• Report: #717497
Complaint Review:

Schooley Mitchell Telecom Consultants

  • Submitted: Thu, April 14, 2011
  • Updated: Fri, April 15, 2011

  • Reported By: Redyot — Monroe North Carolina USA
Schooley Mitchell Telecom Consultants
Internet United States of America

Schooley Mitchell Telecom Consultants SMTC Non payment of expenses, commissions, and salary Internet

*General Comment: Clearing Up Some Issues

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There currently is a judgment in the State of Michigan for 100's of thousands of dollars against Schooley Mitchell Telecom Consultants.


This judgment was entered by a group of Territory Developers from a prior edition of this franchise ended in bankruptcy for non-payment of commissions.  In addition, Dennis Schooley currently owes a recently exited Territory Developer $75K and a remaining one over $100K for unpaid expenses, commissions, and salaries.  

The judgment if processed will direct all royalties from franchisees in the State of Michigan to the plaintiffs until such time as the debt is recovered.  There are a number of other debts owed which amount to a considerable pressure on the system.  

If considering investing in this model, do yourself a favor and investigate the history and current financial condition.  In the event you are not given current Balance Sheet and/or P + L's certified by a reliable accounting firm, I suggest moving to another opportunity.  Remember, due diligence is your responsibility and ask to speak to current franchisees, both past and recently exited as well.  Force the franchise to share the facts regarding exited franchises.  For example, there were four franchises in the State of Virginia as 2010.  Today, there are none according to their website.  Check out their website.

As they say in Texas, "El Paso" on this opportunity.

This report was posted on Ripoff Report on 04/14/2011 10:10 AM and is a permanent record located here: http://www.ripoffreport.com/reports/schooley-mitchell-telecom-consultants/internet/schooley-mitchell-telecom-consultants-smtc-non-payment-of-expenses-commissions-and-salar-717497. 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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#1 General Comment

Clearing Up Some Issues

AUTHOR: just-the-facts - (USA)

There needs to be a clarification to
this report.  There is a judgment in the state of Michigan, but it was
brought by territory developers that were part of the existing corporation and
is against the existing corporation and the corporation's principals personally. 
It should also be pointed out that all of the individuals that are plaintiffs
in the action are still franchisees of the system.  Their dispute only
addresses the territory development issues not the franchise issues 

It is true that there are financial issues that the organization is facing and
these issues need to be addressed by the franchisor with any potential new
franchisee.  The concept is sound and there are franchisees in the system
that are doing very well. 

Unfortunately there is a lot of misleading information in the Franchise
Disclosure Document that needs to be cleaned up (at least this was the case a
couple of years ago, it may have changed).  When one is presented with the
concept it is presented as a concept that has all the tools needed to do the
job and all one has to do is work hard at getting the customers and the support
will be there to make it a success.  The tools are lacking and support is
limited at best.  The best support comes from other franchisees that have
developed their own tools and systems to make their franchise a success. 

It needs to be said that the corporation is trying to improve on the support
and on the tools, but financial issues make it difficult for them to move
quickly and provide the tools and support really needed.

It is important that anyone considering this concept do their due
diligence.  It is important that they talk to as many franchisees as they
can, those that are doing well, those that are not doing as well and those that
have left the system.  Information on those that have left the system was
not available a couple of years ago in the FDD (even though it is required by
the FTC) and it may currently be available in the updated FDD.  One might
have to demand for a complete list of all franchisees that have left the system
as well as demanding a current financial statement. 

One can be successful in this concept, they just need to be totally aware of
what they are getting into so not to be surprised after the fact.  One
thing to keep in mind, all franchise systems have those that do very well,
those that do well and just OK and those that are unhappy and are not doing as
well.  It is important to understand why those that are doing well
"are doing well" and why those that are unhappy are
"unhappy" and maybe have left.  If there is a significant number
that have left the system that should raise a red flag and you need to
understand the "why" before you invest.  after the fact.

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