When Patriotism Meets Entrepreneurship—and Things Go Wrong

It began with a beautiful idea: handcrafted wooden American flags, rustic in design and rich in meaning. For veterans and first responders, these flags weren’t just decorations—they were symbols of service, sacrifice, and pride. The Rustic Flag Company, founded by a National Guard veteran, seemed poised to become a beloved small business success story.

But good intentions aren’t always enough. What unfolded was a cautionary tale of how passion without planning can spiral into broken promises—and how others with honor can step in to pick up the pieces.

 

These handcrafted wooden American flags weren’t just decorations, they were symbols of service, sacrifice, and pride (img src: DALL-E)

 

The Rise (and Collapse) of The Rustic Flag Company

Like many small ventures, Rustic Flag Company started humbly. The owner, inspired by a friend’s appreciation of his handmade wooden flag, began crafting and selling them at local events. Encouraged by early enthusiasm, he turned it into a full-fledged business. The demand soared, and with it came a flood of online orders.

But success can quickly outpace capability. As orders multiplied, Scott reportedly underpriced his products in an effort to stay competitive. That, combined with the high cost of materials, time-intensive craftsmanship, and a lack of business infrastructure, created a financial bottleneck. Soon, customers began reporting missing orders and unreturned messages.

Even worse, some of those affected were veterans and families looking to commemorate years—sometimes decades—of military service. One Alabama woman had ordered a custom flag to honor her husband’s 30-year career. It never arrived.

What went wrong? According to investigators, the owner of the Rustic Flag Company may not have understood the true cost of running an e-commerce business. Payment platforms continued processing orders even after he was overwhelmed. Whether driven by desperation or denial, he kept accepting payments long after he could fulfill them.

As one local Tennessee newspaper discovered, by January 2020, “at least 23,645 customers’ orders remained unfulfilled and unrefunded.”  And you wouldn’t believe how much money that came out to: over $3.6 million.

 

Whether driven by desperation or denial, Rustic Flag Co. kept accepting payments long after he could fulfill them (img src: iStock)

 

A Misplaced Blame—And a New Hero Steps In

As the scandal surrounding Rustic Flag unfolded, another small business hundreds of miles away began receiving angry emails. That Flag Company, a veteran-owned family operation based in the tiny town of Granbury, Texas, was being mistaken for the now-infamous Rustic Flag Company.

Rather than ignore the confusion, the father-son duo behind That Flag Company—both military veterans themselves—did something extraordinary.

They responded with compassion.

They invited those who had been scammed to share their stories. One flag at a time, they began quietly making things right. No money was exchanged. No promises were made. Just a commitment to honor the service and sacrifice of fellow Americans who’d been let down.

It was patriotism in its purest form: not loud, not boastful—but deeply committed.

 

From Loss to Legacy: A Resolution Rooted in Respect

The original Alabama customer, whose husband never received his commemorative flag, was one of the many helped by That Flag Company. Thanks to their generosity, her husband finally received the flag he had earned through decades of service.

And he wasn’t alone.

While Rustic Flag’s story serves as a hard lesson about scaling too fast and underestimating the complexity of online commerce, That Flag Company’s quiet heroism offers a powerful reminder: integrity can still thrive in the business world.

 

What Can Consumers Learn?

This story leaves us with several key takeaways:

  • Before making an online purchase—especially from a niche or handmade product vendor—check reviews and verify their business standing. Look for signs of transparency and consistent fulfillment.
  • Small businesses are often run by passionate individuals, but that doesn’t always translate into sound operations. If a deal seems unusually cheap, consider the time and cost behind the craftsmanship.
  • When issues arise, consumers have options. If you’ve been misled or scammed, report the business to your state’s attorney general and payment platforms like PayPal or your credit card company.
  • And most importantly, don’t lose hope. There are still businesses out there who operate with heart, who value honor over profit, and who step up when others fall short.

Know Who You Can Trust

At TrustDALE, we work to spotlight businesses that live up to their promises—because integrity shouldn't be the exception. If you're ever unsure about where to turn, visit TrustDALE.com for vetted, trustworthy professionals who’ve earned the right to be called certified.

And if you’re a veteran or family member seeking a commemorative flag, companies like That Flag Company remind us that patriotism and professionalism can, and should, go hand in hand.

Have you ever had a business go dark after you placed an order? Or a company that restored your faith in humanity? Share your story—and let’s keep the conversation going.