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

licensed cleaning services Park Ridge ..

In The News:

Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.

New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.

The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.

Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.

TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.

Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.

San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.

Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.

A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.

Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.

Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.

Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.

Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.

Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.

A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.

Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.

Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.

OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.

A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.

The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.

Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Protect your home network by enabling proper encryption, creating strong passwords, checking connected devices and using VPN and antivirus software.

The Navy's solar-powered Skydweller drone flew nonstop for 73 hours in Mississippi, proving renewable energy can power long-endurance military missions.

Moving and downsizing expose seniors to identity theft and scams as data brokers collect real estate records and personal information to sell to criminals.

ShengShu's Vidar technology revolutionizes humanoid robot training by using AI-generated synthetic video, reducing required training data from hours to just 20 minutes.

Federal Trade Commission Falsely Purports Franchise Disclosure is Cost Effective

Political