Protecting Military Veterans from Fraud in Veterans Franchises
Military veterans may be considering veterans franchises due to today's slow economy and limited job prospects. The FBI defines franchise churning as a pyramid scheme. Churning franchises may be targeting military veterans with Veterans Franchises pyramid schemes.
- (1888PressRelease) August 09, 2012 - Due to today's slow economy and limited job prospects, military veterans are considering veterans franchises. However, many franchises may be churning franchises. The FBI defines franchise churning as a pyramid scheme. To protect military veterans from churning franchises, franchise fraud, and pyramid schemes, Jody Whistleblower, of Veterans Franchises Videos, launched new videos to warn military veterans about veterans franchises churning and franchise fraud.
The new Veterans Franchises Videos are unique because they reveal the details of systemic franchise fraud in the franchise industry by publishing secrets associated with franchise fraud and franchise churning, claiming to be Franchise opportunities for veterans.
Jody Whistleblower of Veterans Franchises Videos stated "Military veterans risked their lives to protect freedom. However, when they return home, there are unscrupulous veterans franchises targeting veterans, claiming to be veteran business opportunities". Jody also stated, "The steps to veterans franchise fraud include threats of frivolous lawsuits to coerce the franchisees to sign extortion-like Franchise Termination agreements. A churning franchise can include a "script" the franchisees must tell future franchise fraud victims, to keep the Franchise Fraud a secret to future veterans franchises victims. It is not uncommon for a script to force the franchisee to state that the franchisee had a fabulous franchisee experience, when in fact the churning franchise was a financial nightmare."
"In addition to a franchise non-disclosure agreement gag order and script, the churning franchise will have in the franchise termination agreement a statement that the franchisees volunteer to outrageous terms that are untrue, such as unpaid future royalties, which were never mentioned in the Franchise Agreement." Jody said.
Veterans Franchises Videos mentioned that the franchisees are coerced in the franchise termination process to "volunteer" to transfer the failed franchise, so the franchisor will not have to report it as a failure in the Franchise Disclosure Document, which keeps the failed franchise below the radar of the FTC and future franchise churning victims.
Veterans Franchises Videos calls for reform in the franchise industry by franchisors by
1) Franchisors allowing franchisees freedom to speak of their experience, without disclosing franchisor intellectual property of the business,
2) Urging governments to force franchisors to disclose UNIT operations financials,
3) Stop the use of false "transfers" to hide failed franchisees,
4) Forbid the use of a Federal Trade Commission allowed 20% threshold on the use Confidentiality agreement scripts.
Many people drive by franchise businesses, and might see what appears to be a clean business with a professional marketing appearance. However, due to the industry use of gag orders, confidentiality agreements, and franchise termination agreement abuse, it is extremely difficult for a prospective franchisee to see if a beautiful marketed, well located franchise is viable, or a churning franchise. The employees in the franchise unit might be the same year after year, however, the franchisee unit owner might be churned every year, and no one will ever know it due to the use of confidentiality agreements and gag order used throughout the franchise industry.
In the mean time, Veterans Franchises Videos recommends prospective veterans franchisees avoid any Franchise opportunities for veterans due to systemic franchise churning. If the veteran is extremely motivated to buy a veterans franchise, they absolutely must hire an expert in franchise law to protect them from franchise churning that are targeting veterans franchisees.
For more information, Veterans Franchises Videos recommends that military veterans refer to the following websites:
http://www.veteransfranchises.blogspot.com/
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