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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.

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.

Franchisee Files SEC Whistleblower Complaint against Domino's Pizza

350px-The_Office_of_the_Whistleblower(SEC)_SymbolANN ARBOR, Michigan – A franchisee, financially devastated through years of disputes and litigation with Domino’s Pizza (NYSE:DPZ), is now taking a new path in fighting against the publicly traded pizza giant. And this time he is doing it without an attorney.

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.

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 Issues Final Business Opportunity Rule

Man bridling his horse statue outside FTC building
'Man Controlling Trade.' Statue outside FTC Building.

WASHINGTON — The Federal Trade Commission released its final amended Business Opportunity Rule today, which will go into effect on March 1, 2012. The new disclosure regulation aims to lighten the federal compliance burden for business opportunity sellers and help their prospective buyers assess the risks. 

The Cleaning Authority Cleans Out Franchisee Retirement Fund

You can't kickback money to yourself, a court tells Cleaning Authority zees.

CNBC Documentary to Include BMM

On Wednesday, December 15th CNBC will air an hour long program, "Behind the Counter: The Untold Story of Franchising." I can’t recall any television program devoting this much time to the franchise industry.

Super 8 Barred From Imposing New Loyalty Program Fees

Under the FTC Franchise Rule, a franchisor is required to disclose in Item 6 of its Franchise Disclosure Document (FDD) all recurring or occasional fees associated with operating a franchised outlet.