Home
>
Small Business
>
The Misconceptions of the Value Of Disclosures in Franchising

The Misconceptions of the Value Of Disclosures in Franchising

Disclosure laws in franchising are suppose to help the consumer. They don't. The FTC, which over sees franchising has in fact created a rule, which makes 5 lb. Disclosure documents for franchise buyers, which is so huge that no one ever reads it. I know when I personally meet a franchise buyer whose application form is approved and hand them a UFOC, Uniform Franchise Offering Circular with attachments and watch their jaw drop and then their hand drop when they clutch it in their hands (due to the weight of the 155 to 200 pages), I see a blank look. I apologize every time for my unreasonable government and the US legal system for the rules.

I tell them it is to protect them and put up my shoulders and they usually say something like "Yah Right." A franchise buyer who wants to buy a franchise is not going to read and expect to understand every clause, nor are most franchisors going to enforce every clause. You can't, you would not have any franchisees left. There are too many laws in franchising and too much regulation. Many times a franchise buyer will ask me, "What the hell does this have to do with washing cars?" I really cannot answer what I really think, I would launch into a tirade that would last four hours full of more examples than I care to write in this brief letter. I could write a book over disclosure and franchise law.

The fact is that we are a mobile car wash franchise for the most part and that is a relatively easy and simple business. As much as the professionals care to argue to the contrary, all these disclosure laws just are not needed. Neither is all this regulation and surely not anymore than already exists. You can sit and argue why the rules and all the laws are necessary, but you will never convince myself or franchise buyer of it. Has anyone stepped away from the box long enough to see how absurd this is? Are we all so engulfed in the words of the statues and rules that we cannot see what we are doing. Forcing some businesses into the franchising model that should not be there, forcing the square peg where it does not fit.

Half the time it appears we have lost site of the peg and it has found itself in a place where the sun don't shine. Thank you for keeping it safe for us, but really the FTC does not need to go that far. There are enough rules, and rules about rules and findings about rules, and opinions about rules. We should tread lightly, before we make more rules. We should look at all the consequences of the rules we make and try to find fault with the rules we already have. The FTC can spend time debating which rules to axe rather than which rules to enact. This will definitely keep them busy, and it puts them in the distinct position of being part of the solution instead of the problem.

The consumer does not really want any more barriers to buying a franchise. They do not like the 10-day waiting period, which ends up half a month with holidays. They do not want to go through a long sales process. They want instant gratification and they want to start their new career/business and embark on their new chosen lifestyle. All these regulations have complicated the issue and made it tougher to buy franchises, all to the frustration of the consumer. Tell me did anyone ever take a survey of the sales process and large documents of existing franchisees and ask them what they think of the whole mess, which has been created to supposedly help them? NO, of course not. Yet, I cannot think of a franchisor, which does not constantly survey their end users of the franchised outlet for the desires and events leading to a sale of goods or services and on all those surveys they always ask the same things. Did you feel that all your questions were answered, were you happy with the buying process, were your needs met, etc.?

Why doesn't the FTC ask real franchise owners what they think of all the paperwork, large documents and rules. Simply taking the information from lobbyist groups of franchisee advocate rabble-rousers will not do it. Taking Internet complaints will not do it. Ask the actual franchisees already in the systems, the good franchisees, which follow the system. By making more rules the FTC is actually hurting the franchisees, lengthening the documents. This causes new case law, more stipulations and boiler-plate phrases all adding to the length and complexity of the documents, agreements and buying process. Thus causing another law or rule to follow after circumstances unanticipated show their heads over issues of previous rules. And would you look at all this has created now? Whheeewwweee? Think about it.

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

affordable house cleaning Park Ridge ..

In The News:

Holiday shopping scams surge as fake refund emails target distracted consumers during Black Friday and holiday seasons, costing Americans billions annually.

The AI-powered IRMO M1 exoskeleton features four modes, including turbo, eco, training and rest for hiking, running, cycling and sports with eight-hour battery life.

OpenAI announced upgrades for its ChatGPT Images platform on Tuesday, saying the program can now make more precise edits and produce images more quickly.

Chrome for Android now turns web articles into AI-powered podcast conversations. Get hands-free browsing with Google Gemini's natural audio summaries.

LastPass faces $1.6 million fine from U.K. regulators after 2022 data breach exposed 1.6 million users. Password manager failed proper security controls.

Petco disclosed a data breach exposing customer Social Security numbers, financial account details, and driver's license information due to a software error.

Baseball teams can now analyze complete swing mechanics in normal training environments using Theia's markerless AI system that processes standard high-speed footage.

Smart home hacking fears overblown? Expert reveals real cybersecurity risks and simple protection tips to keep your connected devices safe from hackers.

MIT develops needle-free glucose monitor using light technology. Revolutionary device could replace painful finger pricks for diabetes management.

The ClickFix campaign disguises malware as legitimate Windows updates, using steganography to hide shellcode in PNG files and bypass security detection systems.

Researchers from Osaka Metropolitan University designed a 21-foot dome that combines aquaculture and hydroponics to create a self-sustaining urban food system.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

ChatGPT data breach exposes personal info of users through partner Mixpanel. OpenAI confirms names, emails compromised in security incident.

Android rolls out Emergency Live Video for 911 calls, letting dispatchers see real-time scenes during emergencies. Great for holiday travel safety.

Malicious Chrome and Edge extensions collected browsing history, keystrokes and personal data from millions of users before Google and Microsoft removed them.

Google's new Call Reason feature lets Android users mark calls as urgent before dialing, displaying an urgent label to recipients using Phone by Google app.

Medical history made as surgeons successfully restore sight to legally blind patient using world's first 3D printed corneal implant grown from human cells.

Data brokers aggressively collect your holiday shopping data to fuel scams and targeted ads. Learn how to delete your digital profile before 2025 starts.

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

The Misconceptions of the Value Of Disclosures in Franchising

Small Business