One major issue not being addressed right now in the regulatory definitions which guide consumers and lawyers in business opportunities and franchising is the new term being used; Private Franchising. The Federal Trade Commission decided it would revise its definitions of such opportunities in 1995, but failed to address this issue. The use of the term; Private Franchising has grown over the years.
There now exist some fraudulent activity going on in coffee shops across America with regards to multi-level marketing recruiters using this term, which disquises their business model as something it clearly is not. It appears that consumers have grown wise to MLM business opportunity sales tactics and therefore that form of virus has hijacked a new host (franchise industry model) and modified its intended definition. This is happening where the salesman, MLM recruiter calls their business a "Private Franchise" and then spends about 20 minutes of the presentation discussing the incredible success of McDonalds and other franchising giants prior to drawing circles on paper and making forward looking statements about their parent company, without presenting a full audit and then make earning claims to the potential signer up of the MLM program. The circles have names like Diamond, Emerald, Ruby, Direct, Etc. All in line with the typical MLM sales plan and methodology.
This is not a franchise, not even close in the Federal Trade Commission definition, yet due to the lack of guidance in true definitions, the words; "Private Franchise" has been adopted and the word "franchise" is used throughout these loud presentations in coffee shops across America each day. As a matter of fact it is hard to sit in a coffee shop anywhere in this country without hearing one of these presentation on any given day. See for yourself. A failure to completely separate the entangled business models in the Federal Trade Commission's definition does so at the detriment of the consumer. The Federal Trade Commission's job is to educate protect the consumer, yet it is failing to act to this new biological threat which might harm the current complex life form of the Modern Franchise business model. The consumer begins to perceive that somehow an MLM business is exactly the same as a franchise. That they will receive the same things, expect the same things and receive similar presentations.
This is false and misleading to the consumer and unfortunate for the ethical franchisors and franchising industry. Think about it.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
post construction cleaning Deerfield ..Continuing from the second article:6. About the aground mathematical model,... Read More
Small Business, Big Business ? What's the Diff?Well a lot... Read More
Today required franchise disclosure documents are over 200 pages generally.... Read More
"Inch by inch, row by row...that's the way my garden... Read More
If you run a mobile car wash, mobile fleet washing... Read More
Some marine biologists feel that the concentration of dead marine... Read More
1. TargetYou are not all things to all people. Decide... Read More
Large corporations use employee manuals to both educate employees about... Read More
Last week we discussed the importance of performing an autopsy... Read More
-- The One Pager Shortcut Series --People do business with... Read More
SBIR vs. STTR: If you are participating in the SBIR... Read More
No, I'm not talking about gambling or dairy cows ?... Read More
Deciding to start your own franchise is just one of... Read More
You can make your trade show experience much easier by... Read More
There are no "rules of thumb" in the pursuit of... Read More
If you're looking for start-up capital for your business, but... Read More
Are you a motivational speaker who consistently gets rave reviews... Read More
Q: Is the online world the best place to sell... Read More
A reader of one of my online sessions asked should... Read More
Incorporation in Nevada has become an attractive option for savvy... Read More
Gather round while I tell you the story of Kennebec... Read More
If you really want to earn more money with your... Read More
Over the years I heard the best way to learn... Read More
It has been said that the only constant is change.... Read More
Why should you do informative talks to smaller groups?Informative talks... Read More
Airbnb cleaning service Bannockburn ..1. Have A Strong Constitution ? Justices deliver decisions by... Read More
The temporary staffing industry continues to expand, with yearly double-digit... Read More
Let's face it, we all tend to get stuck in... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
How do you sponsor an event and get personal introductions... Read More
There are many factors to be considered when you are... Read More
The single most important activity you can do in your... Read More
If I had $1.00 every time I heard someone say... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
If you are thinking of turning your current into a... Read More
Home based travel businesses are no longer the wave of... Read More
Setting priorities in your business? Your first job is to... Read More
If you own a mobile truck washing, pressure washing or... Read More
North County San Diego has had some significant growth, and... Read More
One of the best marketing strategies a business or organization... Read More
Which questions do you need to ask to even get... Read More
There are almost as many opinions and views on marketing... Read More
The stock market is still on a wild roller coaster... Read More
While driving through Pennsylvania farmland, you have probably noticed an... Read More
How far can you go based on your relationship with... Read More
IntroductionIt is widely recognised that Email and the Internet is... Read More
Administrative and clerical tasks are the bane of every industry.... Read More
You're a small business owner with a hot new product... Read More
If you're just ramping up your small business email newsletter,... Read More
How a donation is different from a sponsorship and what... Read More
Small Business |