SEC warns against Lokalplate ‘franchise’

MANILA, Philippines — The Securities and Exchange Commission (SEC) has issued an advisory against Lokal.Plate Corp., more commonly known as Lokalplate, saying it is not authorized to solicit investments from the public.

In its warning posted on its website, the SEC said several individuals or  a group  of  persons  headed by a certain Brian So claim to represent Lokalplate and are  enticing  the  public  to  invest their money in their business.

Lokalplate offers investments to the public under the guise of  franchising, the SEC said.

Under the scheme, a “franchisee” needs to invest P12,888 to earn from P40,000 to P80,000 per month. A franchisee only needs to share a link that allows people to order from the affiliated food service provider of Lokalplate. The franchisee earns 15 to 20 percent of the purchase price of the ordered food.

Furthermore, a franchisee who recruits others can earn commissions.

“Considering that the scheme involves the sale of securities to the public in the form  of investment contracts, the Securities Regulation Code (SRC) requires that these securities be duly  registered  and  that  the  concerned  corporation  and  its  agents  have  appropriate registration and license to sell such securities to the public pursuant to Section 8 and 28 of the SRC,” the SEC said.

The SEC said the company is registered with the agency but is not authorized to solicit investments. It also issued a warning to those who act as salesmen, brokers, dealers or agents or claim to act for the entity.

“The  public  is  advised not to invest or stop investing in any investment scheme  being  offered  by  any  individual  or  group  of  persons  allegedly  for  or  on  behalf  of Lokal.Plate Corp. and  to  exercise  caution  in  dealing  with  any  individuals  or group of persons soliciting investments for and on behalf of it,” the SEC said.