Blo hairstyling franchise closes, prepaid services bought: Now what?

SAN FRANCISCO (KGO) -- A local hairstyling, blow out franchisee of Blo has closed its doors. That has caused concern among customers, like Jolene Lindner, who tells me she has about $250 in unused prepaid blow outs.

"I got a call saying they had suddenly shutdown and I will not be able to use the blowouts," she said. "They didn't have any timing on what would happen and that was it."

Jolene reached out to Blo corporate and was sent an email telling her to contact the local former franchise owner, Marika Fishman. She did that and says Marika said she wanted to make good on Jolene's prepaid blowouts.

7 on Your Side called Marika and we were referred to her attorney who says discussions are going on between the franchisee and the corporation. He says Marika wants to make good on the prepaid services.

I spoke with Paul Spindler at Blo corporate by telephone. He told me discussions are underway and he is working towards making all customers happy, but he stopped short of guaranteeing it.

So where do customers stand? We asked nationally known gift card expert, Shelley Hunter what should consumers do?

"To be honest with you I don't think there is much they can do, "Hunter said. " When a store starts the going out of business process and you see something going on you should use those gifts immediately"

So who owes money or services to the customers holding prepaid purchases? Without seeing all the contracts between the Blo and the franchisee it is impossible to tell. However as a consumer advocate I expect the two to work together and do the stand-up thing.

For more stories, photos, and video from 7 on Your Side, follow this link.