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Franchises Must Meet Legal Definition to be an Actual Franchise

Posted in Franchise Information by admin on January 2nd, 2009
Tip! A person that is considering the franchise business should also beware of scams. People who enter this field should be aware of the pitfalls and challenges that may be encountered in the process.

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:

So what you are saying is that even if a company calls what they do a franchise, it is not a franchise unless it meets the test. And if meets the test then it is a franchise no matter what the parties call it?

Well then Al Queda, which is often called a franchise in our national news, which is operating in the United States, actually is not a franchise and therefore does not need to disclose anything or any information. Yet all the legitimate businesses, which are franchises must disclose everything. Why not make Al Queda meet the definition of a franchise since they have similar training camps, collect fees and use similar handbooks, operations manuals and methods? Each international cell or franchise follows the same plans. If the FTC can make them fall within their definition; then the FTC can get a list of all their franchisees and the Federal Trade Commission can sue them to prevent attacks? Just like the Federal Trade Commission is doing with SPAM. Doing a lot of good there, let me tell you, with 2111 worth of junk mails today alone. Thanks for nothing. I want my taxpayers money back! What a complete disgrace and failure, is the Federal Trade Commission unfit to lead? Next question:

Tip! Be in control: Many of the franchisees will sell you on the idea that they need to pre-qualify you before offering you their opportunity. Don’t let this cloud your judgment with feelings of obligation, and remember you ultimately will have the final decision that is in your best interest.

It appears the Catholic Church is a franchise but call itself a church. Operates using the same marketing plan to collect tithing, pays franchise royalties to the parent, even molests young children which seems to be a common theme and practice? So does this mean if Bob Smith owned a Motorcycle Repair Company instead of a car shop that it could become a church and franchise out and collect fees without being a franchise? “Zen and the art of

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