A Cautionary tale to scrutinize Celebrity-backed businesses
Eight homeowners are now suing AGM Renovations for $1.3 million in damages. One family's $150,000 loan got maxed out with only 30% of their project completed before AGM announced it was permanently closing.
Mike Holmes endorsed them. That was supposed to mean something.
When we first heard about AGM abandoning customers despite Holmes' backing, the reaction wasn't surprise. You can't build that large of an online presence and scale to "North America-wide" operations without something breaking. It's operationally impossible.
The question isn't whether they would fail. It's what specific mechanisms made failure inevitable.
The Commission Problem
AGM ran on commission-based salespeople whose only job was closing deals. Once the contract was signed, they handed the project off to regional teams to figure out.
When every deal directly impacts your paycheck, you overpromise. When you have zero accountability for what happens after the signature, you overpromise even more.
The gap between sales pitch and project delivery isn't accidental. It's structural.
Here's what actually happens: A salesperson quotes you based on best-case scenarios. They gloss over anything subsurface or behind walls because acknowledging those unknowns makes the number less attractive. Then you sign, they get paid, and the on-site team discovers your 1920s plumbing needs complete replacement.
Suddenly your $80,000 kitchen renovation needs another $25,000. But you're already committed.
Celebrity Endorsements Create Dangerous Shortcuts
The Mike Holmes factor did exactly what it was designed to do. It lowered people's guard.
When you see a celebrity name attached to a contractor, you stop asking for references. You skip the vetting process. You assume someone else already did the due diligence.
But celebrity endorsements are business transactions. They get paid to put their name on things. That's how they make their living.
When the CBC investigation revealed electrical safety violations at AGM, Holmes' ads disappeared fast. Do you think his team scrutinized AGM's processes before cashing those endorsement checks? Probably not.
The endorsement created credibility without requiring operational integrity.
What Actually Works
At BVM Contracting, we set expectations in the first two conversations. Not after you sign. Before.
We bring up everything commission salespeople skip: project constraints, potential cost issues, constructability problems, existing conditions that will add budget. We plan for worst-case scenarios and add contingency items for subsurface discoveries.
We'd rather have you know the real number upfront than surprise you with extras halfway through demolition.
This approach doesn't scale to "North America-wide" operations. It can't. Because we own the entire process from pre-construction to final walkthrough. Our family oversees every project we complete. When something goes wrong, you're not calling a regional office. You're calling the people who quoted your job.
Local accountability means we live with our reputation. We can't abandon customers and move to a different market. We've been living and building in Toronto's East End since 1997. Our past clients are your neighbours.
The renovation industry has become what it is because 32% of Ontario homeowners have been scammed. That's not an anomaly. That's the baseline.
The solution isn't finding a contractor with a better celebrity endorsement. Even if they were backed by the Prime Minister, Oprah, and the Kardashians combined, you should still scrutinize their experience and ask for references.
The solution is working with someone who can't afford to fail you. Someone whose business model depends on doing it right the first time. Someone who answers their phone when you call.
That's not glamorous. It doesn't make for slick TV ads. But it's what keeps families from being stuck with one working shower for a family of five while they're out $100,000.
Marketing creates appearances. Operations create outcomes.
Choose accordingly.
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations and custom home builds (full interior renovations, home additions, lot severances, new home construction, garden suites, and laneway suites). Our goal is to help guide our clients through the process of building their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page. Learn more about our vision, mission, and values here.