Internet Franchising: Fake Franchises
Scams keep getting recycled offline and online. We’re seeing an increase in franchise flopportunities being offered by Internet marketers. “Franchise” is a buzzword that converts because customers think they’re buying something tangible like a McDonalds® restaurant.
In reality, what’s being sold is yet another get-rich-quick biz opp. The only repackaging that’s occurred is that the customer is promised exclusive territorial rights for the Internet biz opp.
From a business standpoint, these offers are a joke. Buying the exclusive rights to use Ima Guru’s web design methods in Los Angeles? You’re paying for an overpriced info product and there are plenty of web designers who will compete with you for business.
From a legal standpoint, the “franchise” probably isn’t a franchise. Why? The Internet marketer has done absolutely nothing to create a legal franchising system.
Two quick ways to tell…
1. Ask the “franchisor” for a copy of his franchise offering circular.
2. Ask for proof that the “franchisor” has qualified to do business in the state where the territorial franchise is located.
To date, no Internet marketer I’ve asked has provided either. In short, these franchises are scams.
About the Author
With an advanced international law degree from Georgetown University and more than 15 years of real world legal experience, Attorney Mike Young is President of the Internet Ethics Council and creator of Website Legal Forms Generator software. He helps entrepreneurs protect and grow their businesses online.
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Mike, Terrific job on this. I am sooo glads that I am not the only one that reports on these scams.
Using the word “franchise” in a crappy MLM offering is wrong.
The Franchise King
Joel Libava
Thanks, Joel. Let’s keep the scam artists on the run.
Best wishes,
-Mike
Yes Mike.
MLM and Franchising are like salt and pepper.
JL