Does The FTC Truly Live Up To Their Mission

July 13th, 2008

Most of the American citizens believe in the Federal Trade Commission’s original mission, although having seen the truth and reality of the Federal Trade Commission’s ten-year delay on the changes to the franchise rule and the way they conduct themselves, do we really need the franchise rule at all? Do we even need the Federal Trade Commission involved in a business model they clearly do not understand, which is so vital to our Gross Domestic Product?

Shouldn’t the Federal Trade Commission franchise division have a business library on franchising the size of any franchisor? Shouldn’t they have to in turn at a franchise company before working in that cushy job, which will most likely land them a much higher paying job in the private sector later on? Are they competent enough to do the job? Well, what say you? China has often called our government the paper tiger? What should we call the Federal Trade Commission with regards to franchising? It appears to be based on borderline incompetence, from my personal observation. It is as if the entire agency is really fake and does nothing, pretends to help the consumer, yet crushes them at every corner. Perhaps the Federal Trade Commission needs the five-point safety harness seatbelt not the industry. Who watches over their endeavors? Do they have absolute free reign on everything without regards to their actions? If so, no wonder such abuses of power go on? Who is running the ship over there? Truth, Justice and the American Way, cannot exist when the Federal Trade Commission is able to unilaterally increase franchise regulations, without the knowledge of the evolution of franchising model.

It is like an untrained doctor operating on another species. The problem is not in the franchising industry, the problem is with the over regulation of the industry. Making more rules, makes more lawsuits, case law and needs of further definitions and then more rules and regulations and job security for those unfit to lead. Enough already. The true leader in the marketplace is the entrepreneur, not the lawyers and certainly not the regulators. Think about it.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

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Federal Trade Commission Franchise Group Violates Duties

July 12th, 2008

The Federal Trade Commission; FTC is violating consumer trust. In their haste to regulate franchising, they have all but endorsed businesses, which sell Franchisor Disclosure Documents to the public. The FTC’s theory is the more disclosure out there the easier it is for the consumers to get information. Yet there is a significant problem in all this pre-screening comparison. Number one the companies selling these documents cannot guarantee that you have the updated and most recent disclosure, thus they are providing disclosure, which may not be factual. This is in effect misrepresenting the company, whether good or bad, if it is outdated it is incorrect. I know that at one time we were changing our franchise documents at least once per week. Some of those changes could be material changes. In fact lawyers suing franchisors really stretch what they consider material, when filing against franchisors. So this practice of collecting UFOCs and selling them to the public is causing unnecessary lawsuits.

Additionally at one time our company had over 50 franchise documents for only one of our brand names, which one would the company who distributes these UFOCs without the franchisor’s consent, give to the person buying it? Many franchisors due to case law have different UFOCs in each of the registration states and then another for those which are not registration states, we did. It was a matter of survival simply to avoid the litigation practices of the franchise lawyers, who in my opinion are crooks. Caesar had some great ideas didn’t he? Indeed he had.

Why is the FTC promoting misrepresentation by allowing these companies to sell outdated UFOCs to the public? Because the FTC is inept and basking in liberalism as it sells the industries out to their friends and lovers in private legal practice, so that they may some day leave the FTC and join one of those firms. Deny it, they are kicking their dogs too, that my friends is cruelty to animals. Why is the FTC so utterly blind to truth and so ignorant to the what is going on in the world of franchising. Think on this.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

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What is Private Franchising It is Nothing Someone Made It Up

July 11th, 2008

The Federal Trade Commission has an obligation to the general public, their stated consumer education mission and to the over regulated franchising industry and the small business operators running Biz Ops to separate the two business models by way of legal definition. Any failure to completely separate them will trigger additional problems down the road and cause the current on-going process of rule review to continue, without any formalization for decades.

This of course is good for attorneys who make money on these ambiguities for lawsuits and great for Federal Trade Commission tenure and job security. A few also realize it could allow for additional travel budgets of governmental employees during these rule making processes on the taxpayers money. It would also trigger more time-out, “let’s think about this one”-coffee breaks on various floors of the Federal Trade Commission’s fully furnished 1970 desk style ambiance. However it is not good for consumers or industry and creates unleveled playing field on one hand and complex barriers to entry for start-up entrepreneurs with regional dominance and efficiencies, which lend them selves well to the franchise business model on the other. This is because Biz Op MLM salespeople are purporting that they as similar to franchised business, by using terms like ‘Private Franchising‘ in their presentation.

These MLM business sell in coffee shops and public presentations, which would send chills down the spine of any compliant franchising executive or real franchisor. So then, what is a real franchisor? What is private franchising? What is a Business Opportunity? What is an MLM business? What is a hybrid or cross-breed of any of these combinations? How on Earth in laymen terms can the Federal Trade Commission explain this to us, so that we might explain the differences to consumers when asked. Where on the Federal Trade Commission website is there a place which describes all of them and the possible variations? Due to the introduction of the term “Private Franchising” in the interim between 1999 comments and 2004 evaluations of possible definition revisions by Federal Trade Commission it appears that the definition landscape in the real world is hyperspacing the definitional upgrades to the franchise rule in the wonderful world of bureaucracy. We should not kid ourselves into thinking that the latest FTC report or any subsequent changes now, will change anything in the actual market place as to the number of; non-existent fraud events in franchising. The number of fraud cases in franchising is basically nil as per Federal Trade Commission’s own statements to congress. Yet the MLM crowd is manipulated truth by miss using the word franchising and that misrepresentation is damaging consumers. Think about it.

Lance Winslow

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