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Coverall Complaints 3

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Coverall Taking accounts away prematurelly, over charge of fees for maintaining and paying for insurance that should have been optional became mandatory

Time - line of events leading to the official quitting

My name is ben and i was a fromer employee turned franchise owner with coverall of hawaii.

1999 - in april i was hired as a nite cleaner for ko & ko innovators who were the regional directors of coverall here in hawaii at that time. I worked @ sites such as 24 hour fitness, chilli's restaurant and hard rock cafe. Now these accounts were high paying customers to coverall so mr. Ko wanted to make them happy at all times. These accounts were for sale but mr. Ko could not find a franchise owner that would be able to keep the accounts within coveralls hands. Thats where i come in and a few others, we are the helpers to the regionals when they are close to losing the accounts because the took it away from more than 3 other franchisees who could not keep p the cleaning concept of coverall. Mr. Ko over a period of 5 months he would always ask me about buying in with nothing down and that he would finance me completely for a 10, 000 package of accounts. I turned him down twice within this time frame. Than on a nite that i was stressing about cleaning places alone because coverall was paying cheap and people would not stay around long enough to get a paycheck, their first. He mentioned that the prices the customers p[ay to have there place cleaned was big money that could be all mine after i paid all the financing off to him. He groomed me into believing that i can be an owner and earn alot of money that would be all mine and i would be my own boss with no one to answer to but the customer and they all like me and know me and my cleaning and liked it. So in november of that year i signed all the paperwork for financing and fees related to the business which i would learn was bs. Anyway, i walked out the owner of my own cleaning business with accounts that i paid for from coverall wehter i paid off ore not can and will be taken away from me if services to customers were not rendered accordingly. I should have known then that there was a scam in this deal but i did'nt. I knew that each monthly check i would have deductions for financing, using the name coverall, billing and paper work. My check was very little after all their deductions that i still had to pay my own state and fed taxes as well as the few people i had working for me. Believe it or not after all this the money i had left was merely 200 hundred dollars. Literally! I was so pissed and depressed but there was nothing i can do at this point i am stuck with a contract clause that i quit or not i still will be binded to pay them the financing package. What a rip. Anyway things go downhill real fast from here on out.

2000 thru 2007 i remained a franchise owner with various accounts that i kept from beginning to end and then other accounts taken awayy for poor service and not given the chance to redeem myself to both coverall and the customer and the next thing i know, accounts (Money) was taken away from just like that. I was a very illiterate business man that should have stayed out and just be the do this and do that guy. I havwe had approximatly four accounts taken away the same way each time for poor service than sold to another franchise owner over and over again. I knew this was somehow illegal, white collar crime. But what can i say or do? The regional part was unstable for the most part. My time being there i met and saw three different regional owners come and go because they knew what was happening was somehow illegal, un ethical and not business like. I had my run ins with all of them. They never had enough cash to cover my check that was monthly. I thought to myself how is this possible? They take away accounts and resell them while the other owner is still paying thru obligation or the same account. So why can't they have the cash in their account when its time to pay the owners? Go figure that one out. Well the run ins with the reg owners and the office staff was getting more and more heated. Ufc was almost in the house! The month and day that i never went back to work for the accounts i never told coverall. I did saymy goodbyes pior to the last day to customers i have had for years and they understood why i was doing what i did. I finally understood why some things were and others were not. The company was greedy scamming thieves who knew how to lure and groom the futur franchisee of all their money and buy into bull. I had accounts that were underbid and remained the cost foir services for years. In spite of cola going up i was stagnant with charging the customers a right and just fair amount for cleaning their establishment. I did great job, got good ratings as well as getting along with the customers. Never did i have an issue of stealing with the accounts. Many oppertunities went by and i remained loyal. I want back my losses that took coveralkl over the top with money and being recognized in the community for the cleaning that i help build that reputation so show some respect and man up coverall! You all deserve a good beat down for ripping off the aloha that us franchisees had left to show and give. Wel the quit day was in feb of 2007. Afterall the years of working, i kept it a family working business. It was my fiance, son and i that did all five account 7 days a week 365 days a yrear. Find another like me your great, but chances are thys don't make like they use to. I may be good but not the best, you can do a great job but i can do better. Coverall can kiss my ###. They got loyalty, honesty and hardworking when i was there. Now that i am not, i hear that there are a few lawsuits being litigated here in hawaii but i can't buy in for the cost oif the retainer fee so i will not be a part of the class action. Whatever main thing they get their day in court civily and criminally. God bless and take care you all.

My fiance hep me with the events and puttin g the story together and trying to keep it short. Thanks hon. Again my name is benjamin cortez jr and you may call me at [protected] if you are also a franchisee or former we can talk about how and what can be done by us to them so it will not happen anymore and put a stop to all this scamming by franchising. I mean don't prey on the poor so you can be rich cause it can't happen and won't so stop the games and grow the f### up. ! Peace out!

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1st Amendment
Bloomington, US
Oct 04, 2011 5:11 am EDT

Coverall Stops selling there fake franchises !

Coverall is " Treading on eggshells "

They have been Stopped!

6 Judges of the High Court have Ruled and required coverall to pay back all the franchise fees, royalties and insurance premiums they had collected from their misclassified employees.

They are now treating there cleaners like employees and paying for there insurance.

Read the following and newest article on how Coverall has been stopped!

http://www.franchisetimes.com/content/story_result.php?article=02283

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Coverall BAD INVESTMENT

I have a franshise with this company and those wanting to invest need to go to another company Coverall nickel and dimes you out of your money. The company does changes to the accounts to benefit themselves they do not look out for the franshise owner. Please be advised that this company will take your money.

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seriously ticked off
Fremont, US
Apr 18, 2013 9:34 pm EDT

Coverall is a complete rip off! We have been franchise owners for 5 years and have been screwed over by Coverall. We bought into the franchise of Coverall because we wanted to start our own business but knew it would be hard to break into the commercial cleaning sector on our own so we paid for a name, Coverall. This year we were told we had to become incorporated and could not use Coverall as a business name anymore. Really then why did we pay all that money for the name? We have been told by our master franchise owner from our regional office that Coverall owns all rights to our accounts, yes we BUY the accounts and pay money for them and they are called ours but in reality they are still corporate Coverall accounts and they have ownership of them. Ok then why did I just pay you for them and how can you contradict yourself in the same sentence. It is infuriating! In my opinion Coverall is a pyramid scheme. The Master Franchise owner of the Regional office makes all the money to sit on his butt and we are offered to pay for crap accounts that are low balled on the bids because we have to work them, they wouldn't low ball them if they were the ones doing the work. Bottom line you are not the owner of your business with these people. Yes on paper and for tax purposes you own the business but that is just it, for tax purposes you absorb all the ridiculous tax fees for franchises and self employment and they sit back and make all the money. The only reason they have you setup as a franchise or "business owner" is so they don't have to pay the horrific taxes and can make all the money. Legal or not this is not the way to conduct business and is unethical. If this is how large corporations make money, by stealing from people then I am glad I am not part of a large corporation!

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TheLittleHonestGuy
Hardworkingville, US
Mar 21, 2013 9:47 pm EDT

My largest account moved into a building where Coverall has an office. I was given this new office (as I should have been as I provide exemplary service now for 6 years to all the rest) and all of a sudden it's no longer mine. Then, I spot a card on the desk of one of the properties I clean from one of their salesman. I figure "no worries, I do a great job, no complaints and go above and beyond for all these years." Two months later, I get notice that I'm terminated. These people came in, low ball bid me right out of years of hard work and investment. Greed on both sides caused me to lose what I worked hard for all these years. Good luck to the slave labor that is crazy enough to work under this scheming theiving company. You will find out just how hard it is to maintain all these offices and come out with pennies on the dollar. This company runs good, honest hard working husband and wife teams like us out of business and in the end, get cancelled anyway because they underbid to get the business then get bad service. These beautiful offices will look like ### in no time, and it's sad. Very, very sad.

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CMDEBARGE
Chicago, US
Oct 09, 2012 8:31 am EDT

I've been a Franchise owner with CoverAll now for 6 years, I've also been in retail as a store manager, district trainer, and district manager for 14 years. although I do agree that they as a company nickel and dime you (9.99 for direct deposit is really a joke), I don't understand why you would think it would be any different. The company takes care of the billing, pays you the first of every month no matter if the costumer pays on time or not, and provides customer service on your behalf. If you had to do these thing your self you would be in for a surprise. NO Customer pays on time, I have accounts that I have on my own and I have never been paid within 30 days of my Invoice. If someone finds me business the pays me $45, 000 a year and I walk away with $36, 500 and I don't have to do any collections, costumer calls, my Insurance is paid and all I have to do is a good job, I think its a win. the fees are called the cost of doing business. If you owned a Franchise making $300, 000 a year, you can best believe that you would be paying about $75, 000 in royalties. Yes you don't really need Coverall or any other cleaning franchise for that matter, you can go out, beat the pavement, do cold calls and find your own business. lets see how successful your going to be at that. Also if Coverall calls your costumer gets the costumer to add a extra day for an added price and they bill you three times the cost, guess what, that's your fault. your their 1 to 4 days a week and you don't have the salesmanship to talk to that costumer and get that day added your self than you should pay for your mistake. i have gotten my customers to add days, change days that fit my schedule, and add strip and wax or carpet cleaning at no additional charge from coverall. As a franchise owner its your job to grow your business and if you can't don't get mad that Coverall doesn't wait for you to offer more services to YOUR customer. Scam no a lot of little fees that add up yes. welcome to the business world. Its not for everybody.

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1st Amendment
Bloomington, US
Sep 02, 2011 9:17 pm EDT

Coverall LOST ! Franchisor HIT HARD !

Cleaners WIN !

Awuah WINS !

BOSTON – Today the Massachusetts Supreme Judicial Court smacked Coverall janitorial franchise system with a huge bill for labeling its employees as franchisees.

The high court ruled that the franchisor must pay back franchise related fees, including franchise fees, promissory note payments, additional business fees, and payments for insurance.

Experts think the ruling that franchisees can be disguised employees will ripple down to other franchise systems and other states.

Coverall argued that the franchisee should only be allowed to collect fees directly related to the misclassification. Because the additional fees Pius Awuah sought were the result of his contract agreement with the franchisor, Coverall asserted that they should not apply to the damages he sought.

Coverall SJC Decision
U.S. District Court Judge William G. Young ruled (pdf) that the misclassified employees could collect wages, insurance premiums and other employment benefits, but the attorneys for the franchisees weren't satisfied. Shannon Liss-Riordan of Lichten & Liss-Riordon stated that her clients should also be paid all fees. She said, "By requiring companies to fully reimburse employees for all the fees they incurred as a result of misclassification, the court will send a message to employers that wage law violations will not be tolerated."

The judge then certified the Awuah v Coverall case to Massachusetts highest court after determining that state wage laws require employers to cover certain statutory costs of doing business, and that shifting such expenses to a misclassified worker constitutes damages incurred. Because the Supreme Judicial Court had no controlling precedence, Judge Young submitted pertinent questions to give the court the opportunity to set a precedent in defining the damages that should be available to the employees misclassified as independent contractors.

On one pertinent question addressing whether Coverall could deduct franchise fees from the employees' wages, the state's Supreme Court concluded, "No. . . the Wage Act forbids the deduction."

Prior to the decision the case had brought criticism from the franchisor community. Coverall attorney Michael D. Vhay of Boston's DLA Piper stated that broadening the damages beyond wages and benefits would produce a flood of litigation and drive franchisors from the state because they would be unable to collect fees from franchisees.

Steve Calderia, CEO of the International Franchise Association said, "On behalf of the franchise industry, we urge the court to fully take into account the unique attributes of franchising and the federal regulatory oversight of the franchise business model."

Following the court's decision, Liss-Riordan said, "Today's ruling from the SJC is a long-awaited victory for potentially thousands of cleaning workers throughout Massachusetts. The court determined that Massachusetts wage laws and public policy prohibit employers from selling jobs to employees." Liss-Riordan added that the commercial cleaning industry has been plagued by companies such as Coverall that claim to be franchisors but are really employers who make their money by profiting off of their own workers. She said, "This ruling will allow commercial cleaning to be performed in Massachusetts by legitimate employers who do not charge their workers for their jobs. The ruling will have huge ramifications on the commercial cleaning industry, as well as potentially other industries, and the ruling will likely have ripple effects in other states."

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unhappy about coverall
lakecity, US
Aug 19, 2011 9:07 am EDT

and try to come in and out bid other janitorial companys.. they are trying to out bid us at a dealership..we have now been with for 10 years, they used to have the contract they send fly by night people in.. they steal and they dont clean right.. a joke.. money scam.. they dont provide honest support to the companys either.. to put a home town honest janitorial company out of business.. to get theese money scammers in your business place cleaning.. and stealing.. yea u get it cheaper all right.

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UncleCheese
cash hieghts town, US
Feb 12, 2011 10:54 am EST

They Tell You Your The Boss.

Yeah well that's [censored] if you think about. Coverall is almost giving you some low money jobs. I'm with Coverall how come i don't feel like a business owner. These People wanna control the whole show.

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UncleCheese
cash hieghts town, US
Feb 12, 2011 10:50 am EST

I don't understand these jerkoff's it's almost like there a legal shakedown.They love taking your money. Everything is a joke to these people. They might have a very very very few success stories but theres gotta be 90% im sure is not happy or did not make with them. but then again maybe these people making 20, 000 a month with coverall only really get 15, 800. After The 21% percent [censor]. And They Probably should be Earing around 30, 000 if it wasnt for the low balled accounts. See That's One of the big Problems With these Coverall Jerkoff's. They price the contracts to cheap for accounts. Which leaves the franchisee's left with nothing. Your Better Off pumping gas for a living. Sad but True.

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UncleCheese
cash hieghts town, US
Feb 12, 2011 10:18 am EST

Coverall is one big front just to take your money. They will first tell you anything you wanna here just to get you to invest with them, then once you sign there true colors come out. If you have any questions you call the office and nobody knows anything they just pass you around to the next jerkoff who's claiming they cant answer your question. Then they get a accounts that are low priced so you work for nothing. Plus they take 21% out of your income for the month. Then they will talk to your customers and add changes to your account like if it was 2 days a week for 400 a month they'd talk to "your" customer about making it 3 days which let say would make it 500 a month. they will force you to a finders fee on the extra 100 dollars for the month. Which there finders fee is 3 times the amount so you now have to pay Coverall 300. What the hell kinda scheme is that. If you ask me the guys are just being a little to greedy.
Investing into Coverall was the worst thing I did. It's Honestly a waist of my time and money.
There Charging me for 10% percent management fee's. These people don't help me manage anything, It's hard enough to get them on the phone at your so called support center's. Yeah there full of [censor] it's like i paid a bunch of [censor]'s for a job.

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ShadyEthics
Carlsbad, US
Jan 06, 2011 4:35 pm EST

Avoid this company at all cost. I am a customer of Coverall. After three years of service, I tried to terminate my contract and learned they snuck in fine print language saying I could only terminate the month before the anniversary of our renewal! Is this enforceable? What goes around comes around...I do not recommend ANY involvement with this company.

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doitmyselfcleaner
Indianapolis, US
Jul 01, 2010 11:11 pm EDT
Verified customer This complaint was posted by a verified customer. Learn more

Honestly, I don't understand why people buy into this. There are all kinds of posts on the internet about all of these franchises scamming everyone, but yet they are in the Forbes top 10 growing companies. It takes less money to start your own cleaning service. You just have to do all the leg work. I guess people that buy into these have no ambition and want all the hard part done for them. Cleaning an account is the easy part, it's getting the account that's hard.

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This review was chosen algorithmically as the most valued customer feedback.

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...

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Overview of Coverall complaint handling

Coverall reviews first appeared on Complaints Board on Aug 11, 2009. The latest review Taking accounts away prematurelly, over charge of fees for maintaining and paying for insurance that should have been optional became mandatory was posted on Sep 28, 2011. The latest complaint BAD INVESTMENT was resolved on Feb 25, 2010. Coverall has an average consumer rating of 4 stars from 3 reviews. Coverall has resolved 2 complaints.
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  1. Coverall Contacts

  2. Coverall phone numbers
    866.296.8944
    866.296.8944
    Click up if you have successfully reached Coverall by calling 866.296.8944 phone number 0 0 users reported that they have successfully reached Coverall by calling 866.296.8944 phone number Click down if you have unsuccessfully reached Coverall by calling 866.296.8944 phone number 0 0 users reported that they have UNsuccessfully reached Coverall by calling 866.296.8944 phone number
  3. Coverall emails
  4. Coverall address
    Coverall North America, Inc. 350 SW 12th Ave Deerfield Beach, FL 33442 (800) 537-3371, United States
  5. Coverall social media
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    Checked and verified by Olivia This contact information is personally checked and verified by the ComplaintsBoard representative. Learn more
    Jul 05, 2024

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