False Franchising Numbers

The Bizop News:

Jim Coen, who writes a very nice franchising blog Let’s Talk Franchising, had a good comment on my earlier article about Franchising being a Con.

I am going to reprint it all because Jim makes some excellent points about bogus numbers used by franchise brokers to sell dubious systems.

Jim writes:
“I don’t agree with Les Stewart that the concept of franchising is a con or fraud.

But I do believe that many people in franchising are cons and frauds.

Some of the con and fraud in franchising is based on misrepresentations, that just because it is a franchise it is a safe investment. I believe these misrepresentations contribute to Les’s con/fraud theory.

These misrepresentations just bug the hell out of me. I first wrote about it back in 2006.

Those bogus statistics seemed to go away after that article. Well they are back in full force all over broker websites:

I have never been able to substantiate any of the statistics below or find the study where they came from.

Here are the most Bogus of the claims…