Convention Bureau Executive Warns on Franchise Schemes

On Monday following the Denver Franchise and Business Opportunity Expo, The Coloradoan news website ran an article by Jim Clark, executive director of the Fort Collins Convention & Visitors Bureau, warning readers of the risks in purchasing a franchise. In the editorial, he tells of his own experience in buying a franchise in another state, not knowing that the success ratio of the concept was zero. Clark cautions that before you put your money down be sure it is a proven system. 

Here are excerpts from the article:

"I've been waiting for a downturn in the economy to address this topic. When people get laid off, downsized or receive early retirement packages, for many, it's not time to retire. These folks might love where they live (like all of us) and begin looking for small-business opportunities. While many great companies and businesses are born in recessions, I'm here to give you a warning: Beware the franchise salesperson.I say this from personal experience, as I lost the family inheritance on one of these deals. It sounds so easy: Place a fee with this firm (mine was a floor and window-covering franchise), and they'll train you and give you the tools to start a successful business.

Clark says that in every case like this, the story is the same. He writes

"In every case like this, the story is the same ... it's your fault, the franchisee. You either didn't follow the system, didn't make enough sales calls or (this one is my personal favorite) you need to invest or borrow more money to make the business work, expand, buy more locations, etc." - Coloradoan.com