The Franchise Fraud: How To Protect Yourself Before And After You Invest Paperback – April 23, 2008

This book is an absolute eye opener. Mr Purvin is doing an incredible service to would be investors in franchising. It is obvious the franchising industry is extremely one sided. A lot needs to be done to make laws that are equitable and fair. It is amazing that even in a country like the USA a huge number of franchisors are able to get away with exploitation of investors. Lawmakers need to wake up to this and do what they have been elected for. I read some other books on franchising before I read this one. They do not even come close to offering the advice offered in this book even though they had very good reviews on Amazon.com. They seem to be written by franchising consultants that I wonder are really looking out for their readers.I would like to thank Mr Purvin for the very important job he is doing.

Bob Purvin has been a friend and colleague for nearly 20 years so I am biased, but his Franchise Fraud book, which I first read long ago, remains in 2015 the single best book for anyone looking to buy a franchise, to do so with their eyes wide open. And of course there is a strong element of self-selection here. A prospective franchisee that makes a minuscule investment of dollars and a small investment of time in reading Bob's book is much less likely to ever become a fraud victim. The reverse is true as well, sadly enough. Keep it going, Bob. Looking forward to the next edition.

I have been investigating a variety of franchises, and it can be time consuming. The franchise disclosure documents are typically several hundred pages long. During that process, I started to realize that the franchise contracts all seemed to be very similar in content,and extremely one-sided in favor of the franchisor. I began to feel like there was no way in h@ll I was going to be able to sign one of these contracts. I went online to find out if I was wrong, or right about what I was detecting in the contracts. That's when I learned about the existence of this book.The book confirmed exactly what I was feeling, and added a lot more important information which I didn't know. One significant bit of information was that the often repeated statistic about the relative success rates for start-up businesses, compared to franchises, is completely bogus. Franchises have a very high rate of failure, as do the Franchisors themselves. The method of gathering the data used for the statistics is extremely flawed. It's a bogus statistic.There are two significant flaws with the book, which is why I only give it 4 stars. But I still recommend you buy it.1) The book was originally published in 1994. It was apparently revised in 2008, but there is very little evidence of that. There are many, many examples in the book where is says something like "by the year 2000, it is expected that blah blah blah". That being said, when comparing the content of the book, to my current experience in investigating a variety of franchises, I would have guessed that the book was written last year. The problems in the franchising industry are still very prevalent, and perhaps worse now. The book tells you why that is.2) The book is extremely redundant. The author could very easily have communicated everything he needed to say in a book that is 1/4 as long as this one. He goes over and over the same territory. But, that being said, I still recommend that you wade through it, and gain the critical knowledge it contains.

If you are considering buying a franchise, you must buy this book. It will inform you of hidden risks in franchise investments, franchise financing, franchise loans, franchise funding, and other risks associated with franchise investment opportunities. If you are considering borrowing from your 401K to finance for a franchise, you must buy this book to learn about the pitfalls with financing a franchise.If you are a military veteran, and are considering a a veterans franchise business that is funded by business loans for veterans, or small business loans for veterans, you will need to read this book to be aware of the risks in the agreement for franchise terms, which this book can help point out.

Doesn’t give references to lawyers who can actually prevent problems. Might be out dated

This book was recommended to me by another like me who was investigating franchises for investment. I am so glad I read this before signing a franchise agreement! In spite of its publication date, sadly the information in this book is still current and relevant. If you decide to enter into a franchise agreement, at least know that there are a few (very few) Franchisors that will treat you with some fairness. Go in with your eyes open- read this book, and be thorough with your validation!

The book is a must read no only if you're looking to buy a franchise but for all start-ups, especially partnerships. It doesn't replace a good franchise lawyer, but it is a good start.

This is a good hard look at the franchise industry from an insider and is a must read for anyone considering a franchise.