Geeks On Call Franchisees Allege Their Franchisor is Breaking Law

United We Geek filed a complaint with Virginia’s Division of Securities and Retail Franchising regarding Geeks on Call America, Inc.
Reston, VA December 23 2008.  They issued this press release:
United We Geek, the Independent Owners Association of Geeks on Call America, Inc. franchisees is pleased to announce that more than 30% of all franchise owners have joined the Association representing roughly 50% of the active territories. United We Geek was incorporated in September 2008 to provide Association members with a voice and to address Geeks on Call America, Inc.’s ineffective advertising, inadequate systems, deteriorating business processes, and also a distinct lack of urgency in addressing the franchisee’s needs.
Patrick Blasz, general counsel for United We Geek, learned that in 2008, Geeks on Call America, Inc. abandoned efforts to renew its franchise registration with the State of Virginia. Concerned that Virginia Geeks On Call franchises would no longer be salable, Mr. Blasz filed a formal complaint with the Virginia Division of Securities and Retail Franchising alleging Geeks On Call America, Inc. was entering into new franchise agreements while failing to comply with the registration requirement imposed on all franchisors by the Virginia State Corporation Commission. Mr. Blasz further drew the agency’s attention to the faltering financial condition of Geeks on Call America Inc.
Geeks on Call America, Inc. is a wholly owned subsidiary of Geeks on Call Holdings (Ticker: GOCH), Inc. United We Geek, the Independent Franchise Owners Association is the first such association in the company’s 10 year history.