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Article #20535

Re: I Need HELP with my Business

#20535
From: David A. Kaye
Date: Sun, 11 Jun 1995 00:00
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michaelj@crocker.com wrote:

: He has managed to harness the power of a franchise (you help
: people get set up in their own business and thereby earn a commission on
: all their volume) without the conventional risk.

So, has dad filed a valid franchise agreement with the Federal Trade
Commission?  Franchising is a big, tedious legal process involving lots of
checks and balances to try to keep franchisors honest.  By claiming your
dad is offering a franchise you are opening up your dad AND yourself to
serious federal fines if indeed it's not a franchise at all. 

Even so, a franchise is NO guarantee that anybody but the franchisor is 
going to make money.  Just think of how many Supercuts and Radio Shack 
franchise owners are essentially working for less than minimum wage after 
paying the 4-10% franchise fee off the top, the 5-10% "advertising" fee, 
and all the other fees which eat up profits in franchising.  

I'd advise to anyone thinking of answering such a post: get the franchise 
agreement in writing.  Contact the Federal Trade Commission and ask them 
about any legal actions pending against the franchisor for fraud, then 
see your lawyer and have her/him go over each and every sentence.  

--
(c) 1995                              Over 150 abandoned ships are buried
David Kaye                             under the streets of San Francisco
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References: <michaelj-1106951202300001@iplink104.crocker.com>

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From: dk@crl.com (David A. Kaye)
Subject: Re: I Need HELP with my Business
Date: 1995/06/11
Message-ID: <3rftk8$aek@crl7.crl.com>
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organization: Republic of San Francisco
newsgroups: ca.general