Franchise Expo Gives Chances to Buy Jobs

Los Angeles television station KABC reports that some attendees of the West Coast Franchise Expo seek relief from today's high unemployment numbers by buying a franchise.They want to buy a business in order to find permanent employment. Guided by bad information from franchise salespersons and obviously little due diligence, some buyers are about to get themselves in big trouble.

"From the research I've done, about 10 percent of franchises fail, as opposed to if you're on your own, it's probably close to around 70 or 80 percent that I don't make it through the first five years, so the odds are a little bit better buying yourself a job through a franchise," says David Dreyer, an expo attendee.

Buyer Dreyer is confused on franchise failure rates. He's about to make a serious business decision, where he could incur hundreds of thousands or millions in liability without even understanding what he's gotten himself into or how deep.

Even KABC knows better. It ends its article, "Of course, the business world is littered with franchises that have failed, but with jobs so scarce these days, more people are looking to own their next career and hoping it will take off."