Buyer beware. If it sounds too good to be true, it probably is.
Franchisees Can Learn From Others’ Mistakes
By RICHARD GIBSON - Startup Journal (Wall Street Journal Center for Entrepreneurs)
Dow Jones Newswires
These familiar warnings aren’t enough to keep many people from stumbling into scams involving franchises. So, to remind people to watch their step, the Federal Trade Commission periodically publicizes a collection of cases involving allegedly illegal pitches to potential franchisees and other aspiring entrepreneurs.
The FTC’s latest effort is called Project Fal$e Hope$, a compilation of more than 100 cases pursued last year by state and federal authorities. The Fal$e Hope$ cases range from fly-by-night fleeces operated by ex-felons and professional con men to paperwork stumbles by established franchisers, or so-called administrative violations. But in all cases, laws were broken or regulations ignored. Each case is unique and instructive in its own way, but there are also some broad lessons to be learned… [MORE]
Sphere: Related ContentTell a Friend
