STRATUS Franchise Called “Pyramid Scheme” on FOX News
Stratus Building Solutions is under fire in this Problem Solvers report by FOX News’ Kansas City, MO affiliate
“An attorney calls it a pyramid scheme” says the lead-in anchor.
“Victims out money call it outright fraud.”
FOX 4 “Problem Solver” Linda Wagar does an excellent job describing how Stratus, like other janitorial franchises, allegedly preys on working class immigrants, sells them cleaning contracts that promise guaranteed work, then doesn’t deliver.
Attorney Jonathan Fortman Calls Stratus Franchise a Pyramid Scheme
Attorney Jonathan Fortman is suing Stratus Building Solutions on behalf of nearly 100 franchisees.
Here are some quotes from the interview with Fortman:
“They are stealing from people, and they know going in when they get that money that they will never do what they are obligated to do under that franchise agreement… and they don’t care.”
“Now more and more what we’re hearing is these people are paying thousands of dollars and never getting an account.”
“These are the people who have the work ethic, they want to succeed, and they want to buy into the American Dream.”
“It’s just a whole variety of things that they are doing that make it so difficult for these franchisees to be successful… they can’t make them be successful because there’s not enough work.”
Stratus CEO Dennis Jarrett Blames Franchisees
“No, it’s not a pyramid scheme. Nothing could be further from the truth,” says Stratus Building Solutions CEO Dennis Jarrett.
When asked why the Internet is filled with complaints about the Stratus franchise and why so many franchisees are suing, Dennis Jarrett has two answers: Not that many are unhappy, and it’s their own fault.”
“It’s a small minority…” says Stratus CEO Dennis Jarrett. “It could be people that have messed up their accounts, they feel like they want to point the finger of accountability toward somebody else.”
ARE YOU A STRATUS FRANCHISE OWNER OR FRANCHISEE? ARE YOU FAMILIAR WITH THE STRATUSFRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
As many of you know, we filed suit against Stratus Franchising, LLC seeking to have a notionwide class of unit franchisees certified. We are asking a court in Missouri to review the agreements between Stratus and their Master Franchisees and determine whether Stratus is liable to the Unit Franchisees for then acts and omissions of the Masters. Stratus had the case transferred from the Missouri state court to federal court. We filed our motion seeking to have the federal court transfer it back to state court. Over the past few months, the parties have fully briefed the issues to the court. I am pleased to tell you that on May 15, 2012, the federal coiurt granted our motion and has ordered that the case be sent back to Missouri state court. Stratus made sure it was a hard fight, but in the end the law was in the franchisees favor and the judge agreed. We see this as an important decision in that our approach to this case is unique and has not been tried before. You can follow the link below if you are interested in reading the court’s Order.
https://www.box.net/shared/46d7138bc8bf511c2f66
Awesome!!!
Pingback: STRATUS Franchise: Are Stratus Master Franchisees Jumping Ship? : Unhappy Franchisee
Pingback: STRATUS BUILDING SOLUTIONS: Should Entrepreneur De-List Stratus From the Franchise 500? : Unhappy Franchisee
Stratus Building Solutions is a biggest SCAM, I have lost $10,800. Don’t invest your money there, please!!!
Antonio- You have not seen the biggest scammers. They are in the child care business like Discovery Point. They do not provide anything in return of the fees and wait for your collapse so that they can get another new franchisee with new franchise fees and new investments both from the franchisee and SBA. Failed franchisees are not reported anywhere and many different business names are used to avoid authorities. They are doing business like modern day Mafia.
@Viewers, HOW I LOVE TO REPLAY the Oldies but Goodies…..Let see Scum Bag aka OLD FAT BASTARD aka Stratus Franchising, LLC. CEO says “there aren’t that many that are unhappy” and “they look to blame someone else”!
YES, HE IS RIGHT ON! Except DJ, what about the MASTERS that LEFT THE SYSTEM and/or Went Bankrupt and what about the SEVERAL THOUSAND owner-operators that did the same?
Buffalo
Rochester
CT
North Carolina (3 masters)
South Carolina (2 masters)
Indiana
Kentucky (1 area developer, 1 Master)
Chicago
North Texas
Nevada
New Mexico
Minnesota (2 masters)
Florida (2 Masters)
Georgia
California (2 Masters, well technically 3 when you include the thief/cheat Mark Basforth and his goofy ass family)
Oregon
Virginia
Pittsburgh
Baltimore
Let me multiply the above by an average 50 Unit Franchises at a minimum…..
How about you and I go to the St. Louis Business Journal with your Dear Friend and former National Marketing Manager Marissa Lather and do an interview?
The Master franchise in Colorado Springs, Colorado is also scamming young franchisees out of there money as well. Im sure you heard of him and his two cronies, the guy and female husband/wife team that scam everyone.
@Chad M. I know that many remaining Masters are feeling the financial pinch that is being placed on them by Channen/Rene Smith, Marvin Ashton, Foad Rekabi and Afshin Cangarlu. Though that is certainly NO EXCUSE for them to do what it is that you are describing, Stratus Franchising, LLC. in its current format is well past desperation mode.
Again, No Excuses but it is an unfortunate way of looking at…..