The Franchise

Last summer the FTC put forth a report and then asked for comments on modifications of the franchise rule. There has been no real significant changes since the 1970’s, but lots of opinions and case law along the way. All these complications of rules and the rules proposed today by the Federal Trade Commission do not help franchisors remain efficient or franchisees sell more pizza, hamburgers or donuts.

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.

All franchises must meet the legal definition of a franchise no matter what they call it before it is an actual franchise. This is the Federal Trade Commissions take on the franchise rule. It is not illegal to call a company a franchise even if it is not one and if it is not it does not have to follow the rules. In this opinion of law, I do have a quick summary of thoughts for the Federal Trade Commission Franchise Rule Making Group:

If you are thinking of setting up a small business yet you are still unsure of what you exactly want to do or are scared to death of not being able to generate good business, then you must try looking into these franchise opportunities and choose the right one that will suit your taste and budget. An important factor to take in consideration is your ability to actually run your chosen franchise opportunity efficiently and successfully.

One of the most successful marketing concepts ever created is a franchise. With the success of franchises like Subway, Quiznos, 7-Eleven, Baskin Robbins, and so many more, buying a franchise is fast becoming one the most popular ways to start a business of your own.