ALL POSTSChris RyanDoug SchadleFETCH! PET CAREFURRY LAND FranchiseGreg LongeKeith RyanMaria Shinabarger LongePHOENIX FRANCHISE BRANDSRHINO7 franchise brokersSPOTLIGHT 1SPRAY FOAM GENIE Franchise

Kevin Longe, Greg Longe, Rhino7 Sued for Fraud, Embezzlement

On the heels of initiating an arbitration complaint against the franchisor (as required by the terms of their franchise agreement), Spray Foam Genie franchisees Tim & Lisa Jamil have filed a lawsuit in U.S. District Court against all those not protected by the mandatory arbitration clause.  The complaint (included below) alleges fraud, common law embezzlement, breach of contract, and more.  The Jamil’s claim the deceptive and predatory franchise sales scheme of Kevin Longe, Greg Longe and Rhino7 et al cost them more than $1.3M in a little over a year.  By Sean Kelly

(UnhappyFranchisee.Com)  If the highly experienced and savvy sales pros of Phoenix Franchise Brands and Rhino7 banked on their franchisees going away quietly with their heads down and their tails between their legs, they’ve been getting a rude awakening.

We’ve been republishing & indexing the complaints of Fetch! Pet Care, Spray Foam Genie & Furry Land pet grooming franchisees here:

We compiled the video complaints franchisees submitted to the FTC in a YouTube playlist here: 

And now we’ll be following the important litigation filed in the U.S. District Court of Eastern Michigan, Jamil v. Longe et al

Complaint Alleges Fraud, Embezzlement, Misrepresentation & Breach of Contract

Kevin Longe, Greg Longe & Rhino 7 Consulting Company dba Rhino7 Franchise Development Company , Inc. are being sued in U.S. District Court,, Eastern District of Michigan for Breach of Contract, Violations of the Michigan Franchise Investment Law, Common Law Conversions and/or Embezzlement, Fraud and/or Misrepresentation.

Named in the suit are:

  • Kevin Longe
  • Greg Longe
  • Maria Longe aka Maria Shinabarger
  • Chris Ryan
  • Keith Ryan
  • Shelly Chavez
  • Steven Longe aka Steven McEntire
  • Riley McEntire
  • Rhino 7 Consulting Company dba Rhino7 Franchise Development Company , Inc.
  • Longe Acquisitions LLC, and
  • Spray Foam Genie Managed Services, LTD

The Plaintiffs are Spray Foam Genie franchisees Tim Jamil, Lisa Jamil, and TL Jamil LLC of West Palm Beach, Florida.

The Jamils are being represented by attorneys Benjamin M. Low, Mark L. Kowalsky of Taft Stetinius & Hollister, LLP of Southfield, MI and Josh Brown and Manny Herceg  of Taft Stetinius & Hollister, LLP of Indianapolis, IN.

In the suit, the Jamils allege that the Defendants made numerous misleading and fraudulent representations to deceptively sell them two Spray Foam Genie franchises (Palm Beach, FL & Washington, D.C.) as a semi-absentee, “Investor Model” opportunity.

Since signing the Spray Foam Genie franchise agreement in March, 2023, the Jamil’s have allegedly lost more than $1,300,000.

The Jamils have a separate arbitration action against the franchisor Spray Foam Genie International, LLC (SFG).

We purchased the Complaint from the public PACER online database.

You may read & download the complaint here (our gift to you!): 

New Revelation:  Spray Foam Genie International, LLC (SFG) is “Partly Owned by Rhino7”

The suit alleges:

22. SFG is also, partly, owned by Rhino7, which owns numerous franchise brands.

23. Not only is SFG owned by Rhino7, but Rhino7 helps to operate SFG and its franchise operations with its franchisees.
24. SFG is also associated with Rhino Linings, a company which provides sprayed-on bed lining for vehicles and uses Rhino Lining’s products in its offerings to its franchisees.
25. SFG is also owned and operated by Kevin [Longe], Chris [Ryan], Keith [Ryan], and Gregory [Longe], who are the officers of SFG.
26. Gregory [Longe] also operates Phoenix with Maria [Longe].

The 2024 Spray Foam Genie Franchise Disclosure Document (FDD) does not disclose ownership by Rhino7, does not disclose an affiliation with Rhino Linings, and does not disclose any Rhino7 executives as part of the SFG management team.

The only mentions of Rhino7 in the Spray Foam Genie FDD are that 1) Doug Schadle & his son Joe Schadle of Rhino 7 are sellers of the Spray Foam Genie franchise, and 2) that Rhino7 and Doug Schadle are named in the arbitration complaint filed by the Jamils.

This revelation, if true, raises the question: Does Rhino7 have an undisclosed ownership stakes in other Phoenix Franchise Brands offerings as well?

In the Fetch! Pet Care franchise (also under fire)?  In Furry Land?  In Door Renew?

(We discovered another potentially major misrepresentation in the Spray Foam Genie FDD we presented here:

Spray Foam Genie Claimed its Initial Investment was $243,200 to $299,200.  Actual Cost Alleged: $1M+

The lawsuit alleges that the initial investment claimed by Spray Foam Genie was severely understated.

It states:

Defendants intentionally hid the amount of money it would take to launch the Franchise and how much money the Franchises would make in order to induce franchisees, like Plaintiffs, into entering into Franchise and Management agreements with them.

For example, the FDD stated the initial cost of a trailer rig was to be $20,000 to $30,000.

Actual cost, according to the suit:  $30,000 – $50,000.

The Plaintiffs allege that the insurance cost was represented in the FDD as $8,000 to $10,000.

Actual cost:  $40,000

In total, Plaintiffs allege that the total investment represented to be $243,200 to $299,200 exceeded $1,000,000

The Investor/Absentee Model is a Lie, Plaintiffs Allege

The allegations that Phoenix Franchise Brands & Rhino7 are selling the promise of a “semi-absentee/Investor model franchise” that they have no intention of delivering is echoed in the dozens of franchisee complaints recently submitted to the FTC.

The Jamil complaint states:

Plaintiffs purchased the Franchises under SFG’s Investor/Absentee model, which according to the Brochure and all related representations required Defendants to provide managed services and to operate the Franchises for Plaintiffs.

67. Defendants, further, represented that under the Investor/Absentee model Plaintiffs would not have to manage the Franchises, but that they would only have to provide the initial capital for the Franchises.
68. Under this model, Defendants represented that Plaintiffs would only have to meet once a month to go over financials for the Franchises.
69. Accordingly, Plaintiffs purchased the Franchises from Defendants and entered into the Management Agreement with SFGM.
70. Defendants’ representation proved to be false, as Plaintiffs were forced to work 40-50 hours per week on the Franchises, even though they were paying Defendants to manage most of the business, as Defendants failed to perform the work that they agreed to and were being paid for.
71. Defendants had no intention of providing the management services for the Franchises that they represented they would, and Plaintiffs were required to run the Franchises, and all of their operations, from day one.
72. Under the Management Agreement, SFGM was required to provide numerous services to Plaintiffs…
74. Instead of providing the services that it represented it would in the Management Agreement, SFGM took its significant fees and left Plaintiffs to fend for themselves.

Spray Foam Genie / Rhino7 Accused of Making Fraudulent Earnings & Profitability Claims

The West Palm Beach franchisees claim that the franchisor and Rhino7 misrepresented both the total revenue and the profitability they could reasonably expect.

According to the complaint:

96. Upon information and belief, Defendants also misreported and misrepresented the total revenue that they received from their spray foam operations.
97. Furthermore, Defendants misrepresented the profitability of its already existing franchises, which were owned by Defendants, by intentionally removing and/or omitting costs

Spray Foam Genie Kevin Longe & founder Chris Ryan allegedly promised the franchisees great returns and significant wealth, according to the complaint:

Kevin Longe and Chris Ryan met with the Jamils on Zoom several times before they executed any agreements for the SFG franchise and promised the Jamils they would be
millionaires.

Phoenix Franchise Brands and Rhino7 are facing similar allegations regarding Fetch! Pet Care earnings claims, as highlighted here:

Phoenix Franchise Brands Had no Intention – Or Ability – To Make Good on Their Promises

What’s striking about the suit’s allegations is its contentions that the Longes and the Ryans not only didn’t make good on their promises and obligations, it appears they never had any intention to do so.

This is evidenced by the fact that they didn’t have the staffing, programs or resources in place to fulfill their obligations even if they wanted to.

For example, the call center did not have the capabilities to make good on the promised services:

173. Defendants’ call center also does not have any dedicated sales people and/or estimators, as they represented it had; their management company did not provide the services they represented it would; and they
did not have the safety equipment and materials packages that they represented they had.
174. Defendants required Plaintiffs to pay $2,000 a month for the call center, which could not perform the functions they represented it would…

176. Defendants made their misrepresentations in order to induce Plaintiffs to enter into the Franchise Agreement and the Management Agreement with SFG and Defendants.

Franchisee Plaintiffs Seek Rescission, Damages in Excess of $1M, Costs, Interest & Attorneys Fees

The suit states:

Under the MFIL, the Officers, Rhino7, Phoenix, and the Franchise Sellers are jointly and severally liable for SFG’s actions and are liable to Plaintiffs for damages or recession, with interest at 12% per year plus reasonable attorneys’ fees and court costs.

146. Plaintiffs have been damaged in an amount to be determined at trial, but in excess of $1,000,000, exclusive of interest, costs, and attorneys’ fees by Defendants’ fraudulent inducement and violations of the MFIL.
WHEREFORE, Plaintiffs respectfully request entry of a judgment in their favor and against Defendants, jointly and severally, in an amount to be determined at the trial, enter a judgment rescinding the Franchise Agreement, and enter a judgment granting Plaintiffs interests, costs, and attorneys’ fees, together with such other and further relief that is just and appropriate under the circumstances.

Kudos to the Jamils, Josh Brown & Taft Stetinius & Hollister, LLP for Arbitrating AND Filing a Public Lawsuit

Open Justice, the legal rule that requires courts to conduct their proceedings in public, is vital for preserving justice and should be near-absolute in a democratic society.

Maintaining transparency and access to civil proceedings involving the franchise relationship is especially important in providing prospective franchisees information they need to make informed investment decisions.
This is the reason the FTC Franchise Rule mandates both disclosure of litigation and the inclusion of franchisee contact information in the FD
However, bad actors in franchising and their highly paid lawyers have become increasingly adept at hiding franchisee discontent through forced private mediation and arbitration, NDAs and good old-fashioned threats & intimidation.
As a result, bad actors continue to act badly and more law-abiding citizens, Veterans and military families go unwarned and unprotected.
Kudos to the Tim & Lisa Jamil, Josh Brown and the legal team at Taft Stetinius & Hollister, LLP for refusing to litigate their dispute in the shadows.
And kudos to the brave and principled franchisees of Fetch! Pet Care, Furry Land and Spray Foam Genie for refusing to be silenced and refusing to let future potential victims go un-warned.

A special shout-out to the AAFD and the Legacy Fetch! Pet Care owners of the IAFPC who put themselves on the line for the newer owners with oppressive contracts.

Invitation:  Please Share Your Opinion of Experience (Anonymity Assured)

Are you familiar with Greg Longe, Maria Longe, Phoenix Franchise Brands, or Cybeck Capital Fund?

Please leave a comment below or email us, in confidence, at UnhappyFranchisee[at]Gmail[dot]com.

Franchisors:  The franchisor, its employees and agents are invited to submit correction, clarifications, rebuttals or other opinions for immediate consideration.

UnhappyFranchisee.com is not associated with this or other franchise company or seller.

Tags:  Sprayfoam Genie, Spray Foam Genie, Sprayfoam Genie franchise lawsuit, Phoenix Franchise Brands lawsuit, Greg Longe fraud allegsations, Kevin Longe fraud allegations, Rhino7 fraud allegations,Greg Longe, Maria Longe, Rhino7, Chris Ryan, Keith Ryan, Shelly Chavez , Steven Longe, Steven McEntire, Riley McEntire, attorney Josh Brown

5 thoughts on “Kevin Longe, Greg Longe, Rhino7 Sued for Fraud, Embezzlement

  • Sandra Wang

    Amazing! From all of us from Fetch!–the vast majority of the franchise system in group arbitration (not “a few individuals”, which Greg, Maria and their PR firm All Points keep claiming)–we thank the Jamils for your bravery in going public with your lawsuit. You set a great example of what happens when the Longes don’t take people’s lives seriously. Our patience does have a limit…

    To All Points Public Relations firm,

    There are some cases, like Phoenix Franchise Brands and Rhino7, that are just unsalvageable. When their reputation is built on fraudulent claims that they were dumb enough to put into writing in their promotional material, record in videos, write into their contracts then breach their own terms–it’s a lost cause. I’m sure your team is all over finding these articles, filed complaints, and lawsuits, so you’ll see this.

    You would have also found the lawsuit against Phoenix Franchise Brands from Eagle One Insights for breach of their contract. They were not paid for their services. Did you know the attorney of a company called Listen360 claims Phoenix Franchise Brands owes $82,000, and that is why they shut off their service?–It was not an outage as their VP, Heather Bir claimed.

    Phoenix Franchise Brands has a track record of not paying their bills when they were living large off of the predatory fees. What makes you think your PR firm will be compensated for your services now that their funding sources are drying up?

    I’ve asked Phoenix Franchise Brands’ law firm, Saxton Stump, the same question and suggested they invoice Greg and Maria Longe weekly and make sure the invoices are being paid. Perhaps both firms should take a page out of Greg & Maria’s playbook and require payments in ACH. This is how they have been emptying our members’ bank accounts with undisclosed and trumped up fees. Good luck collecting payment for your services.

  • Another Duped Franchisee Out $1 million.

    This is just the beginning of the exposure of the Ponze Scheme that the Longes are heading.
    They have/are destroying so many lives.
    Franchisees as well and vendors are out millions due to the lies and deception from all the names that are listed in this lawsuit.
    Each and every one of them need to be held accountable.
    It’s about time they are being exposed and the FTC is getting involved.
    The crimes they have committed deserve prison time.
    I foresee the FBI getting involved and some forensic accounting in the future.
    Greg Longe may have to sell some assets such as his vacation homes and yacht that I’m sure has all been funded by his unethical tactics.
    Chris Ryan may have to sell their daughter’s 100k truck they just bought her for her birthday.
    You can only get away with crooked business for so long before it finally catches up to you.

  • Anonymous

    Bravo to the Jamils for publicly exposing this fraud of a company and franchise group. I had to walk away from my Fetch locations, losing all my investment. They must be stopped from ruining more lives and families.

  • Sean, I’m happy to hear that Josh Brown is now involved. he’s a good franchise lawyer and I know he’ll work hard to get the job done. Great reporting as usual! Joel Libava

  • Anonymous

    To anyone reading this, the large lawsuit the Fetch! Franchisees have put together, the Jamils lawsuit and Eagle One’s lawsuits are not the only ones out there. There are more, the truth will not be hidden this time.

    So many of us have lost our life savings, are essentially homeless, stuck filing bankruptcy. Marriages falling apart, people’s mental and physical health impacted. They are even running this scam overseas and having people come to the US after handing over hundreds of thousands of dollars, just to find nothing waiting here for them.

    The group fighting this have been facing retaliation from the Longes, yet we are still moving forward in the hopes that we STOP them from being able to keep doing this to anyone else.

    If this PR firm they hired (which by the way, they could’ve put that money into our businesses to try to help us, but they chose to hire someone to try to get rid of negative press so they can continue stealing people’s money in the future) actually starts trying to change the narrative in the media, BEWARE. These are NOT nice people. Read above, Phoenix is a company with some SERIOUS nepotism; just like the mafia. They are trying to keep only certain people close with ZERO checks and balances in place for them. Keep in mind, to be a franchise they just have to offer a “system”, doesn’t have to work. Don’t be fooled by the things they say they’ll do for you in their contract, understand their FDDs are completely misleading, full of lies and omissions.

    To the franchisees still operating in their current brands and thinking all will be ok, or believing the promises they are making that things will be better. Trust me, they won’t. They may try to improve things in the short term for this PR campaign, but if they somehow succeed in making this go away; they will begin again with all of their schemes as soon as they can. Even worse this time since they will have so much money to recover. Please know that many of your fellow franchisees have targets on their backs fighting this fight for you too. Please consider joining (the AAFD is a great place to start!). People like this can only get away with it if we stay quiet and let them.

    We are risking a lot to fight this fraud and are so thankful for media sources willing to actually publish the truth of what is happening to us!

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