Speedpro System's Bogus Franchise Award, False Press Release

Beware of awards, even when they have a prestigious name attached to them, and especially when they are announced by press releases from the awardee.

Speedpro Systems issued a false press release on February 6, saying that the International Franchise Association awarded them a Distinguished Franchise Award. (See original blog.)

The IFA stated that Speedpro is not one of their members. No such award can be issued to a non-member nor has it been issued by the association. The IFA explained that it was an innocent misunderstanding by Speedpro and has asked Speedpro to retract the press release and to cease claiming the award.

"The release should be off the Canadian News Wire probably as we speak" said one IFA representative.

As of this writing; however, the CNW has no such retraction and the original false story remains.

So how did this false press release start? Well, here's the inside scoop about how easy it is to get franchise awards.

The IFA allows franchiser members to purchase certain awards with its name attached. One such award is the Franee Award. A franchiser can then issue the Franee Award to its outstanding franchise with the added authority and impact of being sanctioned by the International Franchise Association.

The IFA lost control of the issuing process. A supplier member, the Entrepreneur Authority, one of the members that consult or provide services to franchisers, purchased from the IFA limited ability to hand out awards with the IFA stamp. These awards are sometimes sold or used to entice sales prospects to become customers. The Entrepreneur Authority, a company that assists franchisers find potential franchisees, issued an award it labeled "Distinguished Franchise Award" with an IFA stamp to Speedpro.

Speedpro apparently did not realize that the award actually was issued by the Entrepreneur Authority and not the International Franchise Association. As a result of their name being bantered about with little control, the IFA will now not allow awards to be purchased and handed out by franchisers or suppliers (e.g. franchise consultants) without verification.

This blogger is going to check the accuracy of some of the other claims that were originally reported yesterday -- no franchise closures, efficient operations and innovative technology. Stay tuned.