{"id":23108,"date":"2019-09-22T13:16:41","date_gmt":"2019-09-22T17:16:41","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=23108"},"modified":"2025-05-20T14:08:49","modified_gmt":"2025-05-20T18:08:49","slug":"franchise-business-reviews-legit","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/franchise-business-reviews-legit","title":{"rendered":"Should Franchise Business Reviews Be Trusted? Or Are They Just Another Evil Franchise Marketing Ploy? (Updated)"},"content":{"rendered":"

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\n<\/a> Let’s jump right in.<\/p>\n

Should you trust franchise business reviews<\/b>?<\/p>\n

It’s a great question to ask yourself, especially if you’re smack dab in the middle of looking at franchise business opportunities, and you need factual answers before you plunk down a couple hundred thousand dollars. After all, you just want the truth, right?<\/p>\n

In this specific instance, you need to know if the franchise company is legit, and you definitely need to know how much you can make a year as a franchise owner<\/a>.<\/p>\n

But are you getting the unvarnished truth<\/a> from websites that focus on franchising reviews<\/strong>?<\/p>\n

And does a website like Franchise Business Review “sort of act like the ‘Consumer Reports<\/em>‘ for the franchise industry” as stated in this article on CNBC.com<\/a>? Let’s find out.<\/p>\n

It’s Easy To Get Basic Information On Franchise Business Opportunities<\/h2>\n

These days, access to the internet, along with a PC, Tablet or Smartphone is all takes needed to get basic information on franchises. Sometimes, you can even find the best franchises<\/a> just by searching online.<\/p>\n

In general, all you have to do is choose a high-quality franchise opportunity portal<\/a> and start searching for information on franchises.<\/p>\n

However, if you want to get real<\/em> information<\/a> on the franchise opportunities you’re potentially interested in-including franchise reviews by owners, you’ll need to go deep. And the internet, if used correctly, can help* you do just that.<\/p>\n

*The internet is a tool. You can locate great sources of information if you know how to use it. For instance, you can find extremely detailed how-to’s<\/a> on the internet.<\/p>\n

Specific Information Is Harder To Find Online<\/h2>\n

In spite of that, it’s important to realize that the internet can’t get you some of the specific<\/em> information you’ll need to have in order to make an intelligent yes or no decision on a particular franchise business opportunity. For that<\/em> kind of information, you’ll need to go to the source. You’ll need to contact franchisees<\/a>.<\/p>\n

But what if a place existed where instead of calling franchisees, all you had to do was read what they had to say about the franchisor…and the opportunity?<\/p>\n

Well, there is<\/em> such a place. As a matter of fact, there are several places (on the internet<\/em>) where franchisees<\/a> write reviews of the franchise concept they own. And<\/em> reviews of the franchisor.
\nHow great is that?<\/p>\n

Franchise Business Reviews: Should They Be Trusted?<\/h2>\n

Let me start off by sharing this important fact abut franchise review sites:<\/p>\n

Companies that provide franchise reviews are not<\/em> non-profit companies<\/strong>.<\/p>\n

To put it another way, money changes hands<\/strong>. That fact alone begs this question: Are franchise business reviews by owners legitimate?<\/strong> And this one: How is<\/em> the money changing hands?<\/p>\n

Are Franchise Reviews By Owners?<\/h2>\n

In most cases, a franchise review company obtains franchising reviews by offering “participation<\/em>” in the research\/review process for free.<\/p>\n

Note, the “reviews<\/em>” are not offered to owners. To franchisees.<\/p>\n

Instead, they’re offered to the franchisors. (Because that is where the money is changing hands<\/em>)<\/p>\n

In fact, franchisors are<\/b> paying for reviews-although they’re not required to pay to get the results. Confused? I’ll attempt to explain.<\/p>\n

About These Franchise Owner Reviews<\/h2>\n

To demonstrate what I mean about owner reviews, check out the following scenario.<\/p>\n

A franchisor<\/a> with 20 franchisees decides to have one of the franchise business review companies do a “research<\/em>” study. And 12 franchisees agree to participate in it.<\/p>\n

In this specific case, the study shows that 9 of the 12 franchisees surveyed are very, very unhappy.<\/b> They’re not happy with the franchisor and they aren’t making a lot of money. Yuck! This leads to the next step.<\/p>\n

Now at this point, the owner of the franchise review site offers to “consult<\/em>” with the franchisor to help them have happier franchisees. Of course these consultations aren’t free. (How could they be?<\/em>)<\/p>\n

In a nutshell, if the franchisor pays for a review consultation, and a marketing program that follows.<\/p>\n

What probably happens next is a new survey is put into motion (a few months later<\/em>). The franchisees are questioned again, and in a perfect, (setup<\/em>) world, more of the owners are happy.<\/p>\n

Success!<\/strong> The franchisor is then offered a (paid<\/em>) way to promote the fact that they have “satisfied<\/em>” franchisees-and then those “reviews<\/em>” will be published.<\/p>\n

Note:<\/strong> I based that scenario on information I found online.<\/p>\n

Since I don’t work for a franchise review company, I don’t know the exact methods they use to extract money from franchisors so they can publish the franchise reviews. But my instincts tell me I’m pretty darn close.<\/p>\n

They’re Not Like Consumer Reports!<\/h2>\n

Furthermore, the companies that do these “reviews<\/em>” are 100% not<\/strong> like “Consumer Reports<\/em>.”<\/p>\n

That’s because Consumer Reports’ revenue is generated by subscriptions. Consumers pay for printed magazines and\/or online access to read their reviews. <\/span><\/p>\n

But on a site like Franchise Business Review, consumers are free to download as many of these reviews as they want. Heck, I just downloaded one.<\/span><\/p>\n

The franchise review I downloaded was for a business coaching franchise. On average, franchisees rated the opportunity a little over 4 out of 5. (5 being excellent<\/em>) Not too shabby.<\/p>\n

Except, I wrote a review of the same business coaching franchise<\/a> opportunity, and it was ranked…well…maybe you should see for yourself.
\nLook<\/a><\/p>\n

Finally, Consumer Reports does not<\/strong> encourage you to “contact one of these brands directly through their profile pages<\/em>” like some of the franchise review sites do. Smells like marketing<\/a> to me.<\/p>\n

Franchising Reviews: Scenario #2<\/h2>\n

What if a franchisor agrees to have her franchisees called by a franchise review company for a research study, gets average-or better than average results, and decides not<\/em> to pay for consulting, or any other services? What happens? Do the reviews get published?<\/p>\n

I have no idea<\/strong>.<\/p>\n

Maybe they do-to keep things honest (or honest in appearance<\/em>).<\/p>\n

Then again, maybe they don’t get published. (I wonder who decides-and how it’s decided<\/em>)<\/p>\n

In the final analysis, there are more questions than answers<\/strong> when it comes to franchise review websites, their legitimacy, and the reviews that are published on them.<\/p>\n

My Thoughts On The Business Of Reviewing Franchises<\/h2>\n

\"the<\/a><\/p>\n

First off, I think you’ll agree that legitimate franchise reviews should never<\/strong>\u00a0involve money changing hands between the franchise company being reviewed and either the writer or the owner of the website where\u00a0the review<\/a> is published.<\/p>\n

Secondly, I\u2019m not a big believer in charts, spreadsheets<\/a>, or rows and rows of numbers being presented as part of a franchise review. Why?<\/p>\n

Because in most cases, all of the things I just mentioned tend to take aspiring franchise owners to places they don\u2019t need to go. The end result?<\/p>\n

Prospective franchise buyers (you?<\/em>) focus so much on the details\u2026the numbers, they forget\u00a0why\u00a0they wanted to become their own boss in the first place. Want to know what happens next?<\/p>\n

They don\u2019t end up buying a franchise, because they forgot to ask the right questions\u2026of themselves and the franchisees they talked to.<\/p>\n

Franchise News Update From The FTC About \u2018Reviews\u2019<\/h2>\n

Recently, the U.S. Federal Trade Commission put out a request for public comments concerning, \u201cWebsites or other organizations or devices that purportedly provide independent reviews or opinions of products or services but are in fact created and controlled by the companies offering the products or services<\/em>.”<\/p>\n

With that in mind, I know of (at least<\/em>) one review website that would be seriously affected if new guidance comes out requiring more complete and honest disclosures underneath all of the positive reviews written by franchisees. Even if they have good lawyers.<\/p>\n

My Advice On Franchise Numbers<\/h2>\n

My advice is don\u2019t only make it about the numbers. Or about some of the other minute details that seem important now, but won\u2019t matter when you\u2019re a franchisee.<\/p>\n

That being said, the numbers are<\/em>\u00a0important. Just don\u2019t spend the majority of your research time\u00a0looking at them<\/a>\u00a0over and over again.<\/p>\n

Instead, get on the phone and call a lot of franchisees. That way, you\u2019ll get to know the\u00a0human<\/em>\u00a0side of the business. The things they experience day in and day out as business owners.<\/p>\n

Plus, you\u2019ll want to\u00a0ask them what they think of the franchise company<\/a>, and if they\u2019d buy the franchise again.<\/p>\n

Please Consider The Source<\/h2>\n

When you\u2019re reading reviews of franchises you may want to own, it\u2019s crucial to consider the source.<\/p>\n

For instance, was the review written by someone with years of experience in the franchise industry?<\/p>\n

Or was the review written by a \u201cwriter<\/em>?\u201d<\/p>\n

More specifically, was it penned by someone who\u2019s paid to write reviews, but doesn\u2019t have real-life franchise experience. Haven\u2019t thought of that, have you?<\/p>\n

Read Franchise Reviews From The Franchise King<\/a><\/p>\n

Where Are The Franchise Reviews Are Published<\/h2>\n

Another thing you need to look at is the background information of the website the reviews are published on.<\/p>\n

For instance, read the\u00a0About Page<\/a>\u00a0so you can determine who owns it. And find out How the website makes money?<\/p>\n

In addition, you need to be able to quickly see the\u00a0required online disclosures<\/a>. They can’t be hidden. And if they\u00a0are<\/em>\u00a0hidden, or worse, they don\u2019t exist, it\u2019s a huge red flag.<\/p>\n

Finally, when it comes to some of these websites, this may be the biggest red flag of all:<\/p>\n

When you can\u2019t find reviews of franchise brands that have several franchisees<\/strong> who say they’re unhappy with their franchisor.\u00a0<\/strong><\/em><\/p>\n

Wait, Joel! Are You Insinuating That Lots Of Franchise Business Reviews Are Just Another Form of Franchise Marketing!<\/h2>\n

Yes I am!<\/p>\n

Unfortunately for you, determining which franchise business reviews were obtained and<\/em> published as part of a paid franchise marketing* program, and which ones were not, is almost impossible.<\/p>\n

*Don’t kid yourself; franchise reviews (or franchise “grades”<\/em>) aren’t being published by franchise review companies who wish to better the franchise model<\/a> and\/or to better the franchise industry. Instead…<\/p>\n

They’re being done as part of a paid franchise marketing program.\u00a0<\/strong><\/p>\n

Scratch that:<\/strong> The franchise reviews\/research you see on websites that have names in their titles like:<\/p>\n