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TELL THE AFA The American Franchisee Association (AFA) receives numerous inquiries and comments via our website. Here’s what a recent guest to the AFA website had to say about our published list of “Problems Franchisees Face:” “I read your list of “Problems Franchisees Face.” You are missing several important points. First, Misrepresentation – Franchisors fabricate information regarding the success (and failures) of its franchisees in its documentation, including the UFOC information. Franchisors hide information regarding closed and bankrupt locations pretending they never existed. Second, Prosecution – Lawyers are very expensive and are not interested in representing a single franchisee because there is not enough money involved. The FBI considers franchise fraud to be a civil matter. The FTC ignores franchise fraud if the franchise agreement was signed. However, the fraud is often discovered after becoming a franchisee.” “There is no real avenue for justice and the franchisors know it. They openly lie, cheat and steal with immunity and every agency tasked with catching white collar criminals are passing the buck. This is the real flaw in the system. We know these franchisors are breaking the law, abut nothing is being done about it. These two issues—misrepresentation and prosecution—feed each other. There is no consequence or prosecution for misrepresentation, so franchisors are empowered to increase the amount of misrepresentation.”
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AFA Enews - August 13, 2004 - Volume 2 Number 4 |
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American Franchisee Association |
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(312) 431-0545 |
