The FTC’s role in preventing franchise scams

On July 26, 2010, we were made aware of a scam by two individuals operating out of Georgia, who alleged to have been putting on a franchise show called the Southern Franchise Expo.  However, after research by the real Franchise and Business Opportunity Expo, they were found to be a fraud; sadly only after multiple people had been deceived into sending money to take part in the fake show.  However, we are happy to announce today that the Federal Trade Commission has taken notice of this scam through Shelton & Power’s BLOG and appears to be monitoring this “Southern Franchise Expo,” hopefully so that no other Franchisors or Franchise Suppliers/ Vendors will be deceived by these types of scams. However, please do not confuse this fraudulent franchise expo with the International Franchise Association’s Franchise Expo South, which is an excellent franchise convention put on by a very reputable, long standing franchise organization. Please, if any person obtains any information about this “Southern Franchise Expo” or any other fraudulent franchise expo, please contact the FTC and make the franchise community aware so that everyone stays safe. Thank you