Private Franchising is not Real a Real Franchise

One major issue not being addressed right now in the regulatory definitions which guide consumers and lawyers in business opportunities and franchising is the new term being used; Private Franchising. The Federal Trade Commission decided it would revise its definitions of such opportunities in 1995, but failed to address this issue. The use of the term; Private Franchising has grown over the years.

There now exist some fraudulent activity going on in coffee shops across America with regards to multi-level marketing recruiters using this term, which disquises their business model as something it clearly is not. It appears that consumers have grown wise to MLM business opportunity sales tactics and therefore that form of virus has hijacked a new host (franchise industry model) and modified its intended definition. This is happening where the salesman, MLM recruiter calls their business a "Private Franchise" and then spends about 20 minutes of the presentation discussing the incredible success of McDonalds and other franchising giants prior to drawing circles on paper and making forward looking statements about their parent company, without presenting a full audit and then make earning claims to the potential signer up of the MLM program. The circles have names like Diamond, Emerald, Ruby, Direct, Etc. All in line with the typical MLM sales plan and methodology.

This is not a franchise, not even close in the Federal Trade Commission definition, yet due to the lack of guidance in true definitions, the words; "Private Franchise" has been adopted and the word "franchise" is used throughout these loud presentations in coffee shops across America each day. As a matter of fact it is hard to sit in a coffee shop anywhere in this country without hearing one of these presentation on any given day. See for yourself. A failure to completely separate the entangled business models in the Federal Trade Commission's definition does so at the detriment of the consumer. The Federal Trade Commission's job is to educate protect the consumer, yet it is failing to act to this new biological threat which might harm the current complex life form of the Modern Franchise business model. The consumer begins to perceive that somehow an MLM business is exactly the same as a franchise. That they will receive the same things, expect the same things and receive similar presentations.

This is false and misleading to the consumer and unfortunate for the ethical franchisors and franchising industry. Think about it.

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

In The News:

Photos: G7 Small Business Market  Vanderhoof Omineca Express
Hahira hosts Small Business Saturday  Valdosta Daily Times
Kutztown businesses connect for Small Business Saturday  Boyertown Berk Montgomery Newspapers
Best Places to Work [Small Companies]  New York Business Journal

Encouraging Your Customers to Pay On Time

Nothing can drive a business down faster than customers who... Read More

How Do I Choose The Right Business Opportunity For Me?

First you have to start with knowing your budget and... Read More

Small Business Mistakes: Are You Making Enough of Them?

That's right ­ are you making enough mistakes in your... Read More

Cleaning Service Stations with a Pressure Washer

Fuel prices these days are quite high and they take... Read More

Joint Venture Your Way to Extraordinary Sales!

You know what makes me really happy? Drinking a Starbucks... Read More

Tell Me The Reasons Why I Should Believe You?

Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More

Why Do Most Online Small Businesses Fail?

Search Engines account for almost 90% of all web traffic!In... Read More

A Day in the Life of a Self Employed Professional

It's Monday morning and Connie the Consultant sits in her... Read More

Small Business and Over Regulation

Over regulation of small business is so intense it is... Read More

Why Small Businesses Need Both A Logo And An Identity System

Experts urge small business owners to "brand" their business ?... Read More

Small Business Vendors; Getting the Best Service

If you are a small business you know that you... Read More

Mobile Detailing VS Fixed Site Detailers

Mobile detailers will find themselves with lots of competition even... Read More

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I... Read More

Speed Kills on the Web!

I only have to point to the 555 plus failed... Read More

Firing Underperforming Employees in Your Small Business

Here are a few tips on how to hand out... Read More

Small Business Health Check-Up

If your home business is not performing the way you... Read More

Big Successes Never Happen Overnight

Treat your business as a serious, full-time business and be... Read More

The Skills Gap: It Pays to Use Experts

By outsourcing to skilled professionals you'll be able to grow... Read More

Reaping the Rewards of Cost Cutting

In these days of insecurity and uncertain futures, the tendency... Read More

Earn More Money in Your Small Business by Creating a PIG

If you really want to earn more money with your... Read More

Sample; Territory Reduction Policy for a Franchise Company

I propose this thought on the subject of Franchisee territory... Read More

Franchises Must Meet Legal Definition to be an Actual Franchise

All franchises must meet the legal definition of a franchise... Read More

Procrastinate Your Way To A Successful Small Business

What will your business look like a year from today?If... Read More

Boston Market; Mobile Auto Detailing

Boston itself covers 50 square miles of concrete and traffic,... Read More

Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had

There is a rather famous true story called "Acres of... Read More