Franchise scams

The franchise scam artist always blames the franchisee

Franchise scams

After you sign the franchise license agreement, give then a sizable amount of your life savings to pay their franchise fee, you will do everything the franchisor said to do.

Buy their products, franchise marketing literature, attend their franchise trainings, make phone calls, go to appointments, tend the store, and hire employees.

You trust them, and their franchise scheme.

A franchise broker checked them out for you. You have invested Hope with them.

You invested your self-directed 401K, your second mortgage, obtained a veterans small business loan, and your life savings with them, and don’t suspect they are a franchise scam.

The franchise license agreement states that you must work their system full-time.

When the franchise scheme doesn’t generate the money you anticipated, you avoid seeking another job, so that you don’t default on your franchise license agreement, and lose the life savings you just invested.

The government statistics of franchising success has led you to believe that franchising is a less risky business than going into business on your own.

Your franchise should be working, right? When things don’t go well, you’ll call other franchisees to compare results. The other franchisees are working full time, like you, but getting similar dismal results.

You call your franchise Area Developer, and they blame your lack of success on you. It’s never their fault. It will always be your fault. The Franchisor will say you are a lousy sales person, you haven’t made enough calls, and you didn’t pay attention in training class.

You are not buying enough of their expensive franchise marketing literature, at your expense. You did not execute properly the most recent expensive franchise marketing program, at your expense. Then they will build up your self esteem by telling you a few success stories.

You buy in to the Hope of their franchise scheme stories, because you have invested years of time, and your life savings with their franchise scam system.

You never know they have as a part of their franchise scam system a “gag order” or “Confidentiality Agreement”, which would reveal the truth about the franchise scheme. 

The truth is a large number of other franchisees have failed, and they failed before you signed up as a franchisee. 

The Federal Trade Commission (FTC, www.ftc.gov ) allows a certain number of franchise churning, as long as it’s less than 20%.

Those franchisees are under a “gag order” or “Confidentiality agreement” where they will be sued by the franchisor for hundreds of thousands of dollars if the franchisee tells you that you are in a part of a franchise churning system, or franchise scheme.

When you get to the end of your financial resources in keeping your franchise scam business afloat, you tell the franchisor you want out of the system.

This is when you learn that you are part of a franchise scam, and learn The Franchise Fraud is systematic, but will not be able to tell anyone about your experience with the franchise scheme, because you are on your wa