Brighton limo service .. Chicago Drug testing

Franchise Buyers Lying On Forms

The Federal Trade Commission which governs the franchise industry thru the franchise rule, which enforces Franchise Disclosure laws seems to think that consumers need to be protected even when they lie. Often The FTC takes complaints from consumers who claim they had been ripped off or lied to from someone selling a Biz-OP or some corporation, which sells franchises. The Federal Trade Commission will not admit that at least two-thirds of the incoming complaints are made in falsehood by consumers; as a participant in the industry I can safely say that much misrepresentation comes from the buyers side and not from the sellers.

I would like to discuss the fact that many franchise buyers who have 2.2 kids, credit card and short term debt in excess of 150% of annual earnings, college degree, BMW, Mini-Van, will claim on application forms that they have excellent credit and cash in the bank in excess of the amount needed to start the franchise. Over 70% of the applicants who claim this cannot even get an additional credit card or buy a car without 0/0 financing option currently available. Yet they often say they have "X" amount of cash available when really they have nothing and many are about to lose their jobs, through downsizing, right sizing or their current employer filing for bankruptcy. You know the companies I am talking about.

Without placing judgment on the falsehoods and giving these consumers the benefit of the doubt (which they showed to not be worthy of), maybe they just do not realize that if they lose their jobs they will be out of money and pushing a Home Depot shopping cart with their remaining worldly possessions within 2.4 - 2.6 months. Many may not realize that the credit rating required for a small business of their own, franchise or otherwise, is higher than that required when buying a car with no money down. They equate their recent purchase of a car with zero down or a home with 2.5% down as having excellent credit. Even the SBA lendors will require 15% minimum and usually 25% and banks are a little sketchy right now on any new business. True franchises less than other businesses, but they are a little tough right now. Jeez, you would think it was their money, they are mere bankers. The bankers run potential franchise buyers around, they give franchise buyers answers like "The board will be meeting next week" or "Can you give us more collateral." Why? They already have 20% of it guaranteed by the government in the case of an SBA Loan and the entire business is on the hook including all assets of the newly formed company.

Many inquiring franchise buyers often state on an application form when asked how they will pay for this business; "with a small business loan." I cannot offer a franchise to someone with no money. That is a sure failure being undercapitalized in any business, franchise or independent. Therefore I do not offer the franchise because they do not meet our criteria. If they secure financing and can prove it then they qualify and then we can offer them a franchise. By giving them a UFOC we are in essence offering them a franchise. Our franchises are only available to people who are reality based and tell the truth. We cannot allow someone in our system who constantly exaggerates, lies or inflates his or her current net worth, borrowing ability, earnings or assets. Just like you cannot hire someone who lies on their resume, makes up degrees earned in college or accomplishments at the FTC, or do you? Remember in franchising, we are stuck with the franchisee for the remainder of the contract once signed and most franchises have automatic renewals for up to 20 years. If we get a bad apple in our system it hurts all the other franchisees and our brand name which in turn hurts all the previous buyers (consumers) into the system in sales, ROI, and amount they make if they transfer their franchise to a new buyer. We must protect those current franchisees who have been forthright and are team players as much as the rights of new buyers. The public (consumer) is not the innocent dupe that the FTC makes them out to be.

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

In The News:

A new species of pterosaur -- a flying reptile that lived 100 million years ago -- has been discovered by scientists in Africa.
The Hubble Space Telescope captured a stunning image of galaxy that's hiding a secret.
There’s been an ongoing dispute over what was the world’s largest carnivorous dinosaur.
Public health experts believe one impact of the school closures mandated by the coronavirus pandemic will be an increase in childhood obesity across the United States.
Hidden wartime footage of a secret World War II code-breaking site in Southern England has been discovered.
The coronavirus pandemic has left most of the world's major cities, including London, New York and others, empty. As humans hunker down, with shelter-in-place measures around the world enacted, wild animals have started to take over.
Scientists are still learning a great deal about COVID-19 and how it spreads, but they have learned it can be transmitted via "aerosolized feces," according to a new study.
People infected with the novel coronavirus shed large quantities of the virus early in their illness and likely become less infectious as the disease wears on, according to a small study.
NASA released a stunning image of the Rosetta Nebula today.
Rainforests near the South Pole? It may sound far-fetched, but new research indicates the Antarctic climate was much warmer some 90 million years ago.

How to Find A Group that Needs Speakers

How do you find groups that are in need of... Read More

How to Profile a Client

At first glance, this topic may seem a little repetitive,... Read More

How to Find a Microenterprise Loan for Your Business

If you're looking for start-up capital for your business, but... Read More

Increase Sales in Your Home Business With These 10 Simple Ideas

Every home business has the same problem of how to... Read More

How to Remove Stress from Owning a Business... Forever!

I meet and talk to hundreds and hundreds of business... Read More

Creative Business Card Marketing

Announcements can be handed out as a business cardAnnouncements can... Read More

Marketing - The Way To Make What Youre Really Worth

You only have so much time in a day right?So... Read More

Franchising Industry Burdened in Over Regulation

There were only an estimated 1800 active franchisors in this... Read More

Provide Affordable Health Care To Employees At Little To No Cost To You

You can provide affordable health care plans to your employees.... Read More

Perception: What Are Your Patients REALLY Hearing?

Never underestimate the power of perception! Perception plays a major... Read More

Look Out for that Great Accountant

There are many factors to be considered when you are... Read More

Pressure Washing Aircraft Hangers at the Airport

If you are looking for a way to own your... Read More

Will Adding a Car Wash to Your Fast Lube Add Additional Crime to Your Facilities?

Car Wash Crime in the Hood. Apparently not everyone is... Read More

Do You Make These 7 Deadly Cash Flow Mistakes?

Managing cash flow is every small business owner's most important... Read More

How to Effectively Design Your Business Image

In many industries, image is one of the last things... Read More

The Greatest Challenges the Internet Consultant Faces!

While there are few career paths that some would call... Read More

Why Small Business Must Turn to PR

If small business had no important outside audiences, it wouldn't... Read More

Chamber Membership will BOOST your Business

When is the Chamber ideal for your business?Joining a Chamber... Read More

Small Business Ideas - Your Image Can Lose You Business

What image do you and your people portray to your... Read More

5 Small Business Management Questions to Help Choose Marketing Programs

As small business managers, we juggle limited resources in a... Read More

Asphalt Paving: Striping Your Parking Lot

As you may already know, asphalt paved parking lots do... Read More

11 Things Small Business Owners Can Learn From Punxsutawney Phil

1. Look Over Your Shoulder ? Of course, Punxsutawney Phil... Read More

The Game Plan ? The Difference Between Small Business Success And Failure

It is an American dream to own a business. But... Read More

Boy oh Boy, The Obstructions and Obstacles

The bad things starts with the letter 'O'?.like Obstacles, Obstruction,... Read More

Cash Flow: Why Chaos Equals Poor Cash Flow

Recently one of my customers told me the chaos swirling... Read More

summit remodeling building onto a ranch house ..