Franchise Buyers Lying On Forms

The Federal Trade Commission which governs the franchise industry thru the franchise rule, which enforces Franchise Disclosure laws seems to think that consumers need to be protected even when they lie. Often The FTC takes complaints from consumers who claim they had been ripped off or lied to from someone selling a Biz-OP or some corporation, which sells franchises. The Federal Trade Commission will not admit that at least two-thirds of the incoming complaints are made in falsehood by consumers; as a participant in the industry I can safely say that much misrepresentation comes from the buyers side and not from the sellers.

I would like to discuss the fact that many franchise buyers who have 2.2 kids, credit card and short term debt in excess of 150% of annual earnings, college degree, BMW, Mini-Van, will claim on application forms that they have excellent credit and cash in the bank in excess of the amount needed to start the franchise. Over 70% of the applicants who claim this cannot even get an additional credit card or buy a car without 0/0 financing option currently available. Yet they often say they have "X" amount of cash available when really they have nothing and many are about to lose their jobs, through downsizing, right sizing or their current employer filing for bankruptcy. You know the companies I am talking about.

Without placing judgment on the falsehoods and giving these consumers the benefit of the doubt (which they showed to not be worthy of), maybe they just do not realize that if they lose their jobs they will be out of money and pushing a Home Depot shopping cart with their remaining worldly possessions within 2.4 - 2.6 months. Many may not realize that the credit rating required for a small business of their own, franchise or otherwise, is higher than that required when buying a car with no money down. They equate their recent purchase of a car with zero down or a home with 2.5% down as having excellent credit. Even the SBA lendors will require 15% minimum and usually 25% and banks are a little sketchy right now on any new business. True franchises less than other businesses, but they are a little tough right now. Jeez, you would think it was their money, they are mere bankers. The bankers run potential franchise buyers around, they give franchise buyers answers like "The board will be meeting next week" or "Can you give us more collateral." Why? They already have 20% of it guaranteed by the government in the case of an SBA Loan and the entire business is on the hook including all assets of the newly formed company.

Many inquiring franchise buyers often state on an application form when asked how they will pay for this business; "with a small business loan." I cannot offer a franchise to someone with no money. That is a sure failure being undercapitalized in any business, franchise or independent. Therefore I do not offer the franchise because they do not meet our criteria. If they secure financing and can prove it then they qualify and then we can offer them a franchise. By giving them a UFOC we are in essence offering them a franchise. Our franchises are only available to people who are reality based and tell the truth. We cannot allow someone in our system who constantly exaggerates, lies or inflates his or her current net worth, borrowing ability, earnings or assets. Just like you cannot hire someone who lies on their resume, makes up degrees earned in college or accomplishments at the FTC, or do you? Remember in franchising, we are stuck with the franchisee for the remainder of the contract once signed and most franchises have automatic renewals for up to 20 years. If we get a bad apple in our system it hurts all the other franchisees and our brand name which in turn hurts all the previous buyers (consumers) into the system in sales, ROI, and amount they make if they transfer their franchise to a new buyer. We must protect those current franchisees who have been forthright and are team players as much as the rights of new buyers. The public (consumer) is not the innocent dupe that the FTC makes them out to be.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs

residential cleaning services Lincolnshire ..
In The News:

Friendly text conversations about BBQs and social events can lead to WEEX gold trading scams that target older adults with fake investment opportunities.
California company Skyeports creates self-healing glass spheres from Moon regolith that generate solar power and support plant growth for sustainable lunar living.
Cleafy researchers discover fake VPN streaming app Mobdro Pro that installs Klopatra banking Trojan, giving attackers full control over Android devices.
Police departments across the U.S. and Canada are adopting virtual reality training to better prepare officers for high-pressure, real-world situations.
House Bill 469 would prevent AI systems from owning property, serving as executives, or gaining legal personhood in Ohio under Representative Thaddeus Claggett's proposal.
Public voter records expose retirees' personal details to election scammers who create targeted cons using names, addresses, and voting history data.
Instead of fearing what comes next with artificial intelligence, think outside the box. Here are high-earning AI jobs that don't require a computer science degree.
OpenAI CEO Sam Altman says polite words like "please" and "thank you" cost millions annually, while direct prompts may improve ChatGPT accuracy by several points.
Chattee Chat and GiMe Chat exposed intimate conversations and photos, revealing users spent up to $18,000 on AI companions before the breach.
New Instagram parental controls allow families to manage teen screen time and content limits through the Family Center with stricter safety settings.
Third-party security breach at Discord exposes sensitive user information including government IDs, highlighting cybersecurity risks from external service providers.
Survey of 1,000 students shows teens using AI for personal relationships while two-thirds of parents remain unaware of their children's AI usage.
Cybersecurity experts warn about a ShadowLeak vulnerability that weaponized ChatGPT's Deep Research agent to steal personal data from Gmail accounts through hidden commands.
Tesla's Full Self-Driving system faces federal investigation following 58 reports of crashes, with six vehicles running red lights before colliding with other cars.
The Fox News AI Newsletter brings you the latest developments on artificial intelligence, with news on OpenAI moving to soon allow erotica for adult users.
Eric Schmidt alerts that hackers can reverse-engineer AI models to bypass safety measures, citing examples like the jailbroken ChatGPT variant called DAN.
Cybercriminals exploit Microsoft Teams through impersonation, malicious links and fake profiles to gather intel and deliver ransomware to personal and work devices.
Google, Dior, Allianz and dozens of other companies lost sensitive customer data in Salesforce-related breaches affecting millions of records across multiple sectors.
Apple launches iOS 26 with new Preview app that combines document editing, PDF annotation and scanning features into one streamlined iPhone experience.
New AI road monitoring system uses sensor-embedded fabric to predict infrastructure problems, potentially reducing maintenance costs and traffic disruptions for cities.
Holiday charity scams target retirees through lookalike organization names, untraceable payment requests, and data broker information to steal donations.
The Federal Trade Commission says criminals are posing as IRS agents, law enforcement officers or other officials, often over the phone or online, to steal thousands of dollars at a time.
AI phishing scams now use voice cloning and deepfake technology to trick victims, but Kurt "CyberGuy" Knutsson reveals warning signs to watch for.
Inversion Space unveils Arc, a reusable reentry vehicle that can deliver up to 500 pounds of cargo from orbit to anywhere on Earth in under an hour.
Red flags like processing fees, urgent countdowns and requests for full Social Security numbers expose fraudulent settlement sites targeting consumers.

Do You Need Accounting Software for Your Small Business?

If you're anything like me then you dislike with a... Read More

The End -- Fireworks or Fizzle?

Seems as though there are a lot of business closings... Read More

Big Successes Never Happen Overnight

Treat your business as a serious, full-time business and be... Read More

Setting Up as an Electronic Repair Authorized Service Center

If you plan to upgrade your workshop into an Authorized... Read More

The Game Plan ? The Difference Between Small Business Success And Failure

It is an American dream to own a business. But... Read More

Too Many Lawyers in Franchising Today

Attorneys and Lawyers are ruining the franchise industry. It is... Read More

Growing Your Small Business Through Alliances and Joint Ventures

-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More

Advertising - For Small Businesses (Part 2)

How to do itPeople skim through newspapers and magazines and... Read More

Franchise Territories are Generally Delineated On a Map; Why?

If you own a mobile service or home based franchise... Read More

Australian Workplace Agreements - How They Work For You

The employer / employee relations environment has been constantly evolving... Read More

Perception: What Are Your Patients REALLY Hearing?

Never underestimate the power of perception! Perception plays a major... Read More

Power Tools for Business

How do we keep track of our business deals?If you... Read More

Presentations and Sales Automotive Detailers

Many auto detailers fall short in their sales presentations. I... Read More

Three Ways to Add Leverage to Your Small Business

Remember those drawings from science class of how a lever... Read More

Batting Cages Business - Making Profits With The Swing Of A Bat

There is a Batting Cages Business for those people who... Read More

Proper Care and Feeding of the Business Owner

That sizzling sound you're hearing may be a symptom of... Read More

7 Tips To Improve Your Cash Flow

Cash is King?That is what everyone tells us and it... Read More

Effective Customer Interviews Make Life Much Easier!

One of the critical success factors for service-related businesses is... Read More

Small Business - Would You Still Need An Accountant If You Didnt Need A Tax Return?

After over thirty years advising small business it still comes... Read More

Explode Your Consulting Income

Here are just a few ways to increase and diversify... Read More

Shopping For a Franchise

Shopping for a franchise is easy if you know what... Read More

Discover How You Can Start Making Your Small Business Dream Come True

As a teenager I worked for my father's small business.... Read More

Pressure Washing of Paving Equipment and The EPA

Many pressure washing companies will be glad to take on... Read More

Environmental Boat Washing and Detailing

Some marine biologists feel that the concentration of dead marine... Read More

Comparing Boston Area for a mobile car wash business

The Boston suburbs seem to be rich with possible locations... Read More

best cleaning company Highland Park ..