Comments on: Should I Buy a Franchise? Advice and Government Resources…

By: Michael Tunstill

Michael Tunstill — Sun, 06 Sep 2009 04:51:09 +0000

Good advice and franchising is a good business concept that makes excellent sense, especially for those who are considering become first-time business owners.
The downside is that franchises are expensive compared to starting up your own concept. You do pay for the added security they bring.
Another point, be aware when talking to existing franchisees, many of them will “talk it up” even if they are struggling themselves. The reason is they may want to sell out themselves and don’t want a bad name getting out

By: Franchise UK

Franchise UK — Wed, 03 Jun 2009 13:52:37 +0000

Very helpful article Tracy outlining what to look for and how to avoid the pitfalls and, unfortunately for the franchise industry, scammers out to make a quick buck at others expense while marketing it under the guise of a franchise. The beauty of a legitimate franchise is the proven system and branding which you have outlined well. Look forward to reading more on this subject.

By: Bill Perry

Bill Perry — Fri, 01 Aug 2008 06:26:23 +0000

I don’t mean to sound like an asshole here, but…
In general, your advice is good.
The agency that provides it is the FTC, not the FCC.

And, according to the law, Multi-Level Marketing and Pyramid Schemes are very different things.

MLM/Network Marketing is perfectly legal as the money you earn is based on sales and/or marketing performance.

Pyramid Schemes and related schemes are separated out by the fact that they offer commissions/bonuses based on recruiting.

The fine line here is that legitimate companies are not legally allowed to pay you for recruiting someone. They can give bonuses, in certain situations based on the NUMBER of people you recruit and sponsor and train. It is not legal, however, to pay you these bonuses from the money your recruits pay to get into the organization.

I’m sorry if I sound anal about this, it’s just that I’m very fed up with the myth that all MLM/Network Marketing companies are illegal.

If it were so illegal, why would “reputable” companies like AT&T use it?

Bill

Bill Perrys last blog post..Journaling 30-day-trial, day 30

By: Joel Libava

Joel Libava — Tue, 29 Jul 2008 19:38:43 +0000

Thank you Tracy!
I have written about the Business.gov website in the past on my blogs and on others that I am a guest author. I want to make sure that your readers know the difference between the MLM pyramid stuff, and legitimate franchises. They are not even remotely related.
Buyer beware! Some MLM companies are even calling themselves “franchise hybrids”.
Not.
Joel Libava
The Franchise King Blog

By: Tracy

Tracy — Tue, 29 Jul 2008 13:52:06 +0000

Thank you Amber, Shannon, and Jenna for your comments. We are striving at Business.gov to help small business owners get quality AUTHORITATIVE information for their business from across government (all federal agencies as well as state and local governments).

By: Jenna

Jenna — Tue, 29 Jul 2008 13:41:59 +0000

It’s definitely a risky venture. Nice post — very informative and helpful! Thanks!

By: Shannon (a.k.a. Believer in Balance)

Shannon (a.k.a. Believer in Balance) — Mon, 28 Jul 2008 19:14:24 +0000

It's so tough deciphering what's legitimate or not. Thanks for the resources to help figure that out! Shannon (a.k.a. Believer in Balance)s last blog post..Work Life Balance Quotes from Famous People: Volume 1

By: Amber

Amber — Mon, 28 Jul 2008 18:14:40 +0000

Thank you so much for the FCC resources. I know a few people right now who are tinkering with the idea of joining a pyramid scheme.

There are real franchise opportunities out there– but like you said, the trick is weeding out the scams.

Ambers last blog post..DIY Wants To See Your Ugly Yard!