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Scam Alert
Beware Of Franchising Scam
May 31, 2010
Many overseas Filipino workers (OFWs) earn big salaries and they want to put their hard earned money to good use by making it grow. It is usual for OFWs to save it in high interest bank accounts, acquire properties or start a business. One business venture that has become very popular lately is franchising. Many believe that investing in a franchise business is a surefire way to earn profit because the business is already established and popular in the market.
It is also easier to set up because all the raw materials and business plan will be provided by the franchisors. Since many OFWs are attracted to the idea of starting a business by franchising, the scammers are quick to use it to devise schemes that will victimize OFWs. Bogus franchisors specifically targets OFWs because they had the fund and resources. In fact a number of OFWs have already been victimized causing government agencies such as the Department of Foreign Affairs (DFA) and the Department of Trade and Industry to be alarmed.
With the aim to help the poor victims and put an end to this type of scam, the DFA and the DTI held a meeting with the Department of Labor and Employment, the Securities and Exchange Commission, the Overseas Workers Welfare Administration, the Philippine Overseas Employment Agency, Franchising Associations, and a number of complainants. They agreed that one way to address this problem is to conduct an intensive information campaign to warn the public, especially OFWs, against fake franchisors.
The DTI specifically identified the following companies and individual as bogus franchisors:
- Fran.con Franchise Marketing and Consultancy, Inc.
- Hamoraon Business Specialist Inc.
- Michelle Ann Pacubas-Chan (single proprietor)
For verification of legitimate franchisors, the DTI advises overseas Filipinos to contact the DTI Direct Hotline 751-3330 or the Franchising Associations and other relevant government agencies.
