Franchisor UFOC; Are They Relevant to Franchising?

Franchisor UFOC; Are They Relevant to Franchising?

Many a business management class has debated the relative consumer and investor protection of regulatory bodies in the United States and how these affect proprietary information and competition. Does the current disclosure documents and the Franchisor UFOC serve the common good?

The current UFOC in my opinion is so large and cumbersome to handle all possible scenarios that it no longer helps franchisees in my opinion. Instead it boxes the business model into a confinement, which does not allow fluidity of motion needed to survive in the fast paced business world. Franchisees and Franchisors would be better served with a 3-page disclosure form, now the UFOC only serves lawyers.

http://www.ftc.gov/os/comments/franrulestaffrpt/OL-100001.pdf

Indeed, if a failed franchisee has a dispute generally their business has failed and since they are broke, they cannot even hire a lawyer to defend themselves after the fact even if there was an error or misrepresentation in the UFOC or disclosure documents so this is indeed a problematic situation.

The UFOC is too large due to complaining franchisees, their lawyers, kangaroo courts and over zealous bureaucrats who have never actually had to make a paycheck. Liberalism at its worst, and the franchisee lives in Blue state which requires franchise registration then, well they will be feeling the rewards for the anti-capitalistic view amongst the voting public in that fine state. I think it is funny and some say that those citizens in those states deserve it. I have philosophically also considered this point of contention. Consider this in 2006.