Business Management Case Study; How Over-Disclosure is Hurting Franchising

Business Management Case Study; How Over-Disclosure is Hurting Franchising

Executive management teams need to be sure that the regulatory requirements for disclosure to protect consumers and investors are not over burdensome to the business model. There is a point at which it is no longer feasible to comply with all the rules and regulations and still run a profitable business.

At that point other business models need to be considered. Case in point; over regulation in disclosure documents for the franchising industry is making franchising a much tougher business to run and remain profitable.

These disclosure documents help lawyers, inefficient businesses and provide a layer of protectionism to competition. They hurt businesses, consumers and free-markets, which bring us everything we see everywhere we go. These rules and onerous regulations are not the reason for America’s success as some might assume, rather we have succeeded in spite of them. In the end they are also the reason we cannot franchise our methods out to the rest of the world in a perfect format to make freedom and democracy world-wide, for we live a lie of hypocrisy and every nation we export our methods to seems to see thru it all and therefore no one seems to want it but us.

Those are my thoughts, I am not a lawyer so this is not legal advice at all, simply my observations in the present period and the World of Franchising. If I had my way it would be much simpler and you might receive a 3-page form instead of a 250-disclosure document and the FTC would be closed forever, pensions denied and government credit cards revoked forthwith. The business community needs restitution and disgorgement from the FTC's ill-gotten gains from fines, fees and taxpayers monies. Please consider all this in 2006.