Franchisor Marketing

Dear Franbest:  We have a low-investment franchise opportunity.  We target sales professionals as franchisees.  My franchise sales director had a great thought:  run sales employment ads on Monster.Com and Careerbuilder.com, and when prospects inquire, tell them for a small investment they can own, not just work for, a business.  What do you think?

Sean Kelly responds:  Great thought.  Real bad idea.  While the Franchise Rule doesn’t tell franchisors specifically where to advertise, the Federal Trade Commission issued an Informal Staff Advisory Opinion in January, 2006 stating that ”…a false offer of employment where no bona fide job exists that is made for the purpose of luring consumers into purchasing a franchise or other opportunity is a deceptive practice in violation of Section 5″ of the Franchise Act.  That darn honesty continues to be the best policy, it seems.  If you advertise on those sites, advertise a franchise opportunity, not employment.  (See the FTC staff advisory on franchise advertising on employment sites by clicking here)