Should JDog Franchise Have Disclosed Chairman Debbas’ Class Action Lawsuit?
JDog Franchises, LLC has had one of the highest failure rates of any franchisor since it began selling franchises to active Service Military Members, Veterans and military families. Yet founder Jerry Flanagan & JDog has managed to hide or misdirect attention away from its 300+ franchise terminations and its business model of “churning” failed franchises (sometimes multiple times) to new, trusting Veterans for new fees. Could it be that JDog’s isn’t disclosing what’s required by state & Federal franchise disclosure laws? by Sean Kelly, Founder, Franchise Truth for Veterans; Author, “The JDog Report: An Urgent Call to End the Exploitation of Veterans in Franchising”
(UnhappyFranchisee.Com) The Federal Trade Commission (FTC) enacted The Franchise Rule to make sure that franchise sellers provide prospective franchise buyers with the critical information they need to make informed decisions.
One such area is that of litigation. The FTC requires pre-sale disclosure of
any administrative, criminal, or material civil action that alleges a
violation of a franchise, antitrust, or securities law, or that alleges fraud,
unfair or deceptive practices, or comparable allegations. A ‘material’
civil action is one that is likely to influence a prospective franchisee’s
investment decision.
This requirement extends to any principals or officers named in Item 2 of the FDD. For example, JDog Chairman Christopher Debbas who also is principal of a rather notorious credit collection agency named Advanced Call Center Technologies (ACCT). Yet none of the FDDs I’ve reviewed make any mention of the dozens of lawsuits naming ACCT as a defendant – even the recent class action suit that specifically names Chris Debbas as a defendant.
Should JDog Junk Removal & Carpet Cleaning Franchisors Have Disclosed Chairman Chris Debbas’ Class Action Lawsuit & Settlement? Or His Company’s 100+ Civil Suits?
The 2023 JDog FDD “ITEM 2 – BUSINESS EXPERIENCE” section lists Chris Debbas 2nd under CEO Jerry Flanagan:
- Chairman: Christopher J. Debbas
January 2019 to Present - JDog Carpet Services, LLC (Berwyn, PA), Chairman
September 2014 to Present - J Dog Holdings, LLC (Berwyn, PA), Chairman
June 2014 to Present - JDog Franchises, LLC (Berwyn, PA), Chairman
May 2014 to Present - JD Investment Company, LLC (Berwyn, PA), Chairman
July 2014 to Present - Advanced Call Center Technologies of Jamaica, LLC (Berwyn, PA), Chairman
April 2011 to Present - SPA Car Wash Systems, LLC (Berwyn, PA), President
January 2010 to Present - ACCT Holdings, LLC (Berwyn, PA), ChairmanJDog Franchises FDD 2024 A Page 4 of 41
January 2010 to Present - Advanced Call Center Technologies, LLC (Berwyn, PA). Chairman
January 2010 to Present - Julip Run Capital, LLC (Berwyn, PA), President
January 2010 to Present - CDV Management, LP (Berwyn, PA), Partner
January 2010 to Present - CDV Equity Associates, LP (Berwyn, PA), Partner
January 2010 to Present - CD Ventures, Inc. (Berwyn, PA), President
January 2010 to Present - InDitto, LLC (Berwyn, PA), President
Not only has Chris Debbas been an active, hands-on leader of the executive management team of every JDog entity, his firm, Julip Run Capital, has provided corporate financing and may own an undisclosed equity stake in these entities.
It has been suggested by more than one source that it is Chris Debbas (a non-Veteran) who pulls the strings (leash?) and calls the shots at JDog.
In addition to Christopher Debbas, every JDog FDD “ITEM 2 – BUSINESS EXPERIENCE” section since 2015 also lists James R. Griffiths as Vice President and Chief Financial Officer of the JDog corporate entities.
The 2023 FDD lists these positions for James R. Griffiths:
- Advanced Call Center Technologies of Jamaica, LLC (Berwyn, PA), Executive Vice President
April, 2011 to Present - Advanced Call Center Technologies, LLC (Berwyn, PA), Executive Vice President
January 2010 to Present - ACCT Holdings, LLC (Berwyn, PA), Executive Vice President
January 2010 to Present - Julip Run Capital, LLC (Berwyn, PA), Vice President
January 2010 to Present
Chris Debbas’ Advanced Call Centers Technologies, LLC Appears to Have Been a Defendant in 100+ Civil Lawsuits; Named Defendant in One Successful Class Action Lawsuit
A PACER search returns 100+ civil lawsuits against Chris Debbas’ Advanced Call Center Technologies, LLC going back 20 years.
At least one of these lawsuits against ACCT, which resulted in a $1.5 million dollar judgement, gained national news.
In 2010, CBS News featured the lawsuit and interviewed Chris Debbas’ as part their investigative story “Debt Collectors Gone Wild.”
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Would JDog Chairman Chris Debbas’s Past & Ongoing Litigation Have Been a Required Disclosure?
Between 2005 – 2015, the year JDog began selling franchises, there were approximately 53 lawsuits against Debbas’ ACCT collection agency.
The early JDog Junk Removal FDDs contain extensive list of Chris Debbas’ and James R.Griffith’s business accomplishments – 250 words each.
Yet these early JDog Franchise Disclosure Documents (FDDs) contain no mention or disclosures of any of Debbas’ ACCT lawsuits.
Debbas’ Advanced Call Center Technologies continued to be hit with another 75 lawsuits after the launch of the JDog Junk Removal franchise in 2014 and the addition of the JDog Carpet Cleaning franchise in 2019.
Yet none of yearly FDDs nor state registrations disclose the lawsuits and allegations of fraudulent & unlawful business tactics perpetuated by Chris Debbas’ and James R. Griffith’s collection agency.
Chris Debbas is a Named Defendant in a 2020 Class Action Lawsuit
The fact that Chris Debbas does not appear to be a “Named Defendant” in the dozens of lawsuits against the company he owns and controls may be their excuse for not disclosing them.
However, Chris Debbas IS a named defendant in a class action lawsuit initiated in June, 2020 and settled in February, 2023.
On January 1, 2020, the following Class Action lawsuit against Chris Debbas was filed in United States District Court of New Jersey:
RANDY HOPKINS, on behalf of himself and those similarly situated,Plaintiff, vs. ADVANCED CALL CENTER TECHNOLOGIES, LLC; CHRISTOPHER DEBBAS; JOSEPH LEMBO; and JOHN DOES 1 to 10, Defendants.
2/9/23, the Class Action was settled with Debbas’s firm agreeing to pay the Plaintiffs.
Yet this litigation is not disclosed in the 8 FDDs and state registrations we reviewed since that time:
9/22/20 JDog Junk FDD – No Pending Litigation Disclosed
9/16/21 JDog Junk FDD – No Pending Litigation Disclosed
9/30/22 JDog Junk FDD – No Pending Litigation Disclosed
9/30/23 JDog Junk FDD – No Concluded Litigation Disclosed
Carpet:
6/30/20 JDog Carpet FDD –No Pending Litigation Disclosed
6/21/21 JDog Carpet FDD –No Pending Litigation Disclosed
6/15/22 JDog Carpet FDD –No Pending Litigation Disclosed
6/16/23 JDog Carpet FDD – No Concluded Litigation Disclosed
See all related documents here:
JDog Franchise Document Library (FDDS, Lawsuits, Etc.)
Contribute to: “The JDog Report: An Urgent Call to End the Exploitation of Veterans in Franchising”
URL: https://gofund.me/b19b1931
Contribute to: Navy Veteran Pedro & Kelly Barnes Legal Fund
URL: https://gofund.me/0b0abca6
Contribute to: Franchise Truth & Franchise Truth for Veterans Initiative
URL: https://www.unhappyfranchisee.com/support-franchise-fairness/
For More Information:
Franchise Warning: JDog Junk Hauling for Veterans (Index)
JDOG Franchise Dream Ends in Veteran Suicide, Double Homicide
What Every Veteran Should Know About the JDog Franchise
JDog Franchise News & Discussion Newsletter Sign-Up
PETITION to Save Veteran-Owned Small Businesses NOW
List of JDog Franchisees With Closed or Failed Franchises – UPDATED
OPEN INVITATION: Unhappy Franchisee extends an open invitation to all those discussed to provide corrections, explanations, clarifications and/or rebuttals. We will correct factual errors & alternative views fairly. Anonymous or signed comments are welcome below or can be emailed in confidence to UnhappyFranchisee[at]Gmail[dot]com.
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