STRATUS Master Franchisee Bashforth Accused of Fraud, Franchise Violations
According to UnhappyFranchisee.Com reader and commenter Reasoned Source, Stratus Building Solutions master franchisee Mark Bashforth and his Camino Real Ventures, LLC is being accused of fraud and violations of both federal franchise disclosure laws and Texas business opportunity laws related to the sale of his master franchise to Echo Green Cleaning, LLC and Tom Baker.
A copy of the $11,000,000 demand letter is posted below.
Reasoned Source writes:
“Reasoned Source has learned that an 11 million dollar lawsuit is about to be filed in the State of Texas! In the “warning letter” that Reasoned Source has obtained, it outlines all of the transgressions not only against Mark Bashforth and his Camino Holdings Company, but against Stratus Franchising LLC.
- Stratus Franchising, LLC. did not file the proper paperwork in regards to the State of Texas requiring them to not only file the FDD, but financials and other documents necessary to SELL Master Licenses in Houston, Austin, North Texas (defunct/bankrupt/ruined Tom Mosley and his family) nor the current Dallas/Ft. Worth Master.
- Mark Bashforth utilized Stratus Franchising’s, LLC. Master Agreement in order to SELL agreements in LA, Austin and Dallas vs. producing a proper agreement/legally.
- Reasoned Source has contacted the Secretary of State of Louisiana and forwarded them Mark Bashforth/Camino Real Estate information, FDD, Stratus Franchising, LLC lawsuits from California, Indiana, the intent to sue in California by Lincoln Baker and other information in regards to the former Stratus Master in LA being fraudulently induced, non-registered FDD and additional paperwork needed to sell a Master License in LA to begin with!!!!!
“It was truly a bad day for DJ, Pete, Marvin, Bob (stinky) Stapleton and others…..
“Here’s to more bad day’s in the near future as Reasoned Source contacts more states, more attorney general’s, more Secretary of States in every State that Stratus Franchising illegally SOLD or had Agents Sell like Mark/Jason Bashroth illegally SOLD Masters!”
Read the Demand Letter below, or a PDF of the Stratus demand letter here: Mark Bashforth Stratus Demand Letter.
Direct Dial 214.855.7519
Direct Fax 214.978 .5316 kganzberger@munsch .com
September 20, 2013
Via Certified Mail. Return Receipt Requested Via Email: mark@stratusqreenclean.com
Mr. Mark Bashforth, Founder and President Camino Real Ventures, LLC
2537 South Gessner Road, Suite 121 Houston, Texas 77063
Re: NOTICE OF VIOLATION OF THE TEXAS DECEPTIVE TRADE PRACTICES ACT RELATED To YOUR SALE OF A STRATUS BUILDING SOLUTIONs® MASTER FRANCHISE TO ECHO GREEN CLEANING, LLC AND TOM BAKER
Dear Mr. Bashforth:
The undersigned and the law firm of Munsch Hardt Kopf & Harr, P.C., represent Echo Green Cleaning, LLC and Tom Baker in their claims against you and your company, Camino Real Ventures, LLC, related to their purchase of a Stratus Building Solutions® master franchise from you. Please direct all fut ure correspondence to my attention.
The Fort Worth Territory
As you are aware, in early 2011, Mr. Baker and you began engag ing in discussions which led to his decision to purchase a Stratus Building Solutions® master franch ise business from you in August 201 1. The business is operated in and located in Irving, Dallas County, Texas.
On August 2 and 3, 2011, Mr. Baker travelled to Houston, Texas and met with you in person in furtherance of your discussions regarding the potential sale of a master franchise business. During this discussion, you made various oral representations to Mr. Baker and you provided Mr. Baker with a spreadsheet projecting the first three years of revenues and expenses of the master franch ised business1, including the following:
First Year:
- Total Gross Revenue: $805,300
- Estimated Gross Profit: $127,975 (after loan payments : $107,245.44)
Second Year:
- Total Gross Revenue: $2,584,200
- Estimated Gross Profit: $390,542
1 A copy of the spreadsheet is enclosed with this letter.
Third Year:
- Total Gross Revenue: $5,023,200
- Estimated Gross Profit: $818,615
The representations included “Year 1 Assumptions” of :
- $10,000/month in new account sales = 2 x salesperson
- $25,000/month in franchise sales based on selling 5 x SBS 30 per month or the equivalent in $10,000/month business owed
- $4,000/month in franchise upgrades financed at 75% = $1,000/month in new franchise cash
The numbers provided in this spreadsheet were false and misleading. In reliance on the above-descr ibed and numerous unlawful and fraudule nt pre-sale financial performance representations, Mr. Baker made the decision to sign the 15-year master franchise agreement, buy the master franchise rights to the Fort Worth area, and to otherwise invest over $200,000 of his personal savings into the development and operation of a Stratus Building Solutions® master franchise in Fort Worth, Texas . He was also induced into signing a $75,000 promissory note.
The Dallas Territory
In further reliance on the above-described fraudulent misrepresentations, on or about September 19, 2011, Camino Real Ventures, LLC and Echo Green Cleaning, LLC entered into an Addendum to the Master Franchise Agreement, whereby Echo Green Cleaning, LLC bought the master franchise rights to Dallas, Delta, Ellis, Johnson, Henderson, Hill, Hood, Hunt, Kaufman, Parker, Rockwall, and Van Zandt Counties, Texas . The initial franchisee fee for the Dallas Territory was
$400,000, which was calculated by multiplying $20,000 by 40 (e.g., territory population of 4 million divided by 100,000), for a total of $800,000. The initial fee was then discounted by 50% to $400,000. However, this was a significant material change from the Franchise Disclosure Document and Master Franchise Agreement, which only called for a fee of $18,000, for an estimated overpayment of at least
$40,000. Further, Mr. Baker was induced into paying an additional $100,000 of his personal savings and signing $300,000 in promissory notes.
Federal Franchise Rule Violations
On or about July 8, 2011, Mr. Bashforth sent Mr. Baker a copy of the Camino Real Ventures, LLC Franchise Disclosure Document (“FDD”). The FDD provided to Mr. Baker was from 201O and was not an updated 2011 document. Further, upon information and belief, neither Camino Real Ventures, LLC nor Stratus Franchising, LLC had filed a Business Opportunity Exemption Notice with the Secretary of State of Texas’ Office in accordance with the Texas Business Opportunity Act.
By disclosing Mr. Baker with an old FDD, failing to file an exemption notice and pay the required fee, and having Mr. Baker sign the Franchise Agreement and pay you the initial franchise fee without providing him with the 2011 updated FDD, you knowingly and willingly violated the Federal Trade Commission’s Franchise Rule and the Texas Business Opportunity Act
In addition to the above-described violations, the FDD failed to disclose various key requirements of the Federal Trade Commission’s Franchise Rule, 16 C.F.R §436, (the “Federal Franchise Rule”) including, but not limited to:
- You disclosed a 2010 FDD instead of an updated 2011 FDD.
- Item 1: The Franchisor, and any Parents, Predecessors, and Affiliates
- You improperly state that Stratus Franchising, LLC is a predecessor and affiliate of Camino Real Ventures, LLC, which is not true and is misleading.
- You fail to disclose that Simpatico, Inc. is the owner of Stratus Franchising, LLC.
- You incorrectly state that Camino Real Ventures, LLC was formed in October of 2006, and that Camino Real Ventures, LLC has been offering janitorial service
- You state in the first paragraph that in order “to simplify the language in the [FDD]” the terms “us,” “we,” “our,” “BSB,” “Stratus,” or “Stratus Building Solutions” means Camino Real Ventures, L.L.C. Yet, throughout the FDD, you use these same terms to include Stratus Franchising, LLC and/or Stratus Building Solutions, Inc. Your intentional misuse of these defined terms leads the reader to believe that Camino Real Ventures, LLC is the same entity as Stratus Franchising, LLC and/or Stratus Building Solutions, Inc., which is deceptive, confusing, and unlawful.
franchises since 2005.
- You state that Camino Real Ventures, LLC owns and operates a Master Franchise business in St. Louis, Missouri, which is false.
- You fail to provide the identity and principal address of Camino Real Ventures, LLC’s agent for service of process, as required by the federal Franchise Rule (§ 436.5(a)(4)).
o You fail to disclose that Camino Real Ventures, LLC owns and operates businesses of the type being franchised (§ 436.5(a)(6)(i)), and your other business activities (§ 436.5(a)(6)(ii)), as required by the federal Franchise Rule.
o Finally, you fail to disclose the prior business experience of Camino Real Ventures, LLC (which was none) or any of its affiliates, including the length of time you conducted the type of business that Mr. Baker would operate, the length of time you have offered franchises provided the type of business that Mr. Baker would operate, and whether you had offered franchises in other lines of businesses, as required by the federal Franchise Rule (§ 436.5(a)(7)).
- Item 2: Business Experience
o You falsely and/or misleadingly state that Mr. Jarrett co-founded Camino Real Ventures, LLC (i.e., the defined term “Stratus”).
o You failed to disclose the names and positions of all of Camino Real Ventures, LLC’s directors, trustees, general partners, principal officers, and any other individuals who will have management responsibility relating to the sale or operation of the franchise offered, including Lincoln Baker, as required by the federal Franchise Rule (§ 436.S(b)).
o You falsely state that Mr. Jarrett was President of Jan-Pro International, when his title was Vice President.
o You fail to disclose Mr. Bashforth’s principal positions and employers during the past five years (2011-2007), including each position’s starting date, ending date, and location, as required by the federal Franchise Rule (§ 436.5(b)). Specifically, you failed to disclose Mr. Bashforth’s positions with Stratus Building Solutions of Houston, Inc., Roxar, Inc., and Roxar Software Solutions .
- Item 5: Initial Fees
- You failed to disclose that the formula for calculating the Initial Fee included up to $20,000 (instead of $18,000) for each population of 100,000 people in the exclusive territory, which is the amount that was paid by Echo Green Cleaning, LLC for the Dallas territory in September 2011, as required by the federal Franchise Rule (§ 436 .5(e)).
- Item 6: Other Fees
- You failed to disclose the royalty fee and other payments due for a master franchise that is found in Section IV of the Franchise Agreement, as required by the federal Franchise Rule (§ 436.S(f)).
- Item 7: Estimated Initial Investment
- You fail to disclose whom payment is to be made for training expenses, as required by the Federal Franchise Rule (§ 436.5(g)(i )(B)). Further, in footnote 9, you falsely state that Camino Real Ventures, LLC (i.e., “Stratus”) is located in St. Louis, Missouri.
- Item 11: Franchisor’s Assistance, Advertising, Computer Systems, and Training
- You incorrectly state that Camino Real Ventures, LLC’s headquarters is located in St. Louis, Missouri, and that Camino Real Ventures, LLC’s instructors would train Mr. Baker. Further, you falsely state that the instructors, Mr. Jarrett and Mr. Frese, are executives with Camino Real Ventures, LLC.
- Item 13: Trademarks
- You falsely state that Camino Real Ventures, LLC (i.e., “Stratus”) has a registration on the Principal Register for “Stratus Building Solutions .”
- Item 19: Financial Performance Representations
- You falsely state that you do not make any representations about a franchisee’s future financial performance or the past financia l performance of company owned or franchised outlets . Yet you were aware that you had provided Mr. Baker with multiple financial performance representations, as described in detail above .
- Item 20: Outlets and Franchisee Information
- You failed to disclose any outlet information for the calendar years 2010 and 2009.
- Item 21: Financial Statements
- You failed to provide audited financials and statements for Stratus Franchising, LLC for the fiscal year 2010, as required by the federal Franchise Rule (§436.5(u)).
o You failed to provide an unaudited opening balance sheet for Camino Real Ventures, LLC, as required by the federal Franchise Rule (§ 436.5(u)).
Texas Business Opportunity Act Violations
You are also subject to the rules and regulations of the Texas Business Opportunity Act. See
Texas Business and Commerce Code §51.001, et seq. (‘TBOA”).
Under the TBOA, you were required to provide Mr. Baker with an updated 2011 written disclosure document at least 10 days before the earlier of (a) Mr. Baker signed the Franchise Agreement, or (b) you received any consideration. See TBOA, §51.151. Your acts were in violation of this disclosure rule.
Further, the TBOA provides specific requirements for disclosures that must be made, many of which the FDD did not contain.
The TBOA also prohibits you from:
1) Employing a representation, device, scheme or artifice to deceive a purchaser;
2) Making an untrue statement of material fact or omitting to state a material fact in connection with the documents and information required to be provided to the secretary of state or purchaser;
3) Representing that the business opportunity provides or will provide income or earning potential unless the seller has:
- Documented data to substantiate the representation of income or earning potential; and
- Discloses the data to the purchaser when the representation is made; or
4) Making a claim or representation that is inconsistent with the information required to be disclosed by the TBOA in:
- Advertising or other promotional material; or
- Any oral sales presentation, solicitation, or discussion between the seller and purchaser.
See TBOA, § 51.301-302.
Notice of Demand Pursuant to Texas Deceptive Trade Practices Act
The types of patterns and practices described in this letter violate the Texas Deceptive Trade Practices Act (the “DTPA”). Specifically, you have violated the following DTPA provisions:
- Causing confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another [TEX. Bus. & COMM . CODE § 17.46(b)(3)];
- Representing that good or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities which they do not have [TEX. Bus. & COMM. CODE § 17.46(b)(5)];
- Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, when they were of another [TEX. Bus. & COMM. CODE § 17.46(b)(7)];
- Advertising goods or services with intent not to sell them as advertised [TEX. Bus. &
COMM. CODE § 17.46(b)(9)];
- Representing that an agreement confers or involves rights, remedies, or obligations that it does not, or that are prohibited by law [TEX. Bus. & COMM. CODE § 17.46(b)(12)];
- Failing to disclose information concerning good or services which was known at the time of the transaction if such failure to disclose such information was intended to induce the purchaser into a transact ion in which they would not have entered had the information been disclosed [TEX. Bus. & COMM. CODE § 17.46(b)(24)];
- Violation of the Texas Business Opportunity Act [See TEX. Bus. & COMM. CODE §§ 17.46, 17.50(h), and 51.302].
The foregoing violations were committed knowingly and/or intentionally; and Mr. Baker justifiably relied on your representations, acts, and omissions to his damage and detriment.
Further, the representations, acts, and omissions made by you in your dealings with Mr. Baker constituted an “unconscionable action or course of action” as such term is defined in Section 17.45(5) of the Texas Business and Commerce Code. Mr. Baker asserts that each of you, as professionals in the commercia l janitorial industry, took advantage of Mr. Baker’s lack of knowledge and expertise in orchestrating this deception. As further example of your unconsciona ble actions and course of actions, upon information and belief you are currently being sued by your business partner, Lincoln Baker, for similar actions related to his investment in Camino Real Ventures, LLC.
As a direct result of your wrongful acts and omissions, Mr. Baker and Echo Green Cleaning, LLC has been compelled to retain the services of this law firm to seek redress for the damages they have suffered.
Your violations of the DTPA entitle Mr. Baker and Echo Green Cleaning, LLC to the following in damages:
Economic damages: $11,043,262.44 2 Mental Anguish damages: $25,000.00 Reasonable and necessary attorneys’ fees: $10,000.00 Tota l $11,078,262 .44
Pursuant to Section 17.505 of the Texas Business and Commerce Code, please be advised that the legal claim will include a request that additional relief be granted under the provisions of Section 17.50 of the Texas Business and Commerce Code. Because your misrepresentations and actions were committed knowingly and intentionally, Mr. Baker and Echo Green Cleaning, LLC are entitled to receive mental anguish damages and an award of three times economic damages (treble damages) .
DEMAND IS HEREBY MADE UPON YOU TO IMMEDIATELY PAY THE TOTAL AMOUNT OF DAMAGES SUSTAINED, $11,078,262.44, TO MR. BAKER AND ECHO GREEN CLEANING, LLC. YOU MAY FORWARD PAYMENT TO MY ATTENTION AT THIS LAW FIRM.
This letter constitutes notice pursuant to the DTPA that, unless we receive a certified check, cashier’s check, or money order for such full amount, $11,078,262.44, on or before Friday, November 19, 2013, this law firm has been instructed to assert claims in a lawsuit against each of you and against your company that you have violated the DTPA.
In connection with those claims, we are instructed to pursue direct and consequential damages in the amount of at least $11,078,262.44, penalties as provided by the DTPA (treble damages), all attorney’ fees that are incurred through the conclusion of this dispute, pre-judgment and post-judgment interest, and court costs.
NO FURTHER DEMAND WILL BE MADE.
Be advised that necessary and reasonable attorneys’ fees will continue to accrue as we investigate and pursue this claim. Please pay this claim now or contact me regarding settlement in order to avoid further expense.
2 The Franchise Agreement has a term of fifteen (15) years with the right to automatically renew for up to two successive periods of 15-years. Economic damages are calculated, conservatively with the first two years of net revenues represented plus 13 years multiplied by the represented net revenues for the third year. $107,245 .44 +
$390,542 + (13 * $818,615 = $10,641,995) = $11,043,262 .44.
Sincerely yours,
MUNSCH HARDT KOPF & HARR, P.C.
cc: Client (via email)
Via Certified Mail, Return Receipt Requested Via Email: d.jarrett@stratusclean.com
Mr. Dennis Jarrett, CEO Stratus Franchising, LLC 1976 lnnerbelt Business Center Drive
St. Louis, Missouri 63114
ARE YOU FAMILIAR WITH THE STRATUS BUILDING SOLUTIONS FRANCHISE OPPORTUNITY OR MASTER FRANCHISEE MARK BASHFORTH?
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Tags: Mark Bashforth, Stratus Master Franchise, Echo Green Cleaning, Tom Baker, Stratus Building Solutions, Stratus franchise, janitorial franchise, franchise scam, franchise lawsuits, unhappy franchisee, MUNSCH HARDT KOPF & HARR, P.C.
@Viewers, Let us not forget that Lincoln Baker, former partner with Jayson and Mark Bashforth has also sued them and their “holding company” and accused them of fraud, fraudulent inducement, embezzlement and other acts in California for north of 3 Million Dollars.
Checked Mark Bashforth’s linkedin profile the other day, seems that he has attempted to “distance” himself from his days with Stratus by changing the dates by which he ran the company into the ground and defrauded investors such as Mark Bashforth, committed acts both criminal and civil against people such as Lincoln Baker, Tom Baker, Shaun Steckler and others….Oh if life were only that easy for you Mark!
Let us also not forget to read Dennis Jarrett’s ringing endorsement of Mark Bashforth which proudly proclaims that he and Pete Frese have done “numerous business deals with Mark and that he highly values Mark’s business acumen and morals”!!!!!!!!!!
Well, that’s like the pond scum supporting the crap that floats to the bottom if I’ve ever heard of such!
Remaining Masters, people like Mark/Jayson Bashforth, Dennis Jarrett, Pete Frese, Marvin (RICO Man) Ashton, Bob (stinky) Stapleton, Bill (sexual harasser) Blair and Channen (implicated my wife) Smith, John (Embezzler) Coleman, Tom (Embezzler too) Weiss and Afshin (false performa) C. are the primary reasons your investment in Stratus Franchising is worth ZERO today! The BRAND is dead…….
More information coming on the “fatal flaw”, Channen Smith’s tirade against Pete Frese, Mark and Jayson Bashforth’s NEXT Lawsuit against them and Lathrop and Gage’s final thoughts/issues before filing the BK Notice…….
@Viewers, in an “ain’t that just special moment”! It appears that Mark Bashforth is attempting to paint himself as a victim…He recently “reached out” to a person that he and his brother royally screwed and not only BEGGED for forgiveness but BEGGED not to be sued again! Are you kidding me? You screwed this guy out of 100’s of thousands of dollars and then had the audacity of making him pay an EXIT FEE on top of that!
Let me be clear about good old Mark Bashforth, he is a Crook, he is a Liar, he is a Cheat, he is as disgusting of a man that Dennis Jarrett Is!!!!!!!
Now, let me also be clear, during this supposed “I’m a victim speech”, he claimed that he and his brother were literally gouged by Dennis Jarrett and Pete Frese in regards to the “Panama Deal” and that he was “sold a bill of goods” as he was “authorized agent” attempting to sell former territories on behalf of Stratus Franchising and that Dennis Jarrett himself was the one that set the terms of the deals in which supposedly Mark and Jayson would get 1/2 of the cash of any Master sold by him/them and that they would get a 2% “royalty” and 5% “unit franchise” payment for any sales done by them…..
Supposedly, Dennis Jarrett and/or Pete Frese didn’t live up to the monies!!!!!
First of all, What a surprise!
Second, I would be willing to believe Mark Bashforth a little bit on some of the above, but the majority of the problem that I have with Mark and Jayson Bashforth goes something like this:
a) You decided to bring that SCUM BUCKET, Fernando Limas into your San Diego operation, knowing full well his history, his drug and physical abuse of women and all you and Jayson Bashforth cared about was MONEY!
b) You decided to produce a false performa, a false FDD, and file it improperly with the State of Texas and California!
c) You decided to Defraud, Fraudulently Induce, Embezzle Monies from Lincoln Baker, Tom Baker, Shaun Steckler, Greg Fishman and others!
d) You decided to Defraud, Fraudulently Induce and Cheat 100’s of Unit Franchisees between California (San Diego and Houston).
e) You decided to offer Shea Sealy’s old area with Shea Sealy’s old customer list obtained from the BOSS System which the only way you could have gotten ahold of was through/with knowledge/with permission/with consent from Dennis Jarrett, Pete Frese, Marvin Ashton or Carmen Garcia.
Now, at the end of the day, do I think for one moment that Mark Bashforth is going to go to Jail? No, I don’t. Only because as he has already indicated that he would/is already talking with the Texas AG’s office about the misgivings of Dennis Jarrett, Pete Frese, Marvin Ashton and others! DJ/Pete/Marvin there’s a reason that the Texas Rattlesnakes have a reputation of NOT TURNING your BACK! Couldn’t happen to a Nicer Bunch of Thieves, Cowards, Jokes, Liars and Cheats!
More news coming in everyday! Soon, former Validators Ken Cassiri and Jeff Aibel are going to have a special place in a coming Lawsuit to be filed in North Carolina!
@ Viewers, BREAKING NEWS!!!!!! OH how I LOVE IT when the Women get involved! Reasoned Source has just been contacted by a Current about to be FORMER Master….For some reason, this Master seems to be a “sounding board” for both Mark Bashforth and Channen Smith…..
First: Guess Rene Smith didn’t appreciate her personal home being talked about on this Forum. Though no addresses were talked about etc….She is FED UP with this whole NON-SENSE (her words) and she ORDERED Channen to get out of Stratus Franchising, Post Haste! Evidently, she was already upset that her name was posted on the Blog in the first place, then having her home talked about and its worth and the fact that SHE didn’t like/trust Dennis Jarrett nor Pete Frese in the First Place is all at PLAY!
Second: Mark Bashforth wanted this Master to know that the Article that Reasoned Source found in regards to the “missing man” in Trinadad and Tobago wasn’t about Jayson R. Bashforth but about their father, Roy Bashforth!!!!!! OK, my bad! I found the yacht, saw the article, saw the name Jayson R. Bashforth and assumed that it was Jayson!!!!! Sorry, it must not have been Jayson, but the FATHER OF JAYSON and MARK! OOPS, I guess this makes the WHOLE FAMILY ROTTEN vs. just Mark and Jayson?
Third: Nina Bashforth is now unhappy about HER Vacation Villas being talked about in the Blog, How SHE makes 5k per week when rented, How SHE got 1.1 Million Dollars in the sale of the Houston Area Home, How SHE only got MILLIONS of dollars in property and cash in the Divorce!!!!!! Ok, Can I ask a Question? How much of that money came from the 100’s of Unit Franchisee’s that your FORMER Husband (Mark) happened to SCREW? How much of Tom Bakers, Lincoln Bakers, Shaun Steckler, Greg Fishman’s money was the MILLIONS in Cash that you got?
Sorry Nina, Sorry Rene but in all honesty, BOTH of you know EXACTLY where and how that money came into your Family!!!!!!! You are culpable to say the least, and Rene since your name is all over many of the businesses that Channen owns, you can be/should be held legally liable for ANYONE that is a Victim by YOUR and YOUR HUSBAND’S Business Dealings!
Ken Cassiri, Jeff Aibel don’t the two of you think for ONE MOMENT that I have forgotten about YOU! The Monies YOU got at the Separation, The HARM that both of you caused by VALIDATING the Thieves, Liars, Scum Bags in Dennis Jarrett and Pete Frese only because THEY (DJ and Pee) happened to SCREW YOU before YOU had a chance to SCREW OTHERS doesn’t warrant MERCY from REASONED SOURCE……
More news awaits, confirming sources, going through paperwork…….Lathrop and Gage how’s the P/R and Brand for YOU these Days?
Breaking News!!!!!!! More bad news on the “home front” for Mark Bashforth and my New Favorite Master, Channen Smith!!!!!! Reasoned Source has learned that Channen Smith had a HUGE argument with Pete Frese recently, an argument that got threatening to say the Least…..Guess the old saying is true, “If momma ain’t happy, ain’t no one happy”!!!!!
Channen Smith, if you are thinking for one moment that Pete Frese or Dennis Jarrett are going to do anything for you or your home life, well you have another thing coming. Now if you like to go to Strip Clubs, Bars, Harass Women then DJ and Bill Blair are your MEN! If you are looking for marriage issues being resolved by Pete or DJ, might want to look at THEIR recent histories on that subject! Not too Pretty to say the least!
Reasoned Source has learned in regards to Mark and Jayson Bashforth and potentially other “sellers and validators” that there is an Attorney based in the Dallas-Ft. Worth area that is considering handling a Class Action type of case that will be seeing Legal Actions against at least some/all of the following:
Mark/Jayson Bashforth
Afshin C.
Ken Cassiri
Jeff Aibel
Tom Weiss
John Coleman
Channen Smith
More good/bad news for Lathrop and Gage…..How would you like to Represent those Guys along with DJ and Pete?
Breaking News!!!!! It has come to Reasoned Sources attention that Nina Sandivik Bashforth is so upset that recently on her facebook page, she is quite literally planning on buying an Austin Martin vehicle….Said vehicle is at least 165k per the manufacturers retail pricing suggestion!!!!!! Wow, when the rest of us get upset, we decide to go to the local Burger Joint and order a Double with Bacon and Cheese vs. buying a 165k car……….
It must really be nice to have assets in the millions, rental properties that you are getting 5k per week for, other rental properties you are renting for the same, yet on a monthly basis, it must be nice to be driving a 100k car currently and feel like you are SLUMMING IT!!!!!!
I wonder how those Masters that YOUR HUSBAND, Dennis Jarrett and Pete Frese ripped off are fairing? Lets see, One has given your husband and his brother Jayson (it wasn’t me, it was my father), Dennis (I’m not a Scumbag, not as big of a Scumbag) Jarrett approx. two weeks longer to Pay UP or go to court in Texas. Another has quite basically done the same in California, another with his partner are being questioned by the Texas AG’s office and yet another is simply struggling to make ends meet!!!!!!
Do you think that DJ and Nina BOTH have the same level of Delusion?
Do you think that DJ and Pete (I’m not as big of a Scumbag as DJ is) are having an identity crisis? Maybe they simply don’t like being called “Scumbags”, maybe another term is more suited to their liking?
I think we should all feel sorry for Nina Sandivik Bashforth, as it must be really difficult and she is struggling with such guilt that she simply doesn’t know any other way by which to show that guilt and grief but to spend even more money than her husband did/does on other women, yachts, other women, homes, other women, lawyers, did I say other women?
Maybe we could put together some sort of telethon for DJ, Pete, Nina, Rene, Channen, Mark, Jayson (it wasn’t me, it was my father that was questioned in the death of a deck hand), Marvin (Rico Man) Ashton and others…..I’ll get to work on that in my Spare Time, I Promise!!!!!!!
More on Nina and Rene’s grief in future postings!!!!!!!!
@Viewers, Breaking News!!!!!!! It appears that Nina’s need for a new Austin Martin as per her facebook request may have to wait just a little longer. Based upon various sources and confirmation from a former Left Coast Stratus Master, it appears that the San Diego Office owned/managed/run by Jayson and Mark Bashforth has closed!!!!!!
An unsuspecting and unhappy franchise owner went to the office, it appeared not only dark but that any/all furnishings had been removed!!!!!! Upon discovery, this same unhappy franchise owner contacted via Stratus Clean website a former Master’s Office who happens to still be on Stratus’ website though he hasn’t been part of the system for more than a year, to complain and find out what is going on.
Former Master simply said, why don’t you call the San Diego number, per this unhappy franchisee and confirmed by this former Master, it simply rings busy….No forwarding information etc…..Former Master then graciously gave this unhappy franchisee not only the “800” number for Stratus Main Number, but Pete Frese’s personal cellphone, Mark Bashforth’s personal cellphone and the phone number to the Houston Office of Mark/Jayson Bashforth!!!!!!!!!
Poor Mark, Poor Jayson, Poor Nina……….I’m sure some attorney in the San Diego Area will be running an ad in the local Hispanic Newspaper any day now!
Breaking News! It seems Mark Bashforth is claiming that “phone issues” are the cause of the problem in San Diego and though he fully admits that things aren’t going well for him there, they are still open? Mark, no offense, but how do you explain one of your supposed current unit franchisees contacting a former Master in the LA area claiming that they went by the office and it was “dark” and no furniture?
Seems to me, that it is a little more to the story then just “phone issues”….Don’t know much, but I know when a company closes its office, moves out all of its furniture and its phone system is down, it sure seems like to me, that they are “Moving On”…. Why aren’t you answering your cellphone and Why isn’t Pete Frese responding to voicemails left by multiple unit franchises in that area?
On another note, Seems like the women of Bashforth and Smith directly are causing all Kinds of Heck on the homefront…..Granted, they don’t care that their Husbands/Ex-Husbands have done harm to dozens and in the case of Bashforth hundreds of Unit Franchises and their respective families, nor do they care that they and their FAMILIES are directly associated with the previously described POS’s in Pete Frese and Dennis Jarrett, nor the SlimeBalls of Marvin Ashton, Bill Blair, Carmen Garcia, Bob Stapleton……No Viewers, they are simply embarrassed that THEIR NAMES AND THEIR HOMES AND THEIR ASSETS have been pointed out by Reasoned Source publically………
Ok, I can live with that…..For I know a simple phrase, “If MOMMA aint Happy, aint No One Happy!”
More on Nina Sandivik Bashforth and Rene Smith in coming days!!!!!!!!!
@Viewers, It seems that Renee Smith is starting to feel the pressure from her friends and even some family members in regards to hers and Channen’s relationship with DJ, Pete, Marvin, Bill, Bob, Carmen and others.
Poor Ms. Smith, must be rough when people in your church and your “inner circle” are talking behind your back!
Poor Ms. Smith, hard for you to go through even a portion of what you, Channen, DJ, Pete, Bob, Marvin, Carmen, Bill and others put Unit Franchises through in Denver, Phoenix, Kansas City and Omaha.
Poor Ms. Smith, it must be rough for you living in a 2.2 million dollar home paid for from the proceeds of your dishonest business model and direct associations with Crooks, Liars, Thieves, Scum Bags such as Dennis Jarrett and Pete Frese.
Poor Ms. Smith, it must be rough for you living in a 2.2 million dollar home, putting your children in private school, driving a nice car, having plenty of money in the bank, going to social events and supporting your husband and Pete and DJ openly in a letter/memo sent recently to other Masters and their Employee’s.
Poor Ms. Smith, I can almost feel something for you, just not sure what it is, could be sympathy, could be GAS!
Keep being UNHAPPY, Momma!
@Viewers, Guess the women are up in arms again….Channen Smith has been attempting to guess who Reasoned Source is and why he is posting his and his wife’s name all over the internet. Well, Mr. Smith it is no secret as to why I do what I do. I am simply shedding a light, a very bright light on people that you have chosen to associate with. People that you have allowed your wife and your children to be associated with. People that routinely hire people such as Fernando Limas, Bill Blair, Marvin Ashton, Bob Stapleton and Carmen Garcia.
Channen, wonder no more why I am exposing you, your 2.2 million dollar home, your fancy cars, your children’s private schools, your money in the bank. I am simply making sure that the hundreds of unit franchisee’s that are currently under and formally under your direct care/control in Phoenix, Denver, Omaha, Kansas City are heard loud and clear.
I’m simply making sure attorneys in those states/areas have at least some of the financial facts that you and your partner Gator Greenwill have pockets deep enough to go after/through. As you know, FRAUD isn’t dischargeable under Bankruptcy Rules.
I’m simply making sure that attorneys know that you and your wife both approve of the way that you are not only doing business, but how/why Stratus Franchising itself conducts business as you pointed out in an internal email to current Stratus Masters at the behest of Dennis Jarrett and Pete Frese.
I’m simply pointing out to all of those reading/watching, that there is someone willing to put their neck on the line for them by showing the disgusting group of people associated with Stratus Franchising including Bill Blair, Fernando Limas, Carmen Garcia, Marvin Ashton and Bob Stapleton really are.
I’m simply pointing out that Dennis Jarrett and Pete/Jennifer Frese are people who take advantage of others, less intelligent, less wealthy, less fortunate. I’m simply pointing out that your Association, Strong Association with Stratus Franchising and your continued support of paying your fee’s, your due’s, your royalty’s , your notes to people such as Pete Frese, Dennis Jarrett, Stratus Franchising and Jarrett Realty shows exactly WHO YOU ARE!!!!!
Channen Smith, Rene Smith, Nina Sandivik Bashforth, Jennifer Frese, Pete Frese, Dennis Jarrett, Marvin Ashton, Bill Blair, Bob Stapleton, Carmen Garcia are all in the same exact Pot in Life. They are Scum!!!!!!
@Viewers, Reasoned Source has confirmed that Camino Real, DBA Stratus of San Diego has legally abandoned its mandatory franchise application/renewal with the State of California. In simple terms, they are not legally allowed to SELL Franchises any longer in California!
In fact, under California Law, they technically aren’t allowed to operate a Franchise Business any longer….But as both Mark and Jayson Bashforth have proven time and time again, WHO Cares about the LAW?
Certainly not them!
There is also a strong and getting verified rumors that not only is their Houston based business reeling financially, but it appears that Unit Franchises will not get their Checks on time for services rendered LAST MONTH!
Mark simply has financially abandoned that operation and has left the day to day management and financials to Jayson!
More coming soon!
@Viewers, Quick Update on my NEW FAVORITE FRIEND’s the BASHFORTH’s:
a) Camino Real the holding company for the Fraudulent Sales done on behalf of Stratus Franchising, LLC. which sold Master Licenses in San Diego, Dallas/Ft. Worth and Lafayette, LA. has been legally dissolved in Nevada. (per state records)
b) Camino Real the holding company for the Fraudulent Sales done on behalf of Stratus Franchising, LLC. which sold a Master License in San Diego, has abandoned its filing with State of California for Franchise Sales/Operations.
c) Mark Bashforth claims that he has nothing to do with Houston Operation as of 1/1/14. State of Texas.
d) Mark Bashforth claims Jayson Bashforth is out of the Country working for Peace Corps.
e) Mark and Nina Sandivik Bashforth form a new company in the State of Nevada registration for the sole purpose of selling personal assets including Ms. Sandivik Bashforth’s, Austin/Martin.
Oh how fun it is being a FRIEND of REASONED SOURCE! Just ask DJ/Pete how FUN it is and my NEW FOUND FRIENDS, LATHROP/GAGE AND MATT JACOBER? Anyone “googled” Matt Jacober’s name recently along with the keyword “Stratus”?
@Viewers: As I LOVE to dig, it is amazing as to what you can find if you look in more than one place….So looking at Mark’s LinkedIn Profile where he proclaimed “successfully sold business in Panama to my partner”! Well, I simply assumed it was the people that he left holding the bag and not much else with the “call center”, but guess who his partner was?
Camino Real Ventures, S.A. is/was a Panamanian registered company
Mark Bashforth actually holds Panamanian citizenship
Camino Real Ventures, S.A. was equally held by Jayson Bashforth, Mark Bashforth and ? Three guesses…..I LOVE to PLAY guessing games!
First: Stratus Franchising, LLC.? BZZZZ! Wrong Answer………..
Second: Nina Sandivik Bashforth? BZZZZZZZZZZZ! Wrong Answer……..
Third: Stratus Franchising Int’l ? BZZZZZZZZZ! Wrong Answer……..
Ok, Ok, Ok, Give Up? How about none other than Dennis Jarrett himself! Nope, not Affiliated Services, Not Simpatico, Not Pete Frese, Not Jarrett Realty but GOOD OLE FAT BASTARD HIMSELF, aka Scum Bag Dennis Jarrett!
Not Lying, Just saying…..
@Viewers, Breaking News!
Reasoned Source has learned that the proposed/not quite done with paperwork/timeline hasn’t run 1 Year yet/about to be owners Channen Smith, Afshin C., Marvin Ashton have begun calling all current and many of the about to be/haven’t paid their dues in a while/Masters of Stratus and informing them that there will be changes coming soon…….
1) YOU will now have to PAY for the right to use a computer billing/tracking program fka Boss System.
2) YOU will now have to PAY per your unenforceable Master Agreement for Additional Advertising %
3) YOU will now have to PAY Royalties in the coming month’s at your PREVIOUS Fee Structure
4) YOU will be part of the Re-Branded Stratus!
I was asked recently what I thought of Pete Frese, Dennis Jarrett, Marvin Ashton, Afshin C. and Channen Smith, My response “I wouldn’t walk across the street to PISS ON THEM if THEY were on FIRE”!
IN closing, mark this date/timeline down….
1) Last June it was discovered and published by REASONED SOURCE that a MAJOR Email Purge was happening at Stratus Franchising, LLC.
2) The “agreement” to sell to Channen Smith, Marvin Ashton, Afshin C. has already happened, my understanding is approx. March 1, 2014.
3) Sometime after June 30, 2014. Stratus Franchising, LLC. will file for BK Protection.
Re-Branded Stratus will start within DAYS of the BK filing…….Two things to remember in Bankruptcy, 90 days prior and 1 year prior.
Anyone wanna take the BET?
STRATUS BUILDING SOLUTIONS IS A BIG SCAM, don’t trust them your savings.
SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS, SCAMMERS
What’s amazing to me is that the Unit Franchisees are the ones who began the fight to expose this company for what they really are and what they did to US. It seems like the only group of people getting any type of satisfaction are the Masters and the Masters who fled Stratus Franchising LLC. I hope Dennis Jarrett and Pete Frese are not just gonna get a slap on the wrist. Not only are Dennis and Pete scumbags but so are the attorneys that defend them!
@Ex-Stratus Franchisee: Pete Frese and Dennis Jarrett will not serve one moment in jail for Scamming Dozens of Masters with the help of Marvin Ashton, Bill Blair, David Farrell, Marissa Lather, Jeff (Anal) Aibel, Ken Cassiri, Tom Weiss, John Coleman, Channen Smith, Mark Bashforth and the Master of the False Pro-Forma himself Afshin Cangarlu……..
Millions of dollars fraudulently gotten, Lives Destroyed, College Educations taken from Children, Homes Lost, Cars Lost, Life Savings Lost, Divorces caused, Stress related injuries occurred all because of the ABOVE people and YES, Lathrop and Gage, Matt Jacober and others are reaping the financial rewards by representing the above (Dennis Jarrett and Pete Frese)
Pete Frese, Dennis Jarrett are finished in the Franchise Industry and in Commercial Cleaning.
Bill Blair works for a Financial Services Firm and owns cleaning company NuCastle Residential/Commercial Cleaning
David Farrell is Vice-President of business development for Microgrid Solar
Marissa Lather is an independent business owner with primary client being Microgrid Solar
Afshin Cangarlu has been exposed as a “Slum Dog” for a group of wealth Iranian Families based in Los Angeles, Current Stratus Master for LA and rumored “partner” with Channen Smith in the New Stratus
Channen Smith is Current Stratus Master of Phoenix, Denver and partner with Gator Greenwill in Kansas City/Omaha and partner with Leonard Fazio in Iowa and “partner” with Afshin Cangarlu in the New Stratus
Mark Bashforth is current Stratus Master of Houston, failed Stratus Master of San-Diego, failed Stratus Master of Panama and failed owner of the “Call Center”.
All of these people above, have gone onto different lives and have limited scars as to the harm done by them, directly by them in the LIVES DESTROYED by them.
For every Stratus Master they lied too and ultimately destroyed in the following cities, simply multiply by 20, 50, 100 the number of Unit Franchisees and THEIR FAMILIES AND EMPLOYEES HARMED!
North Texas
New Mexico
Las Vegas
Chicago
Indianapolis
Louisville
Lexington
Miami
Richmond
Minneapolis- 2x!
These are FACTS, not FICTION……YOU REMAINING MASTERS are COWARDS and are sleeping with Dogs!!!!!!!!!!
@Viewers, I was asked recently by none other than a CURRENT Stratus Master as to when I (Reasoned Source) would STOP posting, Stop turning over documents to various State Attorney’s General, Secretary of States, following Crooks at every move including inside their own Current Stratus Building Solution Masters such as Channen Smith, Afshin Cangarlu, Tom Weiss, John Coleman and former Masters Jeff (Anal) Abel and Ken Cassiri. When would I stop going after Marvin Ashton, David Farrell, Bill Blair, Bob Stapleton and Marissa Lather?
When would I quit harassing Pete Frese, Dennis Jarrett, Matt Jacober, Mark Bashforth and Lathrop and Gage?
Answer: Pete Frese and Dennis Jarrett are done in this business both in Commercial Cleaning and Unit Franchising. That is a fact. ANYONE that attempts to rehabilitate or be the FRONT MAN for these two will be researched and exposed by me and others who already assist me in this endeavor. For all practical purposes they are DONE with the exception of the Legal System.
Marvin Ashton, Channen Smith, Afshin Cangarlu have been exposed, humiliated, questioned by their “inner circle” and directly Afshin Cangarlu and Foad have been demoted within the Iranian Boys Club already for bringing additional harm and humiliation to that group of Iranian Businessmen…..
Marvin Ashton directly is/has had his name ruined within the Commercial Cleaning and Unit Franchise field. He is done.
Channen Smith will continue to be exposed for the disgusting human being that he is and that several of his former employees have documented to me personally and to at least one attorney from his Denver and Phoenix Branches.
Tom Weiss, John Coleman and Mark Bashforth in their own way are finished as Mark has rumored to “sell” his Houston Branch for nothing but paper to a former/current Regional Director. His San Diego Branch is done, His Panama Venture was destroyed/abandoned, His Brother (Jayson) is out of the country with Peace Corp. and his father is back in England.
Tom and John are busily pulling as much cash out of their respective businesses and have prepared themselves for a quick dissolution of their respective holding/corporations.
Stratus Franchising, LLC. is “on the clock” for BK filing in the coming days/weeks/months. Stratus International, Affiliated Services, Jarrett Realty have already been dissolved legally.
Matt Jacober directly and Lathrop and Gage have been humiliated at not only their mishandling of this situation from Day One but have lost business as a direct link to their association with Pete Frese, Dennis Jarrett, Stratus Franchising, LLC.
Remaining “Good Masters” it is well past time for you to end your association with the above people/company. It will end soon one way or another, the only question remains will you be forced to stay due to BK filing that is Looming or will you PROTECT yourselves, your family, your customers, your business, your owner-operators or simply COWAR in the corner as you have already for the past Two (2) Plus Years?
@Viewers, it appears that the tales associated with none other than Mark Bashforth, Channen/Rene Smith, Afshin Cangarlu and my new found friend Marvin Ashton are getting better and better or in their case worse and worse.
Just over this past weekend, former associates of all of the above have reached out to mutual friends and have turned over information that truly shows the types of people the above are….One former Manager from the Denver Branch who now resides in Indiana called Channen/Rene Smith the “most unethical people that I have EVER work with/for”. One former Manager for the Houston Branch who has recently started a partnership with another former Master in Houston called Mark Basforth and his brother Jayson “Crooks, Liars, Thieves that PREY on Minorities, most especially those of Hispanic Heritage”…..
Finally, I have it on very good authority that none other than Afshin Cangarlu, Marvin Ashton and Foad Rekabi directly ordered “Churning” in order to meet the business owed requirements of his LA Branch and that “Churning” resulted in DOZENS of Unit Franchises Harmed to the tune of Hundreds of Thousands of dollars when annualized billing.
Let me be clear, this isn’t REASONED SOURCE saying these things, this is FORMER KEY EMPLOYEES of the above saying these things. As Stratus Franchising, LLC. continues its downward spiral.
As Afshin Cangarlu and Foad Rekabi have brought DIRECT HARM AND ADDITIONAL SCRUTINY to Manouch, Mark and Mike Moshayedi, as Dennis Jarrett and Pete Frese continue to Hide/Duck/Ignore/Take Advantage of Remaining Masters, as the BK clock is counting down to the 11th hour, as more missteps by Lathrop and Gage and directly Matt Jacober continue to do nothing but BLEED CASH from Stratus Franchising, LLC.
What is still amazing to me, is the lack of care/concern by the remaining Good Masters. What Value are you getting in Return of your Royalty Payments, Unit Franchise Sales Payments, Newly discussed Sales/Marketing Payments, Computer Software Program Payments?
Look at the existing Stratus Clean Website for your answers…..NOTHING! This website has been Hacked numerous times, Facebook, Twitter, Blog Pages. It hasn’t been updated since August of 2012!
There is even a movement to contact any/all government city, state, federal contracts that current Stratus Masters have in order to make them aware of the Stratus Brand and HARM done to Masters/Unit Franchises alike. There is even a move to make sure that those Masters and current/former employees that have supposedly MOVED ON that their current employers are contacted directly and given information that shows the type of people that they have hired!
May is going to be very interesting on a number of levels……..More to come!
BREAKING NEWS!!!!!!! A recently cheated Regional Director of none other than Mark Bashforth has reached out to a Mutual Friend and has agreed to send documents including emails that directly ordered the CHURNING of Unit Franchisees in the Houston Branch. He has also stated that HE has possession of emails and additional documents that relate directly to the Failed Experiment with Call Center and the South American initiative which was recently exposed by REASONED SOURCE to have Direct Ties to none other than ‘FAT OLD BASTARD” aka Dennis Jarrett.
In closing, this Source claims the former Regional Director has emails and Documents directly related to Lincoln/Tom Baker, Shaun Steckler and Greg Fishman all of WHOM were FRAUDULENTLY INDUCED by Pete Frese, Dennis Jarrett and Mark/Jayson Bashforth to invest a total north of 1 MILLION DOLLARS in Stratus Building Solutions via Master License Purchases…..
Once I have been given the documents, I will insure disbursement to the proper authorities currently investigating in Texas and additionally send to a seemingly more receptive Attorney General of California!
More to come Soon……..
@Viewers, As the disgusting story of greed, lies, fraud, fraudulent inducement continue to pore into those of us known as REASONED SOURCE combined with recently acquired supporting documents, it is clear that the Fraud Scheme thought up by Dennis Jarrett and Pete Frese was not only immense but shows the direct connection of the “Validators” most especially Mark Bashforth, Channen Smith and Afshin Cangarlu and still strong supporting cast of Ken Cassiri, Jeff (Yes I know I’m Anal) Aibel, Tom Weiss, John Coleman and knowingly presented by Marissa (Why does he keeping calling me the National Marketing Director) Lather, David (I’m still not as bad as Marvin Ashton, at least I didn’t embezzle money from BONUS) Farrell, Bill (I only got accused of Sexual Harassment 3 or 4 times) Blair and Marvin (Yes, I embezzled money, yes I ripped off franchisees from Bonus, Jan-Pro and Stratus, yes I am the RICO MAN) Ashton.
Another packet of documents is being sent to the respective Attorneys General in California, Texas, Florida, Missouri and the Secretary of State in Indiana.
As stated prior, this has gone now from a Civil Dispute to a Criminal Complaint focus now against those named above.
Guess DJ and his arrogance are still at work as if they had simply moved themselves into BK and stated I QUIT FOR GOOD, I doubt members of REASONED SOURCE would still be active TODAY!!!!! Pete, WHEN YOU END UP IN JAIL, make sure to thank DJ in a very special Jailhouse Way!!!!!!!
Mark Bashforth mentioned in this fraud case is the CEO of Ikonscience now. We did not know about his history.
Can you send a link to this full story.
STRATUS Master Franchisee Bashforth Accused of Fraud, Franchise Violations