Combating fraud in franchising
If you are not entering into a franchising partnership with the right kind of people, franchising can be a fraudulent business. There can be false promises and the misrepresentation of earnings can be just one of the fraudulent areas that could affect your business.
Here are certain factors which, when taken care of, can avoid fraud in franchising:
• Get a valid assurance from the franchisor as to how much can be earned from the franchise • Clear demarcation of the responsibilities of the franchisor and franchisee • Be careful and check if there are any loop holes in the agreement • Use a lawyer to check the terms and condition • Check the litigation history and make sure that the company’s track record of managing their franchise business is clean • The franchising code of conduct should be upheld and adhered to
A safe and secure framework for franchising is highly essential for you to make the best of the franchising business.