International Law

What can You Learn at Franchise Exhibitions?

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Jason Gehrke, writing at his blog at Smart Company, has some interesting but incomplete ideas about getting value from attending a franchise trade show.

First, there is an interesting idea.

"Take your spouse/partner/significant other.

Even if one of you will be the driving force behind any future business investment, it is more than likely that the assets of BOTH of you will need to be staked to finance it, so the decision-making process should involve both of you from start to finish."

This is good advice.  Couples, even if one is going to be the silent financial partner, should discuss the opportunity in full.

But there is a catch.  See if you can spot it.  Jason also writes:

"Beware the glib sales pitch.

The smoother the pitch, the rougher the ride could be as a franchisee afterwards.

You are not buying a household appliance or some other low-value item that can be replaced under warranty if it doesn't work.

You are buying a business investment, a financial relationship with a business partner (the franchisor) for a number of years and which involves a contract full of obligations you must be prepared to accept.

Buying a franchise is not like buying a toaster or a fridge, so a different approach should apply.

If you feel the sales approach is too strong, then walk away."

I will absolutely guarantee you that if both husband and wife here a glib or smooth pitch, and one of them falls for it, it will be next to impossible for the other person to talk his or her partner out of the upcoming financial disaster.

In my experience, virtually every franchise fraud or business opportunity fraud, the individuals who were engaged by the lies had a very uneasy feeling about the opportunity - but were powerless to ignore it.

Full post as published by Misleading Advertising Law on July 29, 2008 (boomark / email).