What is Private Franchising? It is Nothing Someone Made It Up

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.

Franchising is Virtually Fraud Free   

Find Out If You Will Be Successful As A Franchisee?

Will I be successful as a franchisee?

One of the soundest pieces of advice to take when considering becoming a franchisee is to 'Assess Yourself'. Assess whether you can accept direction. Some people cannot. Assess whether you can work within definite systems and structures without feeling trapped. Assess if you are committed to the franchise concept and if you believe in it. If you feel that you can work within these parameters then go for a franchise. If not, then a franchise may not be for you.

Also realise that owning your own non-franchised business is nearly 3 times more likely to go broke than a franchised business. In today's cut throat world you should take every edge you can get. And don't forget, you are going to be your own boss, if you would sack yourself it may be wise not to have your own business at all.

Are franchises fool-proof?

Absolutely not. Franchises rely on you to succeed. Even if you succeed certain things may occur beyond your control that may make your franchise crash. These aspects are potential failures of the franchisor. Regardless, of how well you run your franchise you may be forced to close because of the performance of you franchiser.

The main ways your franchiser can crash are:

Structure of the franchise

If the franchisor decided to start the franchise with no testing, a short track-record, bad advice, the structure of the franchise may be flawed. If this is the case the franchisor may run into financial difficulty. If that happens then the parent company that owns all the franchises may be forced to cease operation.

Bad franchisees

Most franchises have a means-tested selection process. This is because franchisor want to ensure that the best people, or at the very least, technically competent people, run the franchises. If there is no selection criteria then the franchisor cannot ensure success. If there is set selection criteria then the franchisor has tried to mitigate risk in this way. Entry qualification to starting a franchise should be something to look out for. If it is too easy to be a franchisee then it may be wise to avoid that particular franchise.

Franchising is Virtually Fraud Free   

Find Out If You Will Be Successful As A Franchisee?

Will I be successful as a franchisee?

One of the soundest pieces of advice to take when considering becoming a franchisee is to 'Assess Yourself'. Assess whether you can accept direction. Some people cannot. Assess whether you can work within definite systems and structures without feeling trapped. Assess if you are committed to the franchise concept and if you believe in it. If you feel that you can work within these parameters then go for a franchise. If not, then a franchise may not be for you.

Also realise that owning your own non-franchised business is nearly 3 times more likely to go broke than a franchised business. In today's cut throat world you should take every edge you can get. And don't forget, you are going to be your own boss, if you would sack yourself it may be wise not to have your own business at all.

Are franchises fool-proof?

Absolutely not. Franchises rely on you to succeed. Even if you succeed certain things may occur beyond your control that may make your franchise crash. These aspects are potential failures of the franchisor. Regardless, of how well you run your franchise you may be forced to close because of the performance of you franchiser.

The main ways your franchiser can crash are:

Structure of the franchise

If the franchisor decided to start the franchise with no testing, a short track-record, bad advice, the structure of the franchise may be flawed. If this is the case the franchisor may run into financial difficulty. If that happens then the parent company that owns all the franchises may be forced to cease operation.

Bad franchisees

Most franchises have a means-tested selection process. This is because franchisor want to ensure that the best people, or at the very least, technically competent people, run the franchises. If there is no selection criteria then the franchisor cannot ensure success. If there is set selection criteria then the franchisor has tried to mitigate risk in this way. Entry qualification to starting a franchise should be something to look out for. If it is too easy to be a franchisee then it may be wise to avoid that particular franchise.

Franchising is Virtually Fraud Free   

What is Private Franchising? It is Nothing Someone Made It Up

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.

Franchising is Virtually Fraud Free   

Franchising is Virtually Fraud Free

The number of complaints to the Federal Trade Commission on Franchising do not indicate ramped fraud in the franchising sector. The FTC before Congress gave a report showing that the number of complaints was fewer than one tenth of one percent, lower than any other industry. Nearly all the franchising cases the Federal Trade Commission filed, were gray, crying wolf area of law and most settled as soon as possible; considering the slow nature of our courts in America.

Some of the cases the Federal Trade Commission had brought since 1970, which fell within their franchising rule jurisdiction were doctored up claims against smaller franchising companies, involving false declarations, secret Federal Trade Commission court filings and Federal Trade Commission runaway case worker investigations to prove themselves right once the target was sighted. I know this because our company was filed against in such a way. These tactics and thought process of course is part of the flawed human behavior to prove ones self right. The FTC's behavior in case filings is not too different from a student Thesis at University Level, Politicians justifying actions, policemen lying in paperwork and religious cults. We will not comment on the serious nature of the Federal Trade Commission, starting a case and working hard to prove guilt of the target to justify their existence or next years budget.

It is safe to say however that in franchising, significant checks and balances already exist along with the rights of private action which abound with the sharks of the legal system looking at small fortunes and pots of gold created by franchisors in the market place. The ambulance chasers are in fact ready to pounce on any possible violation or perceived violation in the franchise rule. If not these fake EMTs will attempt to create a gray area to slither through an open window, cracked screen or drive the ambulance right through the front door like a crazed Islamic radical suicide bomber coming from a Cleric's meeting to snatch the cash, take the safe or just to collect the 72 Virgin C-notes in fees for filing the suit. The Federal Trade Commission also often abuses their power with regards to the franchise rule as they need to bring so many cases every so many years to prove they are doing something.

Think about it; should we really worry about International Terrorists or should we concentrate on the cancer within and the bureaucracy which threatens to destroy all we are and all we have built?

Franchising is Virtually Fraud Free   

What is Private Franchising? It is Nothing Someone Made It Up

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.

Franchising is Virtually Fraud Free