A must watch. — In this interview with Robert Purvin, author of  “The Franchise Fraud: How To Protect Yourself Before And After You Invest” Purvin discusses what makes a franchise system successful, and offers advice to prospective franchisees on what to look for when considering franchising. He stresses the importance of a good relationship between the franchisee and franchisor, and offers advice on how to avoid being taken advantages.

Accounting for one-third of retail sales in the U.S., the franchising industry promises great opportunities for reduced-risk business ownership. But buyer beware! The industry is rife with fraud and abuse, and too often the real story of franchising in America is one of broken promises and shattered dreams. And the saddest part of all is that victims of franchise fraud rarely have any effective recourse. Most laws designed to protect franchisees effectively shield franchisors from liability, while the rights of franchisees and licensees are all but ignored. In almost every case, the judicial attitude has been, “Nobody made you sign the contract”. Robert L. Purvin, an attorney specializing in franchise law and Chairman of the Board of Trustees of the American Association of Franchisees and Dealers, takes direct issue with industry claims that franchising per se is a safe and secure path to business ownership. Mr. Purvin helps you to avoid becoming a victim of the Franchise Fraud. He tells you what to look out for, what questions to ask, and what agreements to make before signing a contract. And he offers a detailed anatomy of the most common types of fraud and abuse including Illusory Promises: The promise of training, guidance, and various forms of support; No Way Out: Contract provisions that can trap you for life, making it impossible for you to ever leave the system; Rigged for Failure: How some greedy franchisors oversaturate the market, and worse, how and why many franchisors often deliberately rig their franchises for failure; and Caveat Emptor: Why franchisees who are customers of licensors rather than their distributors are usually victims. But the picture isn’t all dark. Robert Purvin also guides you to the best franchising opportunities now available, and tells you how to take full advantage of them. And finally, reminding us that franchisees outnumber franchisors by a hundred to one, he offers his game plan for bringing about a balance of power within the marketplace through collective bargaining. Whether you’re considering entering into a franchising agreement, or you’re already an established owner, this book arms you with the facts and legal savvy you need to put you on the track to success through the right franchise opportunity.

The AAFD is a national non-profit trade association representing the rights and interests of franchisees and independent dealers throughout the United States. The AAFD’s mission is to achieve Total Quality Franchising We do this by promoting fair and equitable franchising and dealer practices and empowering effective independent franchise associations.  We also provide members with programsservices and products which enhance their individual businesses and careers.