| Schooley Mitchell Telecom |
| Schooley Mitchell Telecom Consultants SMTC Non payment of expenses, commissions, and salary Internet |
| 13th of Apr, 2011 by User308500 |
| INVESTORS AND POTENTIAL FRANCHISE OWNERS BEWARE There currently is a judgment in the State of Michigan for 100's of thousands of dollars against Schooley Mitchell Telecom Consultants. http://dockets.justia.com/docket/michigan/miedce/2:2010cv12591/250090/ 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. |
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On April 14, 2005, in the United States District Court for the Southern District of Mississippi, Southern Division. Under Civil Action No. 1:04CV504LG-RHW, a judgement was rendered in favor of Robert M. Hardy, Plaintiff, against Schooley Mitchell Franchise Corp., Schooley Mitchell U.S. Franchise Corp., Dennis Schooley and Kelvin Martin. The litigation was for Fraud and Breach of Contract. Plaintiff claimed that Defendants failed to pay Hardy $28, 000 in salary and travel expenses, and that $78, 000 in taxes had been deducted from Hardy's payroll but never remitted to the United States Internal Revenue Service or the State of Mississippi. Plaintiff further claimed that his multiple Schooley Mitchell Franchises were not supported properly in breach of Franchise Agreements causing him to default on deliverables to his Clients and that Defendants advised 197 Franchisees that Schooley Mitchell Franchise Corp. was in a state of insolvancy beginning in January, 2004, and were closing down the Schooley Mitchell Franchise Corporation. A judgement in the amount of $586, 000.00 in compensatory damages in addition to $1, 172, 000.00 in punitive damages were awarded to the Plaintiff.
Hon. Louis Guirola, Jr. U.S. District Judge, presiding. |
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