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Log In / Register | Apr 18, 2014

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.

Franchising Myth Three: Franchisees Own Their Franchised Business

Many franchisees consider themselves to be business owners. A franchisee might hire and manage employees, sign the lease on a store or restaurant, handle customers, keep the books and take home profits at the end of each month.

Franchisee Advocate to Testify Before the California Senate Judiciary Committee

The American Association of Franchisees and Dealers (AAFD) has signed on as a co-sponsor of California Senate Bill SB610, fair franchising legislation pending in the California legislature.

Franchising Myth Two: In Business for Yourself but Not by Yourself

Many prospective franchise owners are attracted to the concept of buying a franchise because they believe it combines the freedom of owning a business with the safety of a benevolent guiding hand. Franchisors cultivate this concept. The catch phrase of the International Franchise Association is “In business for yourself, but not by yourself!”