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Coverall Cleaning Concept


Getting your money

Complaint Rating:  90 % with 125 votes
90% 125
Contact information:
Coverall Cleaning Concepts
303 Vintage Park Dr.
San Mateo, California
United States
Phone: (650) 341-9100
I'm a franchise owner for Coverall for almost two years now in San Mateo, CA and I really regret it joining and starting my business with them because all they did is SCAM me. Coverall Cleaning Concept aka Coverall-Based Cleaning System is where you can start your janitorial business by buying a franchise. You basically starting your cleaning business by using their name and you pay them yet they automatically deducted 15% each month plus insurance other charges. They suppose to guarantee you an account so that way you can start making money right away. They only guarantee you with account just enough that they can take and make money out of you each month and you left nothing. Which what is happening to me. All this time which all I get is headache because I always have to call the office to give me more account but no result. Now their holding my check and their not paying me. I called so may time what happened to my check and they just pass me around and no on knows. I'm ready so sue Coverall all for all my lost. I'm ready take them to court.

Anyone who want to start a janitorial cleaning business do your research. As I tell DO NOT DO BUSINESS WITH COVERALL CLEANING CONCEPT aka COVERALL HEALTH-BASED CLEANING SYSTEM because is a SCAM.
Complaint comments Comments (54) Complaint country United States Complaint category Bad Business Partners


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N  18th of Sep, 2009 by    0 Votes
Insurance probably has nothing to do with that company. Don't you HAVE to have insurance to do this business? I am guessing the 15% has something to do with Franchise Fees. ALL companies that are Franchises have fees. McDonald's included.
A  23rd of Sep, 2009 by    +1 Votes
I heard about the same thing with another cleaning lady. Not only that, but they say everything you want to hear so that they get you to go on contract. In my case, I didn't want to be committed to a contract and I happened to stress that to the sales rep numerous times. He agreed that I only had to give them a courteous 15 days to cancel the service. It so happens that when I tried to cancell, they came up with a totally different story. So now, we have to be stuck with the service or pay the full year in contract. This company sucks and they are total hypocrits!! Wouldn't recommend them, not becuase of the cleaning, but because they are sneaky to get money in their pockets!!!
A  30th of Sep, 2009 by    0 Votes
I totally agree with the complains. I am a franchise owner myself. they are totally liers. I made a contract for $20k, I gave $14.000 downpayment and we agree that I was going to pay the rest each month /deducted from my paycheck. I though I was going to get my acconts (offices to clean) in one month. But, they made me wait about a year, plus I was making $9 dollars per hour (fast and hard work) and I did not had any money to hired an employee to help me. How much I was supposed to pay if I hire one? 1 dollar? THEY ARE SCAMMERS. Yes, they are in the forbes magazine, of course because they make money but franchises dont. they will take you money and make you work like crazy. they also charge for administration but you are the one who has to comfront the office owners if something is wrong or if you want them to increase your payment because you are working extra hours. DONT MAKE ANY CONTRACT WITH THEM, They are not good, this business is not worth it at all. I am totally dissapointed :(
N  3rd of Nov, 2009 by    0 Votes
Know what Franchise stand for before you buy a Franchise. If you don’t understand how the system work s than don‘t buy it. All Franchise Company charge a Royalty and Management fee in your case it is 15%. If you don’t want to pay the fee, do it yourself from your garage. Buying a Franchise is buying a Business that you must take care of it on yourself and not point finger at some else for your failure. It looks like you want a J.O.B not a Business. Take responsibility for you own action if you ever want to be successful in anything.
N  17th of Dec, 2009 by    -2 Votes
I own a cleaning franchise and I did my homework on all the major ones before I brought into one of them. If you own a business you have to be prepared for sucess and failure. It is not up to the company you brought your franchise from to make you sucessful it's up to the franchise owner to make him or herself sucessful. You can't count on the company to help you out! You have to act like you are the only one that is in charge of your destiny. When I started out I didn't wait for them to get me a contract I went out on my own and started advertising my business myself, and I was able to get two contracts on my own without there help. The best advise I can give is to work your business as hard as you can and stop depending on the company to help you. You should be willing to do whatever you need to do to make yourself a sucess.
N  18th of Dec, 2009 by    +3 Votes
JANITORIAL FRANCHISES ARE A SCAM! It might work for some but I guarantee it doesn't work for the majority. This is how they work:

_You pay them a package, for example you pay about $16K for a $4k monthly income
_They'll get you the accounts.
_Although they say you can choose to accept or not a specific account, it' not true. They will turn around and say they satisfied the agreement of providing your accounts and if you didn't take, they won't give you more accounts.
_They underbid contracts to compete with everyone else, since they are NOT the ones doing the work..they don't care. They get the accounts due the low price and you're stuck working hard for few hundred dollars a month. You would be better off working for McDonalds getting $8 an hr. DO THE MATH!
_NOW This is the worst of ALL...once they have too many franchisees and can't find enough accounts, they will find anything wrong in some buildings as a missed trash can and ask the company if they want another person to clean...since it doesn't make a difference for them, they will say yes. Then the Franchise call you and say your customer requested to get another contractor because he's not happy with your job. Now they sale that account to the newer franchisees so they honor the agreement to get accounts. THAT'S STEALING!

WITH A CLEANING FRANCHISE, IN REALITY YOU NEVER OWN YOUR OWN BUSINESS! If you owned the accounts you should be able to walk away with them after a period of time..right? NO..YOU CAN'T BECAUSE THE CONTRACT IS ON THE FRANCHISE NAMER...NOT YOURS!

I just hope that a Federal Court one of these days force all cleaning franchises to get the accounts on the franchisees' names...not theirs. Create a money back guarantee and protect the little guys..the franchisees...I can't believe in this age Cleaning Franchises are able to get away with this scam.
N  10th of Jan, 2010 by    +1 Votes
I was also a Franchise owner through coverall in cincinnati OH. They are complete scam artists. I wasted 6 years with them, trying to get something started and they did not hold up to their end of the bargain. I agree with what you guys are saying. Buyer beware!!!
N  21st of Feb, 2010 by    +1 Votes
I was just about to enter into a franchise agreement with Coverall, but after reading these comments regarding dissatisfied clients and possible misrepresentation, I will do more research and take my time, indeed I might just continue to use my garage, I am not doing too bad.
N  22nd of Feb, 2010 by    0 Votes
Does anyone have any info on the Michigan based Coverall?
A  9th of Mar, 2010 by    0 Votes
con-artist coverall gaarbage bs run fast as you can, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
N  10th of Mar, 2010 by    0 Votes
This is for Anonymous from NJ, if you are a customer of Coverall, I suggest you get out your contract, you can cancel at anytime by giving 30 days written notice, if you decide to try and cancel for poor service (even if the service is good this is the #1 reason people site for cancelling), it will actually take you 45 days to cancel service. You must give a 15 day cure period to fix the "poor service" followed by a 3o day cancellation notice.

Once you have given that written 3o day cancellation notice you will not be liable for the rest of the contract, just till the end of that 30 day period. If you do not have a contract, the job should not have been started by coverall, it is against their policy.

Former Coverall Operations Manager.
N  10th of Mar, 2010 by    0 Votes
The whole this is, you have to read the FRANCHISE AGREEMENT, it's that simple, it clearly lays out what they will do, what you must do, and what happens when things go wrong.

With all franchise based cleaning companies, the best advice to current franchisee's is DO YOUR MONTHLY INSPECTIONS, if you do and you follow the agreement, you will be covered by the replacement of business, you will not have any reason for the company to take the account away from you, and you will not have any service issues, because you will have direct contact with your customer.

Yes the franchisor (Coverall, Jan-Pro, CleanNet, Jani-King, and the rest) own the cleaning contract, because they went out and bid the account. You are not purchasing accounts from them, you are buying a right to service the account dependent upon the continued adherence to the franchisors continued levels of service and the franchise agreement (ie doing your inspections and submitting them each month.)


Anyone else got any questions about Coverall specifically, or cleaning companies in general, let me know.
If you want to know how to succeed within Coverall let me know.
N  11th of Mar, 2010 by    0 Votes
How do you suggest I succeed with Coverall? I met with a sales rep for Coverall last year and have not taken the next step just yet.
A  11th of Mar, 2010 by    0 Votes
I suggest that if you are thinking of opening a commercial cleaning company that you go to the Small Business Administration they will give you all the help you need and its all free. This Coverall health cleani9ng system company probably did get most of there experience from looking on the internet and the other part of it hired some wise guys from New Jersey. When it comes to handling someone 10000.00 to show you how you should do something unless they are a credited school then I don't think you or anyone else should get involved with these people. On the other hand I can teach you how to make diamonds just send me 1000.00 dollars to start and I will provide you with everything you need. I will have to charge you royalty fees weather you make money or not get it. The internet is a wonderful thing even here in the U.SD. we are loaded with Nigerian Kings needing help from you to save all there millions. Don't be a fool.
N  15th of Mar, 2010 by    0 Votes
Please read the following article It's about a lady who got ripped-off by coverall. It came out on the New York Times "In seach of work but at what price" By David Segal.

N  24th of Mar, 2010 by    +1 Votes
614-374-1068 JIM BLUE
N  31st of Mar, 2010 by    0 Votes
I invested into coverall in 1996. Being very young and ambicious my ex hubby and saved up all our savings and invested in coverall of southern africa.
We packed up all our goddies in the netherlands an moed to south africa.
We had done an enormous amount of research looking into the back ground of coverall. And we couldnt fid anything bad about the company.
We invested an enormous amount. The regional owner at that stage started of OBVIOUSLY very nice. After signing the contract he started acting up and charging us for the funniest thing. Eventually we wanted our money back ... A long court case etc . We lost everthing ! had to move back to the netherlands with our last money and borrowing from folks we knew. They are still a dodgy business!
And Charles if I ever see you again ... I will spit in your face ( Sorry that man robbed us, he was the regional manager back then)
N  21st of Apr, 2010 by    0 Votes
Kermit do not leave any messages on this board you are a former coverall franchise manager, get it a former that means that you are no longer employed there. That is typical of coverall they normally change their employees as often as they go to the bathroom. I was a former franchise owner that blew about 200, 000.00 on buying accounts and where am i now struggling to find accounts on my own. everything that is said negative about them is totally true. I have enough invoices and billing information to drop a law suit on them out of this world i just need a few people along with me to do it. they are criminals and theives and you too mr Kermit who no longer is employed by them let that be a lesson to you as to what they will do to their employees and their franchise owners. They are also located in south fl and they are the biggest set of crooks. Warning do not buy into their bull*****
N  24th of May, 2010 by    +1 Votes
I read the following article at Bluemaumau.org

Federal Judge: Franchising Sounds Like Ponzi Scheme

Posted Thu, 2010/04/01 - 19:12 by Corbin Williston

Is franchising "a modified Ponzi scheme?" Last week, a federal judge said it might be.

Janitorial franchises have long been a source of embarrassment for the franchise industry, and frequently attract purchasers with few assets and poor command of English.

A 2001 report by the GAO on FTC enforcement of the Franchise Rule found that from 1993-2000, Coverall violations had affected 2591 investors, and JaniKing violations affected 900 investors.
A 2005 news article in the NY Times noted complaints by Brazilian immigrant franchisees of Coverall in Boston, and a settlement of Coverall litigation in Los Angeles in which franchisees alleged fraud.
An August 2009 interview with Franchise Times quoted Coverall making this claim:
Jacqueline Vlaming, Coverall’s general counsel, said, “Every franchise owner who runs it like a business can make money.”

In the most recent lawsuit, Pius Awuah and 10 other franchisees relate similar stories:

1.They paid Coverall North America a "franchise fee" in exchange for which
2.They were promised a minimum dollar amount of client accounts to service each month.
3.Coverall entered into the contract with the clients and billed the clients.
4.Coverall assigned the franchisees to clean the client premises, and
5.Coverall would remit money to the franchisees after deducting various charges.
The franchisees alleged in their Complaint that they were never given the amount of business they had been promised, and that the degree of control which Coverall exercised over them meant that as a matter of Massachusetts law that they were really employees of Coverall.

After filing suit, the franchisee attorneys uncovered damaging information and Coverall moved to seal court documents. In an interlocutory appeal, a 3 judge panel of the 1st Circuit Court of Appeals said in October 2009:

Coverall has been charged--it has not been found liable in this case--with activities that could be viewed as highly unattractive[cite omitted]

It is not necessarily the disclosure to competitors that makes the district court's order a matter of concern. Others, including enforcement agencies and potential plaintiffs, may find the disclosures of interest in ways that would not serve Coverall's interests. [emphasis underlined in original]

The lawsuit continued and on March 23, 2010 the District Court ruled in favor of the "franchisee" plaintiffs, holding that they are in fact employees.

What has attracted attention within the franchise community is the Judge's comments about Coverall's assertion that its business was actually the sale of franchises. Traditionally industry trade groups such as the IFA have maintained that franchising is not an industry but rather a business model (although the IFA has on other occasions defined franchising as an industry).

Judge Young stated:

Describing franchising as a business in itself, as Coverall seeks to do, sounds vaguely like a description for a modified Ponzi scheme – a company that does not earn money from the sale of goods and services, but from taking in more money from unwitting franchisees to make payments to previous franchisees.

The Judge went on to say that he believed that in fact Coverall was in the business of janitorial services and that under Massachusetts law the "franchisees" were really employees of Coverall. But the use of the term "Ponzi scheme" and the interlocutory ruling have caused this case to gain wide attention.

An interesting issue raised by franchise law firm Nixon Peabody is the impact of the Massachusetts statute and case law on post-term non-compete clauses.

The IFA issued a press release criticizing the ruling as a threat to franchising in Massachusetts. As far back as 1998, the IFA took the (then) unheard-of step and filed an amicus brief opposing a janitor who filed for unemployment after being fired from his job at West Sanitation Services. (Matter of Francis, 688 N.Y.S.2d 55)

A bigger threat to Coverall might be the bad publicity which has caused it to lose contracts with Boston-area clients such as Legal Sea Foods and Cheescake Factory (NASDAQ: CAKE). Both restaurants paid Coverall, but the mostly Hispanic cleaning staff did not get paid.

Coverall said it had properly sent money to the Boston "franchisee" and that it bore no responsibility for seeing that the workers were paid. After media reports, Coverall paid the wages. Legal Sea Foods terminated Coverall due to concerns about worker mistreatment, Cheescake Factory terminated Coverall due to a number of concerns, and the Massachusetts Attorney General is investigating the janitorial industry, according to the Boston Globe.
N  13th of Jun, 2010 by    +1 Votes
This statement below is Wrong and misleading, because you do not as a franchisee own the contract so the head office can come up with any concocted story such as the customer is not happy with the service therefore you are losing the account. Whether they resell it to another person is hard to determine but i have had high rating in my accounts and still lost them. My advice to anyone who want to get into the cleaning business is do it on there own all these franchisees are SCAM Artists who are only interested in new Franchisees who pay x6 and not the older franchisees who pay less.Finally to let everyone who reads know the Company only guarantees the contract for ONE YEAR and are not responsible if they feel its not cleaned properly which is subjective.There is alot of information online Do you Research carefully.. Good luck

Franchisee's is DO YOUR MONTHLY INSPECTIONS, if you do and you follow the agreement, you will be covered by the replacement of business, you will not have any reason for the company to take the account away from you, and you will not have any service issues, because you will have direct contact with your customer.

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