Lollipops for Suckers or for Winners? --in Paris

French franchisors really captured the regulators! They only have to report to the public the status of their Network for a period of one year. They can really spin and win and turn and churn and pump and dump to attain visibility on the backs of franchisees.

These Big Shows with all the hype gather the cheap venture capital and the cheap labor of franchisees who are hopeful that they will realize their dream of a business of their own by becoming a part of the "adventure" of the franchisor. The franchisee, of course, doesn't realize that they will take all of the risk to go on the adventure --that they will provide cheap labor AND the capital to finance the adventure.

I had to laugh! Those consultants who help the franchisors to franchise their business concept loundly proclaim that "the entire process can be accomplished with no financial risk on your part" and they indicate to the franchisor that "your share of the program becomes a valuable, marketable asset."

Franchise contracts are written with the view of securitizing the franchise agreements if the adventure takes off. Even the Landlord gets to securitize the lease of the franchisee if he is so inclined.

Those clever rascals! Franchisees of the World! Unite! Spread the word! Buy your suckers wholesale; suck them at home! invest in your "own" adventure if you must and really own a business of your own.

A franchise is a wasting asset because of the finite terms of the agreement and you OWN only your debt, while the franchisor owns you lock, stock, and barrel under the one-sided, exploitive franchise agreement. Franchise contracts always contain disclaimers from the franchisor that there will be success and profits for the investor franchisee while at the same time, franchisors hold up a success right before the potential franchisee's eyes and use the carrot of success and profits to lead the mark to sign the boilerplate contract. Make the franchisor prove the success by asking him/her what happened to all of the other investors in their concept and then make them prove it. Get it in writing!

LET THE BUYER BEWARE! Read NOLO in Forbes.com "Ten Good Reasons NOT to Buy a Franchise" and believe it!