Don’t listen to Richard Solomon’s rants against Purvin and the American Association of Franchisees and Dealers. Richard needs a distemper shot.
In a Blue MauMau posting, Bob tries to explain what he meant by fraud:
Purvin explained it was a much bigger problem which he addressed in a book he wrote, The Franchise Fraud, which was republished recently. He told them that it wasn’t so much about the people that were out selling fraudulent deals, but that the franchising industry had painted a rosy picture about franchising. He said they tell you that when you buy a franchise you are reducing your odds for failure and dramatically increasing your odds of success, because everybody knows when you buy a franchise you buy a proven commodity. He said, “That’s false. Most franchises are much weaker than they appear to be. The blue chip list of franchise opportunities is a very short list.“
He goes on to state that any legal protection is an illusion:
He also said that people believe that they are protected by a fabric of laws that would prevent them from being defrauded. “That also is false.” The point of his book was to wake up the buying masses that when they buy a franchise they have to be very careful and treat that purchase every bit as cautiously as the guy in the corner who says, do you want to buy my Rolex watch. Unfortunately, hundreds of thousands have been bitten by the franchise bug and can’t believe that they weren’t buying into a sure thing, Purvin said.
Sound advice from a real pro.
- Most franchise systems are unproven.
- The blue chip franchises are very few.
- There is no legal protection.
- Treat buying a franchise like you would buying a “genuine” Rolex on the street.
- Hundreds of thousands have been burned.
Read the book.