As a former franchisor I can tell you this; I love franchising, and I love everything about it. I do believe with all my heart that it is the greatest business model ever created in the history of mankind. And I can show you examples of this near and far, as proof. Not to mention the fact that I enjoyed my time franchising my company around the country and into international markets. Now then, can franchising continue to be the greatest business format in human history? I believe so, with a caveat, and if you have a few moments I’d like to explain this to you. visit this Incfile review
You see, one thing that had always bothered me was the burdensome regulations in the franchising sector. They were completely unwarranted, and from an entrepreneur’s standpoint outrageously unacceptable. It seems absolutely insane to have such onerous regulations and the requirement of over 300 pages of disclosure documents before you sold a franchise to a new franchisee when in fact there is very little fraud in franchising. After all, why would a franchisor wish to induce a buyer to buy their franchise just to make money in the near term, when they’d have to do business with that individual for that duration in term of that franchise?
It seems to me that regulators don’t understand this principle, that is to say that franchising is a win-win situation. Those franchisors who use fraudulent sales tactics don’t last for a long, and they are generally sued into oblivion, we hardly need the hard-core overregulation that exists in the industry today. Now then, it would be different with business opportunities where a business model and format is sold to an individual, and once the business opportunity company has sold the business, they walk away never to talk to the individual again.
In that case they would have an incentive to overhype their business model, and perhaps that’s why there is more fraud in the business opportunity sector than in the franchise opportunity sector. One thing that equally bothers me now in 2011, nearly a decade after I had franchised my company is that on one hand we claim we want jobs for Americans, but we make it almost impossible for companies to grow big and strong and franchise their operations. A new franchised outlet could hire as many as 10 to 20 people.
Therefore, the more franchises which are established, sold, and started the more people will have jobs in our workforce. And yet, we go right along over regulating the sector and losing out on all those future jobs. It just makes absolutely no sense to me, and I have study this industry for about 35 years now. Indeed I hope you will please consider all this and think on it.