Aspiring Entrepreneurs Beware of Franchise Scams – Franchise scams are now proliferating. They are offered to aspiring entrepreneurs, who are eager to start a small business. Filipino aspiring entrepreneurs should be wary of falling prey into this cheap franchise business that is bereft of much-needed logistical, promotional, advertising and other marketing support necessary to jump start a new business.
One of the most common heartache of a prospective franchisee is investing in a relatively cheap franchise business an in the end, is left holding an empty bag. After paying for the franchise fee, he is left on his own, bereft of the much-needed logistical, promotional, advertising and other marketing support necessary to jump start his new business. And the management system is not transferred to him.
A good franchiser should give its franchisee a good brand to start with, a tested business model, systems that are already proven effective and the logistical and marketing support that is critical in the survival of the business.
Even if the franchisee puts in less initial capital, he should avail of much-needed logistical, advertising, marketing and promotional support from the franchiser. He does not have to start from scratch, but rather, he starts with one with a proven tract record.