International Law

Killer Pre Investment Due Diligence

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Richard Solomon, writing at his website, Franchise Remedies, has a useful article about some of the problems with pre purchase investigation for prospective franchisees.

"The hoards of potential investors with access to over $ 500,000, coming out of downsizing companies and merger resulting reductions of work forces, have brought sharp practitioners to the small business opportunities field.

These phony franchise opportunities masquerade as real business prospects, using the same descriptors as the legitimate franchise opportunities.

They claim to be proven concepts; to have name recognition; to have buying power; to be able to reduce start up expenses; to have site location expertise; and numerous other advantages that a legitimate franchisor might use to describe what it is offering."

Learn why talking with franchisees is not useful.

Learn why you need more than a general business lawyer.

Learn why the FTC doesn't protect your investment.

Learn why you don't want a lawyer to read the contract for you.

Most of all, learn about franchising.

Full post as published by Misleading Advertising Law on February 18, 2009 (boomark / email).