California Franchises Make FTC List

Posted on February 16, 2007
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Learn to screen out deceptive ads for business opportunities and California franchises. Ads for Business Opportunities: How to Detect Deception, was published by the Federal Trade Commission (FTC).

They warn that "legitimate business ventures involve risks, start-up businesses require a lot of
work to get off the ground, and that the law requires earnings claims in ads be accompanied by the number and percentage of previous purchasers who achieved the income."

California has more franchises than any other state in the nation (link goes to the press release, a PDF file). There are more than 80,000 franchises providing 2 million jobs. According to the International Franchise Association Educational Foundation these franchises produced economic output worth $187 million in 2004.

I got this information from the Franchise Pundit blog. There are 10 California franchises on the state's enforcement list, including:

• The Pet Pantry International, Inc., 
• Golden Bridge Coffee, Inc., Allerca, Inc.
• Integrative Bio Health Management, Inc., IBHM, Inc., d/b/a 5R Health
• Eureka Education, Inc.,
• Beyond Juice d/b/a Beyond Juice, Inc., O.L.D., Inc., 
• Ads Unlimited, Inc., d/b/a Welcome To the Neighborhood
• The Cure Service Group, Inc., 
• The Margarita Man
• Imergent, Inc., Stores Online, Inc., and Galaxy Mall, Inc., 
• Vend Direct, Vending Services of America

Franchises can be a great way to do business, but like all businesses, you have to do your homework. Don't fall for big promises and check out a franchise before you buy. We recently published an article on Curves franchise for sale in California that talks about some common issues.