The Federal Trade Commission is assisting competitor to cheat and encouraging this unethical behavior thru their disclosure rule on franchisors. Competition in the market place is far more competitive and the stakes are high enough that Over Disclosure Regulatory Rules cause competition to take the advantage and cheat. And before you say I am off base on these comments, let me tell you that 20% of every single inquiry to buy our franchise comes from a competitor. That's right 20%.
So with 70% misrepresenting themselves on applications (consumers often lie about their financial where with all) and 20% being competitors, that leaves 10%. Only one in ten is actually a possibility of becoming a franchise buyer and then they have to like us. One in ten is not a good ratio. That would mean out of twenty inquiries that we contact and talk to we would send out 18 UFOC franchise disclosure documents in vain at a cost of $8.00 or $144.00. That is not cost effective for a small franchisor and it when multiplied times ten is not cost-effective for large ones either. Please, oh brilliant grand Pooba, at the Federal Trade Commission enlighten us as to how this is so darn "cost-effective" will you? After all this is what they proclaimed in the most recent franchise regulatory report on the franchising industry.
Well the current franchisees, the consumers pay for it in the market place due to competitive information leakage and we as franchisors pay for it in real time lost and $144.00 per 20 leads. For our company that is times five per week or $720.00 per week and over a year you just added $37,440.00, and just think we are only getting 100 leads a week, what about those who spend a lot in advertising their franchises, what are their costs? And here is one for the Liberals out there reading this who want to save the planet by stifling the free enterprise that our ancestors died to protect and give you the standard of living you now have. Our franchise agreement and UFOC with attachments was 115 plus pages in 1995, some were 235 pages at that time. Other franchisors have larger documents. Companies like Dwyer, Grow Biz, Service Master, etc., have over 280 pages with all the disclosures and attachments.
So how many trees are we going to cut down to disclose people who are not even legitimate, do not have the money, are simply looking for free information to attack their competitors? Yes we can cut down the number by further scrutinizing the buyers, who are more and more reluctant to give out personal information in the first place because of the Federal Trade Commission's failure to curb identity theft. If you think my figures are too high you are wrong because long about June 2002 the United States Post Office is raised rates and there is talk they are going to raise them again in 2005? Why? Because people are using SPAM instead (which is costing American Business 35 Billion a year in lost productivity, wake-up FTC), because the Federal Trade Commission has not been able to stop it and therefore the junk mail or commercial mail that pays the bills at the USPS is dwindling. Did you know that $37,000 pays for our entire annual meeting for our franchisees, yet this over disclosure you call cost-effective is eating up real profits and monies we could use helping our franchisees.
Where will I as an entrepreneur cut costs to cover this increase in paperwork that the added pages in the UFOC will need when the Federal Trade Commission enacts these additional rules? Hmm? How nice of the Federal Trade Commission comment on my costs and the cost-effectiveness of the insanity of over disclosure? How dare they copy the comments of Lawyers who specializing in suing franchisors as factual, this shows how out of touch our regulatory bodies are and it is unforgivable and unacceptable, we need to take these disclosure laws back to the drawing board. These current disclosure laws and this trend is a plague against America, which more resembles a Smallpox laced Ebola virus than anything else.
The Federal Trade Commission needs to think on these things before making any more laws or franchise rules.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
Alto Pass chicago limos ..If you are in the professional car care business you... Read More
You know what makes me really happy? Drinking a Starbucks... Read More
If you own a mobile truck washing, pressure washing or... Read More
Most business owners do not think of selling their companies... Read More
This is the tale of two business plans with very... Read More
Many job applicants want a job but often do not... Read More
There are almost as many opinions and views on marketing... Read More
-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More
Incredible as it sounds, you have a goldmine of free... Read More
The success of your business is critically dependent on how... Read More
Everyday, customers and business owners are bombarded with billboards, logos,... Read More
Starting the blind cleaning business is one of the best... Read More
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More
I only have to point to the 555 plus failed... Read More
What types of companies do you want to align yourself... Read More
There's no question that hard work and a little luck... Read More
First, we need to define the different kinds of skip... Read More
Disclosure laws in franchising are suppose to help the consumer.... Read More
Everyone is talking about small businesses. In 1993, when it... Read More
Service Cleaning Businesses must maintain their equipment in order to... Read More
Franchising has made the world look really small. The well... Read More
Most new small businesses won't be in business this time... Read More
It's a strange anomaly.Most people who set out to start... Read More
I have to admit, I was curious. When I saw... Read More
Researching information for a recent business plan, I came across... Read More
Alto Pass cool limo ..Thankfully, most of us will never find out. That is... Read More
There are several well-known truck washes in the Great State... Read More
If you're starting your own business or currently work for... Read More
When you feel like you're always busy working on your... Read More
By outsourcing to skilled professionals you'll be able to grow... Read More
Lance Armstrong this week won an unprecedented 7th Tour de... Read More
Most of us remember going to at least one garage... Read More
1. Leadership Is Learned ? While many people appear to... Read More
The story is told of a tiger chasing some goats... Read More
Pardon my enthusiasm, but a large part of your small... Read More
In a quest for customers and to keep those customers,... Read More
Sometimes the simple businesses are the ones, which make good... Read More
Mobile carwashing is hard work, it is tough on the... Read More
No matter how small your small business is, it is... Read More
One of the most common issues that comes up for... Read More
When a regulator finds a target to go after to... Read More
Some things in business are relatively easy to measure ?... Read More
One of the biggest excuses franchisees of home based and... Read More
Database Problems in MarketingI have been working on a direct... Read More
Many have not experienced a fire up close. One year... Read More
If you're just ramping up your small business email newsletter,... Read More
If you are worried about how many different business cards... Read More
Today is a Red Letter Day! It's special because today... Read More
Ask anyone trapped in a cubical about their entrepreneurial dream... Read More
Imagine that you have operated a successful franchise business for... Read More
Small Business |