Geeks On Call Holdings,Inc., a premier national provider of professionalIT solutions to small business and residential customers through its nationalnetwork of franchise and Company-owned locations under the trade names GeeksOn Call(R), 1-800-905-GEEK(TM), CallTheGeeks.com(TM) and Call The Geeks(TM), announced today that the Company had been served with individual lawsuits fromseveral franchisees. All of the suits were filed by the counsel for arecently formed franchise association. The suits, all substantiallyidentical, claim that Geeks on Call is responsible for a financial downturnallegedly experienced by the Plaintiffs. The suits point to the recentintroduction of CalltheGeeks.com as a cause of diminished revenue.
CalltheGeeks.com, remote technical support, is not offered in areascurrently served by franchises.
Company records show that many of thefranchisees who filed suit are, in fact, showing year to date revenueexceeding prior year revenue. Current economic data indicates that the smallbusiness community is choosing to repair rather than replace computers, atrend that bodes well for our franchisees within the IT sector.Unfortunately, rather than working with the Company to seek out and capitalizeon this opportunity, these franchisees chose to file suit.
Mark Baumgartner, General Counsel for Geeks On Call Holdings, Inc. stated”the allegations in the Complaint are without merit. Numerous Plaintiffs hadpreviously been notified that they were in breach of their franchiseagreements. We know that many of these Plaintiffs have been more focused ondisparaging the Company than on building their business. Unfortunately, theirdisparagement harms the Company and the Geeks on Call franchise community as awhole.”
Geeks On Call Rejects Claims
December 10, 2008 by Cris | 0 Comments