Speaking of Nets . . .
Franchise research often means a tough hike on the paper trail. The Internet may change all that.
Enter the word "franchise" or "business
opportunity" into any of the competent search engines on the
Internet, and you may feel a bit like Alice falling down the rabbit
hole. A Google search kicks up 2,250,000 franchise listings; Yahoo!
nearly 3 million. Head down any of these pathways, and you'll
quickly find yourself browsing through dozens of sites extolling
the virtues of various franchise and business opportunities,
touting association membership benefits, and describing individual
franchise and business opportunity investment benefits.
The Internet is an essential tool in the search for the right
franchise or business opportunity. It has strengths and weaknesses,
of course, but you can't afford to overlook it. Its greatest
strength is that it gives you the ability to browse for ideas and
prospects. If you have leads you want to check out, or if
you're curious about a particular franchise, a quick search
will provide at least brochure-level information about the
program.
The law has been slow to catch up to the franchise regulation
implications of e-commerce on the Internet. The FTC has promised to
address the rules surrounding electronic distribution of the UFOC
and business opportunity disclosure documents and the posting of
disclosure information on a Web site, but the rules are not yet
final. Under current law, delivering a document in electronic form
does not fulfill the franchisor's obligations. Some states have
issued regulations telling franchisors what disclaimers they must
display, and you'll find them in the small print of
well-managed sites. In essence, the disclaimer says the information
on the site does not constitute an offer in franchise registration
states. Seeing this disclaimer conveys a subtle but important
message: The company is receiving informed legal advice. You should
wonder about franchise company sites that don't have the
disclaimer.
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The Internet's weakness is the low quality and reliability
of information. Lists of available "franchises" are
littered with nonfranchised business opportunity offerings, and
much of the information you see is essentially sponsored
advertising. If you understand this inescapable feature of the
Internet and make allowances for it, you won't be misled.
The problem with the Internet, of course, is the sensation of
trying to take a sip from a fire hose of information. The sites
dedicated to franchising and business opportunities go on and on
and may cause even an experienced Internet researcher to suffer
from MEGO (my eyes glaze over).
The secret to effectively using the Internet for your franchise
search is the same as other kinds of franchise research: focus,
focus, focus. Know your targets and general interests. Don't be
distracted by the glitter, the pop-up ads, the eager virtual
experts. Plan to use your computer connection for first-level
contact and brochure-level information. Then roll up your sleeves
and plan for person-to-person meetings and in-depth discussions
about the franchise opportunity.
-Andrew A. Caffey, excerpted from Franchise & Business Opportunities: How to Find, Buy
and Operate a Successful Business (Entrepreneur
Press)