One Less Franchise Scammer: FTC Bans Web Franchisor For Life
Looking for a franchise that’s too good to be true? I’ve got the one for you:
Named to the 2004 Entrepreneur 500!
Named to the 2005 Entrepreneur 500!
Named Entrepreneur’s 2004 Top New Franchises
Named Entrepreneur’s 2005 Top New Franchises
Named Entrepreneur’s Fastest-Growing Franchises (2004)
Named to Franchise Times Fast 55 Fastest Growing Franchises!
This hot new concept’s called NETSPACE. Netspace’s proprietary technology enables you to offer magic websites to small businesses… websites guaranteed to zoom to the #1 position on Google!
The experts are raving:
The International Franchise Association’s online directory listing says: “…Netspace(R) has a strong appeal for executives that are looking for a recession-resistant business in an unsaturated, non-commoditized market that produces on-going, recurring revenue.”
FindAFranchise.com says: “By becoming a Netspace® franchisee you will learn how to build immediate cash flow and unlock the doors to continuous, monthly residual income.”
In an interview on Black Enterprise, George Knauf, a “highly successful” Netspace franchisee who also sells franchises for this hot concept, says: “The start-up fees are so low for the return you receive… This is a really phenomenal business!….”
The franchise showcase listing on Bison calls it a “24/7 Money Machine,” and says the franchisor will teach you “how to build immediate cash flow and unlock the doors to continuous, monthly residual income…. You also enjoy the freedom of self-employment in a business with limitless personal and financial opportunity.”
Netspace is a winner! But if you want to take advantage of this franchise you better act NOW before it’s… Sorry! Too late!
READ HERE:
FTC Recovers $160,000 for Franchisees Who Bought Web Services Businesses Defendants Banned for Life from Selling Franchises and Business Opportunities
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POSTED IN: NETSPACE (RIP)
3 opinions for One Less Franchise Scammer: FTC Bans Web Franchisor For Life
Dale Nabors
May 19, 2007 at 5:48 pm
Somewhat of a misleading story, which fails to tell all of the facts.
FIRST: The FTC Complaint was filed August 2005, at which time Netvertise did in fact own Netspace, however…
SECOND: Birch Holdings, acquired the assets of Netspace in June of 2006.
The current management team of Netspace International, Inc. (the entity which was formed after the assets of Netspace was acquired by Birch) has a very good management team in place, AND a distinguished board of directors which includes LEONARD SWARTZ as Chairman of the Board.
Netspace should not be condemed for the actions of previous ownership. We’ve seen this happen before.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
http://www.fransynergy.com
sean
May 20, 2007 at 10:48 am
Dale: Nothing in the story is misleading - except, of course, Netspace’s ad claims and Entrepreneur hyping another blatant scam. And also your implying I’m condemning a company I didn’t mention. (The damage to their brand name was not my doing.) And the implication that if you believe, you will succeed.
But now that you mention it… The links to the franchise ads raise some serious concerns regarding the new regime. I have been writing franchise ads, copy and brochures for twenty years I would never think of referring to a client’s opportunity as a “24/7 Money Machine,” to promise “on-going, recurring revenue,” and “limitless personal and financial opportunity.”
Using illegal earnings claims and promises of success is not only unnecessary for legitimate franchisors, it’s suicide. Once the franchise fees are spent and commissions doled out, do you want to be the one to face the franchisees as they’re discovering there is no “24/7 Money Machine”? Legitimate franchisors want to attract franchisees who are realistic and show up ready to work, not deluded suckers with unrealistic expectations. Dale, if you’re worried about Netspace’s reputation, their own ad copy should worry you, not the logo.
Sean
chance
May 20, 2007 at 12:47 pm
Gee they sound a lot like the ebay drop off store franchises hipe, that don’t work. These franchisors make their money selling you the franchises. The franchisees success (or lack of it) is not their concern. Kudos to the FTC for taking a stand!
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