Small Business Information

Franchising Industry Burdened in Over Regulation


There were only an estimated 1800 active franchisors in this country at the end of 2002, that number down from 6000 in a single decade. It is not hard from this effort to increase regulations to see why. I believe the Federal Trade Commission's franchising expenditures should be cut by the same rate of decline after all they caused it. Why is the Federal Trade Commission favoring one business model over another, actually the franchising model lowers prices to consumers through economies of scale, efficiency of operations and competition. Any and all increased regulation over the franchising business model is a clear sign that the Federal Trade Commission is titling the field for the larger corporate box store and by doing so is hurting our country, decreasing competition in the market place and decreases choices for forward advancement of every citizen who wants to have a fulfilled life and a meaningful job. Shame on you, FTC; what an insidious consequence of this rule-making group at the Federal Trade Commission? Such a small group gets to decide the fate of hundreds of thousands of American workers and the destiny's of thousands of America's future bright star entrepreneurs and innovators. If this whole process is not evil, then I cannot even imagine what is?

Franchising accounts for one third of every consumer dollar spent in the US. How can the Federal Trade Commission go against the clear choice of the consumer who votes with their dollars every single day, day in and day out for franchising. Franchising has standards of operation and consumers know what they are getting, and collectively they have worked harder and achieved more than their independent counterparts towards this goal. The consumers have voted for franchising and now the Federal Trade Commission wants to recount CHADS and require franchisors to give information to any one who asks even if that person in misrepresenting themselves. Yet at the same time we have "know your customer laws" and on the other hand privacy rights and things you cannot ask, yet all the while requiring more disclosure of information which is private?

Can anyone see that this patchwork of bad legislation, over disclosure, case law and regulations is sinking the best of what America has to offer? Step back and look at this mess? It is not reality based it is some ingenious scheme to steal from American Innovation and Free Markets in some contrived or perceived reality which represents nothing. Franchising exists in Western Culture and was created here, because it is a win-win. If the franchisee wins the franchisor wins and vice-versa, now we have created nice little boxes with definitions where no one wins except the lawyers, who have never created or built anything. Through trickery the regulatory bodies somehow believe they are doing the right thing, because a lawyer told them so? Wow, since when has a lawyer ever known any reality except words on paper and manipulation of reality into some mangled word-smithing of self serving propaganda? Please state the exact year, date, court and citation number of when you believe an honest attorney uttered a word of truth?

Think about this as these comments are completely visible to those who live in reality, thanks for listening.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs


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