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Capstone meaning examples nursing leadership capstone homa bash reporter to a franchise can look like an easy way to realize the American dream of owning your own business but it can also turn into a nightmare if it isn't the right deal after investing large sums of money thousands of people who found themselves left with nothing even worse for many franchise gone bad to take a huge personal toll as Susan Warnock reports tonight in the final part of a series buying in losing out for many buying a franchise from a fortune 500 company like snap-on tools looks like the perfect way to own your own business the franchisee buys the truck and tools from snap-on and sells directly to accounts in his territory with Jay and Lisa Nash found out it can also be the way to lose your shirt your family and your self-esteem it's almost a mind game it's I think it goes beyond the mind game it's it's it's total control having built their own home JM Lisa Nash weren't afraid of hard work so when a snap-on tools field manager said that's all they needed to make big money they paid the forty thousand dollars and signed up but despite working seven days a week for nearly two years Jay was consistently losing money and when he asked for help all his field manager offered was blamed they made me believe it was my fault because I wasn't doing a good enough job I wasn't working long enough I wasn't doing this hard now I wasn't doing that hard now they put everything that they can into making the things succeed and they're told and keep at it it'll work but franchise attorney harold brown says in fact the snap-on dealer is doomed to fail from the start in order to make any money the franchisee has to sell tools but in order to make a sale he must extend credit that means he winds up paying cash up front to snap on while getting only partial payments and iou's in return it's a formula for financial ruin it's an absolute fraud from the minute from the minute go all day ever heard was trust me trust me I'm gonna ask you to do things you don't want to do but trust me but at the same time the field manager was encouraging Jays wife to harass him he almost had my wife believing that I was was was actually not doing all the things that I was doing that's what they do I forgot all that and that's what they're here in my living room I would start attacking him saying Craig says you should have done it this way how come he didn't do it this way I was resentful divide and conquer strategy right out of the snap-on textbook number 18 on the lists of what the field manager should do or to involve the franchisees wife and to tell her to encourage him that he'd make it just keep on going he's going to make it it was impossible for him to make it he never could make it the Nashes finally realized what was going on and got out like more than a hundred other snap-on dealers across the country they took their case to arbitration and one although their finances were a mess their family was intact Hawaiian snap-on dealer Curtis Iguchi was not so lucky the 24-year old husband and father of two found himself steadily losing money after only six weeks by his calculations he was digging himself into a hole he could never get out of so happened he was bright he had two college degrees he looked things over carefully made sure that he was right but of all of his affairs in order and killed himself this snap on tools case may be extreme but the problems it represents are not after reading the provisions of your bills I have great hopes that the type of these type of nightmares could be ended after all the only way to end a nightmare is to wake up recently franchisees representing companies large and small took their concerns about the franchising industry to Washington we have to perform for the franchisor but the franchisor should be required to perform for us they complained about encroachment where a franchisor puts a new store so close to an existing one that no one can make a profit they describe being slaves to whims of domineering masters alphonse unilateral action as judge jury and executioner new bills proposed by New York Congressman John Lethal's would strengthen disclosure laws governing the sale of franchises and promote a more level playing field for franchisees rather basic elementary concepts but you wouldn't believe the unbelievable opposition I believe in currently franchises are required to make certain disclosures in writing prior to any sale but the single most important piece of information how much money a buyer can expect to make from the investment is not among them today it's the franchise industry is so unbalanced in terms of power of the French at the economic power of franchisors versus the economic power of franchisees that the marketplace just isn't working but the trade association for franchisors disagrees and doesn't see a need for legislation you don't think that it's going to make the problems go away okay in fact it may exacerbate the problems arguments over the pending legislation are likely to continue for the next several months in the meantime there are important things you should know & do before investing in a franchise get good legal and financial advice ask for and study disclosure documents and interview current and former franchisees there are 300 franchisees for every franchise or in the United States and all those people need to know is that they do have a collective voice they just have to bring it together and you're going to see this industry start being what it can be franchisees who may have little power individually are beginning to organize to gain more rights collectively but unfortunately many are still just afraid to speak out for fear of retribution as for snap on there are some satisfied franchisees but judging from the hundreds of case is still pending against the company the level of outrage over many of their business practices is extremely high when we can't stress enough here the importance of investigating a franchise before you sign on remember lawyers are expensive and lawsuits can take years and too many franchisees find that they just have to walk away from a bad situation with absolutely nothing because they just can't afford to fight lawyers are expensive on the back side but not so expensive initially look at that franchise agreement first would save you some money certainly some franchises are terrific and they work well and people make money absolutely that's a you don't have enough time to go into all the tabs with a couple key points people could look for that show why the good ones work and why the bad ones don't we have just told people all along that the most important thing you can do before you sign anything is have have not only an attorney but somebody who knows something about franchise law look at your agreement make sure that you're covered get expert financial advice as well as expert legal advice and even some snap-on franchisees as we said very happy people who got into it early who have good territory are happy you've got to make sure that you've got a good territory and that you've got customers and someone to sell to because the product is good but it doesn't matter how good the product is the system doesn't work okay thanks for this series enterprise risk management books pdf for money Columbus Circle, Manhattan campus.