The commercial cleaning gold rush is on, but are franchisees getting the gold mine… or the shaft?
Commercial cleaning is being hyped as the hot, recession-defiant franchise opportunity
The February, 2010 Entrepreneur Magazine states “of the 10 fastest-growing franchises measured by Entrepreneur’s Franchise 500, six were commercial cleaning companies. That’s downright recession-defiant.” In fact, nine of Entrepreneur’s 100 fastest-growing franchises were commercial cleaning companies.
Janitorial franchises have a low cost of entry (Unit level franchises are generally less than $10,000) and don’t require an academic or a professional background, making them attractive to vast numbers of desperate, unemployed or under-employed opportunity seekers. Many allege that some of these companies specifically target recent immigrants or non-English speaking groups.
The complaints behind the hype?
The complaints we’re reading about janitorial and commercial cleaning franchises are remarkably similar from company to company: Franchisees not receiving accounts as promised, franchisees receiving underbid, unprofitable accounts, franchisees having accounts unfairly taken from them and given to other franchisees (to meet the franchisor’s and master franchisee’s obligations), and franchisees being charged excessive fees.
Nearly 10% of 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 CleanNet USA Inc., #8 Bonus Building Care, #10 Vanguard Cleaning Systems, #16 System4, #66 BuildingStars Inc., #91 Mint Condition Franchising Inc.
Janitorial franchises 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 conspicuously absent from Entrepreneur’s lists.)
Other commercial cleaning franchises on Entrepreneur.com: BearCom Building Services, Champion Clean, E.P.I.C. Systems Inc., On Target Maintenance, Pro One Janitorial Inc., Service One Janitorial
Please share your experiences and observations – good and bad – with commercial cleaning franchises by leaving a comment below, or on one of the relevant posts.
Commercial Cleaning Franchise Posts & Discussions:
JANI-KING Franchise Complaints
ANAGO CLEANING SYSTEMS Franchise Complaints
OCTOCLEAN Janitorial Services Franchise
JAN-PRO: Janitorial Franchise Warning
CHAMPION CLEAN Using Bogus Franchise Statistics
Commercial Cleaning Franchises: 10 Reasons to NOT Buy One
FTC Guide to Buying a Janitorial Services Franchise
FTC’s Janitorial Franchise Buyer’s Guide
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STRATUS is A Big Scam! Don't let them ruin your dreams they take advantage of good people to fill up their pockets.
Stratus Building Solutions Franchise has received a grade of "F" from the Better Business Bureau of Orange County
http://www.la.bbb.org/PublicComplaints.aspx?CompanyID=100103761
Stratus Building Solutions Franchise complaint 1:
"Posted 3/11/2011 Summary - Consumer alleges services were not rendered as agreed.
Complaint Description Consumer alleges services were not rendered as agreed. Consumer paid your company $1000.00 down for a franchise business opportunity on 7/19/10. She completed the classes needed to get certified on janitorial services on 8/24/10. Once the classes were completed she was going to start getting job sites were she had to provide janitorial services, using her own equipment and would receive a check for services rendered minus a 25% fee from your company. To date consumer has not received job sites. Every time she calls to get assistance she is given the run around. She requested to get her money back for the down payment on the franchise however you refused. Consumer wants a refund of her monies."
Stratus Building Solutions Franchise complaint 2:
"Posted 4/15/2011 Summary - Consumer alleges services were misrepresented and no refund has been issued
Complaint Description Consumer alleges services were misrepresented and no refund has been issued. Consumer purchaser a franchise from your company on 7/14/09 and paid $22000.00. He was promised to have his own business, his own building to provide the janitorial service that will pay $120000.00 a year. To date he has made $17000.00 in one year. He is not running his own company, instead he is introduce to clients as if he was working for your company. He had to pay 25% fee from each check for insurance, processing fees etc. When consumer complains to your company and ask for a refund of the money he invested you refuse. Consumer wants a refund of the $22000.00 he paid because the franchise was not as represented."
Stratus Building Solutions Franchise complaint 3:
"Posted 4/21/2011 Summary - Consumer states company failed to provide proper services.
Complaint Description Consumer states company failed to provide proper services. Consumer paid $14,500 to the company. The company stated they would assist her in getting contracts with franchises, to clean their facilities. A list of potential leads would be provided to her. The lists they provided are not valid. When she requested a refund, she only received the runaround."
Stratus was exposed on National Television for ripping of alot of people. You can see the it by going to this link. These peoples life savings were riped off. A man on the video described them as a "Cave of Rats"
http://www.telemundo52.com/video/27856290/index.html
Stratus Building Solutions Franchise in Philadelphia is a big SCAM, Please don't made same mistake I did and do not Buy franchise from them, they take advantage of good people, You are actually paying 10′s of thousands of dollars to make between $8-$10hr. You can’t even hire people without taking a loss, the ONLY people making real money are the people selling the franchises.
What bothers me the most is that with all the cleaning companies out there, they all repeat the same deceptive, abusive, misleading and unethical practices. They prey on the average american who wants to legally make money and work hard doing it. Often people have invested their life savings into the hope of making a better way for their families. It is unbelievable how the state and federal government aren't doing anything after years of complaints and law suits to protect people from these modern day ponzi schemes. I invested my money into Stratus Building Solutions to later find out that im not a owner of my own business but merely a employee, i paid $11000 to work a job. The gross revenues arent guranteed, they underbid contracts just to build their portfolio. Some of the jobs break down to be less than minimum wage. A business is meant to grow, not keep you stuck in one place where you have to do all the work to get by. If you speak against their actions they totally cut you off, no contact, even when they still owe you money.
All janitorial franchises are scams. All what you have said is true.I am talking about City wide maint. They don't only manage janitorial business. They manage more than twenty businesses to manage. So They have no time to give to customers. The customers keep on calling for issues related to their managment and they don't have time to contact them.
I advice all to start your own janitorial business not a franchise. Businesses are fooled by big names. Big Companies like citywide are just selling their names
City Wide uses all sub,s and thay do not do any of the work .They are managers and owners of the accounts thay sell but thay do not have control of the employees of there sub,s.No backround checks No drug tests and no control of the people as thay are not the one,s paying them.So if you are using them how do you know who is in your building at night.And how do you know if the sub,s have Ins .Thay do not have the control over the people at all because if thay did thay would be employees and not sub,s.Check the IRS rules on this and you can see.Most of the city wide franchisees just sell and could not do the work.Very little experience in floors,carpet,water damage,disaster restoration and do not have a clue about OSHA documentation.One franchise has a guy as a manager that before he worked at city wide he worked at Best BUY.There is a guy with about no experience and if the sub does not show up who does the work.Also how can he train people to do the work in the building when he has never done it himself.Maybe just watched a few times.Know what you are getting before you hire a janitoral company.Most franchises under bid and do not have the experience to do the job right for very long.Thay most allways start to cut corners after thay have had the contract for a few weeks.Or there sub,s do.
The Law Office of Jonathan E. Fortman, LLC has filed a lawsuit in Missouri on behalf of franchisees of Stratus Building Solutions. The lawsuit seeks to recover damages on behalf of the franchisees for fraud and breach of contract. The lawsuit is asking the Court to certify the case as a class action. The investigation is ongoing, if you, or anyone you know, has had a franchise terminated by Stratus or any of its master franchisors, if you believe the company gave you false or misleading information to get you to pay money and sign the franchise agreement, or if the company has failed to live up to its obligations under the franchise agreement, we would like to talk to you. You can contact us anytime by calling the number below. There is NO CHARGE to you to discuss this matter and your call will be kept in confidence. Please call us as soon as possible.
Law Office of Jonathan E. Fortman, LLC
(314)522-2312
jef@fortmanlaw.com
Coverall LOST ! Franchisor Hit HARD !
Cleaners WIN !
Franchisor Hit HARD For Pretending Employees Are Franchisees.
The Supreme court Smacks Coverall with huge bill forlabeling its employees as franchisees.
Here is the link to the article article
http://www.bluemaumau.org/10644/fran...re_franchisees
how is citywide are they scammers