Find A FranchiseFind A FranchiseFind A Franchise
Melbourne, Australia

How to know if a franchise is a scam

  • Home
  • How to know if a franchise is a scam
I suggest you contact the franchisor and ask them to send you information about the franchise. You can then assess the information they send you and try to determine if it is a scam. You should also ask them for details of other franchisees and contact those franchisees to find out more about the franchisor. You should also do a google search of the franchisor and also find some appropriate forums and ask questions. If you do all these things it should help you determine whether or not the franchisor is honest and reputable.
Tim Kilham, McLean Delmo Hall Chadwick
  • Google the company and check them out, if they do not have a website don’t deal with them
  • Ask them for reference and testimonials, if they don’t supply any again do not deal with them
  • If they provide references ask for other franchisees contact numbers, call the referees but also check, Google the referees to ensure they are independent and genuine
  • Be cautious and careful and do not send any money in advance if it seems
  • My experience is these franchises don’t survive as anyone can offer that service
  • Accept you may blow some money going into these types of business does carry greater risk
Robert Toth, Wisewoulds Lawyers