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Scam alert

Generator Franchise Takes Deposits, Then Closes Without Refunds

Posted

Michigan and nationwide · michigan.gov/ag · Arrives by a sales pitch at a store or online

The short answer

Be wary of a home-generator seller that takes a large deposit up front and then stalls on delivery. Resisting a refund when the store closes or you cancel matches what Michigan's attorney general described in September 2026. The office sued under the Consumer Protection Act, alleging operators took large deposits from Michigan consumers, kept taking them knowing closure was imminent, and failed to refund after stores closed. Confirm franchise status and licensing yourself. If you already paid and got neither a unit nor a refund, contact Michigan AG Consumer Protection at 877-765-8388 or your own state attorney general.

What is happening

On September 25, 2026, the Michigan Attorney General's Office announced a Michigan Consumer Protection Act lawsuit filed in Kent County's 17th Circuit Court against operators of two home-generator franchises serving the Grand Rapids and Detroit-area markets. The complaint alleges the operators accepted thousands of dollars in deposits from Michigan consumers across multiple counties, continued taking deposits despite knowing closure was imminent, and failed to refund deposits after franchise agreements were terminated in April 2024 and the stores closed. Detroit Legal News reported the same suit and the state's request for damages, restitution, injunctive relief, and civil fines.

How to recognize it

  • A large deposit is taken up front for a standby home generator, then delivery or installation stalls and a refund is delayed or refused when the store closes or you cancel.
  • The seller keeps accepting deposits even as the store's future looks uncertain, or after franchise problems become known.
  • After the store closes or the franchise ends, you get neither the generator nor a deposit refund.
  • Refund requests after canceling an order, or after the store closes, go unanswered or are refused.
  • The pitch leans on outage fear and rushes you into a large deposit before you can check licensing or franchise status.

What to do instead

  1. Slow down before any large deposit for a home generator. Get the total price, delivery timeline, and refund terms in writing.
  2. Confirm the seller's license and current franchise status yourself—through your state and the franchisor—before money changes hands.
  3. Prefer a payment method you can dispute if the unit never arrives.
  4. If you already paid and did not receive a generator or refund, contact Michigan AG Consumer Protection at 877-765-8388 or the online complaint form, or your own state attorney general. Also report at ReportFraud.ftc.gov.
  5. If you want to tell someone, the rule is: no large generator deposit until you have checked licensing and franchise status yourself.

If it already happened

Responding to one of these is common and understandable. These steps are what people usually take next.

  1. Paying a deposit for backup power is common. The pitch is built around outage fear.
  2. Contact your state attorney general's consumer-protection office (Michigan: 877-765-8388) and keep contracts, receipts, and messages.
  3. Ask your bank or card company whether the deposit can be disputed.
  4. Report it at ReportFraud.ftc.gov.
Open Help Now

Common questions

Is every generator deposit a scam?
No. Legitimate sellers take deposits for ordered equipment. The pattern to watch is a large deposit, stalled delivery, and a refused or delayed refund once the store closes or you cancel—exactly the conduct Michigan's attorney general alleged in September 2026.
What should I check before paying a large deposit?
Confirm the seller's license and current franchise status yourself, get delivery and refund terms in writing, and use a payment method you can dispute if the unit never arrives.
I already paid and got neither a generator nor a refund. What now?
Contact your state attorney general's consumer-protection office. In Michigan, call 877-765-8388 or use the online complaint form. Ask your bank or card company about disputing the charge, and report it at ReportFraud.ftc.gov.

Practice this safely

Practice pausing before a large generator deposit until you have checked licensing and franchise status yourself.

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Tell someone

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Generator Franchise Takes Deposits, Then Closes Without Refunds

Be wary of a home-generator seller that takes a large deposit up front and then stalls on delivery. Resisting a refund when the store closes or you cancel matches what Michigan's attorney general described in September 2026. The office sued under the Consumer Protection Act, alleging operators took large deposits from Michigan consumers, kept taking them knowing closure was imminent, and failed to refund after stores closed. Confirm franchise status and licensing yourself. If you already paid and got neither a unit nor a refund, contact Michigan AG Consumer Protection at 877-765-8388 or your own state attorney general.

Read the full alert: https://endscamsproject.com/latest-scams/generator-franchise-deposit-refund-scam

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