Additional Information for National Maintenance Contractors LLC

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On April 6, 2021 in the Washington State King County Superior Court, the State of Washington filed a consumer protection lawsuit against National Maintenance Contractors. 

The lawsuit alleges, National took advantage of immigrants with limited English proficiency and promised them the independence of business ownership. The lawsuit claims,  National locked its franchisees into contracts that often left them earning less than minimum wage, paying exorbitant fees, and with little ability to advocate for themselves. National provides cleaning services contracts. It then enters into franchise agreements with janitors — largely non-English-speaking immigrants — to do the work. Many of these franchisees are native Spanish and Russian speakers. National tells these franchisees that they will be independent business owners, and earn a certain amount each month depending on the amount of money they invest up front. For example, to earn $1,000 per month, franchisees would buy one $5,000 “business unit.”

The lawsuit, filed today in King County Superior Court, asserts National violated the law in multiple ways. The following are examples of National’s unlawful conduct:

• National deceived franchisees about the amount of income franchisees would earn, in violation of Washington’s Consumer Protection Act. National promised — and its franchisees paid for — a certain level of earnings. However, in reality, National often did not provide access to enough accounts to meet that level, or deceived franchisees as to the amount of work required to obtain that level of promised earnings. Nationals unrealistic work demands and gross underbidding of contracts compounded these issues. National’s conduct left many workers earning less than minimum wage.
• National unlawfully withheld information from franchisees. For example, National did not disclose to franchisees the amount businesses were paying National for the services. Additionally, National did not disclose that the company kept as much as 30 percent of that amount. National’s failure to disclose information to franchisees violates the Franchise Investment Protection Act.
• National charged unreasonably excessive fees, in violation of the Consumer Protection Act. For example, National charged a 14 percent monthly fee for basic billing services. It also claimed the fee would cover collections services, although it rarely, if ever, actually provided them.

The lawsuit seeks restitution for National’s approximately 250 Washington franchisees, and civil penalties against National.
 
National franchisees should file a complaint with the Attorney General’s Office. The complaint form is available in English, Spanish, and Russian.  To read the full press release click here, https://www.atg.wa.gov/news/news-releases/ag-ferguson-files-lawsuit-against-janitorial-services-company-exploiting-mostly.

For more information please contact the Washington State Attorney General’s Office at (360) 753-6200 or https://www.atg.wa.gov/