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FTC Smacks The Entrepreneur’s Source over Buyer Deception

Terry Powell, founder of The Entrepreneur's Source talks about smart investing
Founder Terry Powell talks about franchise buying on YouTube

WASHINGTON, D.C. – While franchise brokerage/consultant firm The Entrepreneur's Source (TES) promotes its image as "helping people improve their lives," the Federal Trade Commission (FTC) found otherwise after launching an investigation into the firm's business practices regarding privacy and security.

SEIU Petitions FTC to Investigate Franchisors' Predatory Abuse of Franchisees

Man tames commerce, franchisee bridles wild franchisor
Statue in front of Federal Trade Commission of man taming the wild horse of commerce. photo/sniegowski

WASHINGTON, D.C. – The Service Employees International Union yesterday petitioned the Federal Trade Commission, the regulatory body for franchising, to launch an investigation into the $800 billion franchise industry on predatory abuses by franchisors of franchisees.

Does an Unclear FDD Indicate a Possible Disguised Franchise?

If you've recently decided to buy a franchise and are ready to start the process to owning your own business, then you are probably aware of the fact that one of the first documents that a franchisor should give you is a disclosure document.

Francine Lafontaine Appointed as Director of FTC’s Bureau of Economics

WASHINGTON – The Federal Trade Commission has appointed Francine Lafontaine as Director of the FTC's Bureau of Economics, succeeding Martin Gaynor, who is returning to Heinz College at Carnegie Mellon University. The Director supervises economic analysis at the Commission and advises the agency on economic policy matters.

Are Franchisees Agents of Franchisors?

Did you read that a federal district court in Utah recently found evidence that a Best Western franchisee was actually the "agent" of the franchisor? The evidence was based on the fact that Best Western had strict requirements for its franchisees, showing its ultimate authority.

ColorTyme Sued for Using PC Rentals to Spy on Customers' Private Lives

Franchisor Colortyme is alleged to have spied on its customers via computer cameras

A class action is being sought against ColorTyme and its franchisees for using DesignerWare spyware on people who rented or bought computers from them. The spying included taking web cam photos while customers were in the privacy of their homes, accessing communications and recording key strokes.

Ohio Passes Law to Protect Franchisees

COLUMBUS, Ohio — Ohio has passed a law that goes beyond many other states in its attempt to curb abusive franchising practices. The revised Ohio Business Opportunity Law protects the state's franchisees' right to sue a franchisor for false or untimely disclosure, ensures that Ohio law reigns supreme and attempts to safeguard that disputes be resolved in Ohio, not elsewhere.

Remembering Pioneer Tom Murphy of Continental Franchise Review

Franchise consultant and founder of the Continental Franchise Review newsletter Tom Murphy died a week ago last Saturday at age 93, after a short illness. Having known Tom for almost 30 years, I seldom imagined a time that he would no longer be a part of my life in franchising.

Real World Roadblocks to Regulation Change

There is no doubt in my mind that if none of the states required close scrutiny of initial registration disclosure documents, and some review of annual filings was not done [It's not.], the quality of disclosure to franchisees would deteriorate from pretty good to very bad.

FTC Sues Wyndham over Massive Credit Card Breaches

Credit card use

WASHINGTON, D.C. —  Last week the Federal Trade Commission announced it had filed a lawsuit against hotel chain Wyndham Worldwide Corporation (NYSE:WYN) and three of its subsidiaries for gross negligence in handling their guests' personal card information.