Federal TRADE Commission Screws Over Small Business Again!

Recently the Federal TRADE Commission put forth a franchise report for possible rule making. In the report is offers possible law changes, which will screw over small business. Isn’t this so typical of the Washington DC bureaucracy with their fingers up everyone’s you know what? The Federal TRADE Commission appears to want to revamp the franchise rule and effectively crush small business franchised outlets.

The biggest issue now in American Commerce is how can small businesses compete with the larger Box Stores? Well, through economies of scale, small business co-ops and franchising. But if franchising is inhibited in the market place you have in fact eliminated the competition of the giant corporate box stores. Yet small business employs over 70% of our economy. So further regulations on franchising and incessant over disclosure (190-230 page UFOCs) doesn’t help anyone as it causes the following;

Over Disclosure creates barriers to entry into the franchising field for franchisors, who have a mortality rate of 5:1 in the first five years already, yet the Federal TRADE Commission claims to be pro-competition? BS, it is total protectionism, helping larger corporations against entrepreneurship. If no new industries get a foothold the older industries like text tiles, mining, steel will slowly dwindle with no new venues to buy up or expand into. Without new industries starting and with old ones maturing and dying we cannot have a healthy economy. The $25-35K to prepare documents and the $20K to stay registered in Franchise Registration states and the $45K for yearly audits does not allow for future Ray Kroc, built from scratch entrepreneurs. They cannot succeed, build and continue; today even well financed ones have issues. (i.e. Shlotskys Deli, Krispy Creamed).

Over Disclosure decreases jobs in the private sector due to fewer new entrants. Forcing lower wages in box stores and further diminishing the middle class, whose buying power is supporting the whole world’s economies and helping new nations realize freedoms and human rights.

Over Disclosure decreases tax base; Less Jobs and commerce mean less tax base for government agencies meaning the Federal TRADE Commission has less budget (Ah ha, finally good news, at least all this over regulations will help reduce government bureaucracy as you people at the Federal TRADE Commission will no longer have jobs, great you do not deserve them!).

Over Disclosure decreases competition in the market place and reduces consumer choice. Forcing people to buy a one sizes fits all product lines, which is most likely made outside the US.

Over Disclosure destroys communities as individual franchised units are small businesses which support communities, where as large corporate stores often do not join local committees, service clubs, make donations, or participate in local events, chambers of commerce and support local sports teams like soccer, little league, high school bands and Boy Scouts (Oh, whoops, I am not allowed to say that as some people at the Federal TRADE Commission do not like Boy Scouts because of their personal sexual preferences, instead wish to hold that against the kids, so strike the American Apple Pie example of the Boy Scouts, we do not want to hurt anyone’s feeling?). Large Corporations during down economic times are the first to cut such things from their budgets if in fact they have such programs at all. Some do, but comparatively speaking not as large a percentage of gross sales as small businesses, which most franchised outlets are.

Over Disclosure hurts those who wish to own a business of their own as part of their American Dream because franchisors have to raise fees and therefore fewer Americans will qualify to buy franchises. It is the same scenario as home ownership for young couples, raise the price of the house a few thousand dollars or the interests rates a couple of points and all of a sudden the dream vanishes as they cannot qualify. In the case of franchisors that savings to the buyer, that extra money would have went to attorneys, yet these lawyers have hyper-inflated the costs associated with franchising and cannot seem to understand why franchise litigation and legal services are not as good as days gone by? Well it is quite simple. There were 6000 franchisors in the 80’s, less than 2000 active today. Ever ask yourself why? Over regulation, lawsuits and a complete misunderstanding of how franchises work by state registration departments and those fine folks in government over at the Federal TRADE Commission who are so easily manipulated by lawyers.

In fact there is only one group in the entire world who is well served by over regulation and that is the lawyers, that self-serving group who actively manipulates the rules in franchising. The Federal TRADE Commission is obviously in bed with the lawyers and we know that most of Federal TRADE Commission employees in the franchising division will go on to work for the very law firms making comments on this rule. How perfect is that? Wonderful, well for everyone except the:

  • Consumer
  • Citizens
  • Country
  • Franchisors
  • Franchisees
  • Economy
  • Entrepreneurs
  • Free Market

Think about it America, isn’t it time we asked our Congressmen to cut the budget of such a bureaucracy, if they cannot even manage a small group in a small department of a small agency in the Justice Department? Why would we all allow the United States Justice Department’ Federal TRADE Commission’s Consumer Protection Division’s Franchise Group get away with such atrocities to the health and welfare of our nation’s small businesses? Thanks for listening, think on it for me.

 

Online TRADE Winds

A few bends ago on the online marketing road, I registered and got paid hosting for a website I have been marketing for years. Now some people may say that is minor step, but for someone who lives on a rock in the Caribbean Sea that is a privilege.

I happen to live in a society that is still grappling with technology but is slowly catching on. The average man on the street feels that you are a geek once you are into computers when in fact you were in the same mindset as him before you first started out.

Being on online marketer sets you up for a roller coaster ride which if you are not prepared for, can leave you throwing up before the ride ends. Online marketing is not a go-kart race but is more akin to the Dayonta 500, so you better dig in for a long ride.

I built and ran my first website on someone else’s computer for years because I could not afford one. I did this using free hosting services until I could pay for hosting and upgrade my website. That made me feel so vulnerable at times of placing my best interests in the hand of another, but business is a gamble and I took my chances.

Instead of feeling disheartened, I used this as a catalyst for my growth. Here I was hearing complaints from others about the lack of opportunities, yet there was a goldmine right on the playground of the young- the internet.

Online marketing is a great teacher for all. It forces you to forget about me and start thinking about us. It is not a game where you hide behind a computer screen and shoot off emails to thousands hoping that you will get rich. It is all about building relationships which will determine if you sink or float.

Personality is a powerful tool in your marketing arsenal. It is an under used strategy that much has not been written about. Mark you though, just because you have a Brad Pitt personality that means you are already successful, instead it should compliment your other strengths.

The internet is a very powerful communicating and marketing tool that has changed several aspects of our lives. You can shoot off an email to someone halfway around the globe and it arrives quicker than an elevator ride to the first floor.

It pains me daily that persons who want a cheap business tool don’t know about it and some who have access to the net use it only to read emails and play Yahoo games. I happen to work at a computer lab and many of the persons who I have recommend the internet to as a business tool never even tried it once. Nothing baffling about that though.

Online marketing moreso the Net are fairly young when compared to most offline businesses and there is still plenty of time and space to hop on board. It will take you some amount of time, strength, courage and persistence to achieve your set goals. But at the end of the day you have something you can call your own.

Though I have not earned my first five figure check, these thoughts are what inspire me daily to help further the growth of the net. Strange huh, the net grows, my business grows, my bank balance grows, your business grows……..

 

 

Browse our comprehensive trade Directory :



trade Article

Keep Your Credit History Clean. Remove A Negative Credit Record From Credit Report

Learning the Disturbing Facts about Credit Card Debt

The Advantages of Credit Cards

Advantages of Using Credit Cards Instead of Cash

Tips for managing your credit cards

New Website alert--> Credit Card Zone.net The right way to shop for a new credit card(sm).

Credit report and correction techniques.

Japanese Credit Card Market Report