vinyl siding installation concrete siding lincolnshire hardie board siding wheaton vinyl siding cost lake villa painting aluminum siding skokie .. Chicago Drug testing

Franchise Companies Come and Go

Each day we hear of companies entering the franchising industry. This is good news for America, right? Well, yes and know. Yes, because franchising is the closest thing to the spirit of free enterprise as any other method of doing business and because franchising offers small business people advantages that they would not normally have in pursuing their American Dream. However it is unfortunate but true that the average Franchisor failure rate is 5:1 in five years. Meaning they are gone out of business in that short amount of time. This is horrific news really. Why is this? Well most often it is due to over regulation, junk lawsuits, under capitalization or greed. Having played in the franchising industry I have seen it all.

Recently I had, had enough of the crap of beating my head against the wall, sure the money is excellent if you have a good concept and we certainly do; www.CarWashGuys.com ; but we found it was easier to make more money and keep more by not growing thru franchising. In franchising you can grow faster, in a 4-year period we went from 4 states to operations and franchised outlets in over 23 states. My point is that there are just too many lawyers and regulations for one to actually believe that anyone in government actually believes in free enterprise, to think they do is a bogus notion indeed.

In our company we are not currently offering franchises to the public. Our focus is to set up company owned units across the US and eventually the world and since I have retired the team will have to do it on their own, sure a few phone calls here and there for moral support or advice, but it just is not worth dealing with that level of bureaucracy and over lititigiousness. We may franchise in other countries but the United States being regulated by the Federal Trade Commission has their heads up their asses and it makes no sense in America anymore. Generally this business decision was made due to many following factors, some of which are listed below:

Sarbaines Oxley Law and Accounting Reporting Cost Increases,

Over Regulation in Franchising and Litigation,

Multiple State Franchise Registration Laws Out of Sync,

Disclosure Laws Hurting Company Proprietary Information,

Required Disclosures which Might Help International Terrorists,

Disclosure Laws, which Require the Giving Out of Personal Information About Franchisees.

Litigiousness of Franchising and Absence of Tort Reforms in the US and Canada,

Higher Profit Margins for the Company Running Our Own Units,

More Efficiency to Corral Our Competition,

More Latitude to Take on New National Account Business,

Better Service Standards for Current and Future Car Wash Customers,

More Control of Business Model and Less Red Tape

We have chosen a new strategy along the lines of a Starbucks, Home Depot, Enterprise Rent-A-Car, Federal Express type scenario where we can exert more control and less red tape to insure higher standards and smoother business operations. Regretfully this does impact the small business community, franchise model and those who dream of owning their own franchise business. Over regulation usually does hurt the little guys and stifle competition and creates barriers to entry.

We are not the only franchisor who feels this way and if the failure rates for franchisors in our country are 5:1 it would behoove new entrants to the franchising industry to think long and hard before getting into the franchise game. If you do not have a million dollars going in, you should not go. If you have not proven your concept in many markets over various business cycles forget it. Additionally you may want to look at alternatives to franchising, because with all this over regulation you are not going to have any fun doing it. Think on this.

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

In The News:

Your Business and the Story of a Tree; Part One

This morning, I went to take a short walk outside.... Read More

Uncover Free Veins Of Gold By Prospecting Online Guru Newsletters (Part 1 of 2)

Incredible as it sounds, you have a goldmine of free... Read More

If You Want To Be Remembered...

Send handwritten notes. That applies whether you're a guy or... Read More

Internships: Good for Everyone

Many job applicants want a job but often do not... Read More

Encouraging Your Customers to Pay On Time

Nothing can drive a business down faster than customers who... Read More

The SBAs Savviest Program

Forget everything you've ever heard about the U.S. Small Business... Read More

Building Marketing Momentum For Your Small Business

The success of your business depends on your ability to... Read More

7 Reasons To Take Control Of Your Small Business? Checking Needs

Business checks are available in many styles and varieties. They... Read More

Combating Over Regulation of Small Business

Many small businesses do quite well due to the blood,... Read More

Start a Technical Writing Service

Technical writing services are employed to explain the details of... Read More

Employee Monitoring - Business Risks For Employers And How To Avoid Them

E-mail and Internet use are integral parts of the typical... Read More

Expand Your Professional Organizer Business

Grow your Professional Organizer business by branching out into related... Read More

11 Things Small Business Owners Can Learn From Tiger

1. There Are No "gimmes" ? They count two-foot putts... Read More

Small Business Marketing: Specialize or Generalize?

There have been many great points raised on both sides... Read More

Business Plans - What Consultants Don?t tell You!

Do you have a Business Plan? Congratulations, but you are... Read More

Organizing Tips for Small Business Success

If you discovered the bottom line in your business depended... Read More

Starting a Small Business? ?Tips from a Veteran

Congratulations, you are starting a small business! You are taking... Read More

What Happened to the Money and Freedom?

Ask anyone trapped in a cubical about their entrepreneurial dream... Read More

Business Debt Collection Letter Writing Secrets

Debt collection letters--an overview"Debt collection letter" in the singular may... Read More

Business Development Is Not An Event

Cash flow. To stay in business, you've got to keep... Read More

Your Practice is Only as Valuable as Your Referral Base

Many physical therapists in private practice have the appearance of... Read More

Boy oh Boy, The Obstructions and Obstacles

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

3.5 Million People And A Possible UK Home Business Opportunity

Has this ever happened to you... 'John, you have a... Read More

Mobile Detailing VS Fixed Site Detailers

Mobile detailers will find themselves with lots of competition even... Read More

Build Credibility, Value, and Trust on a Shoestring

Setting priorities in your business? Your first job is to... Read More

efficient street lamps led wallpack Pete's produce ..
efficient street lamps led wallpack Pete's produce ..