Hidden Dangers of Franchising: What One Coffee Brand's FTC Case Teaches Us
Adriana R.
Business Process Consultant | Neurodiverse Business Ops & Systems Strategist | Tech Writer | Succession Planning Specialist| Documenting your processes today, so you can pass the torch tomorrow.
Franchising can be an amazing way to grow your brand, but recent events like the FTC’s case against Qargo Coffee remind us that shortcuts or missteps can cost more than just money.. they can damage reputations and even block expansion plans.
The FTC accused Qargo of failing to provide critical Financial Disclosure Documents (FDDs) to franchisees and giving incomplete or misleading information about the business.
These oversights led to franchisees being misinformed, opening stores under unrealistic timelines, and lacking crucial background about the company’s leadership.
This causes a systemic problem in franchising where a lack of transparency and poor operational processes can bring down entire networks.
For franchisees, these issues translate into delayed openings, wasted investments, and shattered trust. Compliance should never be placed on the back burner to be done "later".
As a business process consultant, I help franchisees avoid these traps by building strong, scalable operational foundations.
Whether it’s ensuring proper documentation, streamlining timelines for new locations, or creating clear, repeatable processes, I work with franchises to ensure compliance and transparency at every stage. The goal? To protect your investment and build a business that meets the necessary legal obligations and grow without the unnecessary headache.
Let's talk about keeping your franchise on track for long-term growth. Just comment "Franchise" below.
The following information is taken from an article on the FTC website. Click here to view.
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