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Franchise Fraud: How To Protect Yourself Before And After You Invest
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A primer on the promises and perils of franchising. Now in paper! It's big business, accounting for one-third of America's retail revenue. But franchising is still a risky proposition—at least for the franchisee. This resource exposes the frauds and abuses too many companies perpetrate on their franchisees—everything from unfulfilled pledges of promotional support to oversaturating the market with outlets. It helps potential franchise owners avoid being victimized by explaining, in specific detail, what to look for, what questions to ask, and what agreements to make before signing a contract. Robert Purvin also reveals how to identify and take advantage of the worthwhile franchising opportunities available today. ROBERT PURVIN, JR. (San Diego, California) is an attorney who is an expert on franchising and franchise law. He is Chairman of the American Association of Franchisees and Dealers.

Hardcover: 304 pages

Publisher: Wiley; 1 edition (April 1994)

Language: English

ISBN-10: 0471599476

ISBN-13: 978-0471599470

Product Dimensions: 6.4 x 0.9 x 9.6 inches

Shipping Weight: 1.3 pounds

Average Customer Review: 4.7 out of 5 stars  See all reviews (21 customer reviews)

Best Sellers Rank: #642,482 in Books (See Top 100 in Books) #42 in Books > Business & Money > Small Business & Entrepreneurship > Franchises #459 in Books > Business & Money > Small Business & Entrepreneurship > Marketing #544 in Books > Law > Rules & Procedures > Civil Procedure

I have been investigating a variety of franchises, and it can be time consuming. The franchise disclosure documents are typically several hundred pages long. During that process, I started to realize that the franchise contracts all seemed to be very similar in content,and extremely one-sided in favor of the franchisor. I began to feel like there was no way in h@ll I was going to be able to sign one of these contracts. I went online to find out if I was wrong, or right about what I was detecting in the contracts. That's when I learned about the existence of this book.The book confirmed exactly what I was feeling, and added a lot more important information which I didn't know. One significant bit of information was that the often repeated statistic about the relative success rates for start-up businesses, compared to franchises, is completely bogus. Franchises have a very high rate of failure, as do the Franchisors themselves. The method of gathering the data used for the statistics is extremely flawed. It's a bogus statistic.There are two significant flaws with the book, which is why I only give it 4 stars. But I still recommend you buy it.1) The book was originally published in 1994. It was apparently revised in 2008, but there is very little evidence of that. There are many, many examples in the book where is says something like "by the year 2000, it is expected that blah blah blah". That being said, when comparing the content of the book, to my current experience in investigating a variety of franchises, I would have guessed that the book was written last year. The problems in the franchising industry are still very prevalent, and perhaps worse now. The book tells you why that is.2) The book is extremely redundant.

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