It seems completely absurd that franchise buyers lie about their financial position, available cash resources and capabilities to purchase a franchise. After spending 8 years setting up franchises around the nation and fielding questions, I am appalled at the lack of integrity of the average business buyer. If you are wondering why franchisors make franchise buyers fill out forms and ask lots of questions, it is because 75% or more of any franchise demand for a franchise business is misrepresentative of their reality. A franchise opportunity seller should beware of franchise buyers lying on forms.
Why do we need laws for franchise companies and yet nothing for franchise buyers or investors? It is appalling lack of integrity of the average American investor or in this case a franchise. Some of these liars wasting our precious time as the fraudulent forms a lie picture of their financial ability and business acumen. They should be thrown in prison.
Well, I think I really went off on the franchise buyers. At the time of this statement in 1999 I had just hung up on four franchise buyers that week, feeling hopeless to further conversations with someone inquiring. Was not all franchise candidates or potential buyers were true, many were competitors and even some believe it or not worked for the government as entrapment phone solicitors. A later we met was a 26 year old gay lawyer working for the Federal Trade Commission, after my visit to the FTC office in Washington DC, starred at my backside all the time?
We work very hard and franchisors can usually help a franchisee in a very small business of their own position, but we need clear answers, as their true financial picture. If we make a song and dance about how much money they have, and then we can begin the process only to discover that they really do not have as much as they said we have a franchisee who just can fail due to the lower capitalized.
The most common reason small businesses fail questioned repeatedly by the SBA, Small Business Administration and other groups is the fact that the company was under captialized. If we franchise buyers who want colorful brochures, great, but close to us. Tell us you just want someone to tell you, you're amazing and you just want someone to yell at due to your personal frustrations. If you have little money, that is, there might be a plan to help you along. Then after that is over we are serious about winning market share and having all game plan carefully can be constructed. I doubt that the U.S. military wants to fight a war with generals not bad information, pilots who do not follow orders, Navy Seal Teams that untrained, an intelligence that is lying or allies who are actually hostile and full of misinformation. To win a war you have in franchising mostly on the same team, from the beginning. It is necessary that each one understands each other targets in order to win.
Franchise buyers who want to be compared to their future business partner to finish vent fury of their previous company downsizing and tyrant boss should wait until they have better understanding of their current situation and ready to assess why they are where they are, before argumentative they are trying to buy a franchise. A franchisor who put up with such nonsense has no business franchising, because that franchisor is clearly only for the money and that short-term attitude will in the long term win-win partnership needed to dominate kill the market. A franchisor may not like that in the franchise business. Franchisees who do not lie from the beginning are good team and when that bond is broken integrity can not be more confident. Advice, if you are going to buy a franchise are upfront and honest with your future business partners, idiot. Think about it.
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