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Franchise Rule to be Revised; Why?

Franchise Rule to be Revised; Why?
Author: Lance Winslow

The FTC, Federal Trade Commission, is considering modifying the franchise rule. So far it has be a ten-year process; just imagine working that slow in your business? In 1995, 1997 and 1999 when the comments were first considered and taken in, which spans a ten-year period. When you combine those comments with this current rule making period they may have broken the record for the longest rule making session since voting on the slavery issue; one heck of a long rule making period by any means.

Many of the franchisors now in business were not in business back then and therefore their concerns have not been heard. Some of the franchisors have come and gone within that time frame. Some have made fortunes, one in five franchisors makes it to five years? So, many have come and gone. What actions at the Federal Trade Commission caused the pre-mature death of those companies? Could we have a mortality rate of one in three instead of one in five in the franchising industry if we worked to reduce over burdensome regulations?

One in five children in Africa live to five years old; dieing of malnutrition, malaria, yellow fever, dysentery? Are franchisors so burdened with the incorrect flows of law that 1:5 success rate is the norm? Why is this, shouldn’t we back up and take a look at what we have built here? Think about it.

By Lance Winslow