What is a Franchise
The franchise is a business model which is operated and owned by an individual, which is called as Franchisee, but that is promoted and branded by a national or multinational company. This outstanding business model allows both franchisee and franchisor to gain the full advantage to set up their successful businesses model.
What is a Franchise Fraud
‘Fraud’ is a very harmful word. People are averse to frauds. Generally, they don’t use to hear and speak about this word. You must be having a deep knowledge about the franchise which is you planning to buy or invest. You must be aware of the differences between a good franchise and a bad franchise.
Burgeoning businesses franchise has provided different ways of fraud by boosting their fraud franchise companies. These fraud franchisors exploit on the flourishing franchise by building their dummy brands and shoving through the start-up franchisees by their slick talks and false promises. They used to attract ambitious entrepreneurs to join them and motivate them to invest money in their franchise by providing deceptive information about the company. They promised the entrepreneur’s unlimited leverages, profits, and probable earnings without delivering anything. So, you should beware!! and must review the below facts before going to invest or buying any franchise.
Unrealistic Profit
If you are an ambitious entrepreneur, you must assemble adequate information about the brand in which you are deciding to buy or invest in the franchise. Detailed research must be done to know all about the company and its total no. of franchisees, brand value, and the other expectations of the brand. It is possible to achieve this by speaking to other similar franchisees or other similar businessmen in the field.
Guaranteed Benefits
Any franchising brand used to offer many incentives in terms of a well-recognized, training module, brand name, and support to its own franchisees. But, a fraud franchisors will never give you any guarantee of enormous returns and success if you have invested.
Money Back Guarantee
Any successful franchisor will never offer you the guarantee of your money back. Rather, he would like to collect the franchise fees and will provide to his franchisees with the various provisions and aids to confirm the success of the franchise.
Nerve Wrecking Pressure
There might be a constant follower who is following you to convince to investor buy his franchising by providing enormous offers and benefits. You should not invest your money in a franchise brand without having complete information on it. For more details click here Business Opportunities in Chennai
