Nobody gets paid when the investment answer is “no” or “not yet”

Until quality matters, honesty does not pay in franchising.

Creating a demand for investor discernment is what regulation does and the only valid reason to have a civil service.

Publicly mandated membership :: privately-run revenue streams.

Make franchising a license-able activity, please.

One Response to Nobody gets paid when the investment answer is “no” or “not yet”

  1. Carol Cross says:

    IF franchising were “license-able” the franchisors might have to prove that they were selling something of value in order to get a license!

    Obviously, the whole idea of not licensing franchisors who are selling intangibles to the public is to permit them to sell franchises that may have value for only 50% more or less of those who invest in franchises! –without revealing these bad odds.

    The FTC Rule in the US just pretends to make franchisors disclose material risk factors but in reality, the FTC Rule and the State Franchise Disclosure Documents act to protect franchisors from the silent fraud of failing to disclose the UNIT financial performance statistics of the franchise they are selling.

    The crock of doing “due diligence” on what is required to be disclosed under US federal and state law and the cooperation of all three branches of government in our democratic free Republic has produced the most successful “confidence game” -perhaps – in the history of Capitalism.

    If franchisors had to be licensed under the law, it might spoil the confidence game.


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