Tuesday, September 5, 2023

Franchise Fundamentals: Reducing the risks – and reporting if things go awry

Consumer Alerts from the Federal Trade Commission

By Lesley Fair

We've all heard the adage "Proper preparation prevents poor performance." It's been attributed to everyone from Vince Lombardi to Secretary of State James Baker. As we've discussed in the first four installments of our Franchise Fundamentals series, proper preparation – including a thorough pre-commitment investigation into the franchise – may help reduce the risk of painful problems later. But what if a franchisee is concerned that a subsequent business breakdown could be due to a franchisor's precarious promises? Report it to the FTC through a dedicated link just for franchise issues.

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