JAN-PRO Franchise Complaints
August 11, 2009
Janitorial franchises like Jani-King, Coverall and Jan-Pro are quite controversial, with detractors warning that franchisees are really just buying low paying jobs… or worse. UnhappyFranchisee.com asked: Is the JAN-PRO Franchise a Scam?
Here are some of the comments we received:
N LYNN wrote:
“We have an account we no longer wish to service – it doesn’t pay enough for all the work required.
“We gave them notice that we would no longer be working that account, but they say we can’t quit it until they find someone to fill it. I don’t think they are trying very hard. “
Jeff wrote:
“These guys underbid all the competition, so low that no one can make any money. If you buy a franchise from Janpro, read their contract before anything. Don’t gave them any money until you read the contract. You can Google them and read anything on Ripoff report to see what their former franchise people have to say about Janpro. I agree, they pay so low there is no way you can hire anybody, so low you will have to hire illegal immigrants to work for nothing because you can pay enough for the minimum wage because they bid so low onthe job and suckered you to buy the account because the cleaning is getting done for nothing…. Search and research if this business is for you, it is not a 100K business like you think, it takes a lot of work to earn that.”
Patty wrote:
“Beware, Beware, Beware!!!!!!!!! Jan Pro franchise is a huge rip off. The business tactics they use are very deceitful. They lie to you to get you to buy into the business and AFTER you have given your money to them you find out the truth. You will not make money unless you work 24 hours a day and do all the work yourself. Find an ongoing lawsuit and join in if you can or start your own lawsuit against them to get your money back.”
Jerry wrote:
“I to got rippedoff by jan-pro. They got me accounts that payed so low that I was making less than minimum wage. Since I posted my Phone number on another site I have been geting Tons of calls from people all over the country. I cant believe how many people from all over the country have called me. I even received a call from Canada. It’s really sad how jan-pro keeps ripping off so many people and so many families. What is really sad is when they ripoff single Moms. Now many of us from all over the country are getting together and we are taking legal action. I’m now a member of a National Class Action Lawsuit.”
Also read: Is the JAN-PRO Franchise a Scam?
ARE YOU FAMILIAR WITH THE JAN-PRO FRANCHISE? PLEASE SHARE YOUR THOUGHTS & EXPERIENCES – GOOD OR BAD – BELOW.
jan Pro in Northern NJ is just as bad as the one in NC. They keep taking people money and they know they cannot provide all those contracts. I bought a franchise over a year ago and they still have not giving me all my contracts. Constantly I hear about people that have put out thousands of dollars to purchase these franchise and months go by and still no contracts. My husband was in their office meeting with one of the manager’s when a lady pinned the manager to the wall and asked for her money back. She was pissed because she gave them $25,000.00 and months went by and she had gotten no contracts yet. She got her money back , but its ridiculous that you have to go that far to get respect. Hey I know you get into business to make money, but why be so dishonest and sneaky. If you know you cannot deliver, why make such promises. Some of these people are investing their life savings and trusting Jan Pro to keep their word. I made a mistake and did not fully read my contract. So the fact that I’m in this situation is on me. I’m not going to say don’t purchase a franchise, However, make sure you read that contract before you sign. Because getting out of this is a nightmare
As a former Employee of a Master Franchiser (company like Jan-Pro) I would like to say I feel your pain. I only knew of 2 franchises and worked for 1 of them. The one I worked for was not honest at all. However, they made sure they did nothing illegal. Now we’re talking ethics…
They had me make franchisees sign TT’s or Troubled Transfers before the franchisee (saw the building) agreed to it. Most accounts they offered were very underbid. Their commissions are based to where the sales person has no choice…also, the sales persons I delt with had no experience. I have many years of janitorial experience.
It’s very sad to see people sold a dream, this is all of the money they have and the promise made to them was broken. They make promises to their employees that they broke, myself included. I know there must be Master Franchisers out there who are honest.
Remember this, do as much research as you can. This is your money!!! Tell them you want to talk to 50 franchisees before you make up your mind. Do not sign anything until you have shown the contract to a lawyer. When they say they will meet your designated business fulfillment it means 180 BUSINESS DAYS, not consecutive days!!!!!!! This is longer than 6 months!!!!! Do not agree to any account unless it meets your standards. They twist your arm and threaten you with the fact that if you deny business they are free of their obligation to give you what you paid for in 180 days this is why it is so important to know the facts before you sign!!!!! So remember to ask them if Your Master Franchiser or any representative has been cleaning this account (another franchisee) before you and were there problems that caused you to be the new cleaner.
You have the right to know how many cleaning days, how many hours they bid it at and whether or not it’s a brand new account for the company. Refer to the contract before you sign it, know what your rights are. They are bound by Franchise Laws, they know them!!! You should too!
One of their bidding numbers years ago was $15 hour. So if it took 2 hours it would be $30 per cleaning. Now, you need to factor in GAS per trip, Cleaning Supplies, Franchise Fees, Insurance, Payments on the account if any, Employees + Burden if any…Suddenly, $15 isn’t $15 anymore?????? You are responsible once you sign…remember that!
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[...] JAN-PRO Franchise Complaints [...]
I must agree with all of you also. I currently have a school that grosses 6985 a month. I bought back in april of this year. I thought and the ops manager made it sound like It would really boost my income and future. Because before I accepted this account…I was neting around 3400 from my other accounts I have with them.
So since I needed employees to service this large account I was inexperienced in all that is involved in paying the employees taxes etc….
Come to find out..after I pay all my employees(mind you they are only working about 4-5hrs a day at this account and 4 employees in total a day)paying the fica taxes,janpro taking there 18.7% plus the 1k extra for financing with them. Im only making 700dls a month!!!!!
I feel everybody pain. I would like to be in that class action lawsuit against janpro if somebody could tell how to get involved in that. thanks
I am from pa and incredibly unhappy. Someone please give me info on how to join a lawsuit
I guess that is a real feeling a gainst the franchise. This is far from a real business.
I would like to be in that class action lawsuit against Janpro as well.
I am a franchisee in pa. At first the sky was the limit. I read the entire contract, and utilized it to my advantage. I ran the numbers on all the accounts with the hours bid and the hourly rate. In the beginning the hours were o.k., and the hourly rate was between $21 to $25. The closer the rate is to $25 / hr, it is possible to make something. However, our master franchisor hears the stories from Virginia or Georgia about the guy that bids at $14 an hour. Whatever he is doing has got to be illegal. Now the master franchisor is trying to sell us on $20 an hour. At every objection, we have a meeting. He sounds like Obama trying to convince the smart Americans how great his economic strategies are. I’ll keep my 6 accounts that were somewhat properly bid, and that is it.
Here is a scenario about a recent inquiry about an underbid account: I saw with my own eyes before accepting the account, the hourly bid was $23.45. The Master Franchisor insisted it was $20 per hour, and what I saw was incorrect. Here is my dilemna, which I know I won’t get a straight answer, but I think the M.F. has 2 contracts. One he bills the client, and one he shows the franchisee. Otherwise, why would he insist it was a $20 / hr account, when he knows I would not take a $20 / hr account. I showed him on paper that a franchisee would lose money working an account like this. He changed a number in the Jan Pro EZ Bid Scam formula, and “voila”, the time bid went from 2.4 hours to 2.0 hrs, and the actual bid time was 1.8 hrs. No, Jan Pro underbidding? DO YOUR RESEARCH!!! I am not making this up.
Someone may wonder why I would be doing this and I’m about to tell you all. Between sales and marketing fees and franchise fees, I’m estimating over $17,000 invested. I thought with a franchise, I could use their experience, apply my work ethic, and we could all make out, and I could be fee of my job. Well, over a year has passed, and I am still working 7 days a week, and now the freedom train has derailed. A “little” bitter? Everytime I think about it!
Listen, plain and simple. If you invest in this business you are stupid. PERIOD. I invested in this business and I am STUPID! It is a scam. If you think differently call me [withheld]. SCAM. If you want I will sell you an Environmental Cleaning Concepts Franchise at a 20 percent discount to Jan-Pro.
I’d like to point out I don’t have an agenda to sell Environmental Cleaning Concepts franchises. They do not exsist. It was my sad attempt at dry humor .
I to haven had major problems with Jan-Pro In Illinois, I involved with several lawsuits,The major key is to not settle with the franchisor so there can be a paper trail,So they can’t tell new franchisee’s they have no lawsuits. As soon as I made my last loan payment they started taking away my without giving a chance to correct them.
I’m a believer you can’t do people like this and it not coming back to bait you,they are heartless.
Someone please send me information on how to join the lawsuit.
Hello David, I’m going to post my e-mail here. E-mail me and I can give you my phone number and we can talk. I can give you information on the Lawsuit. What hapened to you has also hapened to other people.
Please read this info about the situation with Jan Pro:
http://www.llrlaw.com/pdfs/franchise_times_taking_off_the_gloves.pdf
Also, I contacted Lichten & Liss-Riordan P.C. here is the link:
http://www.llrlaw.com/ca_clean_fran.htm
This is the reply I got from the law firm:
Thanks for contacting our firm about the Jan-Pro case. We do have a case
against Jan-Pro that is in pre-litigation in Federal Court. In this case, we
are attempting to get the judge to approve this case as a national class action
lawsuit. This means, that every franchise in the country that wants to
participate in the case can file a claim. We have not had a ruling on this
issue yet. Therefore, if the case is approved as a class action, you will
automatically receive a notice either from us or the court and it will ask you
if you want to participate in the case. If you would like, I can keep your
contact information in our database so that in the event it is not approved as a
class action, we can let you know and discuss other methods for proceeding.
Please tell your your fellow franchisees about this lawsuit, the more we get involved the better results we can get. I am a current franchisee in NC. This business model probably worked 10 years ago. However, there are overselling to the point that is a scam.
If you need to know more about my experiences as a franchasee with Jan Pro for almost four year here in NC, please email me. I will be glad to share my experiences with you.
More info here:
http://www.ripoffreport.com/Search/jan-pro.aspx
So Jan-Pro did it again. Screwed me out of my money at any chance possible. This time they got me for 500 bucks. I love to work for free. Investing in this company is the biggest mistake I ever made in my life. Everyday a different franchisee of Jan-Pro of NEPA calls me to tell me how they are getting screwed. Jan-Pro of NEPA as far as I am concerned you are dishonest thieves! And to top it off you put my face along with Chucks in the paper to advertise with out my permission. Hey, Jan Pro of NEPA stop stealing from innocent hard working people! I officially am abandoning this scam of a business immediately! I’d like to thank you for basically stealing the money I worked for through college at 8 dollars an hour. I’m glad I was smart enough to start a company fro scratch a year ago or me and my family would homeless. The line is drawn. Thanks again
Sincerely, Joe Aiello
They did the same thing to in in San Diego,
After two years an d right after my renewal, they just called one night to say they need the keys of my place right the next sdya without any prior written nottice, they sais the place was not well clean ,,but read this:
THEY WERE ABLE TO SELL ME ONOTHER PLACE”!!!!
How come if I suppously don;t do a good job , they are still able to SELL another place to me?
All they want is the money!!!!
Is there anyone in Califronia or San Diego area who can help me.
On a nicer note, I’m suing Jan Pro and my girlfriend has quit her job to start a company to compete directly with Jan-Pro.
Joe Ajello—Good for you! You figured it out! But! are you sure you can support a lawsuit for a long-long-long time —or is your attorney working on contingency –or just on you? Good luck to your girlfriend and the new business.
http://thegreatfranchisingrobbery.blogspot.com
Maybe if you paid more attention to your accounts then this website you would be making money you stupid assholes.
The previous posting speaks the language of the Jan-Pro franchise, rude and unprofessional. Obviously, it is a threat to the sales of new “franchises”, the backbone of their survival as a Master Franchisee. It is not about you as a franchisee being successful as a “business” owner. Otherwise, franchisees will not complain about underbid accounts. Since their bulk revenue does not come from the franchise fee (10%) or the management fee (5%), or from the insurance fee (3.9%) of the accounts. It is about them (Master Franchisee) selling and selling and selling, (did I mention selling) franchises, the accounts are not a big deal to them (Master Franchisee) in terms of revenue unless they (Master Franchisee) sell and resell the account to another franchisee. Please do not invest in this (scam) company.
I recently posted my complaint about Jan-Pro of San Diego.
After my account was taken away, my husband and I had a meeting to close the terms of our relationship with Jan-Pro.
I have to say that I already had the lawfirm that I work for, waiting for me to join a current lawsuit against Jan-Pro.
But after having a face to face conversation with the master franchisor, I changed my mind, and the reason is because this person tried to find out the way to make us either stay or let us leave happy. And I liked that.
On that conversation I found out that my main problem was because I did not have a good relationship with the operations manager.
We were offered to continue with the company and get another account, but, we decided to leave.
All I have to say is that if you are a current franchisee and for some reason you are not happy at all. take the time to have a appointment with a higher person in charge.
If we would did this before, I would not lost my account.
It is a fact that over 80% of small businesses, the backbone of this nation, are franchised businesses. Without the hard working men and women in the franchise businesses, the model would have failed years ago.
The fault is not with the system, it is the individuals involved.
Like me, speak to the man-in-the mirror and you will have your answer.
Don’t fall in the trap spread by greedy class actions lawyers – they are then one scamming you.
All these anonymous posts are deep. However, the facts speak. Compared to the competition a Jan-Pro franchisee makes pennies. So you can own a Jan-Pro franchise and be a poor business owner or be like the competition and be a wealthy business owner. I suppose either way you are a business owner.
Ya gotta luv franchising. People just feel free to make up their own statistics and state them as the absolute truth.
man-in-the-mirror states “It is a fact that over 80% of small businesses, the backbone of this nation, are franchised businesses.”
Really? It’s a fact?
The SBA states there are In 2008, there were 29.6 million businesses in the United States, with 99.9% of those categorized as “small businesses.” In fact, there are 21.7 million small businesses without any employees. source http://web.sba.gov/faqs/faqIndexAll.cfm?areaid=24
According to the IFA there are 909,253 franchised businesses: source http://www.buildingopportunity.com/download/National%20Views.pdf
According to my math, that would make franchises 3.1% of all small businesses.
Even if you lumped all franchises in with small businesses that had NO employees, franchises would still only account for 4.2%
80%+ vs. 3.1% ? That’s a slight descrepency. But if made-up stats and other lies help you sell franchises by all means continue!
You can always break your mirror!
Wow. Where should I start.
First, the system is designed to make THEM money, NOT YOU.
If you live in the Chicago area – LOOK OUT – its going to get worse.
Its common knowledge that Jani-King has a reputation for transfering a lot of accounts. In Burr Ridge, 3 of the ops. managers are now from Jani-King. With me out of the way, transfers WILL INCREASE – you heard it here first.
What should you do?
Get the monthly evaluations and keep a copy for yourself.
Tell the office, when your accounts are inspected, you want to be there with the ops. manager. This will prevent them from trying to talk the customer into a transfer. If you cant be there, have someone take your place.
Start writing letter to your elected State Officials. What they are doing is not illegal. They own the accounts – not you. You bought NOTHING but the risk. Tell the State Reps. that the laws should change to prevent people from being taken advantage of, hold the State responsible for you loss.
If you live in the Chicago area, you know who I am. Get a hold of me, I’ll help. Ask Bob for my number, tell him you want to talk only to me – it will drive him crazy.
Jan Pro Manager! Thanks for telling the truth! —and in such a clever way!
I love your statement “You bought nothing but the risk. Tell the State Representatives that the laws should change to prevent people from being taken advantage of, hold the State responsible for your loss.”
Can I use your phrase “you bought nothing but the risk” when I try to inform beaten-down and failing franchisees that it is the government who is pimping for the franchisors and who licenses them to use this exploitive and abusive business model to send the profits to the top of the financial pyramids.
http://thegreatfranchisingrobbery.blogspot.com
Former Jan-Pro Manager! I love it! “You bought Nothing but the Risk” — Can I borrow this phrase when I write my editorials on the Great Franchise Hoax?
http:thegreatfranchisingrobbery.blogspot.com/
“Can I borrow this phrase when I write my editorials on the Great Franchise Hoax?”
The great hoax is that you keep linking to a site that hasn’t been updated in 5 months.
You are free to repeate or use this in anyway you see fit.
I challenge anyone to re-butt what I say and tell me I’m wrong.
Dont kid yourself “churning accounts” is where the money is. By re-selling the same account, it creates nothing but profit. I personally think it should be against the law.
They have made several mistakes, these oversights will allow you to protect your interests ONLY IF you know how to fight back.
To be fair – I must say some accounts are very profitable, even after the fees.
The bad news is, unless you understand how this works, you wont know the difference until its to late.
It is almost like a Ponzi scheme, but here they use the cleaning accounts instead. I agree there are profitable accounts, however there are only a few and far between. After almost four years with the franchise, I will say that about 75% of the accounts they offered me were underbid and several of the accounts were previously serviced by another franchisee (the Ponzi like scheme).
I agree, Feix —But it is more like a Pyramid Scheme where the franchisors in the same sector compete to saturate markets to maximize THEIR profits —-and those on the bottom of the pyramid who do the actual work and produce the sales are eventually sacrificed to the competition .
The ONLY party guaranteed to make money is the company, NOT YOU.
I bet you were told you were going to be a business “owner” werent you.
A business owner/operator who:
* can be fired at any time by a party other than the customer
* have the contract terms changed at any time without your permission
* be forced to purchase unnecessay insurance
Sounds more like EMPLOYEE to me.
Jan Pro! you got it! Franchisors escape the expense and obligations of being EMPLOYERS under US law and prevent any collective bargaining by franchisees by means of the of the malicious one-on-one non-negotiable contracts that are upheld in the courts.
Franchisors don’t mind if franchisees make profits after they skim all of the cream off of the top, but as long as they can sell new franchises and re-sell territories, churn and encroach, it is only THEIR profits that they pursue and secure on the backs of their franchisees who, as you say, have bought all of the risk for the operations that produce the gross sales from which they take their profits. .
This business model called franchising is so often just a means to permit those at the top of the pyramid to exploit those on the bottom of the pyramid to maximize profits for those on the top of the pyramid by means of preventing any collective bargaining by those on the bottom. Franchising is all about preventing unions or any kind of collective bargaining that will interfer with the maximizing of profits for those at the top of the financial pyramids.
How else could some of the CEO’s of the big franchise systems make $5,000 to $6,000 per HOUR — unless those franchisees on the bottom work for almost nothing and are also responsible, under the law, as employers, for any of their employees (the majority of which will get no benefits whatsoever)? The Potemkin Syndrome —Franchising is presented as “apple pie” and “American innovation” and its ugly realities lie right under the surface, unseen and not understood by prospective and innocent franchisees who are sucked into the system.
What a nightmare,as soon as I paid off my loan with JAN-PRO in Illinois,two large and accounts I’ve had for years was taken,JAN-PRO told me in an E-mail the customer requested for to be replaced,I contacted the customers and said no and was disappointed we were replaced,most of the accounts here is only been charged $16.00 an hour, in smaller markets their charging $20 to $25.00 an hour,you can’t really afford hire the amount of people to clean properly. I’ve looked all over trying to find someone to insure my company,when I give them the sheet with the requirements JAN-PRO request they laugh and tell me no one will insure me with these requirements for instance a $100,000 key replacement policy,when I only have $30.00 in keys,If you know of good Lawyers and insurance company’s please post. I can go on and on,Stay away
It is disheartning to hear of the treachery at play in the Northern Illinois office. I currently dont have any complaints against the office (and I hope I dont!), however I can speak to the underbidding of the accounts. I know Former Operations Manager Personally and I agree with what he has to say.
There are a few key points that come to mind as I read through all of the comments and concerns..
1.) Sales & Marketing fees and internal transfers are how these people make their money. None of us like it, but lets face it, you agreed to it when you signed the contract. You cant cry over spilled milk!!
2.) We are all victims of poorly bid accounts at one point or another. I even have one or two. What would stop a true businessman/woman from reading and learning how to prepare your own bids so that you CAN CONTROL YOUR OWN PROFIT!! It makes no sense to complain about a problem that is within your domain to correct, yet you dont.
3.) I strongly believe that money is the root of evil, so I dont take the accusations of account churning lightly, however you guys have to admit and realize that you and the way that you operate your business are at the root of this problem. You CANNOT expect to give poor customer service & deliver inconsistent cleaning results and retain your account(s). If this is an area that you totally suck at, or need minor improvements with then you best get a leg up before the sharks do!!
4.)Sadly, some of us are good cleaners but not good businesspeople. Some of us are neither and there will always be jobs at the local burger joint for you. In this business, a good brain and a tough ass go hand in hand. You have to have a passion and a strong motivation for doing this or you wont succeed.
In closing, dont fault your inability to effectively manage your business on anyone but yourself. If it is more money you need, sell more accounts. If your account turnover is high, consider a quality assurance program with strict standards. I strongly believe that if you are doing these things, you will have little to no problems with the sharks at the regional office. If you are a smooth operator, and you still have problems. Then we can sue the bastards till kingdom come!!
Several people have inquired as to why my employment was terminated.
I was looking into the possibility that the office is engaged in questionable, if not illegal, activities. Up to and including, but not limited to;
1) misrepresenting information
2) withholding information
3) theft of property – unjust enrichment
4) constructive fraud
I believe, the office was made aware of this, and I was let go.
Former Jan-Pro Operations Manager,
Can you prove anything that you are saying?
Here in NC, Raleigh area they quote at $15 per hour. By the time they finish with the quote, you barely make minimum wage if so. The magic number is: 56.1% (assuming 3.9% insurance.) This is how much you are grossing after paying the sales fees, franchise fees, management fees, and insurance fees. DO NOT assume that you are going to have the account for more than a year, business are like regular people the want the bang for the buck. After all, Jan-Pro gives you only one year replacement. Consequently, you are dealing with just a year in terms of revenues with the account. If you are in business by yourself you will not have the overhead of Jan-Pro. Jan-Pro eats 43.9% the first year. Then, you have to deduct gas, vehicle depreciation/maintenance, equipment cost/maintenance, products, and do not forget Uncle Sam. Where is the business?
Proof.
Watch the court filings in DuPage County, you will be able to review the
material I have.
I am taking statements from franchisees at this time. I’m looking for a typed overview of your expectations as you went into this business, and how they may be different from what you received.
This is for the person who posted that said that they are ” Current jan-pro of North Illinois franchisee” I don’t believe that you are a franchisee. I think that you are someone from Corporate at jan-pro.
1. To your spilled milk comment about sales and marketing. We were lied to about this. You will see when we go to trial.
2. Jan-pro of Illinois stated that = ” We are all victims of poorly bid accounts at one point or another. I even have one or two”. What kind of Brain Washing statement is
that ? That is a Brain Washing statement being used by jan-pro to make it ok for them to rip us off !
Jan-pro of Illinois statement = ” What would stop a true businessman/woman from reading and learning how to prepare your own bids so that you CAN CONTROL YOUR OWN PROFIT!! It makes no sense to complain about a problem that is within your domain to correct, yet you dont”
The problem is that jan-pro doesnt teach you and won’t teach you how to Bid or get your own accounts. If you did why would you buy a franchise with jan-pro. Why would we pay jan-pro Thousands of Dollars and then have to read a book to learn this business! You Make No Sence!
Besides if you are so smart why did you buy a franchise with jan-pro! You make no sence!
3. I find it surprising that you call the ripping off , of accounts “Churning” when its simply Fraud and a Crime! This ripping of accounts happens alot. This is a criminal activity that needs to be preosecuted. I think that this needs to be looked into under Ponze schemes or under the RICO and Raqueteering Acts!
Jan-pro of Illinois Following statement = “However you guys have to admit and realize that you and the way that you operate your business are at the root of this problem. You CANNOT expect to give poor customer service & deliver inconsistent cleaning results and retain your account(s). If this is an area that you totally suck at, or need minor improvements with then you best get a leg up before the sharks do!!”
That is the kind of Cockamamy statement that only someone from corporate would come up with.
Why would we pay Thousands of Dollars and then give bad service. Why would anybody do that. We want to succeed but we can’t when jan-pro rips us off!
4. The following jan-pro of Illinois statement = “Sadly, some of us are good cleaners but not good businesspeople. Some of us are neither and there will always be jobs at the local burger joint for you”.
Then Explain to me why ever since I posted my phone number on another website I have received phone calls from over 40 people from all over the Country and Canada wanting to know how they can join the National Class Action Lawsuit. I have heard Horror stories from single Moms, Families and even Veterans. Why would jan-pro ripoff Veterans who have risked there life so that we could have our fredom. Is jan-pro sugesting that our veterans should go work for Burger joints? Those are the kind of statements that only jan-pro corporation would make. This is what you deal with when you work for jan-pro.
I think that we can all tell that = “Current jan-pro of North Illinois franchisee” is not a franchisee but someone from corporate hidding in sheeps clothing behind a trash can!
I read the following in
MASSACHUSETTS EMPLOYMENT AND LABOR LAW REPORT MARCH 2007
Independent Contractor Is Narrowly Defined
The Massachusetts Supreme Judicial Court (SJC) recently ruled that a “franchisee” was an employee, and not an independent contractor, under Massachusetts’s unemployment compensation statute, M.G.L. c. 151A. Accordingly, the franchisor was required to pay contributions to the unemployment fund based on the franchisee’s reported earnings, and the franchisee was entitled to unemployment benefits. In Coverall North America, Inc. v. Commissioner of the Division of Unemployment Assistance, the SJC relied exclusively on the test set forth in Chapter 151A to explore the employment relationship and determine independent contractor status, without regard to the independent contractor statute amended in 2004.
Rhina Alvarenga purchased a janitorial franchise from Coverall North America. As part of its franchise agreement, Coverall maintains significant control over franchisees by providing training, field supervision, a customer base, and daily customer cleaning plans. Coverall bills customers directly and pays franchisees monthly fees for the services they perform. While Coverall encourages franchisees to expand their customer base, all customers must negotiate contracts with Coverall. Within months of purchasing her franchise, Alvarenga told Coverall that she could not accomplish its daily cleaning plan within the twenty-five hour weekly schedule for which she was paid. Coverall nevertheless demanded that she complete all tasks and did not compensate her for the longer hours necessary to complete her work. When Alvarenga eventually refused to continue performing additional unpaid work, Coverall “discharged” her.
The Division of Unemployment Assistance (DUA) initially rejected Alvarenga’s claim for unemployment benefits after determining that the services she performed did not constitute “employment” but rather indicated that she was an independent contractor. At hearing, however, a Review Examiner found that Coverall failed to establish under Chapter 151A that Alvarenga was an independent contractor. Both the DUA’s Board of Review and a Massachusetts District Court affirmed this decision.
On appeal, the SJC analyzed the three-part test (known as the “A-B-C” test) in Chapter 151A, § 2, and found that Alvarenga was not an independent contractor. Under this conjunctive test, Coverall bore the burden of proving that the services Alvarenga performed were (a) free from Coverall’s control and direction; (b) outside the usual course of Coverall’s business; and (c) part of a business independently established by Alvarenga. The SJC focused on the third prong. Coverall argued that the Court should apply a “capability test” to determine whether Alvarenga could have been entrepreneurial and could expand her business. The Court, however, held that to determine whether Alvarenga was independent, it would look at both her ability to develop expanded business as well as the actual nature of her existing business. The SJC concluded that Alvarenga was compelled to rely on Coverall because it negotiated all contracts and pricing, billed the clients, and controlled daily tasks – and would do so even for customers she developed independently.
Here is a hypothetical, as was mentioned before. WHAT IF there are two bids and two contracts? One the franchisee sees for the less than minimum wage rate after expenses of $14, $15, or $18, and the other the client is billed for, say $22, $23, $25 an hour?
I have a question if any of you know or have an educated guess. What would you say a fair, competitive, profitable hourly rate would be in Harrisburg, PA. Thanks
Sonia I’m glad that Jan-pro gave you your money back because they were riping you off. They are afraid of more lawsuits being filled. Unfurtunately I have read on other websites that more people from San Diego are getting riped off. I have also received calls from over 40 people from around the country who are geting robed by jan-pro, People who have lost there life savings and have been left with nothing. I hope those people get justice to.
I have jan-pro and love it.I run my business because jan-pro enables me to secure customers. Jan-pro gave me my customers that I couldn’t get on my own. I learned at a young age that people that fail make excuses and are the first ones to blame others when they should blame themselves. I can not believe what I read on this page. People and many emigarants blessed to be in USA now want to sue…for what and opportunity that you couldn’t get before. you so lazy. Take advantage of the opportunity. jan-pro and America works and so should you.
To someone who calls himself Juan Marcos. First I don’t buy for a second that your real name is Juan, Your probably someone from Jan-pro Corporation coming in here and posting. I bet your real name is Richard Kisane. We know that jan-pro corporation and it’s attorneys are coming in here and reading all of these post. So now they feel like they have to post something to stop all the people they riped-off from telling the truth. Richard Kisane Oh I mean JUAN what about the veterans who have called me who are fighting for your fredom to live in this country and got riped-off by jan-pro, are you calling them lazy to? Juan what about the imigrants who called me and told me that jan-pro took there acounts for no reason and then sold them to new incoming people. What jan-pro is doing is NOT American.
Jerry; try to get some sleep – i think you are spending far too much time in front of your computer at all hours of day and night – i see it from your postings, brother!
Jerry; try to get some sleep – i see it from your postings that you are spending far too much time in front of your computer, all hours of the day and night. It might help you put things in perspective. Talk to the mirror, brother.
To the person who hides by using the name man in the miror. I think your question should be targeted to jan-pro. How can they sleep at night by knowing that they have riped off and destroid so many families around the country. man who hides behind the mirror is that the best you could do is to tell people to sleep and not stand up when they are getting ripedoff. I have received calls from people all around the country who were ripedoff by jan-pro. From hard working people who lost there life savings. How do you think they are sleeping.
By the way man who hides behind the mirror you posted a Big Lie on your post Dated January 22 nd. Now what do you have to say about that. Everybody reading this post go back up and read his post dated January 22nd were this person posted that 80% of small businesses are franchises. That is a bunch of BS! You thaught you could just make some stuff up and post it and not get caught.
When will I and so many people who have been ripedoff by jan-pro be able to get some sleep? When they finally stop ripping of people and we finally get justice.
24 days. That is the total time anyone is given to purchase a Janpro franchise. From the initial review of the FDD, 14 days are mandatory to review all information discussed and GIVEN in writing before you are asked to come back and sign anything. Afterwards, there is a mandatory 10 additional days for what is called a cooling off period, where if you discover anything fishy, you are allowed to WALK AWAY from any responsibility and not be held to the contract. I just spent nearly 2 hours reading all the posts to date and I am amazed that people are faulting the system AFTER the fact. If buying a franchise is such a scam, then why did you ever get involved in the first place? The simple and most honest answer is that you didn’t do your due diligence in fully understanding what you were getting into. Now, I know “Jerry” and others will immediately accuse me of being somehow tied to some corporate interest, or that I am some sort of lawyer but I could really care less. I do not work for Jan Pro but I have owned a franchise in the recent past that I still manage on the side for my brother. I have found that this system, like most things in life, has its positives and its negatives. Nothing in life is ever perfect, nor would any sane person expect a franchise based business to generate enormous amounts of cash. It simply isn’t in the design. What a franchise based business will do is offer stability, and/or build experience to new entrepreneurs building onto a proven formula. I am amazed to read so many posts about being so called “ripped off, bamboozled, and simply being taken for a ride while some one else made all the money. I laugh at that because these people have absolutely no idea how to run a business. None. And if there is one lesson for anyone reading this and thinking about investing in a franchise business or any type of business at all. First, if all you have is a Highschool education, spend at least six months at a local community college taking basic business courses so you can have a base of knowledge about how to run a business. Second, consult anyone working in the tax field, either someone on the Net or a local office and find out either by reading on your own or talking with someone about the tax implications of running your own business. And third, do your own research. Do not believe ANYONE, not even me, or even these so called “disgruntled” former Janpro franchisees. Because by “Jerry’s” own statement, he could be a sleazy lawyer walking the blogs looking to stir things up and fish him a few more clients.
My two cents….after royalties, management fees, insurance, etc…
Peace…
@■common-sense lacking a bit
For you not to have owned a Jan-Pro franchise do not give us your opinion because you are on the outside in …thank god for people like Jerry and anybody else who speak out when people are getting ripped off…..I talked to Jerry over the phone and seen proof of where he was ripped off …(how would you fell if I ripped your mother off) Jan Pro is money hungry and that is why they do not care if people are losing life savings….The Jan Pro system is setup to rip off the franchisee point blank look at all the fees …..(they sell you on the american dream of owning you own business then charge a fee for everything. The only reason why they are ranked in the top franchise in entrepreneur.com is because they sell so many accounts to new franchise not because the franchise are happy or growing thier business. The business is model is flawed but flawed only for the franchisee because it is a win -win situation for Jan Pro , Jani King and etc….Before anybody invest in a so called cleaning company call at least 30 current franchisee and question them about the company do let jan pro select the list for of franchisee to call and get thier honest opinion. I have a four year business degree and I had a meeting with jan pro and the contract has so much double talk that you will be signing your rights away once you invest…think about it what is in the jan pro contract protects you as a franchisee from jan pro screwing you over……NOTHING. Jerry is telling the truth anytime people start to speak out about the truth the first thing that will happen is someone trying to discredit that person and it is clear that is what ■common-sense lacking a bit is trying to do …because for you not to have a jan pro account or know someone who has been scammed by jan-pro why are you even writing on this blog …get a life
Bill,
I appreciate you taking the time to respond to my post. However, you seem to take a vindictive vexatious approach to what it is I attempted to convey. You have apparently skimmed over my post and failed to realize I am still a current franchise owner, albeit now a silent partner with my brother. I don’t think you realize how inconsequential your argument was against the one I made. First, if you had read my post, you would have noticed a couple of sentences where I stated that people should do their own research, thus empowering themselves to make the right decision about this or any business—really sound advice when dealing with any sort of monetary investment. Second, I also noted that they should not be influenced by ANYONE, including me, and should rely exclusively in their own research and due diligence—but you somehow omitted that from your post as well. You on the other hand have taken the time to attack a different point of view which differs than your own. That clearly shows your incompetence in being able to properly articulate your indifference to this business. I will acknowledge, again, since apparently you missed it the first go round, that this business offers more stability than financial growth. If I were to recommend it to anyone, it would be for a second source of income or one of any other businesses an entrepreneur would want to vest time and money into. It works, if you manage it to work. It will not work if you mismanage cash flow, lack the ability to articulate and develop customer service and business relationships with your customers, and most important, lack the hunger to run your own operation. This after all is a SERVICE based industry. We do not provide products as our selling points, but rather a service which is highly subjective to the ebbs and flows in a number of key metrics—economic, social, and in a highly competitive industry. Again, to summarize, if you bought into this system because of what one person said to you during a presentation and then failed to do your due diligence in following up, checking references, and having a clear vision of what to expect, I do not see how any reasonable person could fault “the system” and not take some acknowledgement that they too had a vested interest in doing their homework before signing anything. I think that anyone who can broadly paint any scenario with a single sided approach and completely remove any responsibility for their own actions is truly misguided and has failed to realize how taking ownership of one’s actions can impact one’s life.
Peace…
Jan pro is a scam soon everybody will know it…. Think about this if they offered you a certain amount of contracts they have fulfilled thier part of the contract …. Please tell me where you can pay for something and a company can offer something to you and if you reject it they do not have to refund your money….. If you invest in jan-pro prepare for the rape like a prison inmate
They prey on latinos and blacks ( this is a scam )
To “jerry” and ” the truth” and all others like them, you guys are absolute morons and you really should stop embarassing yourselves in public the way that you are. Jan-Pro isnt the problem here. Its your lack of business and common sense that is at fault for your unsucessful ‘attempts’ at entrepreneurship. I must admit, the Jan-Pro business model is very flawed and allows very little room for growth and profitability, but like anything in life “it is what you make it’. Jan-Pro doesnt promise success or instant wealth. It provides an opportunity from which you must attain those things with your blood, sweat, and tears. There is no other opportunity that will allow you to become a businessman with little or no capital, credit, or business know-how (which is part of the problem). Many of you cant even write in complete sentences or without misspellings, so I know that your business and financial acumen (look it up) is even worse. If many of you had taken the time to READ and UNDERSTAND the FDD before your signed the contract, then you could have possibly saved yourself the misery and headache of being in the uncomfortable situations that you have found yourself in. In reality, they havent hidden anything about the way that they operate from anyone here! They told you upfront and gave you the chance to exit without commitment. You chose to stay so LIVE WITH IT!!
@ Current Jan-Pro of North Illinois Franchisee …your momma is a moron
This is not grammer school this a compliant forum dummy….@Jan-Pro of lllinois
You have to be from corporate …You should be looking for job becuase Karma is a b&$@$
If you are for or against Jan-Pro I believe this board/blog is losing all credibility due to the nameless bickering. If you have something consequential to say have the guts to put your name behind it. Whether you are for or against them stand behind what you say.
This post is in response to a person who calls himself a “Common sense lacker”
1. You are not given 24 days.
2. The Fdd is Missrepresentful, Deceitful, Hard to understand, and Fraud.
3. Oh and Guess what! When I went to my deposition in Boston jan-pros attorneys admitted and said that the Fdd is very hard to understand. Even jan-pros attorneys cant understand it.
4. There is NO mandatory 10 additional days.
5. To the person who calls himself a “ Common sense lacker ” Ok so if I get this right you happened to just wake up Monday morning and do a search for jan-pro scam or jan-pro rip-off and you happened to find this website and then you decided to spend the next 2 hours reading all of these post. Well I’m not buying it. You can deny it all you want but we know that you are someone from corporate. Besides on your post you told us not to believe you and I can tell you right now that we don’t. If it looks like crap and it smells like crap then It’s jan-crap.
6. You asked why did we buy a jan-pro franchise. We did so under false terms. We were lied to. They withheld information. They Misrepresented many things. They were deceitful and Fraudulent. But hey don’t worry we are getting the real truth out so that no more people get rip-off . There will be news on this fraud soon. It will be on TV.
7. To the person who calls himself a “ Common sense lacker ” You said that you don’t work for jan-pro but that you used to own a franchise. But that now somehow, in someway, you now manage it for your brother. Are you sure it’s your brother and not your Third cousin that lives in Kentucky! Is your brother Richard Kissane the president of jan-pro?
8. You said that we shouldn’t expect to generate huge amounts of cash. Well we also didn’t expect to get underbid accounts that pay less than minimum wage! People also didn’t expect to get there account rip-off, stolen away for no reason. That is a crime that needs to be prosecuted with prison.
9. You said that you are amazed at how many people have posted that they were rip-off by jan-pro. I’m not, infact I know close to 100 people who have been rip-off by jan-pro. Wait until we go to trial and you will hear some really tragic stories. Then you will be really amazed.
10. At the end when you wrote the following royalties, management, and insurance. You forgot to mention Deceitfulness, Fraud, Rip-off of accounts and underbid accounts that pay less than a third world countries minimum wage.
11. You try and suggest that I’m a lawyer trying to stir things up. You want to know who I’am ?
I’m a simple American who loves his country. I’m an American who doesn’t like to see jan-pro rip-off and destroy peoples lives. Who am I ? I’m one of the many lead plaintiffs from around the country. I’m Jerry Vazquez an American standing up for his fellow Americans and looking for justice.
This website is called unhappy franchise for a reason Joseph and the rest of the Jan-Pro ,Jani-King and coverall supporters stop trying to deny the people the truth…this company is a fraud and we have some surprises for Jan-Pro.
Free at last
Richard Kissane knows this is a ripoff , we should get together and call all the black and latino leaders to do a march.
This a legal scam do not invest this company!!!!!!!!!!!!
If you let any lawyer read that contract they will tell you it is a scam.
Velocity Sports Performance At-A-Glance
Key Personnel: Richard Kissane, President and COO
David Walmsley, CEO
Loren Seagrave, Chief Performance Officer
Concept: A business devoted to helping athletes in every sport, at all ages and all skill levels, realize their athletic potential through advanced sports performance training programs scientifically designed to maximize human sports performance.
Market Position: Currently, Velocity Sports Performance is the only nationally franchised sports performance training company. At this point, the primary competition is from independent private coaches who typically do not have the resources, support, or facilities that each Velocity Sports Performance center does. While the company expects other entities to mimic this operation in the future, management is taking maximum advantage of the current market to solidify its position as the category leader. The ultimate goal is to make Velocity Sports Performance an international brand.
Target Market/Market Potential: Velocity Sports Performance targets six primary market groups: student athletes ages 8 to 20; recreational athletes; elite amateur athletes; professional athletes; occupational athletes (people whose jobs require physical strength, speed, and agility); and active seniors.
Training modules include: Speed, agility, and coordination; strength and power; flexibility; energy system development; and muscle regeneration.
More than $4.1 billion is spent annually on private coaching and sports instruction (Fitness and Research 2000 Report). Velocity Sports Performance expects to capture a substantial share of that market, and even increase the monies spent in this area because of the unique aspects of the brand.
Growth Projections/Strategy: The company began franchising on June 1, 2002 and sold 15 centers in less than three months. By year-end, operations will be open in California, Connecticut, Georgia, Illinois, Missouri, North Carolina, Tennessee, and Utah. International sales should begin in mid-2003.
Conservative estimates put the company at a $50 million operation by the beginning of 2004.
Franchise Facts: Each Velocity Sports Performance Training Center is a 10,000-15,000 square foot, enclosed, climate-controlled facility with 9,000-13,000 square feet dedicated to sports performance training. The training area includes a synthetic turf field, a 60-yard rubberized track, a hard court surface, and branded rubberized flooring for other areas of the center.
The estimated initial investment ranges from $250,000 to $462,000, depending on location, and includes an initial franchise fee of $25,000, plus leasehold improvements, indoor surfaces, equipment, working capital, and other costs.
Franchisee receive a full support program, including site selection and build-out assistance; staff recruiting assistance; training; grand opening support; marketing, advertising and public relations support; ongoing training and support.
FOR MORE INFORMATION:
Contact Richard F. Kissane or David Walmsley for more information on the franchise opportunity:
Here is another company the Richard Kissane(Jan-Pro Ceo) is apart of also we should check them out too.
Might be a scam also we might need to warn Nike and others partners with the company.
Contact Richard F. Kissane or David Walmsley for more information on the franchise opportunity:
Velocity Sports Performance
2125 Corporate Drive, Suite 101
Marietta, GA 30067
Phone: 770-955-1000
Fax: 770-955-1021
Franchising Information:
866-955-0400
http://www.velocitysp.com
If anybody wants to see a picture of Richard Kissane
Go to this lin.
http://www.sbomag.com/articals/SYOB/2003/syob_spring03_profit.html
This is his new scam a franchise for training.
He looks like Kevin Mchale from Boston celtics heyday.
This is a total scam do not invest
OMG, You are right. They pray on people take there many, little by little they take accounts away and to finish it off…The office people are so rude and nasty, all trashy, uneducated and mean. If you talk back they tell you will get a fee. There is a fee for everything. Please this is a total scam.
It’s a Nation-wide scam!! Do not invest! You will regret it, it is a nightmare.
There are so far 5 families in the state of Connecticut (that i know) that had purchase a franchise with a cleaning company. So far these, Hispanic working women have invested Sixty Three Thousand Dollars (63,000.00) because they were promised a set monthly income.
If they give you two accounts, it will only be for a month or so, and then they will take it from you without explanation or making an excuse in order to give it to a new franchise owner so they invite more people to join. Employees from the company are also owners of a franchise and I am sure theirs are doing fine; some of them have the franchise under their names and some under their family names
they charge all kinds of fees, don’t return calls ALL OF THEM ARE CLUE LESS OF HOW TO RUN A BUSINESS……
No gasten su plata con esta parrandada de ladrones….
Another victim
bridgeport, Connecticut
U.S.A.
This is in response to someone who calls himself “ jan-pro of Illinois franchisee” However we know you are in reality the master franchisor so I will refer to you as the “master franchisor of Illinois” This is in response to your last post.
1. You called me a moron. Then in your next sentence you said something that will give all of the executives at jan-pro and all of jan-pros attorneys a heart attack! I can just see Richard Kissane dropping to the floor. The following is what you said in your last post.
“ The jan-pro business model is very flawed and allows very little room for growth and profitability.” So “Franchisor of Illinois” you admit that jan-pros business model is very Flawed!
2. You said that jan-pro doesn’t promise success. Yes they doo. Infact they tell you that you will be able to make good money and that you will be able to grow your business and hire employees. Infact they have Ads that say that you can make $100,000 Dollars !
3. You said that if we would have understood the fdd that we could have saved ourselves the misery and headache. When infact the fdd is Deceitful, and Missrepresentfull. When I went to my deposition in Boston jan-pros attorneys admitted that its very hard to understand. Even jan-pros attorneys can’t understand it!
4. By the way “Master franchisor of Illinois” I just heard about the new dirty scam your trying to pull. That new dirty scam is really low. I don’t think that certain Government agencies are going to like it. I don’t think that the IRS or District Attorney will be to happy to hear of it. Maybe someone should call the local news station.
Thanks I was going to meet with them now I am not.
[...] JAN-PRO Franchise Complaints [...]
[...] JAN-PRO Franchise Complaints [...]
Do not let jan-pro con you out your cash I know personally how it can happen please run away
[...] Entrepreneur’s “fastest-growing franchises” list are commercial cleaning franchises: #1 Jan-Pro Franchising Int’l Inc., #3 Stratus Building Solutions, #5 Anago Cleaning Systems, #7 [...]
Here is something for all of you to dwell on. Haven’t been here for a while, but looks like things are heating up again.
I read the FDD. The FDD states that Jan Pro forwards the franchisee’s check on the 13th of the following month. Our master franchiser was paying us on the 15th of the month. O.K., two days? I could live with it. Now we are going to be paid on the 30th of the following month?! Isn’t this a breach of contract, unless the two parties involved agree to the change? Or can we use the FDD as toilet paper and the big book means absolutely nothing. Just something for show, to keep the Feds and SEC off their backs.
Maybe someone can help me here, but I can’t seem to find in the FDD, (kind of like reading IRS tax code), where it says Jan Pro will find your accounts for you for $20 an hour, or less from what I’ve been reading. I ran the numbers, it’s not worth it. And for those of you getting accounts under $20 an hour, God Bless You! Franchisees lose money on these accounts!
Yep, I told myself I wouldn’t do any more of this posting, but today, I couldn’t resist. There was actually something to comment on today.
Jan-pro Exposed on TV. Did you see the news report on Tv? Jan-pro was exposed on Telemundo chanel 52 last Friday 2-26-2010. The name of the Tv program is
Al Rojo Vivo with reporter Maria Celeste. People that were riped-off by jan-pro came forward and said how jan-pro was ripping them off. There will be another report coming out on another Tv station this time it wil be in english. Once I get it confirmed I will post it. They will most likely also be posted on Youtube.com
Hopefully more of us go to the media so that no more families get hurt.
My mothers friend works at jan pro and is a hispanic women she has alot to say about this franchise
What is the starting salary for a Ops Manager for Jan Pro, maybe the former Ops Mgr can answer or anyone else who may know.
-thanks Jason
Jan-pro was Exposed on TV. Go to the following link and you can see a news report that came out on Tv. People here talk on how jan-pro Ripped then off.
http://msnlatino.telemundo.com/shows/Al_Rojo_Vivo/video_player?uuid=7d4cfdb4-97e0-4799-9b76-6a38d058e95f
I am totally turned off with Jan-Pro… Never in my life have I ever wanted to kick someone ***…
They lie, steal and cheat the owners out of their hard earn money. I’m thinking that I own my business and the bottom line is I’m a glorified employee of Jan-Pro.
What ever you do, I beg you… DO NOT INVEST YOUR HARD EARNED MONEY WITH THIS FAKE *** FRANCHISE COMPANY.
Don’t believe the hype! The only way they are the FASTEST GROWNING FRANCHISE BUSINESS is because they wait until you finish paying for your business upgrade,make up lies, take your business and sale to another franchise owner.
THIS IS A PYRAMID SCHEME!
F*ck jan pro
I am trying to get my local TV station to run a story on the scam of cleaning franchises. If you are serious about stopping this scam please take 5 minutes of your time and email telldave@wnep.com. Tell him your story. I think if enough people let him know how these companys screw people he may run the story. He is the investigative reporter for the local news. Thanks
Hi Mark, Can you tell us were this station is located at ? Can you give us there website? Could you give me a call. You can find my number by going to this other website complaintsboard. or you can e-mail me
FYI The url of the website is contained in his email address (wnep.com). All the station info is there.
Piss off 2 the highest of pisstivity wrote “…the bottom line is I’m a glorified employee of Jan-Pro.”
What part of being a janitor is considered “glorified”? Just wondering…
That is the wrong email. I am very sorry. The email address is Dave.bohman@wnep.com
Come on everybody..let’s get this story ran!
Thank you Administrator I just wanted to make sure. Thanks.
Chuck Watkins I agree with you. It is a breach of contract and fraud. You are absolutely correct on your coment about the Fdd only being for show to keep the Feds, the Federal Trade Comision and Sec of there backs. On our first day of training they gave us some paperwork and new changes that they had just done. These were changes that would only hurt us and benefit jan-pro only. Not only that but these changes were confusing and hard to understand. Just like that they surprised us and changed things on us. Its not an Fdd its toilet paper.