Question
Wolf, King, and others sold business opportunities in vending machines by taking out ads in newspapers throughout the country. When individuals responded, telemarketers called fronters
Wolf, King, and others sold business "opportunities" in vending machines by taking out ads in newspapers throughout the country. When individuals responded, telemarketers called "fronters" would tell them of false earnings estimates, and those who could afford $16,000 to $25,000 for vending machines were turned over to "closers" who promised wonderful results. References were provided who were "shills"they did not own vending machines but were paid to tell "stories" that were monitored by Wolf, King, and other supervisors. None of the individuals was given franchise disclosure documents. King induced one investor to mortgage her house so that she could pay $70,000 for a number of vending machines. In three years Wolf, King, and others took in some $31.3 million. The FTC alleged that the defendants violated the FTC franchise disclosure rule.
In the event strength-weakness-opportunity-threat (SWOT) analyses were to be undertaken, based on the information in the foregoing scenario, what would be some strengths and opportunities that are readily detected?
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