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Politics, Lawyers and Franchise Rule Making at the FTC

Politics, Lawyers and Franchise Rule Making at the FTC
Author: Lance Winslow

The Federal Trade Commission is working through the necessary changes of law to protect the consumer and be fair to business owners in the franchising industry. Unfortunately as with most all regulatory agencies whenever they wish to make rule changes they have meetings to discuss it with the industry, but the lawyers all show up and take over the process. The franchise rule changes are no different so it makes sense they will not serve the industry or consumer, only the lawyers.

It is incredible that these entire sets of discussions at the Federal Trade Commission and the comments spanning 10-years on the franchise rule are being made by attorneys, who gain financially from the incessant rules. The regulators who have never been in business before, probably never even worked in franchise corporation or owned a franchise outlet, have no clue as to what it is all about; but would fervently argue that they do; having talked to all these attorneys blowing smoke of their butts. Franchisors have not the time to deal with these issues. And they know they cannot trust the government agencies to listen to their comments. For instance many entreprenuers have given the FTC insight to the real issues, yet their voice is unheard and drowned out by attorneys who are special commenters because they practice law?

Yet the actual problem here is they are attorneys in the industry, therefore they should be barred from comment as their comments are too self-serving. Dah! Obviously, so obvious it should not even need to be pointed out. We need to down size the rules, simplify them or eradicate them all together. If we are looking to make a huge positive change for the betterment of all civilization, this would be the best tact to take. These runaway rules, opinions, regulations, lawsuits and ever increasing case law created are clearly choking the life blood out of franchising and destroying the possibilities for economic vitality in the future. If lawyers are to be allowed to comment the ratio ought to be 1-5% because in franchising there are 2000 franchisors, 400,000 franchise outlets, 20,000 vendors and only 200-300 lawyers who specialize solely on franchising. Think about it.

By Lance Winslow