OCTOCLEAN Janitorial Services Franchise
December 22, 2009
Janitorial franchises have created so many unhappy franchise owners, the FTC and the Maryland Attorney General’s Office issued the FTC Guide to Buying a Janitorial Services Franchise.
One company, Octoclean, claims to be transforming the contentious janitorial segment of franchising. OctoClean claims it currently has 150 unit franchise owners, and is dedicated to franchise owner success.
The OctoClean website claims:
OctoClean’s financial performance clearly demonstrates the viability of the business model and the services the Franchise Owners provide. Having doubled its gross sales between 2003 and 2008, OctoClean has positioned itself as an emerging leader in the janitorial services industry. OctoClean’s business plan calls for continued aggressive growth in both the number of active Franchise Owners and the markets in which OctoClean’s services are offered. Within the next five years, OctoClean will open Franchise Centers in the western United States. The total number of OctoClean Franchise Owners is slated to exceed 500 in California and Nevada.
It claims that “the heart of the company is its Charter which clearly defines OctoClean’s purpose, mission and core values…”
“OctoClean is an enterprise whose purpose is to transform the janitorial industry. We empower and enable people to be successful business owners. We create programs and services that thrill our customers. Our mission is to have the rewards and freedom of successful franchise ownership available to all people.”
However, an unhappy franchise owner (posting on complaint site RipoffReport) claims that OctoClean is guilty of the same tactics that have been levelled against many other companies offering low-cost “buy-a-job” janitorial franchises, including high fees, low profitability jobs and “churning” of janitorial accounts from one franchisee to another.
Commenter “Esmeralda (Fontana California)” left this comment on RipoffReport:
Octoclean starts to tell you about how much money its going to help you make, it talks about you starting with 2,000 dollars minimum a month. How much its going cost you, thats about 22,000 dollars for the franchise, they don’t make this clear, they tell you that you have 4 years to pay it off.
Then you have to buy cleaning supplies only with them, they also make money off of your orders, they say they will have your back and how much they are there to help you, now that a lie.
First chance they get they will come a take the building from you and sell it to the next person. Each and every building is sold at 2.80% for sales and marketing fees, sounds good you might say, ok for example they give you a building that pays 2,000 dollars a month now you pay them 5,600 in payment over the next 11 months and after its yours, still sound like the perfect deal, well once you think about that alot of income right, wrong you have to have employees, pay workers comp. ins.
You have to go on your days off to see your so called clients to see if they are satisfied with your job. You can get a call about a restroom missing hand soap at 9 a.m. after working until 3 a.m. the night before and have to drive to the building to put soap in the restroom that has two dispenser and only one is empty, or pay them a fee to take care of it, they will tell you that they will handle all the complaints, not true thats how they control you, they will never go out to your building to check them out they only go when there is a complaint, and sometimes the complaint is that nail has been behind that desk for a week and they take pictures of it so they have proof when they decide to threaten to (fire you) remove you they claim but its fire.
You pay for supplies, employees, insurances, and guess what 15% administration fee and a extra 10% fee, plus what the building cost you end up working for less than minimum wages, or cut clients short to make up the money somewhere. Don’t think they will not remove you from a building, they will not hesitate to remove you, they promise to bring you back and they wont, they will make mistakes on your invoices and then turn around and dock it from your pocket, because they didn’t know that they were over billing for a office that moved out over a year ago and you notified them. They will let you order supplies from them a day before the call you to tell you that you have been removed from the building and turn over keys, and charge you for the supplies when you have no use for them.
They will make promises to you but beware they will screw you and everybody over. Where they make there real money is selling the same building over and over again for sale and marketing fees . If you try to sue them its is nearly impossible because they have a discloser on the contract that is like 80 pages full of words that is not for you and I to understand that state that if you want litigation it has to takes place in Sacramento… Its is to costly for you to pursue this so you end up leaving it alone and they end up with your money anyways. SO BEFORE YOU BUY INTO OCTOCLEAN TAKE THIS INTO CONSIDERATION……………
Janitorial and cleaning franchises that, in essence, sell franchise owners commercial cleaning contracts are one of the most troublesome areas of the franchise industry. Before investing, be sure to read FTC Guide to Buying a Janitorial Services Franchise.
ARE YOU FAMILIAR WITH OCTOCLEAN JANITORIAL FRANCHISE? SHARE A COMMENT BELOW.
Esmeralda you should call the following attorneys. They might be able to help you. You are having the same problems that me and so many people have with jan-pro.
The following are my attorneys website.
LLRLAW.com
Talamantes.org
[...] also hyped in the Entrepreneur 500 list include: Jani-King, ServiceMaster Clean, OpenWorks, OctoClean, Office Pride Commercial Cleaning, City Wide Maintenance, Janitize America, and OMEX. (Coverall is [...]
Octoclean is worse. According to our current employee (former Octo franchisee). They started out as an independent operator in San Diego/Inland Empire. Anyone wanting to keep their job had to roll into a Franchise agreement. Instantly all former employees lost unemployment benefits, work comp coverage, etc….these costs went right into ownerships pockets. Franchisees/former employees made about the same money. Basically became more or less a “legal” cash pay operation. What ever happened to ethics?
Pete what you said is happening in octoclean is really bad. It’s really sad that there is bad companies outthere that will try and do this to enrich themselves and take peoples rights away. By octoclean doing this they will no longer pay workers compensation, no more unemployment, the workers probably had to buy there own suplies and chemicals, no more health care or social security. What is this country coming to.
1st amendment: It’s called FREEDOM!!! No one other than you, was forced to do anything that they didn’t want to do. You seem to always forget that even you had a CHOICE!!!
But there you go again, You know all, you know everyone, does this lady have a son in the Military too!!! REALLY?
At some point in time, you do realize you come across as a JOKE! Right, I mean even “guest” doesn’t support you 100% of the time.
I agree Jerry. It is a choice. Hopefully people reading this site will make a more educated choice. I think from a personal point of view I follow the money. I would love to legally be able to call all my employees “independent contractors” , “franchisees”, or whatever you want to call it. I figured it out….I could pocket $95K in work comp premium, $200K in payroll taxes, push all my supply costs onto the former employees, holdback some of their pay in ‘fees”, and drop all medical/dental/AFLAC/auto insurances.
You may make a believer out of me yet:)
I wanted to post this here too in the spirit of education.
I am posting my free advise here too:
Here is what I would say to people looking into buying a franchise.
1. Read the FTC warnings on Janitorial Franchising
2. Contact the Building Service Contractors Association International (BSCAI)and educate yourself about the industry. Ask member companies how they started, built their businesses, and then ask about whatever franchise system you are looking into. This information is free.
3. Attend a local BOMA (Building Owners and Managers) or IFMA (A professional association for facility management) meeting as a guest and ask property owners about the franchise company you are thinking about buying in to. You will get a perspective from your potential customers. Because the goal is to build a business….right? Again, totally free.
4. Contact the largest local supply company. Here the biggest is Waxie Sanitary Supply. Ask to speak to a rep and get their opinion of your possible business partner. Free.
5. VERY IMPORTANT: Don’t sign on the dotted line until you have an attorney evaluate the contract. There are pre-paid legal plans that are very affordable. Don’t let attorney costs be a factor. The janitorial franchise industry will spend to the death to protect their system, as can be seen right now! Do your due-diligence first. Ask the attorney to concentrate on a few issues…account ownership and the “outs” they have to “fire” you & how much control they have over your operations & how will you pay for the franchise. They may offer to finance this for you. Ouch. Keep in mind you bought your OWN business. Their job is to support, not run your operation.
6. Ask to see the list of all their franchisees’, current and former. This is your right. Ask to meet with a couple, that you choose, and on your own. You need honest answers. This is a huge decision. Should be no problem if these companies are run as stated.
7. What account are they trying to sell you? Try and see it first. With simple bidding techniques from BSCAI you can evaluate the account on your own. Do the numbers work in your own mind?
8. Will you have to hire employees? Who is responsible for payroll taxes, work comp, etc. These are large costs that must be considered. Do the numbers still make sense?
9. If you do make the leap….get to know your new customer. This is your livelihood. Let them know you OWN this account through the franchise agreement. Work hard, be honest, and give great customer service and that account will be yours forever. If you build a relationship with this customer you will never have to worry about getting the account pulled out from under you. And if the BossMan tries to pull your business from you, which they will to re-sell the account, take them to court! You have rights.
Pete: Don’t start saying that, 1st amendment and “guest” will start attacking on a regular basis. I appreciated your comments very much and as stated before, I agree with better than 90% of what you’re saying.
The 10% can be negotiated to where both parties would be happy/unhappy that’s what business is all about.
It’s good to post on this one as well, I never had heard of Octoclean before this site, but I guess that the are fairly large in the West most especially in California. Everyone deserves some looking at don’t they?
I also very much agree that if “contracts” are broken, get in front of a judge, mediator etc.. and get it worked out. That’s one of the GREATEST things about this country is our ability to SETTLE things without taking matters into our own hands or turn it over to a MOB to handle. Just wish we could get back to some of the old “business principals” and work things out the right way between MEN (not an offense to Ladies) and get rid of having “lawyers” in play all the time.
Guest: Finally realized (ok I’m a little slow) why you were so mad at me for what I had saidn about the 90% deal with Pete. It’s because I stated “don’t start saying that, 1st amendment and “guest” will start attacking him on a regular basis” and you call me “soft”. Instead of you attacking him, you decided to “cut and paste” all of the negative things that Pete first said about me. Isn’t that just special!!!!
Well, one day, we’ll all have a good laugh about this, excpet for 1st amendment, he’ll still be blaming Jan-Pro for all of Mankinds problems. Was he talking about Man-made disasters, Natural disasters or was he talking about “mankind” the wrestler aka “cactus jack” aka “dude love” as you can see, I am well versed in “wrasslin” too.
Just one of my many “issues” that you can add to your List for my Personal Profile.
Jerry:
While not surprising, the fact that you are “well versed” in “dude love” is something you might not want to mention down at the VFW.
Not that there’s anything wrong with that. I’m just saying…
To jerry a master franchisor with jan-pro
I guees that the truth is coming out, all you do is look at people and you label them. That is wrong. If you see that someone looks different from you, you attack them. For your information this country is made up of people from all over the world. We are here talking about how jan-pro has been ripping of people and what do you do when you are loosing your argument. You let out your deragatory and racist views.
Two years ago if you saw one of the supreme court justices walking down the street would you also call her deragatory names? Would you also call her an illegal alien just because she looks latina?
You know that what you said is wrong. For you to be labeling everyone that works for jan-pro as an illegal alien is very WROING!
For your information 30% of the people that have called me are white, 30% Black, 30% latino, 5% Asian and 5% european.
I guess if you can’t win an argument you turn to deragatory remarks and you label everyone that bought a fake franchise with jan-pro illegal. You can try and explain your comments to the Supreme Court.
Please see this new video its about a gentleman Mr.Adams who also got ripped-off by a cleaning franchisor. He talks about how he was ripped-off.
http://www.thestar.com/videozone/238246–countrywide-victim-adams
Guest: Good advice from you. I’ll think about it over night and let you know in the early a.m. as I wait for 1st amendment to get off the street corner trying to “pimp” his attorney and sell his recently acquired “brokers license”.
Haven’t been on here in a while….just picked up another account from a disallusioned former “franchise” customer. The master franchisor offered to bring in a new franchisee (employee). Contract was up – one more facility manager who sees through the fog.
Pete: Good for you, while you were busy getting one account, I got 11. 9 of which came from “traditional companies” that have continously not cleaned properly, had numerous no-shows, didn’t update equipment, not even using microfiber towels, training when it happened was for no more than one day “on-site” and oh by the way, we were higher in 8 of those cases.
Note to 1st amendment, SEIU(formally known as “guest”) “set them up boys, I’ll knock them down”!!!!!
Sure Jerry! Lol. I think I have figured you out. Your one-up-manship knows no bounds. I for one am not buying what your trying to sell on here. Send me your references….
Pete: Right after you send me yours. I’ve sold 1million plus in contracts so far this year, have commitments for another 200K before the end of September. Most of who I sell against are “traditional companies”. Have no problem filling packages, no problem keeping and renewing customers. Remember, I know the secrets both for and against.
I understand that you think all “franchising companies” are scams. No problem, but let’s not make it seem like “traditional companies” are “PURE as SNOW”. Let me remind you since you used to be an ABM’r. Not too long ago nearly 1200 people had to be replaced in one branch because of illegal immigration status. That’s just one branch!!!!
Be fair, Be Good, Good HUNTING. Again, would love to “sell” against you and your current company.
lol. I’m still not buying your gift of gab. I think you’re full of it. The only way you’ve sold $1 mill in contracts is if you work for a national contractor (ABM, NSA, Etc) and landed a national account…if you’re that big I doubt spending all your “free” time on here posting your accomplishments. Accomplishments tend to speak for themselves.
But let’s talk shop. Will you be in Orlando at the ISSA in Nov.? Maybe you can teach me a thing or two.
Jerry writes: “I’ve sold 1million plus in contracts so far this year, have commitments for another 200K before the end of September.”
Sure, “Jerry.” If you say so. From what I’ve read here, you’d have a tough time convincing a business owner that you do not suffer from severe mental retardation, much less that you’re capable of cleaning their offices.
Talk about “dillusions” of greatness.
But staying on Topic….Octoclean scams people by selling them a low paying job. and then pulls the “job” once all fees get paid off.
SEIU: Still the question of the day: WHATS NEXT!!!!! You still cant answer a simple question, WHY should anyone that is reading this post put any validity into what you are “spewing” when you can’t answer a simple question:
I was talking to this lady who got ripped-off by Octoclean. She told me that they ripped her off. She told me that Octoclean is doing the same thing as the other cleaning franchisors and stealing from them to. It looks like they are following on the foot steps of janiking, coverall, cleannet and jan-pro.
1st amendment: WHATS NEXT still question of the day. Here’s some more just for you:
1. Who’s paying for your attorneys? Obviously you cant afford a 400.00 per hour bill on the money you make.
2. Why are you “tracking” the phone calls that you’re getting?
3. Why is it you and SEIU are so “desperate”?
4. How does “aiwah” feel after getting “hit” with a 200K judgement?
What’s next is you go spend some quality time with your Hooked on Phonics tapes and leave the legal questions to the “trail” lawyers and others who passed 8th grade.
What’s next is you take some of your big commission money and hire an illegal alien to teach you English, the official language of this great country.
What’s next is you have your “trail” lawyer explain to you that a $200K judgement against people with no money is worth about as much as the 6th grade diploma you purchased online.
Seriously, stop embarrassing yourself. Go scrub a toilet or something you’re better suited for.
SEIU: So, you admitted that poor “aiwah” and his band of not so merry owner/operators have gotten the 200K judgement and your response to their emotional distress, their supposed effort, their supposed “pie in the sky” return is “200k judgement against people with no money is worth about as much as the 6th grad diploma you purchased online”.
Wow!!! So, you think that Coverall isn’t going to “pursue” the judgement. REALLY? you think they can’t make their lives miserable, REALLY? You don’t think this won’t send them into a bankruptcy setting, REALLY?
So you REALLY think that Coverall is going to make the same mistakes as it did before? You don’t think they aren’t going to make an example out of “aiwah” and his “unhappy bunch of disgruntled, broke, heading to bankruptcy court former owner/operators” REALLY?
I know you think I’m that STUPID, but do you think all of the viewers of this site ARE? What a second, YOU DONT CARE! Your simply in it for the possibility of getting more SEIU members… You don’t care what happens to the 30K plus current owner/operators, you don’t even care about 1st amendment nor “aiwah”.
WOW!!!!! ARROGANCE got nothing on you, big dog!!!!!
SEIU: Getting a little “thin skinned” aren’t you. Seems you need to take a day off, you need to take the time and reflect on the facts that you have continued to Lie, Cheat, Steal, misreprsent yourself and your UNION.
You are still a disgusting human being and I hope that the other viewers here realize exactly the type of individual that you are.
To jerry a franchisor insider who LIED and went back on his word because he is not a man.
Well the news is getting out there. More people are finding out about all of these websites and deciding that buying a fake cleaning franchise is a BIG MISTAKE.
I keep getting more phone calls. People are deciding not to buy these fake franchises.
Why would anybody want to get $50.00 fines for not returning a phone call in two hours when they are at there regular job and are not allowed to use there phones.
Why would anybody want to get there accounts stollen?
Why would anybody want to make less than minimum wage?
Why would anybody want to pay Thousands of Dollars to own NOTHING!
The word is getting out, the cleaning franchisors are being exposed.
1st amendment: Well on the other posting, you claim to have spoken to only two this week, Now on this one its “many” and you call me a liar.
Well, let’s go through this one more time and see if you can follow along if I number the questions.
1. Who’s paying for your attorneys? Obviously, you cant afford 400.00 per hour, I mean your current day job is paying you what 12 to 15 dollars per hour, Your wife works, but its not consistent work, so she’s bringing home what, 200.00 to 250.00 per week TOPS! Let’s see, Right now your bills should be running at least 10K a month from “Liz and her about to be unhappy band of attorneys” and rising as “YOUR DAY” gets closer.
2. Why are you “profiling” your callers? Are you weeding them out for “Liz” so you can find the one’s that don’t speak English, can’t understand the FDD, barely can Read or Write.
3. Who files and pays your taxes? Do you file? Do you know what taxes are? These are obvious questions since you state the FDD is more difficult to understand than the U.S Tax Code.
4. Why don’t you care about the thirty thousand owner/operators currently in the system? I thought you were the CHAMPION and Patron Saint of Lost Causes.
5. Why would anyone listen to you knowing full well that you were “ON THE TAKE” try and spin that any way you want. Bottom line is SEIU (no not that one, the other one) is paying for your attorneys fees and litigation.
How is poor “aiwah”. I know poorer, I’m just wondering what he thinks about being a “test case”, about the 200k judgement against him and his co-plantiffs, does he think at the end of the day it was all “WORTH IT”. Just wondering.
“aiwah” is richer, not poorer. Of course you wouldn’t understand this concept because to you and your fellow scammers, all that matters is the money.
“aiwah”, 1st Amendment & other plaintiffs are richer because they refused to be victims, they refused to back down, they refused to be intimidated or shamed into silence. They took a stand against corruption, scammers and evil-doers, which is what Americans are taught to do. Maybe they lost their money, but they kept their self-respect and the respect of their families.
They did not sell out their fellow man for the Almighty Dollar like you did, Jerry. They are richer than you will ever be, no matter how many millions in sales you brag about.
Just imagine if there were “aiwah”s and 1st Amendments around to blow the whistle on Madoff in his first few years of scamming. Billions of dollars and actual lives would be saved. God Bless the Heroes who refuse to be victims, who refuse to go down without a fight, who are willing to warn others about wolves in sheep’s clothing.
SEIU: I’m sure that is exactly how “aiwah” feels right now. I’m sure that’s what he’s thinking to himself now that you and 1st amendment and “Liz and her not so happy, drunk, miserable, suicidal band of not so merry attorneys” are leading him down the path to personal bankruptcy. I’m sure that’s how you’d feel….. Wait a second, You don’t have any Skin in this game, its fine for you to be a cheerleader, you’ll still get to drive a nice car, get student loans for your children, have a beach house in MA etc….. Not poor old “aiwah” though, he might have to find at least three more jobs just to “pay the bills”.
Yes, always “bless the heros” You can do that, just offer to pay off “aiwahs’ debt, put his children through school, shift a few more dollars away from the SEIU coffers and send it to “aiwah” and his co-plantiffs, I’m sure they would appreciate it and since you are already planning on going to jail, what is it to you?