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Coverall might overcharge for franchises by fraudulently guaranteeing income potential then misclassifies workers as "franchisees" when in fact the workers are employees.
Investigation Source (Case #07-10287)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Failure To Pay Overtime
- Franchises
- Failure To Pay Minimum Wage
Products or Services
- Janitorial And Cleaning Personnel
- Franchisee
Injury Type
- Monetary Loss
Investigation Details
This is an ongoing investigation into the business practises of companies claiming to offer third party franchises to there cleaning and janitorial businesses. Our investigation to date has led to multiple class action lawsuits.
Coverall North America, JaniKing, JanPro and CleanNet each claim to have unique cleaning supplies and services and each company seeks third parties to buy franchises with their company. Evidence indicates that each compay systemically misrepresents marketing and seling franchises by guaranteeing certain monthly income to unsuspecting third parties. Additionally, evidence suggests that these third party franchisees are in fact properly classsified as empoyees and are therefore afforded stronger rights and protections from US labor laws.
Coverall North America, JaniKing, JanPro and CleanNet each claim to have unique cleaning supplies and services and each company seeks third parties to buy franchises with their company. Evidence indicates that each compay systemically misrepresents marketing and seling franchises by guaranteeing certain monthly income to unsuspecting third parties. Additionally, evidence suggests that these third party franchisees are in fact properly classsified as empoyees and are therefore afforded stronger rights and protections from US labor laws.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Coverall North America, Inc. | Coverall North America, Inc. is a franchisor that sells franchises to third parties to use their cleaning solutions (janitorial services). |
| Jani-King International, Inc. | Jani-King is a commercial cleaning franchise company with more than 12,000 franchisees. |
| Jan-Pro International, Inc. | Jan-Pro International, Inc. is a commercial cleaning company that operates through franchises. |
| CleanNet USA | CleanNet USA is a commercial cleaning company which operates through franchises. |