Contract cancellation with Aramark
February 18, 2009 11:09 AM Subscribe
I am having difficulty disengaging myself from a contract with a corporate linen company.
I am a small business owner and Aramark has been providing towels, aprons and entry mats to our business on a weekly basis. When I signed my contract (for five years), the sales person told me that if we had any complaints with service, we could stop service at anytime because we are on cash terms.
We have had multiple complaints that have never been addressed by the company. Our weekly statement ranges from $75 to $200 per week, depending on whether items are "damaged" or not. We've been charged for services we've never received (storage lockers, mats that have never been changed, etc) and the linens we receive are often stained, full of holes or not of good quality. We cannot afford to pay nearly $200 every other week for poor quality items and poor service.
In an attempt to stop services or at the very least cut our services, I called the district office. The same day, a district manager came to the business with a copy of our contract and a termination agreement. Essentially, the district manager told me that I need to pay $5,500 to discontinue services for breach of contract. He also told me that I had to respond in five days or he would have to call Aramark attorneys for further action. I asked if the person we originally signed the contract with was still with the company. The manager told me that he was with the company but could not speak with me regarding our contract and I would instead be dealing with him.
In the original contract I was provided, it states in the Performance Guaranty [sic] "Customer may terminate this agreement for deficiencies in service by informing Aramark in writing of the precise nature of the service deficiencies, allowing Aramark at least 30 days to correct or begin to correct the deficiencies and giving Aramark 30 days written notice containing an explanation of the deficiencies that Arakmark has not begun to correct." I sent a certified letter to Aramark two weeks ago explaining our dissatisfaction and have not received a response. Our delivery person comes every week demanding that we pay the minimum invoice fee. For the past two weeks, we have paid for linens that we have never received. The delivery driver says that his manager tells him to collect our money but he does not have permission to drop off linens.
I'm not sure what the next step is at this point, as there has been no response from Aramark and I have left two messages with the district manager explaining that our delivery person has not given us linens. He has not responded.
Does anyone else have experience with canceling a contract with a company that is threatening legal action?
I am a small business owner and Aramark has been providing towels, aprons and entry mats to our business on a weekly basis. When I signed my contract (for five years), the sales person told me that if we had any complaints with service, we could stop service at anytime because we are on cash terms.
We have had multiple complaints that have never been addressed by the company. Our weekly statement ranges from $75 to $200 per week, depending on whether items are "damaged" or not. We've been charged for services we've never received (storage lockers, mats that have never been changed, etc) and the linens we receive are often stained, full of holes or not of good quality. We cannot afford to pay nearly $200 every other week for poor quality items and poor service.
In an attempt to stop services or at the very least cut our services, I called the district office. The same day, a district manager came to the business with a copy of our contract and a termination agreement. Essentially, the district manager told me that I need to pay $5,500 to discontinue services for breach of contract. He also told me that I had to respond in five days or he would have to call Aramark attorneys for further action. I asked if the person we originally signed the contract with was still with the company. The manager told me that he was with the company but could not speak with me regarding our contract and I would instead be dealing with him.
In the original contract I was provided, it states in the Performance Guaranty [sic] "Customer may terminate this agreement for deficiencies in service by informing Aramark in writing of the precise nature of the service deficiencies, allowing Aramark at least 30 days to correct or begin to correct the deficiencies and giving Aramark 30 days written notice containing an explanation of the deficiencies that Arakmark has not begun to correct." I sent a certified letter to Aramark two weeks ago explaining our dissatisfaction and have not received a response. Our delivery person comes every week demanding that we pay the minimum invoice fee. For the past two weeks, we have paid for linens that we have never received. The delivery driver says that his manager tells him to collect our money but he does not have permission to drop off linens.
I'm not sure what the next step is at this point, as there has been no response from Aramark and I have left two messages with the district manager explaining that our delivery person has not given us linens. He has not responded.
Does anyone else have experience with canceling a contract with a company that is threatening legal action?
yeah.. Lawyer. It sounds like the clause you cited would give you good grounds for contract termination, but I doubt anyone here will be able to give more detailed analysis...
Lawyer
Lawyer
Lawyer
posted by edgeways at 11:47 AM on February 18, 2009
Lawyer
Lawyer
Lawyer
posted by edgeways at 11:47 AM on February 18, 2009
What did you do with the 'termination agreement' that he brought?
That performance guarantee sounds awfully wishy-washy: "correct or begin to correct", an extra letter of complaint to remind them of the problems that they've neglected to address from the first letter of complaint, allowing them to collect money for an extra month even if they're still breaching the contract...
They're trying to strong-arm you with their lawyers. Reply in kind: get a lawyer.
posted by CKmtl at 11:58 AM on February 18, 2009
That performance guarantee sounds awfully wishy-washy: "correct or begin to correct", an extra letter of complaint to remind them of the problems that they've neglected to address from the first letter of complaint, allowing them to collect money for an extra month even if they're still breaching the contract...
They're trying to strong-arm you with their lawyers. Reply in kind: get a lawyer.
posted by CKmtl at 11:58 AM on February 18, 2009
you don't need a lawyer ... yet. you're the customer, and they need to strart treating you like one. be firm about your expectations of service. document any shortcomings. don't pay for what they're not providing. if the 5k amount isn't in the contract you have, then they are blowing smoke.
you'll need a lawyer if they actually sue you. how that will go strongly depends on the contract says.
posted by lester's sock puppet at 12:08 PM on February 18, 2009
you'll need a lawyer if they actually sue you. how that will go strongly depends on the contract says.
posted by lester's sock puppet at 12:08 PM on February 18, 2009
I disagree. You are in this mess in the first place because you didn't have adequate counsel before you signed the contract (or so it would appear)... Get counsel now. They have lawyers and are not afraid to use them.
posted by olddogeyes at 12:20 PM on February 18, 2009
posted by olddogeyes at 12:20 PM on February 18, 2009
Lawyer up right now. My guess is that it will take one letter from a real attorney to make this go away. As soon as they see you're not going to allow yourself to be bullied, they will suddenly become MUCH more reasonable in their dealings with you, and agree to terminate the contract.
posted by deadmessenger at 1:03 PM on February 18, 2009
posted by deadmessenger at 1:03 PM on February 18, 2009
Our delivery person comes every week demanding that we pay the minimum invoice fee
Just because someone "demands" money doesn't mean you have to give it to them. Why would you pay for a service you are not recieving? They have stopped providing the service, you should stop paying.
And of course, lawyer up!
posted by missmagenta at 1:09 PM on February 18, 2009
Just because someone "demands" money doesn't mean you have to give it to them. Why would you pay for a service you are not recieving? They have stopped providing the service, you should stop paying.
And of course, lawyer up!
posted by missmagenta at 1:09 PM on February 18, 2009
You could call the local consumer affairs reporter. They love this big company bullying a small company stuff. And it will be free. If that route doesn't work - then lawyer up.
posted by COD at 1:26 PM on February 18, 2009 [1 favorite]
posted by COD at 1:26 PM on February 18, 2009 [1 favorite]
you'll need a lawyer if they actually sue you.
At which point the lawyer might say, "Wow, you really should have contacted me earlier, I would have been able to ensure that you provided notice in the form required by the contract. Now there's an extra $800 in dispute."
posted by grouse at 2:43 PM on February 18, 2009
At which point the lawyer might say, "Wow, you really should have contacted me earlier, I would have been able to ensure that you provided notice in the form required by the contract. Now there's an extra $800 in dispute."
posted by grouse at 2:43 PM on February 18, 2009
The same day, a district manager came to the business with a copy of our contract and a termination agreement. Essentially, the district manager told me that I need to pay $5,500 to discontinue services for breach of contract.
This makes it sound like a scam. This must be happening a lot if they have the district manager ready with a termination agreement to run out the same day you complain to panic you into giving them $5500.
You might be able to find a bunch of other people they're pulling the same thing on by following the delivery truck around for a while after it fails to drop off your linens next time. Then you could all go together to the appropriate attorney general or prosecutor and ask for a criminal investigation, then hire an attorney together and really make them sweat.
If you decide to do this, run it by an attorney first.
Aramark was taken private in early 2007 in a CEO-led $6.3 billion buyout financed by private equity, a deal that earned about a billion for the CEO, and multiplied debt service payments the company must make by more than a factor of four.
posted by jamjam at 5:01 PM on February 18, 2009
This makes it sound like a scam. This must be happening a lot if they have the district manager ready with a termination agreement to run out the same day you complain to panic you into giving them $5500.
You might be able to find a bunch of other people they're pulling the same thing on by following the delivery truck around for a while after it fails to drop off your linens next time. Then you could all go together to the appropriate attorney general or prosecutor and ask for a criminal investigation, then hire an attorney together and really make them sweat.
If you decide to do this, run it by an attorney first.
Aramark was taken private in early 2007 in a CEO-led $6.3 billion buyout financed by private equity, a deal that earned about a billion for the CEO, and multiplied debt service payments the company must make by more than a factor of four.
posted by jamjam at 5:01 PM on February 18, 2009
Also, when you talk to a lawyer (and/or as you're researching this yourself before talking to a lawyer), learn more about the extent to which, in your state, a company is bound by assurances made by an employee.
posted by kristi at 10:28 AM on February 21, 2009
posted by kristi at 10:28 AM on February 21, 2009
This thread is closed to new comments.
posted by grouse at 11:19 AM on February 18, 2009