ALL POSTSJDog Carpet Cleaning FranchiseJDog Junk FranchiseJerry FlanaganKevin KopaSpadea Lignana law firmSPOTLIGHT 1Terry CorkeryTom SpadeaTracy FlanaganVETERANS IN FRANCHISING

JDOG Franchise Owners Urged to Share Their Experiences, Opinions With FTC

JDOG franchise owners:  It’s Time to Speak Up!  The FTC is Inviting Comments & Protecting Your Right to Share Them.

(UnhappyFranchisee.Com)  Many Veterans who invested in the high-failure-rate JDog Junk Removal & Hauling franchise and the JDog Carpet Cleaning & Floor Care franchises were motivated by a desire to help their fellow Veterans.

JDog Turnover FlagOnce they realized that Jerry Flanagan’s much-hyped JDog franchise success story & sales pitch were built on lies, they were hesitant to share the truth and warn their fellow Veterans for fear of legal repercussions.

Now, the Federal Trade Commission (FTC) is inviting franchisees of JDog (and other franchises) to share their candid franchise experiences, their treatment by franchisors and their opinions of the franchise relationship.

And they’ve issued a policy statement – and warning to bullying franchisors – that clauses & franchise agreement terms that prohibit franchisees with sharing their opinions with them are unlawful.

It’s time for JDog franchisees, past & present, to break their silence & share what they know.

JDog Franchisees Get Green Light to Share Their Stories



The Federal Trade Commission (FTC) has issued a policy statement that “provisions included in franchise agreements or other contractual documents… may not restrict franchisees’ communications with the Commission or any other state or federal law enforcer or regulator about potential law violations.”

FTC Franchise commentsThe FTC wants to hear your candid franchise experiences, whether you received accurate information & the promised support, and your suggestions for improving franchising.

They’ve reopened the public comment period until October 10, 2024:

Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices

Franchisors Cannot Restrict Franchisee Communication With FTC, State or Federal Regulators: FTC



On July 12, 2024, the FTC released a new policy statement and guidance warning “that franchisor contract provisions that cut off communications with government and undisclosed junk fees are unlawful.

FTC Takes Action to Ensure Franchisees’ Complaints are Heard and to Protect Against Illegal Fees

The policy statement (link below) states:
The Commission is issuing this Policy Statement to make clear its view that provisions included in franchise agreements or other contractual documents between franchisors and franchisees may not restrict franchisees’ communications with the Commission or any other state or federal law enforcer or regulator about potential law violations…


Franchisors Cannot Legally Keep Franchisees From Warning of Deceptive Practices



The FTC claims that it and other government agencies rely on franchisee complaints and information to protect current & future franchisees:

By suppressing reports of potential legal violations by franchisors to the government, franchisors impede the flow of franchisee reports and voluntary interviews that are critical to government investigations.  Suppressing such information undermines the government’s ability to learn about practices that violate the Franchise Rule, the FTC Act, and other laws.

It also impedes the ability of franchisees to demand lawful conduct from the franchisor by exposing such conduct to the government. These limitations undermine the government’s ability to police the marketplace and the ability of prospective and existing franchisees to protect themselves, and are thus likely to cause substantial harm. For example, prospective franchisees may not learn about deceptive practices before they invest…
FTC:  Clauses Prohibiting Franchisee Complaints are “Unfair & Unenforceable.”

The FTC Policy States:
Clauses prohibiting franchisees from reporting potential law violations to the government are considered unfair and unenforceable. Further, the use of implicit or explicit threats to sue or otherwise retaliate against a franchisee who reports potential law violations to the government is also an unfair practice..


READ THE FULL POLICY STATEMENT HERE:

FTC Policy Statement on Franchisee Communication July 12, 2024

JDog Franchisees & Former Franchisees Are Urged to Submit Comments as Soon as Possible

JDog FranchiseThe FTC comment period is open until October 10, 2024.

However, JDog Franchising, Inc. is required to submit its 2024 Franchise Disclosure Document & state registrations by September, 2024.

It would be advantageous to have the comments available for review by the time state regulators receive & scrutinize JDog Junk Removal & Hauling state registration submissions.

SUBMIT COMMENTS TO THE FTC HERE:

Solicitation for Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices

Franchise Truth & Franchise Truth for Veterans Initiative

The predatory JDog Junk Hauling franchise – which has resulted in over 300 Veteran franchise terminations – is just the tip of the iceberg.

There is currently no meaningful oversight or enforcement of franchise laws over the claims & representations franchise sellers tell trusting Veterans & other opportunity seekers.

Some of the most predatory franchise sellers are allowed to pass off high-failure rate  franchise investments as “Veteran-Friendly” franchises by virtue of their inclusion of deceptive “Best Franchises for Veterans” lists or endorsements by seemingly reputable organizations, like the International Franchise Association’s VetFran program.

Our initial analysis of more than 100 franchises currently promoted to Veterans through the VetFran program revealed that approximately 25% have 3-year franchisee turnover/attrition rates of more than 50%.

That indicates that a high percentage of Veterans being encouraged to invest in these “Veteran-Safe” franchise opportunities will not only lose their investments, savings, credit ratings, & perhaps their homes, some may lose the security clearances that gave them access to the good-paying government and contracting jobs they had prior to their franchise investment.

Contributions to the Franchise Truth & Franchise Truth for Veterans initiatives save countless Veterans from under-informed investment decisions.

Contribute to:  Franchise Truth & Franchise Truth for Veterans Initiative

URL:  https://www.unhappyfranchisee.com/support-franchise-fairness/

THIS IS YOUR OPPORTUNITY TO MAKE A DIFFERENCE.  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Documentation & More Information:

Franchise Warning: JDog Junk Hauling for Veterans (Index)

The JDog Report: An Urgent Call to End the Exploitation of Veterans in Franchising [PDF]

JDOG Franchise Dream Ends in Veteran Suicide, Double Homicide
JDog Franchise News & Discussion Newsletter Sign-Up

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. 

   Sean KellySean Kelly is an independent investigative journalist with 35 years of franchise industry experience.  Since founding UnhappyFranchisee.Com in 2006, his reporting has exposed & shut down several predatory franchise & investment schemes.  Sean Kelly is a franchise watchdog who prompted and aided the FBI investigation that shut down the 165-victim multi-million-dollar NY Bagel franchise scam and landed perpetrators Dennis Mason & Joseph Smith in federal prison.  Sean was featured in the ABC Four Corners expose of 7-Eleven wage theft in Australia and has served as an advisor to Dateline NBC.  He has withstood bullying, intimidation & frivolous lawsuits as high as $35M and never lost.  His crack editorial staff and fact checkers include Chick, Gem, Red, Pru & Joanie the Rescue Chicken.

Contact the author at UnhappyFranchisee[at]Gmail[dot]com

TAGS:  JDog franchise, JDog Junk Removal, JDog Carpet Cleaning, Franchise Truth for Veterans, Federal Trade Commission, the Franchise Rule, FTC franchise comments, Jerry Flanagan, Terry Corkery, Kevin Kopa, Franchises for Veterans, Veteran scams, JDog Brands

 

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