Business Articles

lunedì 21 marzo 2011

Franchising Companies Must Be Careful

Due to more unnecessary disclosure by the Federal Trade Commission franchising companies must be more vigilant to keep company information out of the hands of international terrorists. With increasing rules of discrimination a franchisor is forced to give vital information to anyone who asks for it. Including a group which supports international terrorism. Of course the FTC just doesn't get it, they would rather sacrifice American lives and enforce political
correctness and require unnecessary disclosure to protect consumers, but if the international terrorists get the information it could be deadly to Americans who are also consumers.
Many companies are careful to watch who gets a copy of their Uniform Franchise Offering Circular, UFOCs, yet we are finding more and more states wish to put them online. Some franchising websites make it easy to buy them online. All of this massive unnecessary disclosure or MUD can be acquired with a few clicks on the Internet. All of which the Federal Trade Commission is requiring to be included in the disclosure documents, such as a list of every franchisee and their address.
Now, as many see this new rule in UFOC disclosure adopted by the FTC, they want franchisors to send a UFOC with all this information to someone who sends in a form claiming that they are interested in buying a franchise. Many are suggesting that franchisors make CDROMS and send them out, or put the information all on their websites. Better yet the great state of CA is putting all this information on line of all registered franchises. Is this nuts? Anyone can send an email, request information, fill out a form on a web site and then the franchisors are required to send out this kind of personal information about our franchisee? We have a responsibility to their right to privacy too, but the FTC who cannot even put a mini dent into my SPAM or America's run away problem with identity theft has unilaterally decided it is okay for franchisors to spill information of their franchisees to anyone in the world who fills out a form? The franchisees of any franchise system are consumers too and why should we be putting them at risk. And if their locations become a target of an attack, whose fault will it be then? Who will lose the brand name intrinsic value? Who will take responsibility? I guarantee it will not be the FTC? They have never taken responsibility for any of their mistakes, not once. Think about it, are we really safe with agencies like that?

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