Have you ever watched “Cops,” or “On Patrol?”
Well, I watch both. Have for years. Here’s one thing I’ve learned:
If a guy gets pulled over for a traffic infraction, and he refuses to give the police officer his name, it almost always means there’s a warrant out for his arrest.
Like 99% of the time.
Keep that in mind as I share something going on in my business sector (franchising) that’s really troubling.
Be patient. I’ll get to the “warrant out for his arrest part,” soon.
Franchising: An Industry Where Lots Of Money Changes Hands
When I say a lot of money changes hands, I’m not just talking about what consumers spend in franchise establishments.
Wait. How much do they spend?
According to a study done my FranData, total output generated by franchised establishments in 2021 was $787.7 billion. That’s huge money!
But I’m not talking about consumer spend.
Instead, I’m talking about the buyers.
People looking to buy franchises, and the money they spend when they sign on the dotted line and become franchisees.
Hey-with an average investment of around $175,000, buying a franchise business is a big deal.
And if things work out well, today’s franchisees can earn a good living…and sometimes a great one. But here’s where things get dicey.
Franchise Sellers Make Big Money
When you buy a franchise, someone is making a sale.
That means they’re making a sales commission.
And if you found the franchise you purchased through a franchise “consultant,” broker, or “coach,“ that person made at least $20,000 just for referring you to the franchise company who ultimately sold you the franchise opportunity.
Now, if no outside seller was involved, the franchise rep at headquarters you worked with made around $5,000 or so when you signed your franchise contract. And?
Sales is a funny thing.
That’s because people who sell have the potential to make six-figure incomes. And potential income like that attracts all types of people. Some good. Some not so good. But there’s more.
The Selling Of Franchise Information Online
There are thousands of websites in the franchise space.
Some of them are owned and operated by franchisors
Some of them list franchises for sale.
Some websites include blogs (ahem) that provide extremely useful information on how to successfully research and buy a franchise.
Finally, there are websites that attempt to profit off the selling of specific franchise business information. And some of these do quite well, financially.
For example, there are legitimate looking franchising websites that provide franchise “reviews,“ like the one I talk about in this post. (A must read)
In addition, there are quality websites that only exist to inform would-be franchisees of potential bad actors in the industry. But there’s another type.
A Franchise “Expert” Website
There’s a brand new franchising website I found that offers “objective advice and expert info.” And?
There’s no website owner listed. It’s a franchise expert with no name.
That’s right. This “expert,” for whatever reason, has decided to not disclose his name or the location of his “office.”
Note: I know it’s a “he,” because a little birdie told me he saw him on a Zoom call. Anyway…
Why won’t this “former industry insider” not provide his name?
Does he have a warrant out for his arrest?
Is he a convicted felon who’s not allowed to participate in the sale of franchises?
Is he a franchise broker trying to be sneaky, so he can find some sucker to make a $20,000 commission off of?
And finally, who in their right mind would ever spend money with someone who won’t give his name out? Or spend anytime at all on his website?
What do you think?
Do you, like me, feel that anyone who owns and operates a business website needs to provide basic information?
Like the name of the person who owns it, the business location and a phone number to call?
Finally, I don’t know about you, but if a website I visit doesn’t have an “About” page that includes the name of the person who owns and operates it, I click away from the site in 1.3 seconds flat.
(For more tips, advice, and truth, I encourage you to signup for my free VIP Franchise Newsletter. It’s short and to the point.)