Garage Force CEO Michael Peterson swore, under penalty of law, that only four Garage Force franchises ceased operation between January, 2014 to January, 2018. Franchisees contend that many Garage Force franchisees failed during that time, and that by September, 2018 30 had gone out of business. Somebody’s not telling the truth. Let’s find out who.
Garage Force franchise owners are making some serious accusations, claiming that more than half of Garage Force franchises are no longer operating. There have been some allegations that Garage Force CEO Michael Peterson intentionally hid franchise failures in order to trick prospective franchisees into investing in the Garage force franchise.
We invite company officials, franchisees, employees and others familiar with the situation to share what they know about the Garage Force franchise and the success rate of its franchisees. You can post your comments below or email us in confidence at UnhappyFranchisee[at]gmail.com.
Franchisees Allege Half of Garage Force Franchises Have Ceased Operation
According to a comment posted at Unhappy Franchisee:
Over 50% of their franchisees have failed, close up, went bankrupt or just quit.
They marketed to American Veterans as “be you own boss” then left them to fail as did others.
They never let new franchisees know the failure rates as the signed more up.
A detailed report compiled by a Garage Force franchise owner states:
…in late 2015 through 2016, there were several franchises that failed during that time, none of which were reported to other owners or incoming owners. In fact, owners purchasing franchises in 2017 related that Mike Peterson claimed the health of the company was great and no owners had left to that point. As of September, 2018, thirty (30) owners both listed and not listed on the company website are no longer operating and an additional eleven (11) are seeking options for exit…
03/14/2019 filed a lawsuit against its Denver franchisee Garage Force of Denver South, LLC (Ilfrich Integrated Solutions, Inc. et al v. Garage Force of Denver South, LLC et al). The franchisee filed a counter claim and third party claim alleging concealment, misrepresentation, civil conspiracy and intentional interference against Mike Peterson, Patrick Ilfrey, and Ross Cravens.
The counterclaim states:
Mr. Fessenden… affirmatively states that, upon information and belief, approximately 60 percent of the Garage Force franchisees are defunct or no longer in operation.
Garage Force Claims Only Four Franchises Ceased Operation Between January 2015 – January 2018
In July, 2018, the company issued the Garage Force Franchise Disclosure Document (FDD) in which it disclosed that in 2017, four Garage Force franchises had ceased operation. Garage Force disclosed that 1 franchise had ceased operation in Arizona, 1 ceased operation in Nevada and 2 ceased operation in Pennsylvania.
When the company submitted the FDD to state franchise registration agencies, CEO Mike Peterson attested to its accuracy. His signature appears on the statement “I certify and swear under penalty of law that I have read and know the contents of this application, including the Franchise Disclosure Document… and that all material facts stated in all those documents are accurate and those documents do not contain any material omissions…”
Read the entire Garage Force Franchise Disclosure Document here. The franchise location openings and closing data is located in Item 20:
Garage Force Failures are a Cause for Concern
It’s not exactly clear how many Garage Force franchises have ceased operation, nor whether Mike Peterson and Garage Force failed to disclose all of its franchise failures.
Chris Hall of Forney, TX and Greg Raney of Corpus Christi, TX were disclosed as franchisees in 2016, but disappeared from the list in 2017 (in the 2018 FDD). Yet there are no Texas ceased operations or transfers disclosed for that year, and their locations still are posted on the website.
Wayne Gwyn of Elko, NV, Patrick McMenamy of Henderson, NV, and Dean Shouse of Pahrump, NV also were disclosed as franchisees in 2016 but disappeared from the list in 2017. Only 1 Nevada franchise was disclosed as having ceased operation that year.
Franchisors are required to disclose a list the names and contact information for franchisees who left the system in the prior 12 months. However, we saw no such list for any of the Garage Force FDDs from 2015-2018.
A number of Garage Force franchisees may have left the system in the time since the 2018 FDD was issued (July 13, 2018), either through transfers, ceased operations or other reasons. We’ve marked their names in RED below.
We identified a number of franchisees who were listed as active franchisees in the 2018 FDD, but whose location no longer seems to be displayed on the company website. We’ve marked their names in BLUE below.
There are Garage Force franchisees who are both listed in the 2018 FDD and have their locations listed as open on the website, but who are reportedly not active or have an unclear status. Those owners we’ve marked in ORANGE.
Please help us determine the status of these and the other Garage Force franchisees we suspect have ceased operation or otherwise left the system*.
|Franchisee||Location||2016 FDD||2017 FDD||2018 FDD||On website 4/17/19?|
|Wayne Gwyn||Elko, NV||Yes||Yes||No||Yes||Owner not in FDD but location is listed on website|
|Chris Hall||Forney, TX||No||Yes||No||Yes||Non-branded VM. Owner not in FDD but location is listed on website|
|Greg Raney||Corpus Christi, TX||Yes||Yes||No||Yes||Owner not in FDD but location is listed on website|
|Patrick McMenamy||Henderson, NV||Yes||Yes||No||No||Owner not in FDD; Henderson, NV no longer on website|
|Deon Shouse||Pahrump, NV||Yes||Yes||No||No||Owner not in FDD; Pahrump, NV no longer on website|
|Jeffrey Coleman||Fredonia, WI||No||Yes||Yes||No||Owner listed in FDD, Fredonia, WI not on website|
|Lawrence Kana||Smithville, TX||No||Yes||Yes||No||Owner listed in FDD, Smithville, TX not on website|
|Joe Meeks||Kempner, TX||Yes||Yes||Yes||No||Owner listed in FDD; Kempner, TX not on website;
Joe Meeks Chapter 7 bankruptcy filed 04/30/2017
|Chas Zech||Rock Rapids, IA||Yes||Yes||Yes||Yes||Phone number no longer working. Owner listed in FDD, Location on website|
|Jason Knight||Autryville, NC||Yes||Yes||Yes||Yes||Owner listed in FDD; Location on website, Reportedly Not operating but listed|
|Israel Jackson||Fayetteville, NC||Yes||Yes||Yes||No||Owner listed in FDD; Location not on website,
Israel Jackson Chapter 13 bankruptcy filed 03/14/2018
|Scott Metzdorf||Justin, TX||No||No||Yes||Yes||Owner listed in FDD; Location on website, status unclear|
|Barry Urich||Enola, PA||Yes||Yes||Yes||No||Owner listed in FDD; Location not on website|
|Doug Verbsky||Frisco, TX||Yes||Yes||Yes||No||Owner listed in FDD; Location not on website|
|Matthew Martinez||Harrah, OK||No||Yes||Yes||No||Owner listed in FDD; Location not on website|
|David Whitten||Ardmore, AL||No||No||Yes||No||Owner listed in FDD; Location not on website
Yelp reports closed
|Vincent Haro||Goodyear, AZ||Yes||Yes||Yes||No||Owner listed in FDD; Location not on website
Yelp reports closed
|Patrick Faulkner||Atlanta, GA||No||Yes||Yes||No||Owner listed in FDD; Location not on website|
|Paul Williams||Emmett, ID||Yes||Yes||Yes||No||Owner listed in FDD; Location not on website|
|David Price /
|Midwest City, OK||No||No||Yes||No||Owner listed in FDD; Location not on website|
|Karl Hackman||La Crosse, WI||No||No||Yes||No||Owner listed in FDD; Location not on website|
|Dave Fessenden||Parker, CO||Yes||Yes||Yes||No||Owner listed in FDD; Parker, CO address not on website
Franchisee is currently in litigation with the franchisor
* This information is pieced together from public sources and private tips and is posted for discussion purposes. Please independently verify. Franchise businesses should be assumed to be open and operating. Support Garage Force and other franchisees with your business!
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