Franchisees of Get Spiffy claim mobile car care company inflated partnerships
SAN JOSE, Calif. (KGO) -- A San Jose woman says she gave up a lucrative career in tech and a restaurant business for a franchise opportunity that wasn't what it seemed. Now, she's suing the company and she's not alone.
Get Spiffy is a mobile car care business launched in 2014 and began franchising in 2020.
Mom of three, Alina Siert was a successful tech professional and owner of a San Jose restaurant, looking for a new opportunity.
"I'm a faith-based entrepreneur," said Siert.
She says a former eBay colleague told her about Get Spiffy, a contactless car care franchise that offered remote services like washing, detailing and oil changes.
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"It seemed very promising," said Siert.
So much so, that she ended her career in tech and sold her restaurant, but within two years Siert says she had to close the business.
In a lawsuit filed last year, Siert claims Spiffy executives misrepresented the company's profitability, business model and marketing strategies.
According to the complaint, referring to Waymo, Enterprise Rent-A-Car and U-Haul as the "crown jewels" of Spiffy's San Francisco City Business Unit.
"These were not profitable or these relationships were pretty much non-existent," said Siert.
Siert's attorney Jeff Mayes of Druven Law says the firm is representing five former franchisees who make up a coalition that has raised similar allegations, citing misrepresentation, unsupported operations, and inflated national partnerships.
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"They bought into a franchise system thinking this was a piece of the American dream, they're finally going to own their own business and then it's a total train wreck and economically it can be devastating to these people," said Mayes.
In an emailed statement to 7 On Your Side, Spiffy's attorney writes in part, "Spiffy is confident in its defenses to the allegations against it and we look forward to a resolution through the proper legal channels."
The case moves to arbitration scheduled for the end of this year.
Mayes has this advice for would be franchisees of any business:
"Try to find a franchise that has a track record of success," said Mayes.
"It should not be your job as the franchisee to be the guinea pig for whether the franchise model even works for that business," he continued.
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As for Siert who says she's always made philanthropy a part of entrepreneurship --
"With the Spiffy venture, we were not able to do anything at all," said Siert.
"You know when you start being part of a system where you're giving back, you're helping people there is a expectation that you're going to be there for them and we couldn't fulfill that," she continued.
She's now on a journey of rebuilding.
In a similar federal case in Maryland, Siert's attorney is waiting for a judge to decide whether to retain the case or refer it to arbitration. The franchise agreement with Spiffy had an arbitration clause but Siert's attorney says in certain cases and states, that can be bypassed.
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