I recently read an article in Trial Magazine entitled, "Litigating Fraud Claims for Franchisees" by lawyer Jeff Haff of Minneapolis. It is an excellent article. One of the more interesting points in that there is no validity to the claims that franchised businesses are less likely to fail than independent businesses. In fact, many franchisors stopped making this claim after the International Franchise Association (IFA), an organization compromised of mainly franchisors, issued a letter urging members not to use this sort of data to sell franchises. You should beware if a franchise salesperson still attempts to use this claim in order to sell a franchise.

Click here to see the full text of the IFA President’s letter regarding the lack of validity to claims franchised businesses are less likely to fail.

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Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted…

Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted or referenced by hundreds of other blogs, websites, and publications. He also is the editor of the Brick Gentry Trial Team blog and can help you identify the most qualified lawyer at Brick Gentry to handle your case. Our lawyers have a breadth of trial experience in personal injury, employment discrimination, business litigation, IP law, and class action cases.