New Yorker Defrauds Franchisor Wannabes

A New York man has plead guilty to conning small business owners out of $200,300 in their franchising efforts.

[Alan] Feifer, who is from Airmont, N.Y., ran Robert Ames Business Development Company and Innovative Franchise Systems. Prosecutors say Feifer created documents with false statements in them and mailed them to business owners between 2003 and 2006. As part of the misrepresentation, Feifer would tell business owners he could find a buyer of the franchise. [via BusinessWeek]

Small business owners are hungry for cash to expand their enterprises. Having franchise owner-operators pay them to expand their brand is so very tempting. But not as tempting as know-nothing franchisor development consultants that know enough to smell blood and franchising naivete.