Company Settles Allegations of Misclassifying Franchisees as Contractors

The California Attorney General's Office announced a nearly $2 million settlement with a national janitorial company accused of misclassifying franchisees as independent contractors. The Attorney General's Office said CleanNet’s franchising model violated California law. CleanNet USA, a national company providing janitorial franchising and commercial cleaning services, grants franchising rights to its California operators who sell CleanNet unit franchises to individuals and entities in the state. "After the payment of an initial franchise fee, CleanNet assigns cleaning se...