Franchise Fraud: How to Protect Yourself Before and After You Invest [Hardcover]

Robert L. Purvin (Author)

Book Description

Publication Date: April 1994

A primer on the promises and perils of franchising.

Now in paper! It's big business, accounting for one-third of America's retail revenue. But franchising is still a risky proposition—at least for the franchisee. This resource exposes the frauds and abuses too many companies perpetrate on their franchisees—everything from unfulfilled pledges of promotional support to oversaturating the market with outlets. It helps potential franchise owners avoid being victimized by explaining, in specific detail, what to look for, what questions to ask, and what agreements to make before signing a contract. Robert Purvin also reveals how to identify and take advantage of the worthwhile franchising opportunities available today.

ROBERT PURVIN, JR. (San Diego, California) is an attorney who is an expert on franchising and franchise law. He is Chairman of the American Association of Franchisees and Dealers.

Editorial Reviews

From the Publisher

Explores the frauds and abuses companies perpetrate on their franchisees--everything from unfulfilled pledges of promotional support to over saturating the market with outlets. Helps the potential franchise owner prevent the possible abuse and victimization by explaining what to look for, what questions to ask and what agreements to make before signing a contract. Also gives advice on how to isolate and take advantage of worthwhile franchising opportunities.

About the Author

ROBERT PURVIN, JR. (San Diego, California) is an attorney who is an expert on franchising and franchise law. He is Chairman of the American Association of Franchisees and Dealers.

Product Details

• Hardcover: 304 pages
• Publisher: Wiley; 1 edition (April 1994)
• Language: English
• ISBN-10: 0471599476
• ISBN-13: 978-0471599470
• Product Dimensions: 9.5 x 6.4 x 1 inches
• Shipping Weight: 1.3 pounds
• Average Customer Review: 4.8 out of 5 stars  See all reviews (15 customer reviews)
• Amazon Best Sellers Rank: #411,180 in Books (See Top 100 in Books)
  • #15 in Books > Business & Investing > Small Business & Entrepreneurship > Franchises
  • #46 in Books > Business & Investing > Small Business & Entrepreneurship > Retail Businesses

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

28 of 29 people found the following review helpful:

5.0 out of 5 stars They'll hate you for reading this., September 11, 1998

By A Customer

This review is from: Franchise Fraud: How to Protect Yourself Before and After You Invest (Hardcover)

This book is about the business of selling franchises. It's about how the franchise sellors make money by selling, and by collecting fees, from the work of others. It shows you how they support this money machine with minimal risk to themselves and maximum risk to you. All they want to do is collect your money and have you either go away, be hog tied by their contracts, or be shut up by their laywers. It is not about how this industry is set up for your benefit.

I bought this book because I was thinking of getting involved a franchise. I had reasonable amount of money to spend and they all seemed to love me. At least untill I started using the information in this book. Somehow they all drifted off. Alas! Alack! Was it something I said? More like the things I wanted to know first.

This book will teach you how to protect yourself before you invest. It highlights the hidden holes in contracts, informs you about the one sided (not yours) legal system of franchising, and bluntly points out how you're on your own. I'll bet you didn't even know that they're not required to give you information on failure rates, or, how they're calculated.

Ask them the hard questions contained in this book. If you get good answers to your questions, and they're still around after you get them, find me.

25 of 26 people found the following review helpful:

5.0 out of 5 stars Truly outstanding, July 4, 2002

By 

Ari Good "Ari Good" (Naples, FL) - See all my reviews
(REAL NAME)   

This review is from: Franchise Fraud: How to Protect Yourself Before and After You Invest (Hardcover)

The most intelligent and well reasoned business book I have read in a long time.

As an aspiring entrepreneur, and like many others, I considered purchasing a franchise as one possible route to business ownership. Not having owned a business previously, I figured this could be a lower risk way to learn about business through the benefit of a pre-existing, "proven" business method. For the price of the franchise, I would enjoy a symbiotic, cooperative relationship with the franchisor, for a cut of my revenues in exchange.

In short, I was prepared to buy into the franchise fraud.

Robert Purvin knows his subject. He spent the better part of his career as an attorney representing franchisors. With so colorful a title, I was expecting a rant against franchises in the broad language of most business books.

I was pleasantly surprised. Mr. Purvin, in summary, details the many ways in which franchisors, well with the law as it currently exists, target and bleed their middle class franchisees. With citation to court cases, government publications, and other authoritative material, the autor picks apart the myth that "95% of franchises are successful". He details the powerful legal and contractual methods through which many franchisors, far from helping and coaching their franchisees, use franchisees' capital to test unproven markets, saturate existing ones and take over the cream of the crop.

Not wanting a single book to shape my opinion, I confirmed with actual franchisees their opinion of the industry. Their complaints read like a checklist from the book. Needless to say, purchasing a franchise has sunk to the lower rungs of my list of opportunities.

Don't get ripped off. Buy this book.

8 of 9 people found the following review helpful:

5.0 out of 5 stars A " MUST BUY" if you are thinking of a franchise., April 22, 1998

By 

G. H. Goodwin (Near Cleveland, OH) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: The Franchise Fraud: How to Protect Yourself Before and After You Invest (Paperback)

This book delivers all that is promised on the cover. Mr. Purvis is the devil's advocate for franchising. Written in clear, standard english, this book will open the eyes of anyone who has touched the franchise sales frenzy currently in vogue. Read the publishers notes/review that are available in this database. THEN BUY THIS BOOK. If you decide you don't need it; "Caveat Emptor".