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Lawyers and Franchising

Lawyers and Franchising

It is amazing how the Federal Trade Commission has destroyed franchising, by selling the industry out to lawyers. We need to have accountability for the regulators and we can start by firing the head of the Franchising Group at the Federal Trade Commission and anyone who has worked in that department in the last 6-10 years. Let me give you an example of what the Federal Trade Commission's Franchising Group's policies have made a mockery out of the purest of business models; Franchising.

A Judge ruled that the Krispy Kreme franchisor partly contributed to the underperforming franchisees. Many of which are close to bankruptcy, of course it wasn't the diet craze of South Beach or Atkins, no, it was the franchisors fault? But the franchisor had problems as it expanded to fast and the market changed, which is a normal business risk? Without risk there is no free enterprise. The judge further ordered the franchisor to continue to ship product to the franchisees, even when the franchisee was not able to pay for the goods? What kind of crap is this?

It gets worse, but how can this be? Well check this out: The lawyers representing the franchisee are cousins of the lawyers representing the franchisees. Interesting? Indeed. Now, then how do you suppose that happened?

"Hey, cous; I have a plan. You see we. . . whisper, whisper, whisper and then we both make money and who cares who wins the suit, we make lots of money in fees?"

Isn't it sickening the lawyers are ruining franchising in this way? Why is this happening? It is happening due to the incompetence of the Federal Trade Commission in my opinion. As one man turns over an industry to lawyers, an industry that accounts for one-third of every consumer dollar spent in our nation and represents 450,000 outlets and an estimate 15 million jobs? Isn't that just great. You have heard my opinion, what do you think?

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

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Lawyers and Franchising

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