Boca Cleaning Service Franchiser Facing Class Action Lawsuit

Boca News:

Boca Raton-based Coverall North America, a national provider of cleaning service franchises, is facing a federal class action lawsuit filed by four franchisees that claim they were “subjected to systemic misrepresentations and breaches of contract.�

The class action suit was brought “on behalf of workers who have performed cleaning services for defendant Coverall North America Inc.�

The firm is listed as “a Delaware corporation with its principal place of business in Boca Raton, Florida.�

The suit, filed in U.S. District Court in Massachusetts by Pius Awuah of Lowell, Mass., Aldivar Brandao of Watertown, Mass., Denisse Pineda of Paterson, N.J. and Jai Prem of Union, N.J., accuses the firm of selling cleaning franchises while “knowing it does not have sufficient business to satisfy its obligations under its franchise agreements.�

“Individuals purchase these franchises for substantial sums of money,� the suit says, “based on Coverall’s misrepresentations about the guaranteed amount of monthly income the franchises will provide.�

Jacqueline Vlaming, vice president and general counsel for Coverall, told the Boca Raton News she hasn’t had the opportunity to review the case yet. However, she emphasized that the company “fulfills our obligations.�

She also noted that the lawsuit was filed by the same firm in Boston that represented several other aggrieved franchisers. Coverall settled that case, but Vlaming felt, “It was a mistake.� As to the current litigation, she said, “We’re going to the mat with it.�

The suit claims Awuah paid a $14,000 franchise fee and was promised $3,000 a month in business, “but he typically received less than $1,300 per month during his time working with Coverall.�

Pineda says in the suit she paid $12,000 for a franchise fee and was promised $1,300 a month income, “but she received less than $500� while working for the firm.

The others also said they did not earn what they were told they’d make.