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Log In / Register | Dec 20, 2014

Buying a Franchise is Riskier than Ever

risk, high wire walk in owning a franchise

Critics, including this journal, say that buying a franchise is riskier than ever, that the reality of the franchise system is often purposefully and skillfully hidden and that it is easier to fail nowadays once you plunge in.

California Senate Sends Fair Franchising Bill to Gov. Brown

Sacramento dome from the inside
Inside view of Sacramento capitol dome. photo/KatieCarr

SACRAMENTO—The California state senate voted 23 - 9 late Thursday in favor of SB 610, a bill that strengthens franchisor good faith relations with franchisees. It is now ready for Governor Jerry Brown's signature to become law.

Franchisees Win in California Assembly!!

Sacramento capitol dome
Sacramento capitol dome. photo/thomas hawk

SACRAMENTO – California's assembly voted Thursday morning to pass a bill that aims to strengthen good faith and fair dealing between franchisors and franchisees. The final tally was 41 ayes and 27 nays.

Australia Asks: Franchising, a License to Print Money?

McDonald's has licensed franchises in Australia. photo by BMMThe Australian Broadcasting Corporation radio show Rear Vision interviews San Diego-based Robert Purvin, author of The Franchise Fraud: How to Protect Yourself Before and After You Invest, and Sydney-based Jenny Buchan, author of Franchisees as Consumers.

Franchising Myth Seven: You Lower the Cost of Doing Business through the Power of Group Purchasing

The myth that owning a franchise guarantees to lower your cost of doing business due to the synergies of group purchasing that will benefit the entire franchise network is, quite sadly, the most recent addition to the Franchising Hall of Shame.

Franchising Myth Six: Many Franchises Means Critical Mass of Market Penetration

Too many prospective franchise buyers I know assume that a franchise is successful because it is “big enough” to sell franchises or because it already has hundreds of franchises in operation.

NFIB Announces Support of California’s Fair Franchising Bill

SACRAMENTO—The National Federation of Independent Business announced on Friday that it is supporting California's Senate Bill 610, a fair franchising amendment to California's existing Franchise Relations Act.

Franchising Myth Five: Franchising Provides a “Proven Franchise Business System”

Franchising provides a "proven franchise business system" is a myth I hear from prospective franchisees all the time.

Franchising Myth Four: The Typical Franchisee Gains a Valuable Brand Asset

Let's play a little game. Review Blue MauMau's alphabetized directory of franchises. HERE is the link. Take a few minutes to browse and then ask yourself how many companies you recognize. When you're done, come back to this article.

Are Franchisees Well Informed? Revisiting Franchise Relationship Laws

Are franchise owners really well informed? Law professors Robert Emerson and Uri Benoliel say no and that there is a powerful case for the need to protect franchise owners from franchisor opportunism.