• Report: #452646

Complaint Review: CleanNet Of New England

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  • Submitted: Sun, May 17, 2009
  • Updated: Fri, January 25, 2013

  • Reported By:Jamaica Plain Massachusetts
CleanNet Of New England
110B Maple Street Stoneham, Massachusetts U.S.A.

CleanNet Of New England Steals from its Franchisees Stoneham Massachusetts

*UPDATE EX-employee responds: Well, what goes around comes around MR Oliviera!

*UPDATE EX-employee responds: really a rip off

*REBUTTAL Owner of company: The other side of the story...

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CleanNet USA, a nationalcommercial cleaning franchise company has for years ripped off its franchisees through a pattern of intentional and unlawful business practices. A class action has been filed in Massachusetts Middlesex County Superior Court (H&G Group, et al v. CleanNet of New England, Inc. and Paul Oliviera, Docket No., 09-1831) alleging, among other things, that CleanNet charges franchise owners excessive fees for so-called "liability insurance" group coverage. CleanNet's website fraudulently claims that franchise owners will save money if they choose to obtain liability insurance coverage through CleanNet because it can provide group coverage at a much lower cost than individual coverage. Check the following link:

http://www.cleannetusa.com/franchise/support.html

In fact, CleanNet charges franchise owners significantly more money for so-called "coverage" than CleanNet's actual costs for insurance, if indeed CleanNet actually purchases insurance that actally provides any benefit. at all to the franchise owners. CleanNet has apparently engaged in this type of fraud before. I understand there was a lawsuit filed in 2001 against CleanNet by former franchise owners alleging among other things that insurance premiums were deducted from their compensation, but the coverage was never purchased.

This company will be held accountable.

Cleannetted out
Jamaica Plain, Massachusetts
U.S.A.

This report was posted on Ripoff Report on 05/17/2009 06:53 AM and is a permanent record located here: http://www.ripoffreport.com/r/CleanNet-Of-New-England/Stoneham-Massachusetts-02180/CleanNet-Of-New-England-Steals-from-its-Franchisees-Stoneham-Massachusetts-452646. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 2Consumer 1Employee/Owner
Updates & Rebuttals

#1 UPDATE EX-employee responds

Well, what goes around comes around MR Oliviera!

AUTHOR: Will B. - ()

Who says there is no good news in the world these days? In June of 2012 Mr Paul Oliviera finally got what he deserved! His so called companywentbankrupt..it couldn't have happened to a nicer guy! All the times my small little Cleannet franchise was screwed with and finally justice is served! I truly hope that disgusting human being is homeless and living in a ditch somewhere, trust me when I say this, he ok'd rot there for all eternity for all I care! You deserve envy thing you get you scumbag! RIP CleanNet of New England! Good riddance

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#2 UPDATE EX-employee responds

really a rip off

AUTHOR: ROGUE - (United States of America)

as an ex-employee of this company I always felt bad for the franchise buyers. 
Oliveria and his sales reps are theives.
This is how it works; potential franchise owners are recruited to come in and get an overview of the company and how it works. Then they buy a package; lets say you invest 5k, they are told they will make 20k in the next year off that 5k package; ie; Clean-net supplies them with cleaning jobs; this is how; the sales team goes out an pitches to big companies about their corporate cleaning service. They sign a contract with clean-net and then clean-net places a franchise owner at the site for cleaning services 
kicker; when the franchise owners are placed for cleaning services at a site or two or three to add to their total earning potential- according to their package they purchased---- what happens if a job site complains? It is not looked into , the customer is always right, i'm talking about tiny complaints .. something that could be even irrelevant to their job description, the cleaner/ franchise owner gets called with notice of the complaint ...he has no way to fight it and clean-net does NOT look into it. Once there are 3 complaints on 1 job site you loose that job and according to the contract this does not have to be replaced. If a franchise owner has a package (that he purchased for 5k and was promise to earn 20k in 1 yr and the income from 3 job sites makes up that income.. if they loose one or two of those jobs due to unmerited complaints .... that were never even resolved...eventually they are making no more than what they invested in the franchise if they don't loose their investment completely.
The reason why this happens is because clean-net sells their franchises faster than they can aquire contracts with new  customers ; ie; if they are promising 20 people to invest 5k and that they will have x amount of job placement---- if they don't have jobs to place them in because the sales department inst getting enough customers that need cleaning services ..what happens is they just take away jobs from franchise owners for very small things that really should be resolved between customer and franchise (cleaner) owner. Instead that particular job is taken from franchise owner / cleaner and given away to a new franchise owner / cleaner  i have to say im shocked there isnt a class action law suit against this guy and his business yet, he is making alot of money stealing from people. 
there is more to this story

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#3 REBUTTAL Owner of company

The other side of the story...

AUTHOR: Paul - (U.S.A.)

May 19, 2009 at 10:06 pm | Reply

CleanNet of New England, Inc. does not target any particular ethnic market. We advertise in local newspapers and through our website, available to all ethnicities. It should come as no surprise, to anyone, the majority of service workers, in the USA, are immigrants from all over the worldincluding Spanish and Portuguese speaking countries.

Furthermore, the New England Regional office has been in operation for over ten years and has helped many many Americans and immigrants start and maintain their own commercial cleaning businesses. These business owners are so pleased with the results, that over 75% of new franchise owners, start their business as a result of a referral from a friend or family member.

As a result of the dedication and hard work, of the New England franchise operators, the New England Regional office has consistently earned customer satisfaction scores of over 98% every year for the last 10 years.

This suit is the result of one disgruntled franchise owner who was given inaccurate information from an ex-employee. The other two parties to the suit, have no outstanding issues with CleanNet. But someone has advised them they may get rich by joining in the case.

We did have a preliminary meeting, on April 15, 2009, in an attempt to negotiate the matter, without going to court. Since then, we've been waiting for a list of demands from the complainant's attorneyinstead they decided to file suit. We can't consider settling the matter if we don't know what it is they want. We are still open to discussions with these complainants.

Finally, in the last ten years, this is the first time that anyone in the New England office has been sued by anyone. We've always been able to sit down and work things out to everyone's mutual satisfaction. In this case, although our door is open, the opportunity has yet to materialize.
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