In many states the franchise regulators are very sensitive about franchisor’s use of the word “success” in their advertising and marketing. If you are wondering why this is, it is because the regulatory bodies of most states that put up rules for franchising, are also part of the same division which regulates securities in their state. And they believe that the consumer should not be duped into thinking that their investment will be successful, or that they will automatically make money if they invest in something.
Interestingly enough, a franchise is not really an investment, such as buying a stock where you really have no control over what happens. A franchise is more like renting a business for the term of the franchise agreement, and thus, allowing you to use the franchisor’s business model, and brand name. Nevertheless, franchise regulators in most all states are quite sensitive when franchise system use the word success, or even make reference to potential success for anyone that buys their franchise.
Now then, in online business opportunities, some say 50% are scams, and no regulators seem to care. And in this new electronic digital age we find that a good number of business opportunities online make all sorts of claims, and the word success seems to be in every paragraph or more.
It seems that franchising, which has a higher success rate than most all small businesses, seems to be over regulated, when there is very little fraud involved because once the franchisor sells the franchisee a business, they are stuck in a marriage for the term of the franchise agreement.
Thus, there would be no reason for franchisor to scam a future business partner, because that would just lead to future litigation. Someone needs to rethink all these state franchise regulations, and their overbearing approach to marketing regulations. Please consider all this.
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