JM Family, Home Franchise Concepts (HFC) Drives Army Ranger PK Kelley & Father into Bankruptcy

February 23, 2024 unhappyzee

According to public records available on PACER, former Kitchen Tune-Up and Bath Tune-Up franchisee PK Kelley, a Veteran Army Ranger, and his father, John Mark Kelley, have filed for bankruptcy. As we reported last week, a bankruptcy filing could cause Kelley to lose the security clearance needed to get military contracts or employment needed to rebuild financially. Though the franchisees had already likely lost hundreds of thousands of dollars in the venture, JM Family Enterprises’ Home Franchise Concepts (HFC) filed a lawsuit demanding the military Veteran pay them for lost royalties, penalties & interest.

While HFC likely has the legal right to sue & gag military Veterans who invested in their franchises, we asked : Can they honestly advertise that their business opportunities are “Veteran-Friendly” and “Top Franchises for Veterans”? by Sean Kelly, Founder, Franchise Truth for Veterans

(UnhappyFranchisee.Com)

Read our series about the franchise offerings of Home Franchise Concepts (HFC), a company that positions its investment opportunities as Vet-Friendly and Top Franchises for Veterans .

Public Audit: Home Franchise Concepts (HFC) Veterans Franchise Program

Last week, I sent a message of concern to executives of the $18B JM Family Enterprises and Home Franchise Concepts (HFC) regarding the lawsuit against their franchisee PK Kelley, a former U.S. Army Ranger with three deployments in the Middle East.

Both companies aggressively advertise their respect and admiration for military Veterans.

In fact, targeting Veterans is a core recruitment strategy for selling HFC franchises like Kitchen Tune-Up, AdvantaClean, Budget Blinds & Concrete Craft.

Since JM Family Enterprises dedicates much of its website to its Code of Conduct & adherence to ethical business standards, I thought they might not be aware of the lawsuit against Kelley.

JM Family CEO Brent Burns Remains Silent on Lawsuit Against Veteran Army Ranger

February 9, 2023, I messaged Brent Burns, President & Chief Executive Officer at JM Family Enterprises, Inc., informing him:

Franchisee PK Kelley served four years with three overseas combat deployments as an Army Ranger.

After the service, he was active in an effort to extract Americans, Afghan interpreters and high-risk supporters during the Afghan withdrawal in 2021. He volunteers with a number of non-profits for Veterans and for an equine therapy center for autistic children.

…He’s lost everything. If The Home Franchise Concept’s aggressive demands force him into bankruptcy, he will lose the security clearance he needs to rebuild his life.

I am hoping that you will look into this situation, and be available to discuss how Home Franchise Concepts policies toward Veterans complies with the JM Family code of ethics and the claim of providing good franchise opportunities & treatment of Veterans.

I did not hear back from Mr. Burns. Turns out, he passed the message on to Andrew Skehan, CEO of Home Franchise Concepts (HFC).

March 12, 2023, Andrew Skehan accepted my LinkedIn invitation and responded by message & email:

My name is Andrew Skehan, and I am the Chief Executive Officer of Home Franchise Concepts (HFC). I am also a veteran having graduated from the US Naval Academy and served on active for several years following graduation. I am reaching out to you as mentioned in my Linked In message regarding your note to Brent Burns, the Chief Executive Officer of our parent company, JM Family Enterprises.

We at HFC take a great deal of pride in the way we enable veterans to become franchisees and the support we provide in the process. I am happy to engage with you with respect to the concern you expressed regarding Mr. Kelley. Out of respect for Mr. Kelley and the legal procedure I am limited in what I can share but still more than happy to speak with you.

I am traveling this week with a challenging schedule but have several windows of availability next week if that is convenient for you. If so, maybe you can suggest a time or two that will work. If next week isn’t convenient then please let me know when is and I will do my best to accommodate your schedule.

Navy Veteran, CEO Andrew Skehan Silent on Policy of Suing, Gagging Veterans

A good Franchisor is transparent and should be prepared to speak to anything [regarding its litigation].

– Jonathan Thiessen, Chief Development Officer, Home Franchise Concepts “What to Look for When Reviewing an FDD”

Since JME and HFC seemed to regard advancing the “legal procedure” against a U.S. Veteran as more urgent than considerations for him or his family, I published my concerns and questions on February 14:

Is KITCHEN TUNE-UP a Veteran-Friendly Franchise if it Sues & Gags Franchisees?

I invited their corrections, clarifications, explanations or rebuttals. I received no word from CEO Andrew Skehan or HFC.

Home Franchise Concepts (HFC) Turnover Rates Range From 19% – 73%

On February 19, 2024 I posted the franchisee turnover rates disclosed in the current Home Franchise Concepts (HFC) Franchise Disclosure Documents (FDDs) they give to prospective franchisees:

Are Home Franchise Concepts (HFC) Franchises Veteran-Friendly? Turnover Rates Compared

When I attempted to message Mr. Skehan, I learned that he had “un-linked” from me on LinkedIn (as had VP Marketing Marci Kleinsasser and perhaps others).

Public Relations Director Christy Caliendo referred me to General Counsel Jennie Amante if I had further questions.

HFC CEO Andrew Skehan is a Navy Veteran who focuses recruiting efforts on selling “Veteran-friendly” franchises, yet isn’t available to answer Veteran-related questions?

Speak to our attorney?

Investing in the Veteran-Friendly Kitchen Tune-Up & Bath Tune-Up Franchises Lands Army Ranger PK Kelley and his Father in Bankruptcy

According to public documents on the PACER database, both the former Kitchen Tune-Up & Bath Tune-Up franchisees have filed for bankruptcy protection in the United States Bankruptcy Court for the EASTERN DISTRICT OF TEXAS:

24-40358 John Patrick Kelley Date filed: 02/19/2024 Case type: bk Chapter: 7 Asset: No Vol: v Chief Judge: Brenda T. Rhoades
24-40359 John Mark Kelley Date filed: 02/19/2024 Case type: bk Chapter: 7 Asset: No Vol: v Chief Judge: Brenda T. Rhoades

In the end, how does it benefit Home Franchise Concepts (HFC) and Kitchen Tune-Up to attempt to sue & gag military Veterans – or ANY Americans – when it publicly undermines their stated values and Code of Ethics?

Will they continue to pursue blood from this stone by pursuing him in bankruptcy?

There is one positive aspect of franchisors who promote themselves one way and ac tin another.

This sad situation provides a clear warning to active duty military members, Veterans & military families:

Beware of Supposedly Veteran-Friendly Franchises!

When it comes to researching franchise & business opportunities aimed at Veterans, remember the advice of President Ronald Reagan: Trust, but Verify.

WHAT DO YOU THINK? PLEASE SHARE A COMMENT BELOW. (ANONYMOUS COMMENTS ACCEPTED).

Read our Posts Supporting Veterans in Franchising:

VetFran or VetScam? Turnover Rates of IFA-Endorsed Vet-Friendly Franchises

FTC: Stop VetFran’s Deceptive Franchise Marketing to Veterans

Some Franchisors & VetFran Exploit Veterans Even After They’ve Failed

Franchise Warning: JDog Junk Hauling for Veterans (Index)

JDOG Franchise Dream Ends in Veteran Suicide, Double Homicide

What Every Veteran Should Know About the JDog Franchise

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