Marketing Regulatory issues of corporate investment business

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In many countries, the franchise regulators are very sensitive about the use of the franchisor is the word “success” in their advertising and marketing. If you are wondering why this is, it is because the regulatory bodies of most countries which set up rules of franchising, are also part of the same department that regulates the securities in its domain. And they believe that the consumer should not be duped into thinking that their investment will be successful, or that they will automatically make money if they buy something.

Interestingly enough, the franchise is not really an investment, such as buying stocks where you have really no control over what happens. A franchise is more like renting business for the validity of the concession contract, and thus, allow you to use the franchisor’s business and brand. Nevertheless, the franchise regulators in most all states are quite sensitive when the franchise system using the word performance, or even referred to the potential success for those who buy their franchisees.

Now then in online business, some say 50% are scams, and no regulators seem to care. And in this new electronic digital age we find a good number of business opportunities online make all sorts of claims, and the word seems to be well in every point or more.

It seems that concession, which has a higher success rate than most any small business, appears to be over regulated, when there is very little fraud involved because the franchisor sells franchisee companies, they are stuck in a marriage for the validity of the concession contract.

So there was no reason for the franchisor to scam future business partner, because it would only lead to future litigation. Someone needs to review all these franchise regulations and overbearing attitude of marketing regulations. Please consider all this.

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