CLEANNET USA Franchise Complaints

Some Cleannet USA franchise owners warn that Cleannet USA is another janitorial scam that robbed them of their time and money.  Others defend Cleannet USA and claim the commercial cleaning franchise provides the tools to build a successful janitorial business. 

What do you think?  Here are the 2 opposing views.  If you have experience with Cleannet USA franchise, please share a comment below.

The Cleannet USA franchise website states that through their program “You’ll operate your own local franchise under license from CleanNet USA. CleanNet USA gives you the initial contracts, training, equipment, and supplies to get started, plus ongoing phone center, billing and marketing support. You can start part time or full time. As a CleanNet USA franchise, you will work with clients to ensure their satisfaction, and grow the business at your own pace.”

However, numerous complaints on ComplaintsBoard.com tell a different story.  ElenaWalid wrote:

THIS company, is a SCAM, and ONLY steals your money. My husband joined in about 6 months ago, and took MONTHS to receive just 1 place, he ended up getting about 5 different places to clean, but all were taken due to "poor quality" when we never were told by the building people themselves that we weren’t cleaning good enough. One of these places specifically said "NO DUSTING", after 2 months ofs cleaning, the clean net decided to inspect the different places we cleaned at and all of a sudden, clean net says that one building complained about "how we didnt dust", then we were told to go into that building later that night to clean, we did, and 2 days later our building was terminated because we so called "refusd to show up that night to dust".

We eventually lost all but 1 of our cleaning places due to not showing up to clean, which is a total lie, we show up EVERYDAY and perform our duties correctly.

We went to the company and complained and said we have our lawyer ready, and the head of the clean net in the bay area said sorry they scammed us, and to just give them 3 weeks to fullfill our pay. We threatened them good, and if they dont give us a refund or a job site, they are going to be taken to court !

By the way, when we showed up with complaints at clean net building, there were other people there as well for fraud of taking their buildings from them as well.

DO NOT JOIN THEM ON THEIR BUSINESS.

ledastray wrote:

CleanNet-ATL scammed me out of $10, 000! I wish i would have found this sight before it gave them my hard earned money!

MSMEKA318 wrote:

I have invested 25, 000 so consider you guys lucky I hate CLEANET USA THEY STILL OWE ME 10, 000 IN BUSINESS AND HAS TAKEN OVER 5, 000 FROM ME FOR QUOTE POOR SERVICE I AM SPEAKING WITH A LAWYER TOMORROW AND I HOPE HE CAN HELP ME ATLEAST GET MY INVESTMENT BACK.

“i_hate_cleannet” wrote:

I have been with cleannet for over four years. in this time they have me trapped.. they supposedly train you to be a successful business owner. well, they (under ) bid all the contracts FOR you. you dont get to bid them (like a real business owner) … they are so underbid that it is next to impossible to make a plug nickle in the end. you are out cleaning supplies, gas, time and heaven forbid you have hired anyone.

Here is where the real scam is… if a company dosnt renew thier contract you still pay their BS management fees, their way over priced insurance (more on that later) and franchise fees. if a company that you are cleaning closes, sells out or files for bankruptcy… you still pay the fees … forever. And the way the Cleannet contract is set up, it is their best interest if you get booted out of a company… because.. you still pay… and so does the next guy and the next guy…add it up.

Their is no support for you. Thier quality control people kiss the clients ass and will commit you to "a few extra things", not in their original contract with the client, for no more money. Now their BS insurance… if you ever need it, you are hung out to dry, the amount out of your pocket is outrageous for even a small claim.

I am posting this as a warning. i will not put my real name, as i am still with these sorry #$#%^#$ until i have paid them all their money. I had to take a second job just to keep a roof over my head and feed my family. Soon they will be paid off and then it will be all out WAR.

Lidija Martinov wrote:

I own a Cleannet USA franchise for 8 years, I am not really sure how much money I invested with them. Now I only have a small contract with that has monthly income of $275.00. They won’t answer my calls or give a straight answer. How do I get my money back or what are the steps that I need to take.

CleaNet – Your Worst Nightmare wrote

Do not waste any money on these people, becuase if you do… they are going to make you loose even more, and not just money but your effort and even your pride. They treat you like you are worthless, they give the worst quotes to their clients and becuase is so cheap they sign the contracts and you have to do the dirty work. I just lost another $1, 600 because supposedly they gave the wrong qoute to me for some xtras and the client refuse to pay. However, they will never loose any money as one of their quality contol employee told one day. I have so many bad experiences with them that you can’t imagine. The never get back to you, but to complaint. DO NOT FALL INTO THEIR GAME!! Some jobs after all the math, I don’t even make 1/2 of the minimum wage!!! Forget about getting back your investment I told my husband so many times "We are going to WIN more, when we DROP all these accounts and forget about these bastards. In another words "you have to loose all to start winning again… far far away from these THIEVES. I HATE THEM ALL!

On ComplaintsBoard.com  02-24-2010 “Joe Letme”  wrote:

Don`t do business this company

I bought franchise from Cleannet USA. I hope start new futures..Seller guy ED LUGO… He is best until signed to contract .. Picture is beautiful.. Support, education etc.. Everything big lie.. Don`t trust this company.. just live them alone.. go and start yourself.. or other…

… STAY AWAY…

Some of these franchisees recanted their complaints and said that they happily reconciled with the now-wonderful Cleannet USA (recants are typical following bribes or threats).  However, CleanNet USA Franchisee Fred Brewster posted with his real name (one assumes) disagreeing with “Joe Letme”, and posting in support of Cleannet USA:

I must completely disagree with this complaint concerning CleanNet USA. My name is Fred Brewster and I’m a current

Franchisee of more than 5 years. This is actually my second franchise with CleanNet USA and I currently service contracts from Baltimore, MD to as far south as Leesburg, VA. Through the provided training as well as the ongoing support my franchise has had the opportunity for year over year financial growth since inception. When it comes to the initial support and training I have received all training and still receive support from quality control reps, directors, office staff, sales managers as well as anyone else I need assistance from to include ED LUGO, Director of Franchise sales, who is simply a phone call or email away.

Bottom lines is that if your interested in becoming a franchisee with CleanNet USA you will be provided with all training and continued support throughout the life of your business. Please understand that this is "YOUR" business. If CLeanNet USA does all that is promised and you are not willing to do YOUR part you will not be successful.

ARE YOU FAMILIAR WITH THE CLEANNET USA FRANCHISE OPPORTUNITY?  IS CLEANNET USA A SCAM OR LEGITIMATE OPPORTUNITY?  SHARE A COMMENT BELOW.

BONUS BUILDING CARE Franchise Scam Complaints

Is the Bonus Building Care franchise a legitimate commercial cleaning opportunity or another janitorial franchise scam?

Bonus Building Care franchise marketing materials claim “In the world of commercial cleaning franchises there are many choices.

While some other commercial cleaning franchise companies charge a premium for their services while delivering less, at BONUS Building Care, we believe that you can ‘Start Small and Make It Big!’”

Bonus Building Care is structured the same as most in the controversial commercial cleaning franchise segment, selling territorial Master Franchise deals to sub-franchisees who then sell “unit franchises” to individuals in their region.  Are franchisees really starting small and making it big with Bonus Building Care franchise program?

Internet complaints about the Bonus Building Care franchise opportunity raise concerns.

On Rip-off Report dated August 17, 2009, “franchise holder” claims he was ripped off by Bonus Building Care of St. Louis, MO:

Don’t waste your money with this company they will not do what they promise when you first sign up with them. Bonus has bad management and a office staff and they will say anything to get your 1000.00 dollars.

They tell you that you are a franchise owner when you sign up but what they don’t tell you is that you don’t and won’t own any accounts because it to a all belongs to them.

No matter how many fees you pay, no matter how long you’ve clean the account  it all belong to bonus.

In other words you pay them a starter fee of 1000.00 to get an account up a 1000.00 you may be cleaning several buildings to get to that so called guarantee business of 1000.00. Then they take out a franchise note fee 250.00 are more plus 10% royalty plus 5% accounting plus 7% insurance plus a starter kit that you don’t need for around 300.00

So after working one full month you’ve just spent 770.00 out of your first check that you haven’t received yet plus you wont get that check until the tenth day of the following month.

If the office budget is low they instruct there operation managers to write 50.00 fines on there franchise owners who maybe have worked all night and didn’t answer the phone at 8:30 in the mourning.

They may give you a  book to have the contact of the building your cleaning to sign a evaluation form witch they may not have time to are don’t want to and your deducted 50.00

You may have cleaned a building for years and paid off all the fees and they can come  and tell the contact that your not doing a good job rotate you out of that account and give it to someone else and charge them the same fees as they charged you and they can get paid those same fees over and over again as long as they have that building.

Its a rip-off and you are really an employee of this company and I think that this is just away they can skate around paying employee taxes and yes that is also on the so called franchise owner.

Wednesday, October 28, 2009, Phil submitted this Rip-off Report about Bonus Building Care:

I want to inform everyone across the United States that Bonus Building Care is the biggest janitorial rip off franchise operations much worse then Janiking, Coverall, or Jan-Pro.

This scum bag named [redacted] in Anaheim and his scum bag wife ran an operations in anaheim that was so ripe with scamming us hispanics out of our cash that he took 20K from me within six months and i was out of business with this scumbag from New Zealand.

He took my money put me in accounts without my signature on the accounts and then when I notified him that the accounts were not acceptable to me and I would request change based on the UFOC, he forced me to keep the accounts until I lost all of them.

Then after I lost over 10K in accounts from him, he would not honor his own Bogus contract agreement by replacing those accounts with new accounts to get me up to my purchased account volume agreement, which was over 10K per month.

Then he used this complete inept bozo for a salesman who would under bid accounts just to make his monthly quota so he could hit his bonuses each month, throwing us franchisees under the bus just to make his money so he could ride around in his mercedes for which he couldnt afford anyways.

Bonus Building Care Operation managers were told to take accounts away from franchisees who would not agree with the master franchisee.  But what really was the major breach was him not honoring the contract and replacing those accounts for which I did not even sign and accept? 

He basically forced me into bankruptcy and now I had to file a chapter 7 BK.

Bonus Building Care of OC disputes the latter claim, stating that

“Bonus Building Care takes claims such as this very seriously. As a leader in the office cleaning franchising business we appreciate the opportunity to respond.

“After careful review we can not find any documents indicating that this individual named Phil or any name similar ever existed as a franchise owner within our Orange County based territory.

“The fact that their is no corroberating evidence showing this individual ever exisisted one can only conclude that this complaint is without merit and a hoax resulting in nothing more than a malicious attempt to harm the good reputation of Bonus Building Care in Orange County.”

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BEST BLINDS Franchise Complaints

Best Blinds… Worst Franchise?

Best Blinds franchise owners Eric & Laurie Wilson certainly think so. They bought a Best Blinds franchise then found out the franchisor Laura Melissa Wall-McMahel had already sold the exclusive territory rights to someone else… and never bought back the rights as promised.

The Best Blinds franchisees sued. When the court ruled in the franchisee’s favor, the blind company franchisor tried to get out of paying the judgement by declaring bankruptcy. See court record excerpt below.

Have you had experience with the Best Blinds franchise or ? Share your experience by leaving a comment below.

From Leagle:

ERIC WILSON and LAURIE WILSON, Plaintiffs,
v.
LAURA MELISSA WALL-MCMAHEL, Defendant.

Case No. 09-05754-8-JRL, Adversary Proceeding No. 09-00231-8-JRL.

United States Bankruptcy Court, E.D. North Carolina, Raleigh Division.

July 22, 2010.
ORDER GRANTING PARTIAL SUMMARY JUDGMENT

J. RICH LEONARD, Bankruptcy Judge

This matter came before the court on cross-motions for summary judgment. On June 28, 2010, the court conducted a hearing on the matter in Raleigh, North Carolina.
JURISDICTION AND PROCEDURE

This court has jurisdiction over the parties and the subject matter of this proceeding pursuant to 28 U.S.C. §§ 151, 157, and 1334, and the General Order of Reference entered by the United States District Court for the Eastern District of North Carolina on August 3, 1984. This is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2), which this court may hear and determine.
UNDISPUTED FACTS

1. The defendant is the owner of a window dressing business known as Best Blinds. Best Blinds began operations in 1997. Before 2007, the defendant entered into business training agreements with third parties. Such agreements allowed third parties to conduct business as distributors of Best Blinds’ products in exclusive distribution areas.

2. In January 2005, Thomas Christopher Lawing (“Lawing”) and Brandy Hindes (“Hindes”) entered into a business training agreement with the defendant encompassing Johnston, Franklin, and Granville counties.

3. Early in 2007, the defendant formed Best Blinds Franchising, Inc. for the purpose of selling Best Blinds franchises and converting existing distributors to franchisees. Though Lawing and Hindes were given the opportunity to participate in the franchise program they were not required to do so.

4. In March 2007, Lawing, as a distributor, visited the plaintiff’s home with the intent of selling window blinds. While there, the plaintiffs inquired about franchise opportunities with the Best Blinds company. Lawing referred the plaintiffs to the defendant.

5. The plaintiffs contacted the defendant and expressed their interest in becoming franchisees for certain counties including Franklin and Granville. The defendant informed the plaintiffs that Lawing and Hindes already had exclusive rights in those counties, but thought they would be willing to sell their interest.

6. The defendant was aware that in accordance with the January 2005 business training agreement, a written release from Lawing and Hindes was required before the plaintiffs could conduct business in the subject counties.

7. Lawing and Hindes negotiated with the defendant that they would release Franklin and Granville counties for a sales price of $10,000.00. The parties came to a verbal agreement that instead of paying $10,000.00 outright, the amount would be credited against monies owing to the defendant.

8. In July 2007, the defendant mailed a release to Lawing and Hindes along with a franchise agreement. The release was intended to memorialize the verbal agreement. Neither Lawing or Hines signed the release.

9. On August 12, 2007, the defendant presented the plaintiffs with a franchise agreement granting them the exclusive right to operate a Best Blinds franchise in Person, Granville, Vance, Franklin, and Warren counties. The plaintiffs paid a sum of $50,437.11 for the franchise agreement. At the time the plaintiffs executed the franchise agreement, the defendant was aware that the requisite release had not been obtained.

10. On August 30, 2007, the male plaintiff received a call from Lawing who communicated that neither he nor Hindes had signed the release. After receiving the call, the male plaintiff contacted the defendant who assured him the problem was being resolved. The defendant advised the plaintiffs to continue business as usual. Over the course of the following months, the defendant continually reassured the plaintiffs in this manner.

11. On December 10, 2007, having failed to obtain the release, the defendant offered the plaintiffs an option to rescind the franchise agreement. The plaintiffs accepted the offer on December 26, 2007. A termination agreement was drafted by an attorney for the defendant, which included a non-competition clause and obligation for payment of termination fees. On January 18, 2008, the plaintiffs informed the defendant that the proposed termination agreement did not comport with the terms the parties discussed.

12. On February 28, 2008, the plaintiffs initiated an action in the Superior Court for Vance County against Best Blinds Franchising, Inc. and the defendant.

13. On March 20, 2009, a judgment was entered against the defendant. The court found that the defendant committed an act of unfair and deceptive trade practice. Damages were awarded in the amount of $48,787.11, and were ordered trebled in accordance with N.C.G.S. § 75-16.

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MASSAGE ENVY: Franchisee Fetish Afoot!

Franchisee Fetish Afoot!  Massage Envy Employees Seek 10-Digit Payday!

Something doesn’t smell quite right about this story.  But be forewarned… it’s NSL (Not Safe for Lunch).

If your boss offered you a new BMW and $30,000 per month to let him/her smell and fondle your feet, how would you react?

Would you:

A)  Run screaming from the room?

B)  Kick off your shoes and put those little piggies to work?

C)  Say “Make it a Porsche and I’ll throw in the ankles for free”?

D)  Keep working for the boss for low wages despite his repeated attempts to sniff and rub your feet over his face, then sue when your hours are cut?

It seems that two employees of a Massage Envy franchise would rather sue than un-shoe

Here’s an excerpt from the bizarre report on Courthouse News Service:

SALT LAKE CITY (CN) – Two women who worked at a Massage Envy franchise claim their boss offered them money to smell their feet. One claims that after he “forcefully grabbed” her feet and took off her shoes, he “sniffed them in a lustful manner.” The other woman claims franchise owner John Johnson offered her “up to $30,000 per month” and a BMW if she would let him do it.

*  *  *  *  *

[Danielle] Wade claims that Johnson told her “that he wanted her to ‘check-in’ with him and that he would pay her each time. He told her that she would make up to $30,000 per month,” according to the complaint.

The complaint continues: “Mr. Johnson promised Ms. Wade that he would buy her a BMW automobile if she complied with his gestures. Mr. Johnson further told Ms. Wade he would sign a document indicating he would pay her for her the services.”

Wade says she refused. However, she says, Johnson then told her to “come into his office to talk with him. Once in the office, Mr. Johnson proceeded to lie down on the floor and removed Ms. Wade’s boots and said he wanted to massage her feet and smell them. Ms. Wade objected and put her boots back on and left his office. Ms. Wade was in shock, and shaking as she left Mr. Johnson’s office.”

Co-plaintiff Odette Provost’s allegations are more alarming….

“Mr. Johnson then forcefully grabbed Ms. Provost’s feet and proceeded to take off Ms. Provost’s shoes. Ms. Provost objected to the assault, stating that he was ‘weird’ and that her feet stunk.

“Mr. Johnson stated that he enjoyed when her feet stunk and that it just made him more of a slave to her. Mr. Johnson proceeded to rub Ms. Provost’s feet over his face and sniffed them in a lustful manner.

“Ms. Provost was in shock and frightened during the incident and could not run away.

“Mr. Johnson told Ms. Provost ‘not to say anything to anyone.’ Mr. Johnson then wrote Ms. Provost a check for $100. Mr. Johnson did not state what the check was for.

“Ms. Provost felt ashamed, frightened, and humiliated.”

Then, Provost claims, it happened again.

According to the complaint: “Mr. Johnson asked Ms. Provost if she was available for some training in his office.

“Once in the office, they began discussing issues related to the business. Suddenly, Mr. Johnson jumped to the floor, removed Ms. Provost’s shoes, and started sniffing and rubbing her feet over his face.

“Ms. Provost was frightened and told him to stop. Mr. Johnson stopped and left the office. These incidents created a hostile work environment for Ms. Provost as she could not predict when Mr. Johnson would attack her again.”

The complaint continues: “A district manager for Massage Envy Ltd., L.L.C, was informed of the incidents and stated that Mr. John Johnson was a franchisee, and corporate headquarters could not control a franchisee, and he could ‘Do what he wants.’

“Defendants took no disciplinary action against John Johnson or the franchise in response to Ms. Provost’s claims of sexual harassment and battery.

“Ms. Provost was retaliated against through a reduction in pay and hours. Management and certain employees then took a campaign upon themselves to force Ms. Provost to leave her job.”

The women seek punitive damages for gender discrimination, negligent supervision, assault, battery, retaliation, and intentional infliction of emotional distress. They are represented by Kevin Robson with Bertch Robson of Salt Lake City.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Tip o’ the hat to Oldsword and BlueMauMaufor spotting this story.  Photo credit:  EverJean, License:  Creative Commons

PLAY N TRADE Franchise: 30 Stores to Open in 2010

Embattled and controversial franchise video game chain Play N Trade continues to sell franchises and boast about its new store openings.

The Play N Trade franchise has been widely criticized on the Internet for its franchisee recruitment practices and the viability of its retail concept.  Franchise owners have reported widespread store closure.  After its investigation, the California Department of Corporations suspended Play N Trade’s franchise marketing and sales activities in its state.

Play N Trade has maintained a steady flow of positive press releases boasting store profitability and the benefits of its franchise opportunity.  Here’s the latest release: 

“Play N Trade On Pace to Open 30 New Stores in 2010

“Play N Trade Franchise, Inc, uses exceptional customer service and a unique retail experience to ensure success. Plans to open 30 additional stores in 2010.

“Play N Trade Video Game Franchise

“FOR IMMEDIATE RELEASE

“PRLog (Press Release) – Jul 12, 2010 – San Clemente, CA – - Play N Trade Franchise, Inc, the largest video game franchise worldwide, is excited to announce that 13 new Play N Trade stores have opened for business this year and another 13 are already scheduled to open by September.  
New Play N Trade stores are opening their doors in more than a dozen different states and provinces throughout the U.S and Canada.
Canadian franchisee, Justin White, opened his second store in British Columbia in July with plans for a third to be up and running by 2011.  White projects to have six to eight stores open within the next 3 years.

“’The best thing about Play N Trade is being able to run a store myself,’ says White.  ‘Customers can see that we are not just another huge corporate entity like our competitors.’

“Play N Trade has set itself apart from competing retail video game stores by offering a unique experience for customers upon every visit.  A “Try-Before-You-Buy” policy literally allows gamers to play any game in-store prior to purchase and the new store design, complete with a “Player’s Club” consisting of numerous consoles and flat-screen TVs, is a perfect place to host in-store tournaments and events.  
Play N Trade foresees the success to continue with a tremendous slate of titles set to release on the year like Halo: Reach, Madden NFL 11 and the motion-sensing peripherals of Microsoft’s Kinect and Sony’s PlayStation Move.

“About Play N Trade
“Play N Trade is the largest video game franchise worldwide. It is also one of the fastest-growing franchises across all industries. The company provides exceptional training, support and marketing systems to its store owners, who in turn provide an outstanding customer experience for their shoppers that is unmatched by any other gaming franchise. Play N Trade sets itself apart from competing video game retailers by allowing customers to try any video game prior to purchase, participate in local and national tournaments, have their consoles and games repaired as well as buy, sell and trade video games. Please visit www.playntrade.com or call 1.888.PNT.GAME for more information.

— end —

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CURVES: Curves Posts on Unhappy Franchisee

Unhappy Franchisee has been following Curves International and the issues facing Curves franchise owners since 2008.  Prior to that we published Curves news and hosted discussions on FranchisePick.com (now archived at EveryJoe.com).  We have also followed and written extensively on other franchised fitness concepts, including Contours Express, Butterfly Life, Cuts Fitness for Men, Diversified Health & Fitness, and more.  You may contact us at UnhappyFranchisee[at]gmail.com.

[updated July 11, 2010]

Most Commented Curves Posts

CURVES: Robert Lay’s Story March 10, 2009  (854 Comments)

CURVES: Negotiating the $10,000 Closing Fee October 12, 2009  (133 Comments)

CURVES FOR WOMEN: Business Broker Slams Curves Franchise and Franchisor November 15, 2008  (124 Comments)

CURVES: Can Indie Clubs Thrive Where Curves Failed? January 19, 2010 (53 Comments)

CURVES Franchisee Regrets Not Sticking It to Others January 7, 2010 (39 Comments)

CURVES DISCUSSION: Benefits of a Franchisee Lawsuit? August 18, 2008  (39 Comments)

CURVES: Should Failed Franchises be Resold? March 31, 2010 (33 Comments)

Most Recent Curves Posts

CURVES Franchise Owners React to Comments That They’re Being “Pruned” July 10, 2010

CURVES: 1000 Franchise Clubs Failed Last Year July 8, 2010

Failure Rates of the 10 Most Popular Franchises April 26, 2010

CURVES: 5 West Virginia Curves Close Abruptly February 22, 2010 (3 Comments)

2009 Curves Posts

CURVES: Complaints of Unauthorized Membership Charges November 18, 2009  (7 Comments)

CURVES: “Another Curves nightmare. Please advise!” November 10, 2009 (7 Comments)

CURVES: Franchise Resale Complaints, Comments October 31, 2009  (1 Comments)

CURVES: Franchise Resale Buyer Alleges Fraud October 31, 2009  (1 Comments)

CURVES: In Oregon, Curves Franchises Die Alone October 18, 2009 (1 Comments)

CURVES FOR WOMEN: Advice on Buying a Franchise Resale February 24, 2009  (15 Comments)

2008 Curves Posts

Curves Franchisee Blames Economy for Closing December 21, 2008  (1 Comments)

CURVES FOR WOMEN: Nearly Half The Palm Beach Clubs Have Closed November 15, 2008  (17 Comments)

CURVES FOR WOMEN: Franchisee a Victim of Fraud? September 14, 2008   (22 Comments)

CURVES FOR WOMEN: Is McCord Brokers Required for Resales? August 13, 2008 (3 Comments)

CURVES FOR WOMEN: An Unhappy Franchisee Tale August 13, 2008 (6 Comments)

CURVES FOR WOMEN: UFOC dated March, 2008 June 23, 2008  (0 Comments)

Another Curves Shuts Down Abruptly June 14, 2008  (1 Comments)

Cape Girardeau Curves Franchise Closes June 10, 2008  (0 Comments)

WHAT DO YOU THINK OF UNHAPPY FRANCHISEE’S COVERAGE?  IS IT USEFUL?  FEEL FREE TO SHARE A COMMENT BELOW.

CURVES Franchise Owners React to Comments That They’re Being “Pruned”

Curves President Mike Raymond Says Widespread Franchise Closures Part of Plan to “Prune the System”; Franchisee Responses Invited Read more

CURVES: 1000 Franchise Clubs Failed Last Year

The Wall Street Journal has confirmed what Curves franchise owners have been reporting on UnhappyFranchisee.com for the past two years:  Curves franchise owners are closing their clubs, and losing their significant investments, in alarming numbers.

The statements of Curves International President Mike Raymond in Richard Gibson’s article also confirm what franchise owners have told us in more than 1000 posted comments:  The franchisor that invited them to get into business “for themselves but not by themselves” remains both profitable and coldly indifferent to their plight.

More than 2500 Clubs, 1/3 of Curves U.S. Franchises, Have Failed Since 2007

According to the Journal:

Over the past three years its U.S. franchisees have been closing outlets at a rapid rate, shrinking the chain by about a third: to 5,208 U.S. sites at the end of last year from 7,748 at the beginning of 2007, according to a recent franchise disclosure document the company filed with state regulators.  More than 1,000 Curves vanished across the country in 2009, while just 35 new locations opened.

While the financial toll taken on the owners of 2500 failed clubs is devastating enough, the number is actually understated.  Many Curves clubs have actually been sold once or more before they were closed – so the number of individuals and families who lost significant savings, retirement accounts even homes could far exceed 2500.

U.S. taxpayers have also helped foot the bill for these losses.  Many Curves franchises were funded by SBA-backed business loans, and the Curves concept consistently ranks as one of the highest-defaulting franchises.  So your tax dollars have been repaying banks for loans on Curves franchise defaults.

Curves International Profitability Rises Despite Franchise Failures

The WSJ reports that while Curves franchise owners were losing their businesses in record numbers, the franchisor actually increased its own profitability.  Gibson states that Curves financial statements reveal that, for the year ended Dec. 31, Curves earned $16.4 million on revenue of $84.1 million (19.5%) compared with earnings of $17.2 million on revenue of $128.7 million (13.36%) the prior year.

The decline in revenue reflects lower franchising royalties and equipment sales, but profitability actually increased.  However, struggling Curves franchisees and ex-franchisees have complained that CI has callously tried to squeeze every last cent from them, even as they fended off bankruptcy and foreclosure. 

It’s not clear how much of the $16.4M in earnings came from closing fees and liquidated damages (future royalties) that Curves International and its collection agency demanded from the thousands of dead and dying Curves franchise locations.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Read 850+ Comments from Curves franchise owners.

Email Unhappy Franchisee at UnhappyFranchisee[at]gmail.com

SOLARTEK ENERGY: Jared Coad Claims It’s a Franchise Scam

Jared Coad claims he is a victim of franchise fraud perpetrated by SolarTEK Energy and SolarTEK CEO Brant Ira Patton.

Jared Coad has vowed that unless his $35,000 investment for the Arizona license rights is returned in full, he will dedicate his life to spreading the word that Solartek Energy is a scam.

June 14, 2010, Jared Coad pasted angry complaints & warnings against SolarTEK Energy on numerous consumer complaint sites, including RipoffReport.com, ComplaintsBoard.com, and WhoScammedYou.com.

Brant Patton & SolarTEK Energy quickly returned fire.

On June 21, 2010, SolarTEK issued a press release announcing that it had terminated the Arizona License of Jared Coad (aka Refined Solar) after he had failed to reply to a 30 day notice prompted by numerous consumer complaints.

On June 24th, Patton & 2 SolarTECH employees posted rebuttal comments on the complaint sites, alleging that Jared Coad is a scam artist, disputing his claims and attesting for the integrity of SolarTEK Energy and its CEO.

What do you think?  Share a comment below.

Jared Coad’s Allegations Against SolarTEK Energy

Jared Coad’s warning for prospective licensees of SolarTEK Energy on Rip-off Report includes several allegations:

1)  “They have ripped me off for 35,000 for the purchase of a Phoenix  franchise”

2)  “They have not… trained me and my staff as contracted”

3)  “they… have tried to resell the franchise that I bought for 35,000”

4)  “Their staff have sent me emails of trying to let them resell and they will do a partial reimbursement, they have said to take this to Arbitration if I have a problem….I paid 35,000 and I want my money back 100% in full.”

The indignant Jared Coad doesn’t hold back on personal attacks:

“They stole my money and they will steal again.  Brant Ira Patton is a scam Artist and his Assistant Chris Gray is a Scam Artist.  And lets not forget the final Scam Artist of their Pack “Terry Crawford… As for you Brant…  You are one Scumbag!”

Jared Coad encourages supporters and other “victims” to contact Brant Patton (he posted Patton’s cell phone # and email address) and to complain to their Attorney General.

SolarTEK Energy’s Allegations Against Jared Coad & Refined Solar

In rebuttal to Jared Coad’s complaints, SolarTEK Energy CEO Brant Patton posted his own allegations:

1)  “Jared didn’t receive the remaining two weeks of training because he never reimbursed the second week of training expenses.”

2)  “He also ripped Terry Crawford (one of our sales guys) off by not paying him any commission on over $30, 000 in sales he made…”

3)   “we received three calls [from Jared Coad's customers] to corporate that they feared being scammed by Jared as they had each given thousands in deposits last year. No work was done and they were being lied to about the causes of the delays.”

4)  “I told Jared he was owed zero of his money back, he is the one that defaulted on the agreement. However, I offered to meet him halfway and refund half his fee. Or, we both simply commit to binding arbitration and he will get back whatever the arbitrator feels he is entitled to. He refused to present his story, whatever that is, to the arbitrator. So I’ve terminated his license.”

Who’s the scammer: Jared Coad, Refined Solar or Brant Patton, SolarTEK Energy?

Who’s the scammer: Jared Coad, Refined Solar or Brant Patton, SolarTEK Energy?

Which of these two should be avoided in future business dealings, solar or otherwise?

Hopefully UnhappyFranchisee.com readers familiar with these individuals and companies will share some perspective by leaving comments below.

ARE YOU FAMILIAR WITH JARED COAD, BRANT PATTON OR SOLARTEK ENERGY?  PLEASE SHARE A COMMENT OR INSIGHT BELOW.

Companies or individuals discussed can respond directly below or email us at unhappyfranchisee[at]gmail.com.