Business Management Case Study; Realities of Over Disclosure and Regulations in Franchising

Business Management Case Study; Realities of Over Disclosure and Regulations in Franchising

It is often said by both Federal and State regulatory bodies, which monitor and enforce franchising that they are there to protect the consumer and Franchise Buyers. But, is what the Federal and State regulatory bodies doing really helping consumers?

Over disclosure and over regulation in franchising is costly to Franchisors and therefore these costs are passed on to the franchisees or consumers and thus it hurts them, rather than helping them. Higher costs, the mean lower sales for the Franchisor as well.

This takes away the economies of scale that franchising companies are known for which makes the business model so great in the first place. You see, nothing the government does helps the consumer, it never has it is a farce. Granted we have the greatest nation and the best government; OUR government, but really this is the year 2006, surely we can do better than this! Could I do better? Sure of course, I have studied the flows of civilization and the basic needs of systematic control, it is not good enough yet, we can do better, indeed, yet we argue over the means. Why?

We all want the same ends, or you at least agreed in the onset of your franchise right?> But these Franchise rules exist only to help the competition, curtail upstarts and fast movers, which shake the core of civilization and economies due to disruptive exploits of current markets. Two things happen, one it hurts the forward progression and expansion of the over all economic pie, two it gives the larger bigger fish more time to adapt or die, as change is the only constant in business, sports, war, politics or life. It is universal. Consider this in 2006.