Home
>
Political
>
Federal Trade Commission Falsely Purports Franchise Disclosure is Cost Effective

Federal Trade Commission Falsely Purports Franchise Disclosure is Cost Effective

In a recent report on the status of the Franchising Industry, the Federal Trade Commission knowingly and falsely purported that its Franchise Disclosure Rules are cost effective. In fact; there is nothing inexpensive or "cost-effective" about the 190 to 230 pages of disclosures that franchisors must give to prospective franchisees. Anyone purporting such misrepresentations does so either for personal gain (Lawyer) or out of spite against franchisors due to a misunderstanding of what the franchising model is or how it works.

We see in many industries, for instance real estate, where laws, case laws, regulations have made a simple house purchase turn into a series of forms no less than 400 pages, (it may not look as big in 10pt font and double sided, but it is) and just short of the number of pages in this Federal Trade Commission report. What does all this mean? It means we have further complicated the original reason for such disclosures to the point of absurdity, where each side is so busy trying to CYA, in case of frivolous lawsuits that each side believes they have the right to be irresponsible in their business practices and have no need to fulfill their promises because there is a clause in the contracts and disclosures giving them a way out and behind that way out a lawyer who will be glad to make 2+2 equal 50 if you so desire and have paid the retainer.

It is all a crock, everyone in franchising knows it, no one is willing to say it and the Federal Trade Commission is so busy having meetings with lawyers that they forgot about the original consumer who is not helped in the least by over disclosure as the costs that the franchisors pay in the exorbitant fees to prepare the disclosure documents are passed onto the very consumer that the Federal Trade Commission is claiming they protect. It is total BS to say that such over disclosure helps consumers at all. Just a lie, an excuse for further rule making and minutia piling (BS). Simply helping lawyers to that which they did not earn and do not deserve.

While some might contend that franchise disclosure give vital and pertinent material information to prospective franchisees, such over disclosure hurts that very prospective franchisee if they buy the franchise and become a consumer of franchisor. The extra costs passed on to the consumer are not the only issues to be concerned with, there is also much proprietary information of the franchisor which is in such documents, information such as:

Number of Units expected to be established in the future in various states, Complete set of audited books, complete business structure, name and address and phones numbers of franchisees, often earnings claims which show unit performance by region, etc. all this information makes it really easy for competition to track and crush the fledgling franchisees by establishing stores in those regions and competing with all that information. Information that non-franchised competition do not disclose as they are not regulated in such a manner. This further un-levels the playing field for the franchisee unit and could cause them to go out of business. Thank you FTC. You fine folks at the FTC- "Forgot The Consumer" Again !!! How is it that no one understands this? I see no attorneys discussing these things in their comments? Why? Because the attorneys do not understand the market place and really have no business commenting on the proposed franchise rule changes as they are the ones who have made the modern day franchise model highly unworkable for their own personal gain a fees. The FTC doesn't get it, the lawyers do not want you to, the consumer doesn't understand what is happening and the franchisors are drowning in minutia. Wake up. Think on this, debate the topic if you will, but any rational human being with half a brain can see what is happening. Thanks for listening and all the best.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs

maid service near Lake Forest ..

In The News:

New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.

OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.

Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.

New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.

DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.

Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.

Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.

Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.

A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.

South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.

Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Fake AI apps disguised as "ChatGPT" and "DALL·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.

Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.

Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.

NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.

Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.

Commerce Department proposes TP-Link router ban over Chinese security risks. Learn how this potential prohibition could affect your home network and devices.

Hyundai AutoEver America suffered a data breach affecting 2,000 current and former employees, exposing names, Social Security numbers and driver's license information.

Washington court rules automated license plate reader images are public records, even when stored by vendors like Flock Safety, setting precedent for transparency.

Fake airline texts claiming flight cancellations are targeting travelers with convincing scams. Learn how cybercriminals steal personal data and credit card info.

Discover how iOS 26's new Adaptive Power feature automatically extends iPhone battery life by learning your usage patterns and adjusting performance intelligently.

New TikTok malware campaign tricks users into running PowerShell commands that download Aura Stealer, which steals credentials and authentication tokens.

Gaia Family offers fixed upfront pricing for IVF cycles with unlimited embryo transfers and financial protection, partnering with over 100 U.S. fertility clinics.

The Jetsons Act aims to position Pennsylvania as a leader in advanced air mobility by establishing regulations for hybrid ground-air vehicles.

Federal Trade Commission Falsely Purports Franchise Disclosure is Cost Effective

Political