So, your friend is in a slump, and needs your help. He asks for $2,000 and promises to pay you back in two months. Being that it’s your friend, why not…he would do the same thing for you wouldn’t he? So, two months pass, and then three…and then four. Finally at your wits end, you confront your ‘friend’. When you ask where your money is, he responds “what money?” Of course by now you must be angry (and if you aren’t, you’re a saint), and respond “the $2,000 you owe me!” Cunningly, your friend responds “prove it”.

You get the picture…And if you don’t, let me make it loud and clear for you NEVER agree to a verbal contract!  Not only verbal, but this accounts for anything personally written that is not in the company documents. Never let a someone trying to sell to you a franchise make any verbal guarantees or promises, or make any offer that cannot be verified in a company’s written document. This person is of no benefit to the company and can actually get the franchisor into some legal hot water. By not keeping track of everything conducted in the business can cost the business a loss of profits, or even worse-bankruptcy. Be weary of any verbal or written promises that can’t stand on its own!