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Small Business Information |
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More Rules for Franchising?
The FTC- Mighty Federal Trade Commission has unilaterally decided to change the franchise rule. They changes are sure to hurt American business, Franchisors and the over 400,000 Franchisees in the United States today. These regulatory changes even if mere interpretations and opinion cause events which have unintended consequences. Such changes are rarely forgotten as one simple stroke of a pen by a Federal Trade Commission attorney who does not understand the real world of franchising can wipe out several quarters of profits. Events such as this prevent capital flow to markets and entrepreneurs from taking risks. Why would a franchisor play in a game of ever changing rules or rules which protect the weakest players so the skills of the strongest are underutilized, under appreciated and thought of as unfair competition. If franchisors leave the arena, so too will the fans, because they vote with their dollars. Minor leagues never attract the same level of fan participation. Likewise to paraphrase Vince Lombardi's most famous quote; the strongest men are attracted to the most challenging game. If the strongest players, possessing the important characteristics of; will, strength of character, vision, passion, perseverance, commitment, dedication and stick-to-it-ness leave for another industry then fewer people are served. If the game becomes so set in stone and boxed in that new innovation cannot evolve properly then less Americans can own a business of their own. Less goods and services are sold, meaning less job base and thus slower money flow, which will mimic a situation of less money supply. A power as big as franchising in our economy needs encouragement, not more rules. Less rules in this case are appropriate, downsizing of the rules are a key to the bleeding list of franchisors exiting the market place. We should reduce the rules not the industry. Why are we reducing the franchising industry to dust at a time when our economy is moving to boon from bust? Attacking and diminishing the forward progression of this evolved species, call it: franchisor-kind, means the citizens as a whole get less. The government receives less tax base, the citizens less jobs, prices remain high, there is less choice and the Federal Trade Commission must cut its budget and those employees are no longer needed. Think about it. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
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