Franchise Warnings and Avoiding Franchise Scams

If you are thinking about buying a franchise, there are many opportunities in a variety of industries that you may find suitable. However, like everything else in life, while searching for the right franchise for you to buy you need to be on the lookout for potential scams when buying a business. You will have to be wary of these scams while searching for your perfect franchise opportunity, and take precautions so as not to fall prey to them.

Avoiding a franchise scam is the best defense against losing your investment to an unscrupulous franchisor. Here are some red flags that may indicate you are dealing with a potential scam artist:

PFA Confident of a Positive Economic Outlook for 2010

With opportunities in tourism, business process outsourcing (BPO), and agriculture as possible areas of growth which the franchising sector can explore, there is so much room for growth in franchising, added Orbeta, also the president of Wendy’s Philippines.

Interest in franchising as an investment option continues to be robust. The record number of visitors in the Philippine International Franchise Conference and Expo (PIFCE) 2009, for instance, is a tangible proof: 25,000 visitors up by 12 percent in 2008.

Moreso, players in the franchise arena, traditionally dominated by professionals and retirees, now include newly graduates and OFWs.

PFA and DTI Commited to Act vs Franchise Scams

The Philippine Franchise Association (PFA) renews its commitment to work hand-in-hand with the Department of Trade and Industry (DTI) in curbing illegal franchises that are victimizing aspiring entrepreneurs and would-be franchisees.

PFA and Wendy’s Philippines president Yvette Pardo-Orbeta underscored the importance of exemplary business ethics as an integral part of running a successful franchise enterprise. "In PFA, members are bound by the Fair Franchising Standards (FFS) which provides a framework for the implementation of best practices in their respective franchise relationships," she noted.