What Every Veteran Should Know About the JDog Franchise

Here is the initial draft of “Things Veterans Should Know About the JDog Franchise.”  Your additions, input and/or corrections are invited.  The following items are based on our original research plus the input and submissions of numerous military veterans victimized by the deceptively marketed JDog franchise opportunity. By Sean Kelly

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Urgent Plea: I need your help and financial support to complete “The JDog Report: A Plea for Congress, The FTC, The SBA & the Veteran’s Administration to End Predatory Targeting of Veterans in Franchising.”  My target goal is $5,000 to complete & publish this report in January 2024.  Without this concerted effort, the U.S. taxpayers will continue to finance (through SBA loans) deceptive franchise schemes that betray the trust and service of U.S. veterans & military families. If you cannot afford to give, please share this link with individuals who can – and who care:

Contribute to the Franchise Truth for Veterans Awareness, Education & Advocacy Initiative.

The Exploitive JDog Franchise Opportunity Targets Veterans

If you or someone you know are considering an investment in the JDog Junk Removal and Hauling or the JDog Carpet Cleaning & Floor Care franchises, here are some things you should know:

#1  You are on the Hook for More Than Half a Million Dollars

The moment you sign the JDog Junk Removal Franchise Agreement, you are on the hook for more than $536,450+.  That includes an initial investment of $157,250 plus 180 escalating monthly payments totaling $376,200 for the next 15 years.  You will also be on the hook for vehicle, equipment and property leases, any business loan, credit card or other debts incurred.

#2  You Bear ALL the Business Expenses & Financial Risk.

If you fail, are hurt, cease operations or are terminated, you lose everything.

If you fail, are hurt, cease operations or are terminated, JDog Franchises, LLC simply resells your territory for new fees.  They may make more from “churning” (reselling) failed territories through multiple owners than having a single, stable, successful franchisee.

#3  You Must Pay the Same “Flat Fee” Royalty Even When Sales Are Down/Stopped

Franchisees of most franchise systems (including other junk hauling franchises) pay royalties that are a percentage of their gross sales.  During months of low or no sales, they pay lower royalties.  JDog franchisees are required to comply with an rigid, escalating monthly payment schedule of “flat fee” royalties that only increase over time.  Franchisees who fail to comply with this strict fee schedule can be terminated & their territories resold for new fees.

#4  JDog Franchises LLC Operates No Junk Hauling or Carpet Cleaning Businesses

JDog Franchises LLC does not operate a single junk hauling or carpet cleaning business.

JDog founder Jerry Flanagan purportedly operated a low-revenue one-man, one-truck operation for a short period of time prior to franchising.

That operation would not have met the minimum compliance standards required of JDog franchisees.

It appears that JDog Franchises LLC has never operated a carpet cleaning business and appears to have no experience in that industry.

#5  JDog Franchises LLC Admits to Terminating More Than 300 Veteran-Owned Franchises

While JDog Founder & CEO Jerry Flanagan claims JDog franchises empower veterans & military families by providing them with a profitable, recession-proof business opportunity, the company’s own Franchise Disclosure Documents (FDDs) indicate that more than twice as many JDog franchises were terminated or changed ownership prematurely than are still in operation today.



JDog Carpet Cleaning Franchise Terminations 2020 – 2023

We have compiled a list of nearly 200 former JDog franchisees listed by the company as having been prematurely terminated or having left the system for other reasons.  Many of these veterans lost their entire investments, declared bankruptcy, and/or are still paying off SBA and bank loans & massive credit card debt.  JDog Franchises, LLC resold many of their failed territories to new franchisees for new fees.

#6  JDog Has Terminated Veterans From Every Branch of the Military

List of JDog Franchisees With Closed or Failed Franchises

#7 State Franchise Regulators Require JDog Brands to Warn Prospective Franchisees of its High Turnover Rate

From the JDog Franchise Disclosure Document (FDD):  “Certain states require that the following risk(s) be highlighted: … 3. Turnover Rate. During the last 3 years, a high percentage of franchised outlets were terminated or transferred. This franchise could be a higher risk investment than a franchise in a system with a lower turnover rate.”

#8  State Franchise Regulators Require JDog Brands to Warn Prospective Franchisees of its Flat Fee Royalty

From the JDog Franchise Disclosure Document (FDD):  “Certain states require that the following risk(s) be highlighted:… 2. Mandatory Minimum Payments. You must make minimum royalty or advertising fund payments, regardless of your sales levels. Your inability to make the payments may result in termination of your franchise and loss of your investment.”

#9  Failed JDog Franchise Territories Have Been Resold Numerous Times to New Owners for New Fees

Some markets have been a revolving door with franchisees failing & their territories being resold with no correction for the previous failures.

San Antonio, Texas has had at least six different franchisees, none of whom appear to be operating.  They include Christopher Linehan, (ARMY), Jeremy Parker(ARMY) Matthew Scally, Shannon Scally (AIR FORCE) Ray Soto (MARINE CORP) Sammy Steinberger, Doug Rife (MARINE CORP) Tim Colomer (MARINE CORP).

There appear to have been more than a dozen different franchisees in the Dallas area, including:  Jamie Ortiz (ARMY) Jeremy Benefiel(ARMY), Drake Edwards, Jason Edwards, David Flaishans (MARINE CORP) Toni Hennigan (ARMY), Derone Joplin (MARINE CORP), Jamie Ortiz (ARMY), Shawn Shexnayer (MARINE CORP), Tim Stawski (AIR FORCE), Steve Wilson (Army, National Guard and Air Force) Andres Chavira (MARINE CORP), Bryan Potts, and Trish Potts (ARMY).

#10 Franchise Times Reported on JDog Franchise Turnover Rate 

Franchise Times had published several positive stories about JDog & Jerry Flanagan until confronted with the truth about JDog’s unconscionably high franchise failure rate.  Kudos Emilee Wentland:

High Termination Numbers Raise Concerns About JDog Junk Hauling (Franchise Times)

#11 Bancorp & Interstate Leasing No Longer Lend to JDog Franchisees Due to High Failure Rates

We asked: Has BanCorp & Interstate Fleets Vehicle Leasing Dropped JDog? The answer is: YES

#12  Taxpayers Are Liable for Deceptively Obtained SBA “Guaranteed” Loans

We have seen applications that include false, unattainable financial projections used to obtain SBA loans on behalf of JDog franchisees.  If/when these loans default, JDog will have already received its money, and the bank will be repaid with taxpayer funds.  Failed franchisees will still be on the line for the debt, and could lose collateral and even their homes.

JDOG’S DECEPTIVE  FRANCHISE MARKETING CLAIMS

#13 JDog Misrepresents its Growth & Success

According to JDog’s disclosure documents, it has never had more than 192 junk removal franchises and never had more than 12 carpet cleaning franchises open at one time.  Yet JDog regularly claims it has or is approaching 300… even 1000… franchises nationwide.  Sometimes vendors, like WORKIEZ, help spread their blatant lies:

WORKIZ LIES: The JDog False Success Story

WORKIEZ: Please Stop Deceiving U.S. Military Veterans

#14 Even JDog’s Sworn Legal Disclosure Documents Appear to Misrepresent JDog’s Growth & Success

In December, 2023, JDog management admitted* that there are only 77 JDog franchise owners, 140 franchise agreements, and 8 projected openings.

*According to multiple inside sources

#15 JDog Brands Misrepresents its Organization as All-Veteran

Franchisees report that a number of fellow franchisees are neither veterans nor part of military families.  Said one franchisee:  “If you once played with a G.I. Joe, they’ll sell you a franchise.”

#16 JDog Franchises LLC & JDog Brands Might NOT be Veteran-Owned 

Additionally, JDog Chairman Chris Debbas & VP/CFO James R. Griffiths appear to have no military background. Their firm, Julip Run Capital, are non-veteran investors and may be the majority owners of JDog Brands.

#17 Julip Run Capital Uses Combat Veteran as Window Dressing

Julip Run Capital Claims Decorated Combat Veteran Larry Liss is a Senior Advisor. However…

# 18 “Recession-Proof” JDog Franchise Lays Off Support Staff; Blames Economy

In December, 2023, Tracy “Mrs. JDog” Flanagan made an internal announcement that JDog Brands was laying off support staff due to the economy.  Multiple franchisees noted that the JDog franchise is aggressively marketed as a recession-proof business, impervious to economic downturns.

See: “Recession-Proof” JDog Franchise Lays Off Support Staff; Blames Economy;

JDog Franchise Owners, Insiders Weigh in on JDog Brands Holiday Layoffs

#19  JDog Marketing Success Stories Feature Franchisees Who Since Failed & Lost Their Investments

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

JDog Franchise’s Devastating Consequences for Veterans & Military Families

#20 At Least One Murder-Suicide Resulted From JDog Franchise Failure

JDOG Franchise Dream Ends in Veteran Suicide, Double Homicide

#21  Franchise Failures Put Hardworking Veterans Into a Pressure Cooker That Some Won’t Survive.

Anyone who knows these facts and still supports & spreads JDog’s false success story is intentionally putting military veterans & military families in grave danger.  Many report that the suffering and stress of the JDog franchise failure was worse than what they experienced when they were deployed.

The mental health of veterans who cannot readily accept failure, and many marriages, cannot survive the kind of stress shared by JDog franchisees.

READ:

JDog Franchise Survivor Angela Derringer-Donnell Speaks Out

JDog Franchise Survivor Statement: Army Veteran Andrea Clarkin

JDog Franchise Survivor Statement: Navy Veteran Rich Roberts

Honor, Integrity, Trust & JDog’s False “Ethos of Brotherhood”

#22  Jerry “JDog” Flanagan Has a History of Sexual Harassment Complaints

In 2019, sexual harassment complaints against Jerry Flanagan led to an investigation that allegedly resulted in the restructuring of the JDog management team & policies put in place to protect franchisees and employees.  In the early 2000s, a lawsuit against Jerry Flanagan by his employer, Creative Playthings, references a sexual harassment complaint by a female employee as being a factor in his dismissal.

READ: Letter Suggests Jerry Flanagan Was Removed From JDog Franchise for Sexual Harrassment

#23  JDog Has Sued ARMY, NAVY & MARINE CORP Veterans

While Jerry Flanagan professes to be dedicated to the well-being of military veterans, the targets of his vicious lawsuits against Army, Navy & Marine Corp veterans tells a different story: This Franchise Scheme Sells, Sues & Silences American Veterans

Does Spadea Lignana Bully & Silence Military Veterans?

#24  JDog Corporate Did Not Waive or Reduce Franchisee Royalties During the Covid Pandemic

According to a former franchisee:  “When COVID hit, they gave everyone a one-month break from paying their franchise royalty, but then they recouped in full later. They double-charged franchisees later to make up for that month at a time  when nobody knew if we were even going to be doing work.”

“When someone’s struggling, for whatever reason, they refuse to give them a break on royalties even for a month.”

#25  JDog’s Refuses to Respond to Questions or Criticism

JDog Principals do not respond to inquiries & block correspondence.  They obviously believe they are not accountable to anyone.

Letter to JDog Franchises LLC President Kevin Kopa

JDog Franchise for Veterans: Open Letter to Tracy & Jerry Flanagan

Does Spadea Lignana Bully & Silence Military Veterans?

JDog Franchise & the MEDIA

#26  The JDog Franchise Trap is a Media-Enabled Fiction

The Veteran-Targeted Franchise Trap That FOX News Built.

#27  JDog President Kevin Kopa to Receive the 2023 Pinocchio Award for Defamation

In trying to misdirect criticism & evade our questions, JDog President Kevin Kopa made defamatory statements about this author, falsely claiming that he had attempted to extort JDog Brands to remove negative content.  No offer has been or will ever be made to remove content regarding JDog, Jerry Flanagan, Tracy Flanagan, Kevin Kopa nor their (IMHO) predatory and deceptive franchise scheme.  Invitations to provide corroboration of this scurrilous claim have not been returned.

Defamatory attacks made in furtherance of deceptive franchise schemes are recognized with the “UnhappyFranchisee.com Pinocchio Award,” an honor that JDog’s Kevin Kopa richly deserves.

OPEN INVITATION: Unhappy Franchisee extends an open invitation to all those discussed to provide corrections, explanations, clarifications and/or rebuttals.  We will correct factual errors & alternative views fairly.  Anonymous or signed comments are welcome below or can be emailed in confidence to UnhappyFranchisee[at]Gmail[dot]com. 

Sean Kelly is an independent investigative journalist with 35 years of franchise industry experience.  Since founding UnhappyFranchisee.Com in 2006, his reporting has exposed & shut down several predatory franchise & investment schemes.  Sean Kelly is a franchise watchdog who prompted and aided the FBI investigation that shut down the 165-victim multi-million-dollar NY Bagel franchise scam and landed perpetrators Dennis Mason & Joseph Smith in federal prison.  Sean was featured in the ABC Four Corners expose of 7-Eleven wage theft in Australia and has served as an advisor to Dateline NBC.  He has withstood bullying, intimidation & frivolous lawsuits as high as $35M and never lost.  His crack editorial staff and fact checkers include Chick, Gem, Red, Pru & Joanie the Rescue Chicken.

Contact the author at UnhappyFranchisee[at]Gmail[dot]com This initiative is dedicated to the memory of my father, Raymond J.Kelly, who served with the U.S. Navy during WWII and piloted a landing craft in the Normandy Invasion, D-Day, at Utah Beach… and my brother Paul, who served in the U.S. Army in Vietnam.  Two honorable men that are deeply needed and dearly missed.