Geeks on Call Franchisees Sue Struggling Franchisor
December 20, 2008
A total of 10 Geeks on Call franchisee groups filed lawsuits in federal court in Norfolk, alleging that the Geeks On Call America Inc. company breached its contracts and engaged in fraud.
According to a news report by The Virginian-Pilot, each of the suits contends that “Geeks On Call took business away from franchisees by operating a competing online repair service. Meanwhile, the installation of a new system for routing customers to specific franchisees has hampered their customer service and ability to communicate with Geeks On Call, the plaintiffs said.”
The franchisees also contend that the company abandoned its Geeks On Call trademark for the brand 1 800 905 GEEK, creating brand confusion and deflating the value of their franchises.
Seven of the plaintiffs are seeking $1 million for damages that they said they suffered; the other three plaintiffs are asking for damages of $1.4 million, $4 million and $5 million.
The franchisee lawsuits hit at the worst possible time. Earlier this month, Geeks On Call Holdings Inc. reported a net loss of $4.96 million on revenue of $5.24 million for the fiscal year ended Aug. 31.
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