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Another commercial cleaning franchise lands in court for their dishonest antics

7/18/2013

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Franchises don't work. The model itself is flawed. When you are looking for a cleaning service, do your homework. To get the best possible service at the best possible price, you need to do business with a "real company".

Below is an article from the St. Louis Post-Dispatch.

Fortune 500 Company Takes Advantage of the American Dream

A Texas Corporation that was ranked highly in Entrepreneur's 
Franchise 500 is preying on Americans looking to build their own  business, and live the "American Dream." Bonus Building Care sells  cleaning franchises with grand promises of success, leading potential  buyers to believe that they can make a good living as their own boss.

Bonus Building Care uses the "American Dream" ideal to scam honest  citizens out of their life savings and make then indentured servants.  Hopeful entrepreneurs are told that with a minimal investment starting  around $5,000, they can be turning a healthy profit within a year. Bonus Building Care not only sells the franchise itself, but also each  individual cleaning account. Franchisees are forced to pay monthly fees  on any cleaning account they are given for a period of one year. These  fees are supposedly an investment towards "owning" each account, but  right around the one year mark, the account is taken from the franchisee and replaced with another, forcing them to remain in the vicious cycle  of paying for cleaning accounts that they will never truly own. The  excessive fees make it very difficult, if not impossible, for any franchisee to earn minimum wage, much less turn a profit. While their  current franchises struggle to make ends meet, Bonus Building Care  continues to sell new franchises and grow richer.
 
A nationwide class action lawsuit has been filed in the Western  District of Missouri against Bonus Building Care on behalf of the  victims (4:13 CV-00663). The lawsuit charges Bonus Building Care, along  with several other defendants, with Racketeer Influenced and Corrupt  Organizations (RICO) Act violations and
seeks damages and justice for  the plaintiffs.

By Fortman Law

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    Paul S., I.C.E.
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    Having run a business for many years, Paul brings experience, passion, and his win-win attitude to CJM. Paul's vast knowledge allows him to provide credible advice that improves the lives of all those that engage with him.

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