Evidence of franchise fraud can be found in court records.
Thousands upon thousands upon thousands of public court records document the issues I am discussing on this blog. Court records of win after win after win going to franchiSORS are evidence that what I am saying is true. Court records are public records and could be made available to the public. Cases could be consolidated and patterns could be documented to prove these points.
Theoretically speaking, those patterns could be publicly exposed and others would acknowledge the problems.
Theoretically speaking.
But how many people do you know who read long detailed reports trying to discern justice? Do Americans really have time for that?
And individual franchiSEES who have lost everything aren’t likely to get into the fray to tell their stories to help the public see what’s going on. FranchiSORS really care about their brands. It may be legal to publicize information that is available in public court records, but that doesn’t mean doing so is safe for franchiSEES.
The judicial system in America is really scary for parties with less money and power. And franchiSORS have more of both. FranchiSEES are well aware that if they tell their stories and prove what occurred using public court records, they might receive a “slap suit” for tarnishing the “good name” of their franchiSORS’ brand. Even if franchiSEES make true claims publicly, using court records to prove what occurred, they risk another lawsuit.
Besides, wouldn’t a franchiSOR just hire an attorney to argue that since the franchiSOR won the lawsuit the franchiSEE was in the wrong?
Plus, by the time most franchiSEES have lost everything they ever owned in court and have declared bankruptcy, they’re ready to try to rebuild their lives from scratch. They don’t want anything more to do with franchising. They don’t have any desire to tell their stories and compile court records that would risk a second slap suit.
Plus, money wins in the legal world. FranchiSEES could almost guarantee another loss — even in a slap suit — because they wouldn’t have the money to protect themselves adequately. I mean… most of them have been forced to declare bankruptcy, after all.
So… most franchiSEES move on.
And because most franchiSEES move on, the world goes on not really knowing about the fraud. The franchiSORS keep taking in their risk free investment money and expanding their brands even when the market doesn’t support the expansion.
And no one is any the wiser.
But…. you know… the fact that a Fair Franchise Act was introduced to the House in 2017 pretty much proves that what I’m saying is true.
The problems in franchising have already been documented and solutions have already been proposed.
It’s too bad the people taking in the risk-free investment money — the franchiSORS — lobby against them.
This is real even though most franchisees give up and stay silent.
