Competition in the Market Place and Over Disclosure Regulatory Burden
The Federal Trade Commission is assisting competitor to cheat and encouraging this unethical behavior thru their disclosure rule on franchisors. Competition in the market place is far more competitive and the stakes are high enough that Over Disclosure Regulatory Rules cause competition to take the advantage and cheat. And before you say I am off base on these comments, let me tell you that 20% of every single inquiry to buy our franchise comes from a competitor. That's right 20%.
So with 70% misrepresenting themselves on applications (consumers often lie about their financial where with all) and 20% being competitors, that leaves 10%. Only one in ten is actually a possibility of becoming a franchise buyer and then they have to like us. One in ten is not a good ratio. That would mean out of twenty inquiries that we contact and talk to we would send out 18 UFOC franchise disclosure documents in vain at a cost of $8.00 or $144.00. That is not cost effective for a small franchisor and it when multiplied times ten is not cost-effective for large ones either. Please, oh brilliant grand Pooba, at the Federal Trade Commission enlighten us as to how this is so darn "cost-effective" will you? After all this is what they proclaimed in the most recent franchise regulatory report on the franchising industry.
Well the current franchisees, the consumers pay for it in the market place due to competitive information leakage and we as franchisors pay for it in real time lost and $144.00 per 20 leads. For our company that is times five per week or $720.00 per week and over a year you just added $37,440.00, and just think we are only getting 100 leads a week, what about those who spend a lot in advertising their franchises, what are their costs? And here is one for the Liberals out there reading this who want to save the planet by stifling the free enterprise that our ancestors died to protect and give you the standard of living you now have. Our franchise agreement and UFOC with attachments was 115 plus pages in 1995, some were 235 pages at that time. Other franchisors have larger documents. Companies like Dwyer, Grow Biz, Service Master, etc., have over 280 pages with all the disclosures and attachments.
So how many trees are we going to cut down to disclose people who are not even legitimate, do not have the money, are simply looking for free information to attack their competitors? Yes we can cut down the number by further scrutinizing the buyers, who are more and more reluctant to give out personal information in the first place because of the Federal Trade Commission's failure to curb identity theft. If you think my figures are too high you are wrong because long about June 2002 the United States Post Office is raised rates and there is talk they are going to raise them again in 2005? Why? Because people are using SPAM instead (which is costing American Business 35 Billion a year in lost productivity, wake-up FTC), because the Federal Trade Commission has not been able to stop it and therefore the junk mail or commercial mail that pays the bills at the USPS is dwindling. Did you know that $37,000 pays for our entire annual meeting for our franchisees, yet this over disclosure you call cost-effective is eating up real profits and monies we could use helping our franchisees.
Where will I as an entrepreneur cut costs to cover this increase in paperwork that the added pages in the UFOC will need when the Federal Trade Commission enacts these additional rules? Hmm? How nice of the Federal Trade Commission comment on my costs and the cost-effectiveness of the insanity of over disclosure? How dare they copy the comments of Lawyers who specializing in suing franchisors as factual, this shows how out of touch our regulatory bodies are and it is unforgivable and unacceptable, we need to take these disclosure laws back to the drawing board. These current disclosure laws and this trend is a plague against America, which more resembles a Smallpox laced Ebola virus than anything else.
The Federal Trade Commission needs to think on these things before making any more laws or franchise rules.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
11 Things Small Business Owners Can Learn From Punxsutawney Phil
1. Look Over Your Shoulder ? Of course, Punxsutawney Phil has to look over his to search for his shadow. You should, too, every so often, to check out your competition?and see whether they're gaining on (or leading) you.
Forming a Corporation ? Investors
You've come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing.
Boat Detailing Tips and Procedures
Auto detailers are often asked to clean boats and detail boat trailers. There is an easy and efficient way to do this with little effort. Washing and waxing boat trailers is an easy sale. Be sure to offer the boat owner a trailer wax. Let the owner know that a heavily waxed trailer is more rust resistant even when used in salt water. They can wax now or repaint later. To remove rust, brush on two coats of Ospho Acid, available in paint stores and marine supply shops. It will change the chemistry of rusting steel from an active to a passive state and stop rust cold.
Environmental Boat Washing and Detailing
Some marine biologists feel that the concentration of dead marine growth on boats and in boat harbors can create hypoxic zones or a lack of oxygen. This causes a decline in the water quality and may at times cause adverse effects on living marine life such as salmon in the case of the State of Washington. Also some paints have heavy metals in them, which come off with the use of pressure washers. If you coat the boat with our glass-coating product and wash it with our readily environmentally biodegradable soap, we can actually re-oxygenate the water.
Six Sigma for Small Business
It is not surprising that some people may perceive Six Sigma as being only for large corporations. Major corporations such as Allied Signal, Black & Decker, Dow Chemical, Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Motorola, Sony, and Toshiba have all rolled out Six Sigma efforts and achieved outstanding results. Yet, it is incorrect to think that Six Sigma process improvement results can only be achieved by huge organizations. Small businesses can also succeed in implementing Six Sigma and reap the process improvement benefits that Six Sigma provides.
Grab Your Consumers Attention in a Cluttered World of Marketing Communications
A cluttered world of marketing communications diminishes the ordinary. The consumer can no longer be bother with the dull, trite and a boring hodgepodge of marketing communications that are pandered in front of them every day. They simply haven't the time, nor are they willing to figure out what irrelevant messages warmed over with pseudo-showmanship the marketer is selling them.
Are You Running Your Business or Is Your Business Running You?
Being a small or home-based business owner can be loads of fun and very rewarding.
Tell Me a Story: A Simple But Powerful Tool to Build Your Business
Everyone loves a good story. Whether it's the story of your vacation to an exotic place, the story of how you met your spouse, or the story of your small business, people get drawn in and feel involved. Storytelling is as old as civilization itself.
Are You Using a Chess or Checkers Small Business Marketing Strategy?
Until the day I learned to play chess I loved playing checkers. Both games require a strategy that maximizes a player's ability to capture her opponents pieces without first losing her own. Checkers was fun. But the complexities of chess lead to more satisfying victories and defeats.
Why Small Businesses Fail (or Fail to Thrive)
Tammy, a skilled and gifted horticulturist, called me to discuss what she needed to know to start her own florist and landscaping business. She had been in the horticulture industry for 10 years and was incredibly skilled at working with flowers and plants ? one of the best. She also had great design skills, as well as good customer service skills. But she had little business management experience and less self-employment experience.
Finding the Right People for your Business
Where do you find the right people for a business relationship?
Pressure Washing Business and Post Fire Cleanups
Many have not experienced a fire up close. One year about 15 years ago I almost lost my house as did our neighbors to a wild fire. It moved so fast and the sky so black, with cinders everywhere and soot like a nuclear fallout horror movie. Luckily our neighborhood was spared except for a couple of homes. The fire fighters did a good job that day, others living further down the path of the fire and lower in the canyons did not fair so well, a few people even lost their lives. From that day on, I take fires seriously and you should too.
Wichita KS; Anything is Possible in Wichita Business
Just when the entire state was kissing Wichita goodbye, economically speaking, they turn around their economy like a hammer-head stall. The BTK is caught and has gone away and the Aircraft Industry has decided to stay. Last year 40% of all the aircraft in the world were made in Wichita and instead of losing market share they are gaining ground on the other aerospace manufacturing cities in the United States and around the world.
Keeping Business Alive
Who is responsible for maintaining the business relationship?
Business Debt Collection Letter Writing Secrets
Debt collection letters--an overview
Small Business Survival
In today's economic climate, the first priority for the small business entrepreneur is survival. A glance at newspapers, business journals, or cable news channels reveals a succession of corporations striving to stay on top of their game, and often failing, to slow the growth of outsourcing or to show real growth within their market space. In such times, knowing how to achieve long-term success is more critical than ever.
Mobile Truck Washing, Case Study
Most folks in the pressure washing business are happier to do business cleaning concrete or flat work, because it appears to be easy. Some do both fleet truck washing and concrete, which makes sense. But what some do not understand is once you are totally efficient at truck washing you can surpass the dollars per hour that those in concrete cleaning generally charge. I have been washing fleets of trucks for over 12 years. What I have found is that our car wash guys www.carwashguys.com which is a mobile car wash business ended up being a fleet washing business and not only for car washing. This is because customers needed services and kept calling and we were able to do the work as good as any company could.
Small Business Savvy: Reaching Key Big Business Decision Makers
As a solo entrepreneur or small business owner, one of our key challenges can be reaching key decision makers in larger companies. Getting to the right person who can seal the deal can be a frustrating experience, especially if you don't have a game plan. Here are three ways to connect with the right people.
Franchising in The Middle East There Will Bring Significant Opportunity for US Based Franchisors
As stability emerges in the Middle East there will be significant opportunity for the Franchising Community. Arab Franchising appears to be of interest for those seeking economic growth in much of that region of the World. They are more excited about economic expansion than we are in the US. They seem to understand the benefits of many small businesses employing millions of people and rightfully so. Check out this article:
Self-Employment: Do you know the Difference between Rates and Wages
The difference between rates and wages is not always clear to newly self-employed people and their wage-earning clients.
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