STRATUS BUILDING SOLUTIONS Franchise is a Scam, Attorney Claims

The Stratus Building Solutions janitorial / commercial cleaning franchise is a scam that preys on the hopes and dreams of recent immigrants, undocumented workers and non-English speaking families according to franchise attorney Jon Fortman.

A press release (below), distributed both in English and Spanish by the Law Offices of Jonathan Fortman, alleges that Stratus specifically targets victims they deem unlikely to fight back.

Stratus then sells them janitorial franchises that they guarantee will generate an attractive monthly income.

According to Fortman, Stratus knows that the cleaning accounts will never generate the promised income.

Fortman is currently engaged in litigation on the behalf of Stratus franchisees.

Here is the press release:

[Haga un clic aquí para leer el comunicado de prensaen Español]

Contact: Jonathan Fortman FOR IMMEDIATE RELEASE

Tel.: (314)522-2312

Email: jef@fortmanlaw.com

Stratus Scamming Thousands Nationwide

Stratus Building Solutions is scamming thousands of people throughout the United States in a complex franchise scheme.

Stratus Building Solutions is the #1 fastest growing franchise in 2012 according to Entrepreneur.com and ranked #12 in the Franchise 500® in 2012.

The cleaning franchise company was founded in 2004 by Dennis Jarrett and Peter Frese and has grown astronomically since. Stratus is said to have a support system, minimal costs, and even guarantees a monthly income.

Does it sound too good to be true?

That’s because IT IS. Stratus is in the business of scamming thousands of people in a complex franchise scheme. The company now has two class actions filed against them in the State of Missouri and a group action in California.

The lawsuits contain several claims alleging that Stratus specifically targets minorities, does not provide the “guaranteed” monthly income, has no support system, and wrongly terminates franchises without warning and for false reasoning.

Stratus specifically targets minorities that speak little to no English (some are not even legal citizens) in an attempt to dissuade them from taking any legal action. They guarantee a monthly income knowing that they do not have the cleaning accounts to provide that income. Then Stratus will terminate the franchise saying that the franchisee received complaints from the cleaning account and is thereby terminated when no such complaints exists and results in a complex scam known as franchise churning.

Thousands of people are losing everything when they get caught up in the scamming web of Stratus. It is time the public, future targets, and those already struck get the truth about Stratus.

# # #

If you would like more information about this topic, please call Jonathan Fortman at (314) 522-2312 or email Jon at jef@fortmanlaw.com.

Para espanol, please call Teresa at (314) 522-2312 ext 104.

WE CAN HELP.

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  • Here's a link to a story on Fox 4 in Kansas City. Dennis Jarrett, Stratus CEO, appears at the beginning of the video. Notice how he's backing away from the reporter as he tries to avoid answering the reporter's questions. I appear about halfway through the story. Linda Wagar did an excellent job and presents stories that we have heard all over the US.

    http://m.facebook.com/l.php?u=http%3A%2F%2Ffox4kc.com%2F2012%2F05%2F02%2Fproblem-solvers-is-company-cleaning-people-out%2F&h=0AQHhQhFH

  • You know it is very sad about all the stories on here and on the internet about how people are getting screwed by their franchisor Stratus Building Solutions.

    But lets look at the REAL problem!

    Type in "Stratus Building Solution" and the "International Franchise Association" in your google search engine.

    Now look at some of the articles that are coming from the IFA putting Stratus Building Solutions on a pedestal and making it look like through the RANKINGS by Entrepreneur Magazine that this company is the best thing since the wheel and you would be stupid not to invest in it.

    The IFA is the problem! Controlled by franchisors, franchisor attorneys and the like. People who profit from the "Churn and Burn" operations allowed to continue operating and be protected by the legal world because franchisees don't have the money to take them on and make them hold their members responsible.

    How many companies have been turned away by the IFA? ZERO, NONE, NOTTA

    Because the more franchisors that sign up the more money is made by these CRIMINALS!

    Criminals who are paying lobbyist and supporting, FINANCIALLY, the candidates who vote their way.

  • Todd:

    I agree that the biggest problem is that these franchisors are pumping significant amounts of money to IFA and the publications providing bogus rankings because they know that the franchisees will base their decisions on that propaganda. Stratus appeals to franchisees with little capital and they know these folks won't seek the advice of an attorney. The section in the Franchise Agreement concerning the "guaranteed" revenue is confusing to attorneys. Just imagine being an immigrant from Mexico who can barely speak English, At some point, I'll have the honor of asking Mr. Jarrett in his deposition why Stratus has all their ads in Spanish but the actual franchise disclosure documents and agreements are given to them in English. Dennis Jarrett knows that Stratus will never be athese franchisees because it's the only way to keep the pyramid from will not seek legal advice

  • Sorry, the cat jumped up the keyboard and submitted the last comment. Anyway, my point is that the only way to protect franchisees from the fraud and abuse of franchisors like Stratus is to get as many of the franchisees together and get the word out. If we work very hard and are not afraid of the company making personal attacks against us, we can effect their bottom line. Jarrett and Frese are making so much money off this scam, that they have no incentive to negotiate in good faith. They need to understand that they either have to address the problems in the system or they need to develop an exit strategy. Either way, they can't make money if they can't sell franchises. The political system will not work because these franchisees have no money and no clout. There needs to be more attorneys willing to take these cases on a contingent fee. Otherwise, thieves like these guys will never have to answer for this conduct. We had a suit against Contours Express which resulted in their inability to ever sell another franchise. They were the number two franchise in their industry. We need to do that to Stratus, who is #1 in growth, and a few more and maybe the industry will invite franchisees to the party. The bottom of the screen says "Relentless." That's what we need to be in the battle. If the franchisees can get through the initial onslaught from the franchisor, they'll win.

  • On another thread, Bill Falkner wrote "Todd Peterson is a loser, Jonathan Fortman is a loser.

    "Yes, it only took the astute Jonathan Fortman six or seven years from the time he filed the lawsuit to get a judgement. Now, the problem is a judgement is simply a piece of paper, he hasn’t actually gotten the “cash” yet…In fact, because the company that he originally filed the lawsuit against was purchased by another company, he will literally get pennies on the dollar for the judgement if anything."

    According to LinkedIn, there's a Bill Falkner who is Operations / Area Manager of Stratus Building Solutions in the Indianapolis, Indiana Area.

    LinkedIn says Bill Falkner is "Responsible for the daily area inspections of Franchisee owner's / clients facilities...
    Completes daily sales follow-ups for new clients
    Responsible for the general operations concerning clients and franchisee owners
    Establishes and coordinates monthly reports, sales presentations and prepares appropriate files associated with clients
    Purchases materials, services and equipment at the request of the project personnel, additionally responsible for the request and purchase of orders by submitting necessary documents to accounting department."

    Mr. Fortman: Wouldn't this be the position and the kind of guy (of course HE wouldn't) who trumps up fake complaints against franchisees in order to take away and resell their accounts?

    My question is: If these guys are doing the manipulation of accounts and guys like Bill Falkner are on the Internet spreading lies and insults against you, is it realistic to think they will do the right thing and stand up to the franchisor?

  • Guest: Thanks for the posts. I am amazed at how ignorant,these Stratus people are about the legal system. Mr.Falkner simply is spouting off and advancing the samw worn out misstatements. He has apparently taken over for that idiot from Indiana, Nerfy Wanger, aka Disinformed Source. If you get out this way, give me a call. I owe yoi a drink.

  • Does anyone realize why it is hard to fight these franchisors?

    It is because everyone is bought off. From franchisors to attorneys to politicians to the media franchising is protected. The IFA was, originally, an organization to protect franchising which included FRANCHISEES. But it is now an organization which has BANDED together all the people who are PROFITING off of franchising into a force that can not be reckoned with.

    The ONLY way we as SCREWED franchisees can get change to happen in franchising is to BAND together!

    A good start at change would be the IFA Legal Symposium May 20-22 in Washington D,C.

    If all of us unhappy franchisees were to show up and voice our opinion at this convention people would take notice. But the facts are we are doing what our government trained us to do. Be a WORKING America. It is hard for any of us to represent ourselves at ANY of these meetings where people are grouping together to decide how to screw the next round of franchisees USING our legal system to do it. That, my friends, is exactly what will be taking place on May 20-22 in Washington D.C.

    Want to educate yourself further go to this 16 page brochure that is found on the IFA’s web site.

    http://www.franchise.org/uploadedFiles/LegalSymposium2012_web%204-16-12.pdf

    Learn that on May 21, 2012 these attendees of the Legal Symposium will be learning all about how to deal with us pesky franchisees.

    It says franchisees are even invited. All you have to do is come up with $1475 to cover your non-membership of the IFA. A room rate of $306 a night (Standard) and a $50.00 registration fee. I see a lot of franchisees going to this convention DON’T YOU?

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