotta get approval, then I gotta get a loan, then they charge extra fees for the loan, and then I have to use their garage to get it fixed.

00:07:38.320 Plus, the whole time she's doing that, she's grounded with no income, and so a tiny accident can easily become a slippery slope into complete financial ruin.

00:07:47.700 Lynn estimates that she grossed $200,000 last year, and that she took home less than $17,000.

00:07:54.480 And she is a 14-year veteran driver who knows her industry inside and out, lives in her truck, and stays out on the road three weeks at a time.

00:08:03.820 She works more than 70 hours a week in a state of constant vigilance, sleeping in four- or five-hour bursts, and waking up for 3.30 a.m. jobs.

00:08:12.500 She didn't see her mother for two years because she didn't have the time off and couldn't get loads that lined up with her mother's location.

00:08:20.720 And Lore points out that that $17,000 figure is a number likely inflated by pride.

00:08:27.320 In the week he spends with her, Lynn receives a weekly paycheck for just $100, which is what she received the week before.

00:08:34.960 And the week before that.

00:08:37.780 Quote,

00:08:38.600 It's in my contract, Lynn says.

00:08:40.920 No matter how many expenses I have, I always have the right to a check for $100.

00:08:46.080 So that is what I usually get.

00:08:48.020 I've gotten pretty good at knowing how to stretch it.

00:08:51.500 That is nothing.

00:08:53.240 Lore estimates that in the week he spent with her, she netted something closer to negative $150,000.

00:08:57.960 After factoring in her cell phone bill, unanticipated repair, and just the food she has to eat.

00:09:03.280 One night, he overhears her on the phone asking for a cash advance from her future $100 paycheck so she can afford to eat dinner that night.

00:09:10.980 The next morning, Lynn turns to him and says,

00:09:13.540 I think I can get back in the black.

00:09:15.320 Maybe another three or four weeks of this.

00:09:17.640 And it is completely unclear to him what she means.

00:09:20.280 Because she's losing money. 1.00

00:09:21.940 Another three or four weeks like this, and she will be even deeper in debt, further beholden to Cargill.

00:09:27.960 Or, I could just run into a ladder on the interstate that tears my brake lines, she says, to complete what they are both thinking.

00:09:35.260 Lynn, like most truckers, is homeless, sleeping exclusively in the cab of a truck which she does not own, and almost certainly never will.

00:09:43.900 And she'll almost certainly lose it when she can no longer make her payments. 0.94

00:09:48.240 Her credit is shot.

00:09:49.520 Her health is destroyed.

00:09:51.040 She can't eat most food because she lost all her teeth and her new dentures are not properly fitted, so it hurts to chew.

00:09:56.820 Her obsession with Pepsi for calories shifts in Benjamin's awareness into just absolute sadness when he learns this.

00:10:04.860 And all that, despite the fact that she's extremely good at her job, hypervigilant on the road, and extremely hardworking.

00:10:12.120 A team player who never once in Benjamin's presence complained about any task or hardship or even her whole lot in life.

00:10:19.480 These things, he points out, are not unrelated.

00:10:23.900 That's Lynn Riles, one very experienced trucker with more than a decade on the road, still working to pay off her truck, which is more like her prison than her form of employment. 0.97

00:10:33.400 But now that you have some texture for what life is like behind the wheel, the real darkness in the trucking industry becomes apparent when you zoom out.

00:10:41.920 If you hadn't picked up on it yet, debt is the weapon used to shackle drivers to these trucks and to their contracts, and hope is the lure that keeps them on the line.

00:10:51.140 Trucking recruiters frequently recruit from homeless shelters, soup kitchens, recovery wards, and prison work release programs.

00:10:58.860 Truckers also frequently come from minimum wage retail or construction or from serving in the military overseas.

00:11:04.940 Recruiters promise guaranteed jobs, big pay, no experience required.

00:11:09.960 You'll get a free one-way bus ticket, free hotel, and food during your orientation.

00:11:14.840 But then, on the fourth day or so, you're given a contract to sign.

00:11:18.880 And then, you're officially a student driver.

00:11:21.560 And, you suddenly have all the student debt to prove it.

00:11:25.400 Then, they have a new enticing offer.

00:11:27.440 After you've signed your contract for school and debt, of course.

00:11:30.940 You could be an owner-operator, not just an employee.

00:11:33.880 You can get your own truck and be the master of your own destiny.

00:11:37.400 You don't have to pay a single cent up front.

00:11:40.240 That's how they get you.

00:11:41.660 They force you to take on a literal truckload of debt, which is to be taken out of your future paychecks, plus interest until you pay it off, which almost no one ever does.

00:11:52.400 Instead, you get thrown into an impossible industry, where you work insane hours under high pressure and serious risk of death,

00:11:59.780 all just to earn your minimum, which you quickly learn is $100 a week, assuming you don't spend it on food.

00:12:08.180 If, at any point, you realize that this isn't your cup of tea, no problem.

00:12:12.120 Because then you realize that that contract you signed, yeah, none of this was free.

00:12:16.700 It was all on debt.

00:12:17.980 And now, if you want to walk away, that debt is coming with you.

00:12:22.060 Turnover in the trucking industry is insane.

00:12:25.020 Over the last decade, industry turnover has ranged from 95% to 112%.

00:12:31.460 It's hard to graph what that actually even means.

00:12:35.520 Turnover at a competitive law firm is 17%.

00:12:38.700 Turnover at Starbucks is around 65%.

00:12:41.960 100% turnover in the trucking industry means that every single member of any given fleet either quit or was fired and successfully replaced that year.

00:12:52.400 But trucking is not a declining industry.

00:12:56.500 It's not shrinking.

00:12:58.000 It's growing aggressively all while this is happening.

00:13:01.500 Because as with every other industry, just like in the private equity playbook,

00:13:06.480 trucking has figured out how to not just make humans replaceable, but how to actually profit off of their replacement.

00:13:12.720 First, they recruit dishonestly, convincing people to take out lines of credit for the opportunity.

00:13:19.020 And then, they pay them the lowest possible wages, or training wages, while simultaneously unlocking a critical new superpower.

00:13:27.800 They can force you to drive in pairs.

00:13:30.140 And when you're driving in pairs, you are not bound by law to take the same number of breaks to stop to sleep like a solo driver would be.

00:13:37.800 Suddenly, trips can be completed in far less time, and drivers work for far lower pay.

00:13:44.760 Lynn, who we met at the beginning of this episode, she was making a little over a dollar per mile, 1.00

00:13:49.480 which is still left or broke and destitute at the end of a 70-hour work week on the road non-stop.

00:13:55.980 Student drivers frequently are paid wages as low as 12 cents per mile.

00:14:01.160 You could hire almost 10 student drivers for the price of Lynn's starvation wages.

00:14:06.540 Even driving in teams, that's four or five times as many trucks on the road.

00:14:11.920 Student drivers are the cash cow that the modern trucking industry lives off of.

00:14:17.000 Trucker Desiree Wood said in the book,

00:14:19.360 quote,

00:14:20.040 There is so much money in students.

00:14:22.300 They work so cheap, 12 to 13 cents a mile.

00:14:25.220 It pays for the entire system.

00:14:27.340 And a lot of these trainers have been driving less than six months themselves.

00:14:31.740 She goes on to say,

00:14:32.720 This is not far from sharecropping.

00:14:35.220 It's debt bondage.

00:14:36.180 It's sharecropping where instead of the field, they are tenants on wheels.

00:14:41.140 So that's one side of the story, a side most Americans don't know about.

00:14:46.020 But now I want to take it to a conversation Tucker Carlson and Ben Shapiro had about six years ago

00:14:51.180 to voice another side of the story so we can really grasp the whole complexity of this issue.

00:14:55.900 You talk in the book about technology and how it's shifting and taking away jobs from folks.

00:15:01.900 And you make specific reference to truck driving and the fact that there are going to be these automated cars on the roads.

00:15:05.940 So would you, Tucker Carlson, be in favor of restrictions on the ability of trucking companies to use this sort of technology

00:15:13.020 specifically to, you know, sort of artificially maintain the number of jobs that are available in the trucking industry?

00:15:18.780 Are you joking?

00:15:19.920 In a second.

00:15:21.420 In a second.

00:15:23.020 In other words, if I were president, when I say to DOT, Department of Transportation,

00:15:26.360 we're not letting driverless trucks on the road, period.

00:15:29.900 Why?

00:15:30.680 Really simple.

00:15:32.200 Driving for a living is the single most common job for high school educated men in this country, in all 50 states.

00:15:38.500 By the way, that's the same group whose wages have gone down by 11% over the past 30 years.

00:15:42.780 The social cost of eliminating their jobs in a 10-year span, five-year span, 30-year span,

00:15:48.000 is so high that it's not sustainable.

00:15:51.960 So the greater good is protecting your citizens.

00:15:58.600 And he's not wrong.

00:16:00.720 Tucker has a great point.

00:16:02.360 I used to hold the same view.

00:16:04.180 And in some ways, I still do.

00:16:06.240 Because already driverless semi-trucks are on the highways of America.

00:16:10.180 And it's only a matter of years before this industry, one of the largest sectors of employment in America,

00:16:15.160 is largely replaced by robots and AI.

00:16:18.240 But Tucker uses a phrase that I want to highlight.

00:16:21.160 He said, decent people living happy lives.

00:16:24.700 And if that were still true, I would completely agree.

00:16:27.920 And that used to be true.

00:16:29.140 But as progress has marched on, prices have ground down and margins have slimmed,

00:16:34.820 more and more of this massive industry is preying on these largely high school educated people

00:16:40.740 that are, for lack of a better phrase, extremely vulnerable to exploitation.

00:16:45.040 And they wind up where we left off, with Desiree Woods saying, quote,

00:16:50.080 quote, this is not far from sharecropping.

00:16:53.120 It's debt bondage.

00:16:54.600 It's sharecropping where instead of the field, they are tenants on wheels.

00:16:58.640 And listen, I don't know the solution.

00:17:02.320 I don't know what to make of it all.

00:17:04.020 But at least now I have a little more compassion for truckers on the road.

00:17:07.580 And now that I know what they go through, I find myself giving them more space to do their job on the road.

00:17:13.120 And just a little more patient when I'm waiting behind an 18-wheeler in the passing lane.

00:17:16.740 These are the men and women that make the world work.

00:17:20.080 And they've got a pretty rough go of things.

00:17:23.160 And speaking of sharecropping, next we'll talk about plantations that operate today as prison labor camps,

00:17:30.540 eerily similar to their slave master roots.

00:17:33.640 But first, I want to take a minute to tell you about ground news.

00:17:37.460 Let's be honest.

00:17:38.540 The media is not here to inform you anymore.

00:17:40.740 It's here to steer you, to bury inconvenient facts, distort headlines, and promote whatever narrative keeps the power where it is.

00:17:48.520 That's why I don't trust a single outlet to tell me the truth.

00:17:51.720 I use ground news because I want to see what's really going on, not just what the media wants me to believe.

00:17:57.280 Ground news is an independent platform that brings together news coverage from across the political spectrum

00:18:01.880 to expose how each outlet spins the same story.

00:18:05.500 You'll see how different sides report or ignore the same event

00:18:08.980 and exactly what they're trying to get you to think.

00:18:11.720 It also shows you who's behind the reporting.

00:18:13.960 That's the part most platforms won't show you.

00:18:16.520 The tool I use the most?

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00:18:29.660 and it doesn't play by the legacy media's rules.

00:18:32.440 That's why I partnered with them.

00:18:33.940 If you're tired of media gatekeepers deciding what you see and what you don't,

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00:20:07.740 So, now that we've talked about sharecropping on wheels, let's talk about the slaves that

00:20:13.260 still work the plantations to this day.

00:20:15.660 A lot of people don't know that the 13th Amendment, which abolished slavery in the United States,

00:20:21.420 didn't actually abolish slavery.

00:20:23.960 It just put one very simple condition on the practice.

00:20:28.140 In the very first line, it says, quote,

00:20:31.440 Neither slavery nor involuntary servitude, except as a punishment for crime whereof the

00:20:37.620 party shall have been duly convicted, shall exist within the United States or any place

00:20:42.220 subject to their jurisdiction.

00:20:43.240 And so, we get the prison industrial complex.

00:20:48.060 Some prisons sit literally on the land of former plantations, and their fields are still

00:20:53.280 worked by a slave population to this day, which is predominantly composed of Black Americans.

00:20:59.060 And although many people have contributed to this modern slavery and the racial bias of 0.81

00:21:03.260 its selection process, perhaps no one has contributed more to it than this man, Joseph R.

00:21:09.760 Biden.

00:21:10.300 In 1986, Joe Biden authored and championed the Anti-Drug Abuse Act, which, among other things,

00:21:17.480 imposed extremely harsh penalties on crack cocaine use versus powdered cocaine.

00:21:22.660 The penalties for crack cocaine were 100 times stricter than for regular powdered cocaine.

00:21:28.500 So, the minimum sentencing was five years for five grams of crack, or five years for 500

00:21:34.460 grams of powdered cocaine.

00:21:35.940 You might notice in the snippet from the New York Times here that it says this was an amendment

00:21:40.280 to the 1984 minimum sentencing bill.

00:21:43.120 Joe Biden championed that bill, too.

00:21:45.440 In fact, all throughout the 70s and 80s, Joe Biden was at the front of the charge to expand

00:21:51.300 the power of the prison system.

00:21:52.580 And he authored numerous acts to expand prison populations that were written in ways that

00:21:57.620 clearly skewed towards black Americans. 0.82

00:22:00.500 I probably don't need to remind you that it was our own CIA that was flooding poor black 1.00

00:22:05.540 neighborhoods with crack cocaine at the time.

00:22:07.920 And so, from 1973, when these laws started passing and prisons started expanding, until 2009,

00:22:14.300 when this trend peaked, the imprisonment rate in America increased sevenfold.

00:22:18.840 We went from just a couple hundred thousand people in prison to over 1.5 million.

00:22:24.580 Except, by some data sets, it's over 2 million, and has been since 2005, depending on who you trust.

00:22:31.320 When you look up official Department of Justice fact sheets, though,

00:22:35.000 they conveniently show the data going back just to 2009, when prison populations had peaked.

00:22:40.480 So, it looks, in this graph, like prison populations are decreasing.

00:22:45.320 What a convenient way to present it.

00:22:47.020 You see, they just show this last little decrease at the end there, highlighted in pink.

00:22:52.500 Pay no attention to Joe Biden's legacy.

00:22:55.920 The Sentencing Project reports that one in five black men born in the year 2001

00:23:00.900 is likely to be imprisoned at some point in their lifetime.

00:23:04.600 Black Americans account for nearly seven out of ten people in American prisons.

00:23:09.240 Biden actually went out of his way as a Democrat senator to reach across the aisle

00:23:13.720 and ally with segregationist Republican senators to pass these bills throughout the late 70s,

00:23:19.160 the 80s, and the 90s.

00:23:21.500 In 2013, Biden boasted on the Senate floor that, quote,

00:23:26.300 every major crime bill since 1976 that's come out of this Congress,

00:23:30.760 every minor crime bill,

00:23:32.400 has had the name of the Democratic senator from the state of Delaware,

00:23:36.300 Joe Biden.

00:23:36.920 And so now, for every 100,000 black adults in America,

00:23:41.680 1,196 are in prison.

00:23:44.860 The rate for white people is 229.

00:23:47.800 You know this is a liberal publication, too,

00:23:49.780 because they say Latinx,

00:23:52.000 a term that no Latino person has ever used.

00:23:54.700 Literally, their entire language is gendered,

00:23:57.200 but whole sidetrack.

00:23:58.900 It's also worth noting that almost half of federal prison inmates are there

00:24:03.740 because of drug charges,

00:24:05.420 a fact they have the war on drugs and Joe Biden's crime bills to thank for.

00:24:10.100 Only 21% are in prison for weapons-related charges

00:24:12.880 and just 7.3% for violent crimes.

00:24:16.480 Now, this problem is incredibly complex and multifaceted,

00:24:21.280 and all too often,

00:24:22.920 people don't want to account for all of these different factors that are contributing. 0.90

00:24:25.920 The justice system has been designed to target and more severely punish black people.

00:24:30.600 Also, black culture has been infested by music, celebrity, and gang culture 1.00

00:24:35.240 that glamorizes criminality. 0.80

00:24:37.400 Poverty and schools in predominantly black parts of America 0.57

00:24:40.100 make it all too easy to slip through the cracks.

00:24:42.500 And none of these truths should serve as any excuse.

00:24:45.560 More than one thing can be true at once.

00:24:47.840 Just because you're black doesn't mean you're bound for a life of criminality with no way out.

00:24:52.180 But if you're born into a class and culture

00:24:55.000 where criminality is the norm

00:24:56.820 and even seen as cool and high status

00:24:59.520 and you see it all around you,

00:25:01.840 well, it's a vicious cycle.

00:25:03.620 And regardless of the color of your skin,

00:25:05.640 once you're in,

00:25:06.660 the 13th Amendment's abolishment of slavery is out the window

00:25:09.860 and you join a vast hidden workforce

00:25:12.320 that enriches all of America's most beloved megacorporations.

00:25:16.820 From Frosted Flakes cereal and ballpark hot dogs

00:25:19.660 to Gold Medal Flour, Coca-Cola, and Rice Land Rice,

00:25:23.240 prison labor products are on the shelves

00:25:25.320 of virtually every supermarket in the country,

00:25:27.940 including Kroger, Target, Aldi, and Whole Foods.

00:25:31.800 We even export some of these products

00:25:33.520 to countries that we have previously blocked imports from

00:25:36.760 in protest of those other countries' poor labor practices, 0.51

00:25:41.300 which to me is peak American hypocrisy.

00:25:43.820 Some prisoners work on the exact same plantation soil

00:25:47.600 where slaves harvested cotton, tobacco, and sugarcane

00:25:50.760 more than 150 years ago.

00:25:53.100 And slaves are still picking cotton today.

00:25:55.940 Willie Ingram, who was featured in this expose

00:25:57.880 by the Associated Press,

00:25:59.460 picked everything from cotton to okra

00:26:01.200 during his 51-year stay in Louisiana State Penitentiary,

00:26:04.760 known as Angola,

00:26:05.900 which is built directly on top of an old plantation.

00:26:09.180 Quote,

00:26:09.460 Angola sits on a massive plot of farmland,

00:26:22.100 previously owned by one of the largest slave traders in the U.S.

00:26:25.660 Today, it houses about 3,800 men

00:26:28.360 who head to the field within days of arrival.

00:26:31.300 At first, they work for free,

00:26:32.500 but then they can earn between 2 cents and 40 cents an hour.

00:26:37.980 And across the country,

00:26:38.920 work is done for most of our biggest brands,

00:26:41.920 whether it's manufacturing products

00:26:43.460 specifically for that company

00:26:44.740 or producing raw ingredients

00:26:46.380 that are then sold into the supply chain.

00:26:48.420 This is just a small list

00:26:49.760 that the AP was able to directly observe

00:26:51.940 in their investigations.

00:26:53.760 And they do it

00:26:54.520 because it's incredibly profitable.

00:26:56.840 These workers don't have benefits

00:26:58.420 or protections

00:26:59.260 or typical safety standards.

00:27:01.160 They hardly get paid

00:27:02.320 and so can produce goods

00:27:03.840 for much cheaper than a normal worker.

00:27:06.280 And then,

00:27:06.720 these products and goods

00:27:07.980 are sold on the open market

00:27:09.520 where they compete on price

00:27:11.020 with regular farmers and manufacturers,

00:27:13.520 further pushing on family farms to cut prices.

00:27:16.520 Prisoners also often work in industries 0.54

00:27:18.800 with severe labor shortages,

00:27:20.600 and so they wind up doing

00:27:21.600 some of the dirtiest

00:27:22.500 and most dangerous jobs in America

00:27:24.240 for basically no pay.

00:27:26.700 Altogether,

00:27:27.580 the modern slave labor industry

00:27:29.000 brought in more than $2 billion in 2021.

00:27:32.760 And that's just the prison labor,

00:27:34.240 not to mention work release

00:27:35.820 and other programs.

00:27:38.840 Curtis Davis,

00:27:40.100 who spent more than 25 years

00:27:41.880 in a penitentiary,

00:27:42.900 said,

00:27:43.660 slavery has not been abolished.

00:27:45.840 It is still operating in present tense.

00:27:48.400 Nothing has changed.

00:27:50.640 And next,

00:27:51.780 we're going to talk about how

00:27:53.020 they're trying to bring slavery 0.74

00:27:54.560 to the middle class.

00:27:56.400 To you.

00:27:57.460 But first,

00:27:58.360 let's take a break.

00:27:59.740 Real quick, guys,

00:28:00.700 I want to tell you about American financing.

00:28:02.800 We're all feeling it.

00:28:04.100 Inflation is eating away at everything.

00:28:06.040 Gas, groceries,

00:28:07.320 home repairs.

00:28:08.480 And if you're a homeowner,

00:28:09.900 you've probably thought,

00:28:10.840 should I call American financing

00:28:12.220 to refinance

00:28:13.040 and pay off this credit card debt?

00:28:14.660 But then you second guess yourself

00:28:16.220 because of that low mortgage rate

00:28:17.620 you currently have.

00:28:18.840 Listen,

00:28:19.540 that low rate,

00:28:20.380 it is not saving you

00:28:21.440 if you're drowning

00:28:22.060 in credit card interest

00:28:22.960 at 25% or more.

00:28:24.640 That's the math

00:28:25.460 that no one wants to face.

00:28:26.400 But it's costing you thousands.

00:28:28.360 So here's the truth.

00:28:29.580 If you're only making minimum payments,

00:28:31.220 that debt will follow you

00:28:32.480 for years.

00:28:33.480 That's why people

00:28:34.140 are calling American financing

00:28:35.560 because they're saving customers

00:28:37.140 an average of $800 a month

00:28:38.820 by using their equity

00:28:39.940 to finally break free

00:28:41.080 from credit card debt.

00:28:42.560 You owe it to your family

00:28:43.460 to see what's possible.

00:28:44.740 No upfront fees,

00:28:45.760 no pressure.

00:28:46.580 It costs you nothing

00:28:47.440 to find out

00:28:48.040 what you could save every month.

00:28:49.580 And if you start today,

00:28:50.620 you may be able to delay

00:28:51.800 two mortgage payments.

00:28:53.360 Call American financing today,

00:28:54.860 800-795-1210.

00:28:57.360 That's 800-795-1210.

00:29:00.120 Or visit AmericanFinancing.net

00:29:02.420 slash Owens.

00:29:04.040 So the poorest

00:29:05.900 and most rock bottom

00:29:07.280 are being farmed out

00:29:08.460 as prison labor

00:29:09.300 on literal plantations.

00:29:11.420 People on the verge

00:29:12.520 of falling through the cracks

00:29:13.600 or just crawling out of them

00:29:15.200 are preyed on

00:29:16.040 by the trucking industry

00:29:17.120 among many other

00:29:18.220 exploitive fields.

00:29:19.960 Average Americans

00:29:20.720 are locked into dead-end jobs

00:29:22.340 that used to be enough

00:29:23.160 to buy a house,

00:29:24.020 a car,

00:29:24.800 and send your kids

00:29:25.420 to college on.

00:29:26.380 Now those same jobs

00:29:27.600 have Americans on food stamps

00:29:29.020 and taking out debt

00:29:30.180 for just basic purchases.

00:29:32.200 So how do you break free

00:29:33.440 of this rat race?

00:29:34.620 How do you chase

00:29:35.360 the American dream

00:29:36.220 out of the rat race 0.55

00:29:37.280 and change your fortune?

00:29:39.300 You start a business, right?

00:29:41.400 Wrong.

00:29:42.380 Because, oh boy,

00:29:43.740 is the franchise industry

00:29:45.040 up to the same games.

00:29:47.200 And listen,

00:29:48.220 we are about to skim

00:29:49.480 the surface

00:29:49.940 of an incredibly complex dig.

00:29:52.140 And I've done my best

00:29:53.280 to keep it from getting too dry

00:29:54.940 and keep it interesting

00:29:56.000 the way that I try to do.

00:29:57.500 Because it's not always

00:29:58.680 the flashiest,

00:29:59.580 most Twitter viral news stories

00:30:01.080 that is going to be

00:30:02.160 the most important

00:30:02.960 to actually know about.

00:30:04.340 Many of the most important

00:30:05.360 things happening in our world

00:30:06.420 are bound up

00:30:07.180 in complex legal filings

00:30:08.680 and drawn out

00:30:09.580 across years and years

00:30:10.940 of, frankly,

00:30:12.120 boring processes.

00:30:13.540 And this one,

00:30:14.640 it matters.

00:30:15.680 It matters in so many more ways

00:30:17.480 that I'm going to be able

00:30:18.540 to fit into this segment.

00:30:20.020 But,

00:30:20.940 this is a start.

00:30:21.720 Because, you see,

00:30:23.720 if you're the type

00:30:24.480 of upstanding citizen

00:30:25.360 with good credit

00:30:26.520 and some amount of savings

00:30:27.720 and income

00:30:28.520 that you could consider

00:30:29.520 applying for the loans

00:30:30.780 required to open a business,

00:30:32.640 you are an even more

00:30:33.820 valuable cash cow

00:30:34.920 to be milked.

00:30:36.240 And the franchising industry,

00:30:37.740 which has for generations

00:30:38.900 been the most accessible way

00:30:40.640 for regular people

00:30:41.600 to become business owners

00:30:42.700 and achieve the American dream,

00:30:45.000 it has found a way

00:30:45.940 to extract every penny

00:30:47.460 that that dream is worth.

00:30:49.560 Many people think

00:30:50.800 of their net worth

00:30:52.080 as how much they have

00:30:53.720 in the bank.

00:30:54.600 How much money

00:30:55.280 do you actually own?

00:30:56.960 But truly,

00:30:58.120 you're worth so much more

00:30:59.380 than that,

00:31:00.220 even in a strictly

00:31:01.060 financial way.

00:31:02.460 That's because we have

00:31:03.700 credit.

00:31:04.780 You have credit.

00:31:06.080 And it's important

00:31:06.780 before we go down

00:31:07.580 this rabbit hole

00:31:08.200 to unpack credit

00:31:09.040 a little bit.

00:31:09.700 Because credit

00:31:10.280 is not just a plastic card

00:31:11.960 that you keep

00:31:12.740 in your wallet.

00:31:14.040 Credit is your future.

00:31:15.540 It's a promise

00:31:16.240 to pay it back later.

00:31:17.700 And it's a promise

00:31:18.360 to exchange

00:31:18.920 your future time

00:31:20.120 and your future work

00:31:21.580 for something right now.

00:31:23.340 And give yourself

00:31:24.260 some credit.

00:31:25.560 You can probably be worth

00:31:26.640 so much more

00:31:27.600 down the line

00:31:28.480 than you are worth today.

00:31:30.720 And that precise

00:31:32.220 monetary fact

00:31:33.260 is what private equity

00:31:34.840 and megacorporations

00:31:36.060 have learned

00:31:36.640 to prey on

00:31:37.440 in the franchising industry,

00:31:39.000 which has started

00:31:40.040 a whole predatory practice

00:31:41.720 of contracting people

00:31:43.240 into new businesses,

00:31:45.180 milking them

00:31:45.680 for all the credit

00:31:46.760 they can take

00:31:47.320 out of the bank,

00:31:48.000 and then leaving them

00:31:49.240 with the bill

00:31:49.860 to pay for the rest

00:31:51.000 of their lives.

00:31:52.340 It all starts

00:31:53.160 with a discovery process

00:31:54.660 and a contract.

00:31:56.500 Suppose that you

00:31:57.520 wanted to start a business

00:31:58.760 or do something meaningful,

00:32:00.600 something to change

00:32:01.320 your family's fortunes

00:32:02.320 and provide a better life

00:32:03.500 for your kids.

00:32:04.520 And you hear about

00:32:05.360 this great new idea.

00:32:06.880 A martial arts studio franchise

00:32:08.340 and a burger franchise

00:32:09.620 are advertising

00:32:10.620 a new business model

00:32:11.780 in your town.

00:32:13.080 They're looking for someone

00:32:14.100 to open a new franchise

00:32:15.420 location in your town

00:32:16.600 and the business

00:32:17.360 is basically turnkey.

00:32:19.140 It's ready to go.

00:32:20.340 You hardly even need

00:32:21.420 to spend any time

00:32:22.320 working on it

00:32:22.940 because their proven

00:32:24.000 business model

00:32:24.680 is actually so dialed in

00:32:26.260 that you just open up shop,

00:32:28.100 hire some workers,

00:32:29.000 and the business runs itself.

00:32:30.760 Pure passive income.

00:32:32.520 You just work a few hours

00:32:33.680 a week on the side.

00:32:34.920 You can even keep

00:32:35.780 your day job if you want.

00:32:37.740 It sounds too good

00:32:38.840 to be true,

00:32:39.700 but you decide

00:32:40.600 to schedule a meeting

00:32:41.460 with them

00:32:41.840 just to hear them out.

00:32:42.800 Maybe this is actually

00:32:44.120 your family's lucky break.

00:32:45.920 When you sit down

00:32:46.880 with them,

00:32:47.400 they show you

00:32:48.100 all kinds of materials

00:32:49.420 and data.

00:32:50.020 It's actually true.

00:32:51.480 These franchises

00:32:52.320 are opening up

00:32:53.160 all over the country

00:32:54.160 lightning fast

00:32:55.120 and they're profitable

00:32:56.060 almost right away.

00:32:57.600 The burger place

00:32:58.440 comes with crazy

00:32:59.220 celebrity endorsements

00:33:00.360 and the martial arts studio

00:33:01.540 runs totally hands off.

00:33:03.460 It's awesome.

00:33:04.740 They have all the equipment

00:33:05.600 you're going to need.

00:33:06.300 It's already sorted out.

00:33:07.420 All the branding,

00:33:08.560 the advertising,

00:33:09.420 it's all sorted out.

00:33:10.900 All you need to do

00:33:12.000 is secure the financing

00:33:13.440 to open up shop

00:33:14.520 and your life

00:33:15.440 will change forever.

00:33:16.940 You think it over

00:33:17.840 with your family,

00:33:18.720 it's a pretty big risk,

00:33:20.220 but you know

00:33:21.100 that you're hardworking

00:33:21.880 and you've always

00:33:22.740 dreamed of more.

00:33:23.820 The document you took

00:33:25.000 home with you

00:33:25.660 is extensive.

00:33:26.820 It's several hundred

00:33:27.620 pages long

00:33:28.300 and it details everything

00:33:29.560 about how to open

00:33:30.380 and run the store

00:33:31.220 as well as all

00:33:31.860 the legal stuff.

00:33:32.640 And I mean,

00:33:33.260 really,

00:33:33.580 it's actually mostly

00:33:34.440 all legal stuff,

00:33:35.480 but it also has

00:33:36.420 all the data

00:33:36.980 about how many other

00:33:37.860 successful businesses

00:33:38.800 that franchise

00:33:39.480 has opened

00:33:40.200 across the country

00:33:41.100 lately.

00:33:42.060 So you decide

00:33:43.400 to do it.

00:33:44.320 In your next meeting,

00:33:45.380 you sign on the line

00:33:46.520 and you officially

00:33:47.340 join the brand family.

00:33:49.380 Next,

00:33:50.000 you're off to the bank

00:33:51.020 to secure a loan

00:33:51.960 in order to open up

00:33:53.080 your new business.

00:33:55.060 And I'm sure

00:33:56.560 that you see

00:33:57.140 where this is going.

00:33:58.880 Sometimes,

00:33:59.680 this process

00:34:00.220 does work great.

00:34:01.320 If you're working

00:34:01.800 with an honest company,

00:34:02.880 this really can be

00:34:03.880 the path

00:34:04.340 to a new life.

00:34:05.500 But all too often,

00:34:07.120 that document

00:34:07.940 that you're holding

00:34:08.640 is actually filled

00:34:10.140 with deception,

00:34:11.440 half-truth,

00:34:12.200 and outright fraud.

00:34:14.080 The Federal Trade Commission

00:34:15.300 sued a franchise

00:34:16.360 called Burgerim,

00:34:17.680 the burger joint

00:34:18.420 that I described

00:34:19.040 just a moment ago

00:34:19.880 in our intro,

00:34:20.900 for fraud.

00:34:21.980 They were selling

00:34:22.720 their franchisees

00:34:23.640 a pipe dream

00:34:24.400 that had nothing

00:34:25.380 to back it up,

00:34:26.440 even though they had

00:34:27.180 information in that document,

00:34:29.020 causing these people

00:34:29.900 to take out

00:34:30.520 huge amounts of debt

00:34:31.820 only to have nothing

00:34:33.340 actually materialize.

00:34:35.020 The Franchise Times

00:34:36.040 reported that

00:34:37.100 they sold at least

00:34:38.480 1,550 franchises

00:34:41.180 and collected

00:34:41.820 at least $57.7 million

00:34:44.020 in just initial

00:34:46.020 franchise fees

00:34:46.900 from 2015 to 2019.

00:34:49.380 But they had only

00:34:50.620 opened 130

00:34:52.260 out of 1,550 locations

00:34:55.640 by 2018.

00:34:56.980 To make it even worse,

00:34:58.420 they were advertising

00:34:59.260 to veterans

00:34:59.900 and then extracting

00:35:00.820 all of their credit,

00:35:01.960 all their future time

00:35:03.040 and earning potential,

00:35:04.280 only to leave

00:35:05.000 these veterans

00:35:05.760 broke and destitute.

00:35:07.100 on empty promises.

00:35:09.280 Bergerham was pitching

00:35:10.080 this as a business

00:35:10.920 in just the way

00:35:11.680 that I described earlier,

00:35:12.920 a business in a box,

00:35:14.440 and the company

00:35:15.180 was targeting veterans

00:35:16.400 with discount programs

00:35:17.660 to lure them

00:35:18.300 into the business.

00:35:19.600 It sounds kind of insane

00:35:21.160 and even unbelievable,

00:35:23.180 but actually,

00:35:23.740 it's a lot more common

00:35:24.880 of an occurrence

00:35:25.480 than you might realize.

00:35:27.520 In 2023,

00:35:28.920 Lena Kahn,

00:35:29.720 the chair of the

00:35:30.660 Federal Trade Commission,

00:35:31.540 which is the government

00:35:32.260 body that oversees

00:35:33.480 all this stuff,

00:35:34.100 she posted a request

00:35:35.580 for comment

00:35:36.140 from franchisees

00:35:37.300 so business owners

00:35:38.480 could share their concerns

00:35:39.620 and grievances

00:35:40.220 about the industry

00:35:41.160 at large.

00:35:42.280 Her inbox

00:35:42.880 was flooded

00:35:43.980 with comments

00:35:44.820 from franchise owners

00:35:45.900 who had experienced

00:35:46.940 these same

00:35:47.580 predatory practices

00:35:48.720 and lost everything.

00:35:50.340 She later published

00:35:51.220 a document summarizing

00:35:52.400 the findings

00:35:52.840 of her investigation,

00:35:53.920 and it had paragraphs

00:35:55.120 like this in it.

00:35:57.040 Quote,

00:35:58.060 several franchisees

00:35:59.320 discussed misrepresentations

00:36:00.760 franchisers made

00:36:01.820 during the sales process.

00:36:03.260 Startup costs

00:36:03.900 and sales revenue

00:36:04.700 and profit data

00:36:05.620 were some of the critical areas

00:36:06.800 where commenters reported

00:36:07.700 receiving information

00:36:08.580 they believed

00:36:09.160 was false

00:36:09.800 or misleading.

00:36:11.000 One commenter described,

00:36:12.440 sales data

00:36:13.140 that does not add up

00:36:14.180 and a completely false

00:36:15.720 estimated profit margin.

00:36:16.880 Another commenter said

00:36:18.200 that, quote,

00:36:19.100 Dickey's barbecue business model

00:36:20.420 involves selling stores

00:36:21.600 as substantially more

00:36:22.700 than quoted

00:36:23.200 with Dickey's getting

00:36:23.860 a big portion of the cut.

00:36:25.480 Dickey's will tell franchisees

00:36:26.940 the cost will be $400,000

00:36:28.300 and it will cost

00:36:29.080 sometimes double that,

00:36:30.280 but you don't know

00:36:31.060 until you are already

00:36:31.940 heavily invested.

00:36:33.200 Then,

00:36:33.740 the owner would default

00:36:34.660 on their SBA loan

00:36:35.840 and the next buyer

00:36:36.760 comes in

00:36:37.260 and pays half,

00:36:38.240 but then they will default

00:36:39.300 until the restaurant

00:36:39.940 is sold for about 10%

00:36:41.160 of the original cost

00:36:42.220 to build.

00:36:43.380 Note how they said

00:36:44.340 the owner will default

00:36:45.660 on their SBA loan.

00:36:47.120 We're going to come back

00:36:48.280 to that because

00:36:48.980 private equity

00:36:49.880 has figured out

00:36:50.580 how to make the government

00:36:51.660 backstop this fraud

00:36:52.840 and now,

00:36:53.780 when these franchisees

00:36:54.840 are bankrupted

00:36:55.760 and penniless

00:36:56.520 because the business

00:36:57.420 they were promised

00:36:58.040 was all a lie,

00:36:59.540 the government

00:37:00.160 actually pays

00:37:01.000 the bad loans

00:37:01.900 and the private equity firm

00:37:03.420 walks away rich.

00:37:05.320 Some of these

00:37:06.200 private equity firms

00:37:07.040 are actually setting up

00:37:08.200 webs of shell companies

00:37:09.380 and doing what's called

00:37:10.520 the Texas Two-Step

00:37:11.520 to hide their assets

00:37:12.780 in tax shelter LLCs

00:37:14.420 while bankrupting out

00:37:15.660 of their failed business

00:37:16.720 before anyone

00:37:17.720 they stole from

00:37:18.620 has a chance

00:37:19.220 to sue for damages.

00:37:20.660 We'll get back

00:37:21.160 to that in a minute

00:37:22.080 because it's super messed up.

00:37:24.580 But anyways,

00:37:25.660 in Lena Kahn's report,

00:37:27.400 she listed

00:37:27.880 the top 12 complaints

00:37:29.300 along with

00:37:29.960 what franchises

00:37:30.920 were most frequently

00:37:31.800 mentioned

00:37:32.220 in that type of complaint.

00:37:34.220 And Michael Browning Jr.

00:37:36.020 finally got that

00:37:37.000 sweet, sweet recognition

00:37:38.700 that he always craved.

00:37:40.260 his company

00:37:41.480 Unleash Brands

00:37:42.880 was top of the industry

00:37:44.160 in misrepresentation

00:37:45.960 and deception,

00:37:47.580 actual and threatened

00:37:48.720 retaliation,

00:37:49.920 Tiffany's story

00:37:50.480 is just one of many,

00:37:52.540 franchise disclosure

00:37:53.480 document issues,

00:37:54.580 which is a nice way

00:37:55.280 to say fraud,

00:37:56.420 and private equity

00:37:57.820 takeovers.

00:37:59.000 But,

00:38:00.000 it's worth noting

00:38:01.280 that almost all

00:38:02.400 of these top complaints

00:38:03.320 from business owners

00:38:04.140 are all separate elements

00:38:05.640 of the same

00:38:06.380 fraudulent scheme

00:38:07.320 where you lie

00:38:08.360 to get people

00:38:08.960 to buy into

00:38:09.700 your franchise.

00:38:10.840 Then,

00:38:11.420 you trap them

00:38:12.200 in predatory contracts

00:38:13.260 that change over time

00:38:14.940 to be more exploitative.

00:38:16.860 If they speak out,

00:38:18.060 you retaliate against them

00:38:19.120 with lawfare.

00:38:20.100 You can take their businesses,

00:38:21.580 bankrupt them in court,

00:38:22.900 or,

00:38:23.680 just charge them

00:38:24.380 the $200,000 fee

00:38:25.680 that they owe you

00:38:26.460 when you fire them.

00:38:27.820 Because you recently

00:38:28.780 amended the contract

00:38:29.760 they signed years ago

00:38:31.280 to add this little tidbit in.

00:38:33.880 They tried to speak out

00:38:35.140 against it,

00:38:35.960 but obviously,

00:38:37.200 a contract's a contract,

00:38:38.560 right?

00:38:39.220 Like,

00:38:39.620 I really cannot convey

00:38:41.140 how insane this stuff is.

00:38:42.920 It sounds impossible.

00:38:44.300 It sounds like someone

00:38:45.080 would stop it.

00:38:45.960 Like,

00:38:46.260 there would be

00:38:46.800 any amount of justice.

00:38:48.780 Like,

00:38:49.040 you can't just pretend

00:38:49.960 to have a business

00:38:50.680 and sell millions of dollars

00:38:52.480 of fake franchise burger joints

00:38:54.180 and then launder the money

00:38:55.300 out into a chain of LLCs

00:38:56.800 and say,

00:38:57.180 whoopsies,

00:38:57.900 money's gone,

00:38:59.080 guess there's nothing

00:38:59.660 we can do?

00:39:00.560 But,

00:39:01.160 that is literally happening

00:39:02.540 in broad daylight,

00:39:03.700 right in front of the courts

00:39:04.800 and the regulators.

00:39:05.700 The comments

00:39:06.920 that the FTC received

00:39:08.100 were cries for help.

00:39:09.540 Here are just a few

00:39:10.500 that specifically highlighted

00:39:12.180 Unleash Brands.

00:39:13.680 Quote,

00:39:13.940 Franchisees were forced

00:39:15.620 to use a construction

00:39:16.660 management company

00:39:17.520 named Foxfield

00:39:18.420 that was stealing money.

00:39:20.100 Foxfield Company

00:39:20.780 set up a shell corporation

00:39:21.960 for a bogus procurement company

00:39:24.000 that franchisees

00:39:25.080 were required to use.

00:39:26.140 Foxfield's owner,

00:39:27.540 Chuck Piazza,

00:39:28.540 put his wife in charge 0.99

00:39:29.580 of the procurement company.

00:39:30.920 The sole purpose

00:39:31.660 was to create

00:39:32.300 an additional markup

00:39:33.380 on items.

00:39:34.040 Markups were in excess

00:39:35.000 of 80% on some items

00:39:36.760 and stole tens of thousands

00:39:38.180 of dollars

00:39:38.600 from each franchisee.

00:39:40.480 Quote,

00:39:41.200 Unleash Brands

00:39:41.980 has ruined my family's life.

00:39:43.360 I am a franchisee

00:39:44.340 of Premier Martial Arts

00:39:45.360 that has lost everything

00:39:46.580 I own in under two years.

00:39:48.560 They lied to us

00:39:49.360 countless times

00:39:50.080 during the due diligence

00:39:50.900 and sales process,

00:39:52.280 and Miles Baker,

00:39:53.100 Vice President

00:39:53.600 of Premier Martial Arts,

00:39:54.760 told us to suck it up

00:39:56.300 and get over it

00:39:57.280 when my husband and I

00:39:58.400 confronted him

00:39:59.000 about all the lies

00:39:59.800 he told us.

00:40:00.740 Unleash Brands

00:40:01.400 and PMA

00:40:01.900 have treated franchisees

00:40:03.340 not only in PMA,

00:40:05.120 inhumanely,

00:40:06.120 and might as well

00:40:06.740 be called the mafia.

00:40:08.600 Quote,

00:40:09.100 It is traumatizing

00:40:10.560 to be told

00:40:11.140 they are trying

00:40:11.980 to bankrupt

00:40:12.540 anyone with your family name,

00:40:14.780 all while they continue

00:40:15.840 to siphon money

00:40:16.680 from our accounts.

00:40:18.340 Unleash Brands

00:40:19.020 are monsters

00:40:19.640 and the franchise industry

00:40:20.860 should be disgusted

00:40:21.720 by the example they set.

00:40:23.440 The stories about

00:40:24.200 Unleash Brands

00:40:25.000 piled up

00:40:26.080 and got pretty specific.

00:40:27.900 One franchisee

00:40:28.860 even claimed

00:40:29.480 that Steven Polizola,

00:40:30.800 the lead lawyer

00:40:31.900 for Unleash Brands,

00:40:33.060 said to them,

00:40:33.960 quote, 0.98

00:40:34.720 We are going to crush you 0.99

00:40:36.060 into submission, 0.99

00:40:37.320 just like we are doing

00:40:38.420 with Premier Martial Arts

00:40:39.680 and The Little Gym.

00:40:41.420 It is sickening

00:40:42.240 to see how people

00:40:43.140 are being treated

00:40:43.760 after we used

00:40:44.500 our life savings

00:40:45.260 to start a business.

00:40:46.900 And they are using

00:40:47.820 their life savings

00:40:48.660 as well as their life's credit

00:40:50.220 over and over again.

00:40:51.940 So many franchisees

00:40:53.600 have the same story.

00:40:55.160 They are lied to

00:40:56.040 in the process

00:40:56.740 of buying into the business

00:40:58.060 and not just little lies,

00:40:59.800 overt fraud,

00:41:00.880 felony level lies,

00:41:02.400 many of which

00:41:03.780 are blatantly provable

00:41:05.120 in the very documents

00:41:06.520 themselves

00:41:07.080 if any regulator

00:41:08.180 cared to investigate.

00:41:09.780 Then,

00:41:10.500 as soon as you sign

00:41:11.420 on the line,

00:41:12.260 they own you

00:41:12.920 and little by little,

00:41:13.960 the fees are added on,

00:41:15.380 the kickbacks pile up,

00:41:16.700 and the fraud

00:41:17.440 and extortion

00:41:18.020 slowly bury you

00:41:19.220 into bankruptcy.

00:41:19.920 If you try to get out,

00:41:21.600 they can sue you

00:41:22.380 or charge you

00:41:23.240 tens or hundreds

00:41:24.200 of thousands of dollars

00:41:25.260 in exit fees,

00:41:26.280 which are often

00:41:26.920 written in from the start

00:41:28.000 or added on

00:41:29.100 to your contract.

00:41:30.180 But even more appalling,

00:41:31.920 private equity

00:41:32.440 has latched on

00:41:33.240 to a new strategy.

00:41:34.740 They tell franchisees

00:41:35.820 to use special

00:41:36.700 SBA

00:41:37.400 and ROBS loans.

00:41:40.200 A ROBS loan,

00:41:41.300 short for

00:41:42.040 Rollover as Business Startup,

00:41:44.160 although in this case

00:41:44.900 the abbreviation ROBS

00:41:46.000 conveys way more clearly

00:41:47.600 what they're actually doing,

00:41:49.320 they are a way

00:41:50.080 for you to pledge

00:41:50.920 your retirement account

00:41:51.940 as collateral

00:41:52.660 to fund your business.

00:41:54.360 And so now,

00:41:55.160 the private equity firm

00:41:56.380 not only gets these people

00:41:57.620 trapped in contractual servitude

00:41:59.320 and milks them

00:42:00.180 for all the credit

00:42:00.980 they can acquire,

00:42:02.280 but it also

00:42:03.180 gets all their liquid assets,

00:42:05.560 but then it also

00:42:06.520 gets their retirement account

00:42:08.460 on an empty promise

00:42:10.080 that you're going to have

00:42:11.520 a brand new business.

00:42:13.180 Just trust us.

00:42:14.060 Sign on the line.

00:42:14.800 If that wasn't bad enough,

00:42:17.500 they make sure

00:42:18.140 that whenever possible,

00:42:19.840 their victims

00:42:20.320 are using SBA loans,

00:42:22.140 which are special loans

00:42:23.320 for starting small businesses,

00:42:24.700 which are backed

00:42:25.420 by the government.

00:42:26.520 I presume that

00:42:27.640 the initial idea here

00:42:28.560 was to encourage banks

00:42:29.680 to lend to people

00:42:30.680 that are starting

00:42:31.240 small businesses

00:42:31.860 so it could spur the economy,

00:42:33.680 but what it has become

00:42:34.780 is a way for private equity

00:42:36.320 to extort the system

00:42:37.680 and steal from

00:42:38.560 our tax dollars

00:42:39.620 to the tune of

00:42:40.540 Lord knows how much

00:42:41.880 each year.

00:42:42.740 Because an SBA loan,

00:42:44.060 if you go bankrupt

00:42:45.340 and can't pay it back,

00:42:47.000 as so many of these

00:42:48.160 aspiring franchisees cannot,

00:42:50.560 it's backed up

00:42:51.440 up to 85%

00:42:53.020 by the federal government.

00:42:55.280 And so what winds up happening

00:42:56.640 is based on these

00:42:58.100 false promises

00:42:58.960 and often fraudulent documents,

00:43:01.200 predatory private equity groups

00:43:02.780 can convince regular people

00:43:04.460 to take out massive loans

00:43:06.280 that they would never qualify for

00:43:07.800 if they weren't joining

00:43:08.700 an apparently reputable franchise.

00:43:11.280 And when it turns out

00:43:12.300 that the business model

00:43:13.440 isn't what they were told,

00:43:14.920 they're bankrupted,

00:43:16.120 their franchise is closed down,

00:43:17.960 private equity walks away rich,

00:43:20.060 and the taxpayer dollar

00:43:21.460 covers the bill to the bank.

00:43:23.620 In this way,

00:43:25.120 private equity is using

00:43:26.180 average Americans 0.95

00:43:27.160 as willing suckers, 0.95

00:43:28.980 as go-betweens, 0.98

00:43:30.320 who get tricked

00:43:31.140 into extracting

00:43:32.020 every ounce of cash,

00:43:33.700 savings,

00:43:34.280 and future credit

00:43:35.400 that their whole life represents.

00:43:37.940 And private equity

00:43:38.800 can run this whole scheme,

00:43:40.220 never having taken on

00:43:41.740 any risk at all,

00:43:43.160 except risk of going to prison

00:43:44.660 if any regulator

00:43:45.600 or law enforcement agency

00:43:46.900 would ever wake up

00:43:48.160 and do their jobs,

00:43:49.160 which so far

00:43:50.280 has not exactly happened.

00:43:52.160 And so,

00:43:53.340 the show goes on.

00:43:54.680 This happened to basically

00:43:55.800 every owner

00:43:56.440 of a premier martial arts franchise.

00:43:58.200 They all tried to sue

00:43:59.060 Michael Browning Jr.,

00:44:00.040 and he crushed most of them

00:44:01.080 with lawfare and arbitration

00:44:02.460 and regular court as well.

00:44:04.200 This happened to dozens

00:44:05.260 and dozens of little gyms,

00:44:06.780 but this also happens

00:44:07.720 with other private equity,

00:44:08.660 like Burgerim,

00:44:10.300 like Dickie's Barbecue Pit,

00:44:11.880 like Dagwood's,

00:44:13.100 and Subway,

00:44:14.040 and I Heart Mac and Cheese.

00:44:15.280 It's also happening

00:44:16.100 with mental health care clinics.

00:44:17.580 And the list goes on and on.

00:44:19.580 And it's going on right now

00:44:21.120 for thousands of franchisees

00:44:22.860 around the country.

00:44:24.060 I Heart Mac and Cheese

00:44:24.960 is in arbitration right now,

00:44:26.460 and the lawyer representing

00:44:27.460 all of these regular Americans

00:44:28.860 is fighting with everything

00:44:30.360 she's got.

00:44:31.260 If you want to know more

00:44:32.520 about how corrupt

00:44:33.400 the franchising industry

00:44:34.540 has become

00:44:35.160 and just how this fraud works,

00:44:36.880 FranchiseRealityCheck.com

00:44:39.060 is a website

00:44:39.640 started by Genevieve Prado,

00:44:41.420 who was the first franchisee

00:44:43.020 to buy into the

00:44:44.020 I Heart Mac and Cheese brand

00:44:45.400 based on false promises

00:44:47.140 and fraud

00:44:47.920 exactly as we've described.

00:44:49.840 She has now been in litigation

00:44:50.860 for seven years

00:44:51.880 against the company,

00:44:52.780 and she lays everything out

00:44:54.240 on that website in detail

00:44:55.420 with explanations

00:44:56.180 and evidence,

00:44:57.160 and it's all true crime rabbit hole

00:44:59.100 if you want to check it out.

00:45:00.860 I Heart Mac and Cheese

00:45:01.640 is particularly dark

00:45:03.200 because the owners

00:45:04.280 are in the process

00:45:05.120 of doing what is called

00:45:06.140 the Texas Two-Step,

00:45:07.700 where you open

00:45:08.660 a new legal entity,

00:45:09.920 in this case called

00:45:10.780 Pilar Coffee Bar,

00:45:12.020 and then you transfer

00:45:12.900 all of your assets to it,

00:45:14.160 but none of your debt

00:45:14.900 or liabilities.

00:45:15.860 And when you're bankrupted

00:45:16.940 because,

00:45:17.800 oh, I don't know,

00:45:18.800 you're running

00:45:19.260 an entirely fraudulent

00:45:20.260 business model

00:45:20.880 that was designed

00:45:21.700 to defraud

00:45:22.380 your franchisees,

00:45:23.900 then there's nothing

00:45:24.680 in the bank account

00:45:25.620 when they finally make it

00:45:26.780 through a decade-long

00:45:27.580 legal battle

00:45:28.160 to seek some form

00:45:29.080 of compensation

00:45:29.760 because you've

00:45:30.480 transferred it away.

00:45:31.860 You get away

00:45:32.480 with the fraud

00:45:33.100 and you walk away rich.

00:45:34.260 They get taken

00:45:35.120 for all their cash,

00:45:36.180 life savings,

00:45:36.940 and land with a lifetime

00:45:38.080 of debt to boot.

00:45:39.500 It sounds unbelievable,

00:45:41.060 even impossible,

00:45:42.380 but as we've learned

00:45:43.440 over the last couple

00:45:44.280 of weeks,

00:45:45.100 the system is designed

00:45:46.180 to protect the big boys

00:45:47.720 and to exploit all of us.

00:45:50.060 At virtually any franchise

00:45:51.520 owned by Private Equity,

00:45:52.860 you can expect

00:45:53.640 some version

00:45:54.300 of this playbook

00:45:55.080 because franchising

00:45:56.240 is supposed to be

00:45:57.060 a long game,

00:45:58.140 a business built

00:45:58.900 over decades

00:45:59.840 and generations

00:46:00.620 like McDonald's

00:46:01.860 originally was.

00:46:02.660 But Private Equity

00:46:03.960 lives on annual growth

00:46:05.560 and two-year cycles,

00:46:06.960 extracting as much cash

00:46:08.300 as possible

00:46:08.880 as quickly as possible

00:46:10.360 with little or no thought

00:46:11.920 of the damage

00:46:12.560 or consequences

00:46:13.300 left in its wake.

00:46:15.060 And so now,

00:46:16.220 we've covered

00:46:17.260 three different versions

00:46:18.140 of the same story,

00:46:19.360 essentially,

00:46:19.960 in three different

00:46:20.960 class segments of society.

00:46:22.680 It's happening

00:46:23.220 to the middle class,

00:46:24.400 it's happening

00:46:24.860 to those at the bottom,

00:46:26.040 and it's happening

00:46:26.580 to anyone who falls

00:46:27.680 through the cracks

00:46:28.280 into prison.

00:46:28.820 But I'm sure

00:46:30.340 there are thousands

00:46:31.040 of you out there

00:46:31.780 that work in other fields

00:46:33.200 that have other

00:46:33.900 similar stories to this

00:46:35.140 because various versions

00:46:36.600 of these stories

00:46:37.280 are becoming more

00:46:38.160 and more common

00:46:38.900 every year.

00:46:40.280 This is the natural

00:46:41.160 progression

00:46:41.600 of the system

00:46:42.540 that they've built up

00:46:43.320 around us

00:46:43.940 where the ultra-wealthy

00:46:45.340 write the rules

00:46:46.040 and the ultra-wealthy

00:46:47.380 have a secret court system

00:46:48.600 that works for them

00:46:49.380 and the ultra-wealthy

00:46:50.520 control the politics

00:46:51.360 through donations

00:46:52.060 and powerful leverage.

00:46:53.640 And with every new

00:46:54.380 advancement in technology

00:46:55.500 and AI,

00:46:56.600 with every new

00:46:57.200 economic emergency

00:46:58.220 and corporate bailout,

00:46:59.540 every new war

00:47:00.540 and an omnibus

00:47:01.320 spending bill,

00:47:02.320 we are all being

00:47:03.360 marched deeper

00:47:04.160 and deeper

00:47:04.780 into indentured servitude.

00:47:07.040 The two primary

00:47:08.260 levers of power

00:47:09.000 that control the world

00:47:09.920 are money

00:47:10.640 and the law.

00:47:12.320 We are all trapped

00:47:13.220 under an ever-increasing

00:47:14.560 inflationary vice

00:47:16.000 while our tax dollars

00:47:17.380 pay for their kickbacks,

00:47:18.620 their bailouts,

00:47:19.420 and their wars.

00:47:20.920 And if any of us

00:47:21.660 slip through the cracks

00:47:22.460 or into their secret courts,

00:47:24.520 they've got a prison

00:47:25.160 labor system

00:47:25.820 ready to catch you

00:47:26.640 at the bottom

00:47:27.140 and put you to work.

00:47:28.980 This is their vision

00:47:30.020 of the future,

00:47:31.400 where you will be

00:47:31.960 a good little worker bee

00:47:33.300 slaving away

00:47:34.440 in the lower caste 0.72

00:47:35.260 of society

00:47:35.880 while they sit mint juleps

00:47:37.400 in their McMansions,

00:47:38.740 where there's one tier

00:47:39.800 of justice for the rich

00:47:40.820 and another tier

00:47:42.040 of justice for us,

00:47:43.680 where they write the rules

00:47:45.000 and we are the ones

00:47:46.480 bound by them.

00:47:47.360 And the whole system

00:47:48.660 relies on us

00:47:50.020 staying distracted,

00:47:51.280 on us not knowing

00:47:52.380 how the law works

00:47:53.340 or how arbitration works.

00:47:54.940 These stories

00:47:55.660 are too complex,

00:47:56.600 too boring for us

00:47:58.000 to pay attention to

00:47:58.960 when the TV

00:47:59.780 is filled with flashy

00:48:01.000 pop stars

00:48:01.680 and big booty hoes. 1.00

00:48:03.140 Just go to the movies,

00:48:04.460 turn off your brain,

00:48:05.480 and enjoy some good

00:48:06.520 old-fashioned entertainment.

00:48:08.620 Nothing to see here.

00:48:11.040 But not you guys.

00:48:12.720 Y'all are something special.

00:48:14.220 I want to commend you

00:48:15.540 on getting through

00:48:16.860 another incredibly complex episode.

00:48:19.100 I do my best

00:48:20.400 to make these digs

00:48:21.240 meaningful and entertaining,

00:48:22.960 even when it's a subject

00:48:23.860 that is inherently

00:48:24.640 so complex and boring

00:48:25.900 that most people

00:48:27.060 will probably never

00:48:27.660 learn about it.

00:48:28.640 So, thanks for sticking

00:48:29.960 through to the end

00:48:30.580 of that dig.

00:48:31.220 I hope you learned something

00:48:32.440 or will at least

00:48:33.220 think differently

00:48:33.740 the next time you see

00:48:34.460 a semi-truck on the road

00:48:35.520 because I know that

00:48:36.640 personally,

00:48:37.200 I can never look at

00:48:38.240 trucking the same way again

00:48:39.320 since I learned 0.98

00:48:39.940 all this crazy s**t. 0.98

00:48:41.280 And to me, 0.98

00:48:41.940 that's the beauty of learning.

00:48:43.400 Not only do we grow smarter,

00:48:45.040 but hopefully also

00:48:46.000 more compassionate

00:48:46.760 for other people

00:48:47.560 by at least walking

00:48:48.820 a short distance

00:48:49.680 in their shoes.

00:48:50.700 So, lastly,

00:48:52.120 let's close the week off

00:48:53.380 with some of your comments.

00:48:55.120 And I just want to say,

00:48:56.500 you guys leave

00:48:57.320 the best comments.

00:48:58.300 It's so heartwarming

00:48:59.620 to read a Candace comment section.

00:49:01.840 Y'all are some of the nicest

00:49:02.900 and most informed people

00:49:04.340 out there.

00:49:05.040 And the dash of

00:49:06.760 sort of conspiracy theory

00:49:08.420 sprinkled throughout

00:49:09.260 is just,

00:49:10.120 it's just,

00:49:10.860 oh, it's so good.

00:49:11.780 I love it.

00:49:12.880 So,

00:49:13.760 Kimberly says,

00:49:14.920 we better start adding

00:49:15.720 Ian to the prayers

00:49:16.480 for his safety

00:49:17.160 and maybe state

00:49:18.040 that he is not suicidal

00:49:19.000 at the end of each episode.

00:49:20.300 I'm going to be okay, guys.

00:49:21.360 I'm safe.

00:49:22.000 And I am, of course,

00:49:22.880 not suicidal.

00:49:23.940 Very happy.

00:49:24.800 Lovely life.

00:49:25.500 But I appreciate you.

00:49:26.440 Please do keep me

00:49:27.000 in your prayers.

00:49:28.540 SW said,

00:49:29.660 Ian needs to start

00:49:30.380 a history channel.

00:49:31.440 I do feel like

00:49:32.100 I'm just doing,

00:49:32.980 like learning

00:49:33.520 more and more history

00:49:34.420 because all the history

00:49:35.160 that we were taught

00:49:35.760 is lies. 0.63

00:49:38.020 I think it's fun.

00:49:39.580 Norm Deplume said,

00:49:41.020 my husband did

00:49:41.820 four deployments

00:49:42.640 in Afghanistan.

00:49:43.500 He was a military

00:49:44.120 intelligence officer

00:49:44.920 and he spent

00:49:45.340 the entire deployment

00:49:46.420 protecting poppy fields.

00:49:48.300 If you have not yet

00:49:49.120 seen the dig

00:49:50.160 that we just did

00:49:50.880 into the opium trade,

00:49:52.960 poppies,

00:49:54.020 the U.S. government's

00:49:55.780 involvement in drug trafficking,

00:49:57.340 that was spicy.

00:49:58.500 I'm very proud

00:49:59.160 of that video.

00:49:59.720 Very proud

00:50:00.080 of the team

00:50:00.460 for how it came out.

00:50:01.740 Definitely go check it out

00:50:02.680 if you haven't seen it yet.

00:50:03.960 Nakia Clark said, 0.99

00:50:05.720 Candice,

00:50:06.040 we miss you,

00:50:06.560 but Ian has been

00:50:07.100 nothing short of fantastic.

00:50:08.460 Aw.

00:50:09.280 You two should do

00:50:09.940 a regular podcast together

00:50:11.120 from time to time.

00:50:11.960 Enjoy your maternity leave. 0.97

00:50:13.100 Candice is enjoying

00:50:13.880 her maternity leave.

00:50:14.920 She's around.

00:50:15.500 She's doing great.

00:50:16.320 Baby Roman's doing great.

00:50:17.940 I do love coming on.

00:50:19.500 I'm going to love

00:50:20.100 when I come back

00:50:20.760 and do podcasts

00:50:21.280 in the future,

00:50:22.320 but unfortunately,

00:50:23.420 I was talking to Candice

00:50:24.040 and I do have to travel

00:50:24.780 more this year.

00:50:25.300 I got a lot of plans,

00:50:26.200 but I'll definitely

00:50:26.720 always come back

00:50:27.460 and come check in

00:50:28.140 because you guys

00:50:28.680 are the best.

00:50:29.520 Candice is the best 0.99

00:50:30.140 and the team is the best.

00:50:31.320 So Emily Hag says, 1.00

00:50:33.880 quote,

00:50:34.340 drink your water,

00:50:35.100 love your family

00:50:35.720 and do something nice

00:50:36.460 for someone is the best

00:50:37.500 sign off line.

00:50:38.400 Yeah, it's just like,

00:50:39.460 I mean,

00:50:40.300 like we just need

00:50:40.840 a little more positivity

00:50:41.680 in this world.

00:50:42.640 We got to remind ourselves

00:50:43.540 sometimes to keep it light,

00:50:44.720 to keep it happy.

00:50:45.380 And so I think

00:50:46.440 there's a good place

00:50:47.140 to end it,

00:50:47.760 good place to close it out.

00:50:48.780 So thanks for watching

00:50:50.660 the whole video with us.

00:50:51.820 Thanks for liking it

00:50:52.640 before you leave.

00:50:53.600 Thanks for subscribing

00:50:54.200 to Candice

00:50:54.720 and for following

00:50:55.300 the link in the description

00:50:56.160 to go to my channel

00:50:57.120 on YouTube,

00:50:57.980 Ian Carroll Show

00:50:58.700 and subscribing over there.

00:51:00.740 And be sure,

00:51:01.360 of course,

00:51:01.860 to drink your water,

00:51:03.260 do something healthy

00:51:03.860 for yourself

00:51:04.440 and tell someone

00:51:05.140 you love them tonight.

00:51:06.420 And we'll see you next week.

00:51:11.680 We'll see you next week.

Candace Owens - June 06, 2025

The American Trucking Industry Runs on Exploitation — Here’s The Proof ｜ Candace Ep 196

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