Franchising loves veterans because of their ability to get into debt

Deadbeat systems can be disguised as sweethearts very easily.

Veterans should be very careful.

Oscar P. Hoot on Blue MauMau spells out why returning service people should just say no: During the credit crunch, franchising needs veterans.

A top leader in the franchise industry… has told me that the recent push by franchisors to reach veterans is less about patriotism and more about going after a market that has available money during the deepest credit crunch and recession since the Great Depression.

Lenders are favoring veterans to finance because of their access to financial programs that favor them. The rest of America is having a much harder time getting financing to start a business. And franchisors know that.

Want to gamble with your life savings?

Vets: Franchising wants your money. It needs your money. But be forewarned, trusting in authority is not a virtue in buying a business. And not having a background in buying and running a businesses makes you an easier mark in selecting a bad business in an industry that the buyer is not acquainted with. The consequences of being easily persuaded to buy bad businesses is that veterans can lose their house, surrender their possessions, and put tremendous financial tension on their marriage.

That would be a very poor welcome home for a soldier. Of course, one might get lucky.

Many veterans find their pensions being used to prop up abusive franchise relationships.

2 Responses to Franchising loves veterans because of their ability to get into debt

  1. Carol Cross says:

    United States Veterans are targets of franchisors who were instrumental in lobbying for THE PATRIOT EXPRESS LOAN INITIATIVE in 2007 –that was said to be for the purpose of honoring veterans but appears to be for the purpose of protecting the franchisors and the investors in the big and small franchise systems, alike, during the “now” deep recession.

    Obviously, this initiative was intended to stimulate the economy and insulate the large franchisors in recessions in terms of SBA loans to veterans and their families that would be 90% guaranteed by the Small Business Agency (the SBA).

    I have tried to WARN veterans since 2007 but my voice can’t be heard above all of those voices that push these SBA loans to the returning VETS and their families because they know this guaranteed loan money has been made available to them by The Congress and The Congress will continue to protect the franchisors and the special interests who will take advantage of the returning troops to protect their own bottom lines.

    Makes me sick at my stomach that the Congress of the US would target VETS who so often already have sacrificed so much for the principles and ideals of our democratic Republic. They even want to allow GI’s to use the GI Bill Education money to pay franchisors for training to become franchisees.

    The Congress of the US knows about the FLAW in the FTC Rule but does nothing to protect the VETS and their families. I believe in freedom of contract but not in the constructive fraud of inadequate, incomplete, and dishonest regulation that leads prospective franchisees to unknowingly invest their life savings in unprofitable franchises that have experienced high rates of failure of “founding” franchisees.

    http://thegreatfranchisingrobbery.blogspot.com/

    Like

  2. Les Stewart says:

    Carol,

    Couldn’t agree more. Les

    Like

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