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Internet Franchising: Fake Franchises

franchiseScams 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 clients 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 client 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.

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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