CENTURY 21 Claims Franchise Lawsuit is “Without Merit”

Century 21 fired off a quick response to opposing counsel’s press release (read CENTURY 21: Franchise Lawsuit Granted Class Action Status) regarding class-action status being granted to its franchisee lawsuit.

In the lawsuit, current and former Century 21 franchise owners allege that after purchasing Century 21 in 1995, parent company Cendant misused franchisee proceeds and resources.  The Defendants claim “The assertions put forth in this litigation are unfounded and without merit.”

Here is the press release issued by the Realogy, the Cendant spin-off that currently owns Century 21.  Comments and opinions are invited below.

Realogy Rejects Plaintiffs’ Comments on Eight-Year-Old Lawsuit Filed in New Jersey

PARSIPPANY, NJ, Aug 18, 2010 (MARKETWIRE via COMTEX) — Realogy Corporation, a global provider of real estate and relocation services, issued the following response to a press release issued by opposing counsel for pending litigation in the New Jersey Superior Court:

The assertions put forth in this litigation are unfounded and without merit. We have capably managed the CENTURY 21 brand since its acquisition in 1995 and have continuously enhanced the brand through many market cycles, including the worst downturn in housing in the history of our country. Throughout, Century 21 Real Estate LLC has maintained its position as the world’s largest residential real estate brand with the most recognized name in real estate. The company has remained focused on the continued growth and development of its CENTURY 21 franchise system.

The claims in this 2002 lawsuit were without merit, and they remain so today. We will aggressively defend against these erroneous claims. This is a class action in which the complaint does not properly reflect the strong relationships we have with our current franchisees.

About Realogy Corporation Realogy Corporation, a global provider of real estate and relocation services, has a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy’s world-renowned brands and business units include Better Homes and Gardens(R) Real Estate, CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), The Corcoran Group(R), ERA(R), Sotheby’s International Realty(R), NRT LLC, Cartus and Title Resource Group. Collectively, Realogy’s franchise systems have approximately 14,400 offices and 264,000 sales associates doing business in 99 countries around the world. Headquartered in Parsippany, N.J., Realogy (www.realogy.com) is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor.

ARE YOU FAMILIAR WITH THE CENTURY 21 FRANCHISE, CENDANT CORP. OR REALOGY CORP.?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

CENTURY 21: Franchise Lawsuit Granted Class Action Status

Former Century 21 franchisees suing their franchisor, Century 21 Real Estate Corp., and its parent company, Cendant Corp. have won class-action status for their lawsuit.

[Read the Realogy / Century 21 response:  CENTURY 21 Claims Franchise Lawsuit is “Without Merit”]

The former Century 21 franchise owners allege that after purchasing Century 21 in 1995, Cendant misused franchisee proceeds and resources.

Here is the press release issued by the plaintiff’s law firm, Zwerling, Schachter & Zwerling, LLP.  Comments and opinions are invited below.

Century 21 Real Estate Franchisees Win Nationwide Class Certification in Cendant Lawsuit

Franchisees Say Parent Company Misappropriated Millions
MORRISTOWN, N.J., Aug. 18 /PRNewswire/ — A New Jersey Superior Court judge has certified a class of current and former Century 21 real estate franchisees in a lawsuit alleging breach of contract and other claims against their franchisor, Century 21 Real Estate Corp., as well as its parent company, consumer and business services provider, Cendant Corp.

The lawsuit, filed in 2002 by attorneys from New York’s Zwerling, Schachter & Zwerling, LLP, details how Cendant misused franchisee proceeds and resources after purchasing Century 21 in 1995. Century 21 is currently owned by Cendant spin-off Realogy Corp.

On Aug. 17, New Jersey Superior Court Judge Robert J. Brennan issued the ruling certifying a nationwide class of current and former Century 21 franchisees during the period from August 1995 to April 2002, whose franchise agreements contain a New Jersey jurisdiction clause. The class is estimated to include no fewer than 1,000 franchisees, but could exceed 4,000 franchisees.

Under a Master Franchise Agreement, Century 21 franchisees were required to contribute 2 percent of their gross revenue to the central National Advertising Fund (NAF) in addition to a 6 percent franchise service fee.

According to the lawsuit, Cendant failed to provide the level of services to Century 21 franchisees required by their agreements. Additionally, the lawsuit claims that NAF proceeds, which topped more than $40 million annually, were misappropriated and diverted to uses other than the benefit of Century 21, including the promotion of Century 21′s Cendant-owned real estate competitors. Shortly after the purchase of Century 21, Cendant also acquired Coldwell Banker and ERA.

“When Cendant purchased Century 21, they were the unquestioned leader of the real estate industry, however, by 2002 the ranking dropped to sixth in the country,” says Dan Drachler of Zwerling, Schachter & Zwerling, one of the attorneys who represents the plaintiffs. “As a result of Cendant’s actions, Century 21 franchisees have suffered damages which may total in the hundreds of millions of dollars,” adds Robert S. Schachter, also of Zwerling, Schachter & Zwerling.

Plaintiffs are also represented by New Jersey-based Keefe Bartels LLC and the Ft. Lauderdale, Fla., office of Adorno & Yoss.

Zwerling, Schachter & Zwerling, LLP represents clients nationwide in financial-related class action lawsuits.  With offices in New York City; Garden City, N.Y.; and Seattle, the firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts.

SOURCE Zwerling, Schachter & Zwerling, LLP

ARE YOU FAMILIAR WITH THE CENTURY 21 FRANCHISE, CENDANT CORP. OR REALOGY CORP.?  SHARE A COMMENT BELOW.

CUPPY’S COFFEE: Dale Nabors Divorce Filing

It seems that the business debacle of Cuppy’s Coffee has claimed another victim:  The marriage of Natalie & Dale Nabors.

The Lauderdale County, AL Divorce Filings dated 07.29.2010, reported on the website ShoalsInsider.com, included names familiar to those who have followed the story of Cuppy’s Coffee:  Natalie Kocian Nabors vs. Robert Dale Nabors.

Robert Dale Nabors was first a franchise consultant to the Ponzi-scheme-like Cuppy’s Coffee, then actually acquired the franchisor Medina Enterprises and all its related entities.  He attempted to relocate the embattled company from Fort Walton Beach, FL to his hometown of Muscle Shoals, AL.  The company soon imploded in a cloud of scandal, lawsuits and controversy.  It’s likely more than 300 franchise purchasers lost investments ranging from tens of thousands to hundreds of thousands of dollars.

Dale Nabors has been named in multiple lawsuits, and he and his wife Natalie have been arrested for passing bad checks.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Related reading:

CUPPY’S: Dale & Natalie Nabors “have done nothing wrong”  December 22, 2009

CUPPY’S COFFEE: Dale & Natalie Nabors Arrested  December 14, 2009

CUPPY’S COFFEE: Employees Bid Fond Farewell to Dale Nabors

CUPPY’S COFFEE: Dale Nabors’ Private Conference Call

CUPPY’S COFFEE: Employees Plenty Steamed at Nabors, Hiller

CUPPY’S COFFEE: Dale Nabors Tells Purvin, AAFD to Buzz Off  August 19, 2008

CUPPY’S COFFEE: SWEET HOME SCAM-A-BAMA  August 4, 2008

CUPPY’S COFFEE FRANCHISEES CALL DALE NABORS  July 8, 2008

Cynthia Sweeley Amnell of Menu Masters aka Proof of Life Smites Her Foes!

Cynthia Sweeley Amnell is one of the more colorful franchise characters this side of Crazytown.

Until recently, Cynthia Sweeley ran a restaurant placemat advertising franchise company named Menu Master (The Excalibur of Advertising) based in Spring Mills, PA.

Now divorced from Robert Sweeley, she goes by the name Cynthia Amnell* and runs a restaurant placemat advertising company named Proof of Life Productions (The Excalibur of Advertising) based in Spring Mills, PA.

Cynthia Sweeley Amnell is a self-described Christian businesswoman who receives her instructions directly from God, who portrays herself on horseback in the garb of Arthurian legend, and who claims her many online detractors are “losers” jealous of her success and beauty.

Through her newly formed Proof of Life Productions LLC, Cynthia Sweeley Amnell offers advertising sales opportunities and “distributorships” using virtually the same website and company history as the now-defunct Menu Master franchise company.

[Photo, Cynthia Sweeley Amnell as portrayed on the ProofofLife.biz website.]

Menu Master franchisees, employees, vendors & customers Warn about Cynthia Amnell & Proof of Life

Unhappy Menu Master franchisees, employees, vendors & customers have posted numerous complaints & warnings on gripe sites such as Rip-offReport.com, ComplaintsBoard.com and MyWoes.com.

They claim that Cynthia Sweeley has recently reinvented her allegedly shady placemat business using the names Cynthia Amnell & Proof of Life both to duck prior responsibilities and to dissassociate herself from the widespread criticism of the failed Menu Master.

On Rip-Off Report, Menu Masters Franchisee wrote:

This lady, Cynthia Sweeley, claims to be a prophet of God. She claims that God tells her who to sell franchises to. She uses “faith” to lure people into giving her and her husband money for a franchise that is ultimately nothing more than the ability to use their trademark. The business opportunity is nothing more than them wanting to sue anyone that tries to compete with them… They want you to do the leg work finding local restaurants – then once you are established – they rip the franchise deal out from under you based on some stupid technicality…
THESE PEOPLE ARE DEMONIC!
MENU MASTER IS DEMONIC!

Menu Master customer Cathie of San Diego wrote:

The specified date for advertising came and went and never even received the promised proof… When I complained on several occasions, all I got was ‘I am the Prophetess of God and he has spoken to me about your problems’ and on and on…BEWARE! Menu Master is run by a wacko professing to sit at the right hand of God. And God has spoken – no refund for this bad girl!

Vendor Wade Glossner, owner of Penny Press in York, PA wrote:

I own a printing company and have done extensive business with Cynthia and Robert Sweeley and Menu Master in the past. They are nothing but dead beat scam artists…. Finally this June, I was awarded my $31,424.52 judgement. I later found out that I am just another in a long line of printers they stiffed.

After years of silence, Cynthia Sweeley Amnell strikes back!

Cynthia Sweeley’s triumphant return as Cynthia Amnell, a successful Christian businesswoman who also runs a non-profit ranch ministry called Wildfire Ranch (A safe Haven for those who need to heal and find Gods purpose for their lives), was thwarted by a renewed spate of critical warnings and posts on numerous complaint sites.

[Photo, left, Cynthia Sweeley Amnell as portrayed on the now-defunct MenuMaster1.Com website.]

Finally, Cynthia had had enough.  She put away her prayerbook, unsheathed her sword and smited her detractors:

Wrote Cynthia Sweeley Amnell on her critics:

They are JEALOUS of my life, of my company, my beautiful log home, my beauty as a model,  my unusual spirituality.

To a disgruntled ex-employee, Cynthia Sweeley Amnell wrote:

GET REAL  IDIOT!! …I know EXACTLY who this psychotic freak is …Mary Emel is FAMOUS in the Penns Valley, Pa. area for being a patholigcal LIAR and THIEF.  She was fired for STEALING, caught red-handed.  Ever since this 250 pound Cynthia-wannabe has been vindictively trying to ruin my life… Mary Emel is OBSESSED with Cynthia Amnell – like FATAL ATTRACTION!

Cynthia Sweeley Amnell to a failed Menu Master franchise owner:

“Another one bites the dust folks… We went over and above the call of duty to make this self-centered loser successful but he was so angry over the lack of instant results that he accused us of selling him a business that was not ‘duplicatable’…. GROW UP you immature loser!

Cynthia Sweeley Amnell on another failed franchisee:

“Michael Trunko of Ohio purchased a franchise from me in 2006.  Michael suffered from having two children with relatively rare diseases… The medical bills overwhelmed Michael with depression and he finally quit his franchise because he simply could not work his franchise when depressed.  Yet somehow Michael decided that it was MY fault that he didn’t get instantly rich from his franchise?!”

Christian counselor Cynthia Sweeley Amnell on her ex-employees:

I am in constant amazement at how many illiterate, white trash women I have had the MISFORTUNE of not only meeting, but hiring in my successful business, Menu Master Incorporated.  People like you are wastes of good human skin… Selfish, greedy,  manipulating…You remind me of inbred hillbillies from the back hills of Kentucky; evil and stupid to the bone.

Cynthia Sweeley Amnell to another ex-employee:

You are nothing more than another WHITE TRASH LIAR,  insane with JEALOUSY over my life.  Watch and Weep loser:  my life is getting better every single day!

“I am moving forward like a steam engine into a wonderful future!” Cynthia Sweeley Amnell

With her foes smited and her Proof of Life website up and running, Cynthia Sweeley Amnell says she is “moving forward like a steam engine into a wonderful future!”  She claims “Proof Of Life is not only doing well,  I am already in 7 states and steadily going nationwide.”

On the personal front, Cynthia reports “I have had three marriage proposals in the last 6 months and am already planning a wedding to one of these wonderful men within a year.”

Looks like the legend will have a happy ending after all!

WHAT DO YOU THINK?

ARE YOU FAMILIAR WITH THE MENU MASTER FRANCHISE?  PROOF OF LIFE DISTRIBUTORSHIP?  CYNTHIA SWEELEY AMNELL?  SHARE A COMMENT BELOW.

* According to Ms. Sweeley Amnell, she reverted back to her maiden name of “Amnell” after her divorce.  Her detractors disagree, maintaining that her maiden name is actually Cynthia Jean Bucher, and that she named herself “Amnell” after the Confessor character Kahlan Amnell on the medieval fantasy TV show “The Legend of the Seeker,” with whom she is obsessed. [See press photo]

EDIBLE ARRANGEMENTS, Tariq Farid Franchise Complaints

Edible Arrangements, a gift retailer that delivers fresh fruit arrangements and chocolate dipped fruit to business and residential areas, claims its franchise opportunity is The Freshest Idea in Franchising®.

According to the Edible Arrangements franchise website: “Tariq Farid started Edible Arrangements with one goal in mind and that was to make people’s day, every day. Through Tariq’s vision came unprecedented growth and success. Now with $350 million in sales and over 950 locations around the world, the focus remains on our franchisees and on our customers to continue delivering happiness around the world.

“Edible Arrangements® helps people around the world celebrate the times of their lives by training and supporting talented franchisees who provide beautifully arranged, natural, healthy food that makes occasions special.”

However, a recent rise in complaints about the Edible Arrangements franchise may indicate that the sweet franchise deal may be going sour for franchisees.

Are you familiar with the Edible Arrangements franchise?  If so, please share a comment below.

On ComplaintsBoard, 4/29/10 Unhappy Edible Arrangements Owner wrote:

DO NOT BUY THIS FRANCHISE!!! THEY ARE LIARS AND MANIPULATORS!

We currently have 35 stores closed down due to corporate continuing to take more money from us all. Every franchisee worries that they will lose their stores due to corporate greed. They currently take 7% plus another 4% for tv advertising which they contribute nothing to. They put out coupons and do not refund the money back to the stores that accept them. They have now released new hours mandating we have to be open on Sundays, however they allow Jewish owned stores to be closed on Saturday and Muslim owned stores to be closed Friday. Christian owned stores are told they have to be open on Sunday…NO EXCEPTIONS will be made. This is Religious Discrimination!

Corporate does not care about their franchisees at all. Due to their greed and the franchisees concern for their investments 120 stores have entered into a lawsuit against them. These guys will stop at nothing to get you to invest in their concept and then shut you down so they can buy your store on the cheap and then resale it a 3 times what they paid for it. They will take your delivery areas away from you and give them to another store which is either a corporate owned store or the owner is related to the CEO.

Again, SAVE YOUR MONEY!!! Find a franchise that cares about the owners that make it successful! As an owner you will work 60 plus hours and you will not be able to pull a check unless you get rid of all your staff. Sadly, you will tell corporate your problem and they will just blame it on your fruit expense and not on all the rebates they get for you purchasing your product through their supplier. Cost of goods has yet to go down over the past 5 years and we have added 700 stores. The reason why is due to them wanting to continue the rebate and not passing the savings down to the store owners.

SAVE YOUR MONEY, FIND ANOTHER FRANCHISE, ONLY BUY FROM US AND SAVE YOURSELF THE HEADACHE OF OWING ONE.

On Franchisee Law Blog, July 27, 2010, Edible Arrangements franchise owner Tom Downes wrote:

I am a franchisee of Edible Arrangements…  At first the CEO told us that we were critical pieces of the entire franchise system. He was right at the time, we were store #59 and the franchisor gave us much latitude as we built our business to break even and small profit after 2 long years and more infusion of capital. Now, 5 years later all that has changed and the CEO/founder does not care if franchisees make money, he has followed the familiar template offered by IFA* and Michael Seidman** [sic]. Get to a critical mass of stores and start implementing dictatorial measures to extract as much money from their franchisees as possible by mandating capital expenditures for “upgrades” and increasing material costs through vendors.

By the way, the franchisor has established distribution companies that you are mandated to buy all these materials from, adding more money to his cash flows. The franchisor is taught to create as much cash flow into the parent company so that when he sells his company, he will maximize the price. Also, the franchise agreement stipulates that any dispute is dealt with by arbitration only in Connecticut.

On a domain name discussion blog on July 29th, 2010 Edible Franchisee wrote:

Tariq Farid (CEO Edible Arrangements) tries to use the American Legal system to his advantage at every turn. He is a dishonest, unethical criminal who tries to hind behind his so called religious faith. He tries to build a mosque in the middle of a residential neighborhood in CT and when the neighbors cry foul, he claims that his religious freedoms are being trampled by a ‘Sad Agenda” against islam. He continually rapes his franchisees with new fees, mandatory purchases from vendors he owns and unreasonable and unsustainable business models. As EA staores are closing all across the country, he claims the system has never been stronger. He is a snake oil saleman, its as simple as that.

Are you familiar with the Edible Arrangements franchise?  If so, please share a comment below.

* International Franchise Association, a trade and lobbying group representing the political and economic interests of, primarily, franchisors.

** Michael Seid, a pro-franchisor consultant heavily involved with the IFA

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.”

ARE YOU FAMILIAR WITH THE BONUS BUILDING CARE FRANCHISE OPPORTUNITY?  IS IT A SCAM OR GREAT OPPORTUNITY?  SHARE A COMMENT BELOW.

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.

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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.

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ARE YOU FAMILIAR WITH THE PLAY N TRADE FRANCHISE OPPORTUNITY?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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