Bernard Madoff and Franchising

Bernard Madoff has apparently pulled of the largest scam so far in the history of investing. A ponzi scam that spanned 30 years and has apparently cost many charitable organizations and so-called "sophisticated investors" 50 BILLION dollars. Folks that had worked hard and saved all of their lives lost everything to a man that to all appearances was the best of the best in investing. What does Madoff's scam have to do with franchising? I submit that the answer is that all of those that lost money in the Madoff affair were guilty of the same thing: They did not do any due diligence on their investment. This is the same reason that many franchisees lose their life savings to franchising. Madoff would not take "just anybody". He made folks literally beg to get into his good graces, and become a part of his "exclusive" club of clients. The next time you see a franchisor that makes the statement that "we don't sell franchises - we award them", think of Bernard Madoff. You might just avoid losing all of your life savings.