Categories: ALL POSTSService franchiseUSA MOBILE DRUG TESTING Franchise

USA MOBILE DRUG TESTING Strom Spins Franchisee Defection

A group of 7 USA Mobile Drug Testing (USAMDT) franchisees demanded immediate termination of their franchise agreements and $635,000 in combined damages.

The demand came in the form of a letter dated December 28, 2012, emailed from the group’s attorney, Mario Herman.

Mr. Herman stated that his clients were leaving, due to fraud on the part of the franchisor and CEO Joe Strom, and would be fully debranded from USAMDT by January 1, 2013.

January 2, 2013, USA Mobile Drug Testing CEO Joe Strom reportedly told his remaining franchisees that HE initiated termination of the renegade franchisees.

Furthermore, Joe Strom reportedly claimed that terminations only occur AFTER franchisees receive formal notice and warning – a claim the renegade franchisees deny.

One of the defecting franchisees told UnhappyFranchisee.Com: “I never received any threat of termination by Strom or USAMDT. We alone initiated our departure.”

Truth seems an elusive concept for Strom, USAMDT

UnhappyFranchisee.Com has repeatedly urged USAMDT CEO Joe Strom to try being honest about the state of his franchise system, if only as a change of pace.

Mr. Strom has not provided any support for his contention that his franchise system grew from 77 franchises in 2011 to 93 in 2012 – a contention at odds with his own website and Franchise Disclosure Document.

In Joe Strom’s alleged email to his franchisees dated January 2, 2013, he stated:

HQ had to make an unfortunate decision to terminate a few franchises (listed below). To be crystal clear, HQ never wants to terminate anyone’s business. We tried several measures to avoid this action, but we were unable to get the cooperation needed from each of the franchisees terminated. Our job is to protect your franchised business & the USAMDT brand. Some of the actions and/or non-actions of the terminated franchisees threatened the greater good of all your businesses and the USAMDT brand. We just cannot and will not stand for that.

You should know that if your business was ever at risk for being terminated, you would receive several forms of communication to attempt to avoid that action. Nobody would ever be blindsided with their business being terminated.

USAMDT defector franchisees claim that Mr. Strom is not being truthful, as he did not initiate termination, as he states, and they never received “several forms of communication” to try to avert termination.

Mr. Strom’s email to his remaining franchisees also states:

We are taking legal action to insure that these former franchisees do not entrench on any of your territories or your business both in your territory and the surrounding territories. We will stand by our non-compete and that was clearly communicated when we terminated our agreement with them.

The defecting franchisees claim that this is also an untrue statement, as they have not received any notice of termination of the franchise agreement from Mr. Strom (as of January 2, 2013).

(Mr. Strom, may we humbly suggest that you meant to say “We are taking legal action to insure that these former franchisees do not encroach…” rather than entrench on the surviving franchisees’ territories…?)

Mr. Strom ends his email on a motivational, uplifting note:

I really appreciate everyone’s input and I am excited to use this momentum to take USAMDT to the next level.

It’s unclear what momentum he’s referring to, as the only momentum USAMDT seems to be experiencing is downward. Now that the rebel franchises have been purged from the website, there are just 36 franchise locations listed.

If the rebel franchisees are correct in their contention that Mr. Strom is starting 2013 by lying to his remaining franchisees, that downward trajectory is unlikely to reverse anytime soon.