Recent Posts
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Franchisees Need a Private Right of Action
The FTC doesn’t enforce the Franchise Rule itself. And the FTC has resisted allowing for private enforcement of the Franchise Rule. According to the then president of the American Franchisee…
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SBA Harms Veterans by Bailing out the Banks
Employers are not hiring veterans. According to military.com, employers are concerned about veteran skills translation, skill mismatch, future deployments and veteran acclimation. Many also hold negative stereotypes, believing veterans are…
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Franchise Fraud and Churn
To really understand franchise fraud, you must understand “churn.” Churn, or disorderly attrition, is defined as (transfers + terminations + non-renewals + ceased operations) / the number of franchise units…
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Court Records and Franchise Fraud Evidence
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…
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The SBA Predicted the Current Franchise Loan Fraud Crisis in 2002
0n September 16, 2002, the SBA Office of the Inspector General (OIG) submitted a report entitled “The SBA’s Experience with Defaulted Franchise Loans.” At the bottom of page 1 and…
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SBA Now Faults Lenders and May Not Pay Franchise Loan Guarantees in the Future
On August 15, 2018, the SBA Office of the Inspector General drew a conclusion that could damn the franchise industry. That conclusion reads: The conclusion comes at the end of…
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In 2011, the SBA Office of Inspector General Found Fault in SBA Franchise Lending Practices
On July 13, 2011, the Small Business Administration Office of the Inspector General released an audit report entitled, “Banco Popular did not Adequately Assess Borrower Repayment Ability When Originating Huntington…
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Franchisors Really Really Want Forced Arbitration Clauses
A federal appeals court just upheld a lower court’s refusal to allow Dickey’s Barbeque Pit to force a franchiSEE into arbitration. Dickey’s Barbeque Pit (the FranchiSOR) wanted arbitration. Campbell Investments,…
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The SBA isn’t Enforcing Rules that Would Prevent Franchise Fraud
Believe it or not, the Small Business Administration’s Standard Operating Procedures already have rules in place that would prevent much of the mass franchise fraud that is harming taxpayers. But…
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AAFD Names Keith Miller as New Director of Public Affairs and Engagement
On October 3rd, the American Association of Franchisees and Dealers (AAFD) engaged Keith Miller of Franchisee Advocacy Consulting as their Director of Public Affairs and Engagement. In their online announcement,…
