FTC Franchise Disclosure Law Invites Violations; Do Not Call Lists

The Federal trade Commission has a rule, which says that each potential franchise buyer must receive a uniform franchise offering circular. There are various things in the UFOC one of which is a complete listing of the names, addresses and phone numbers of all the franchisees in the system. The FTC suggests on their website that potential buyers call on these franchisees and ask questions in order to make an informed decision, yet is the same agency which has set up the Do Not Call Registry. Many of current franchisees get calls from franchise buyers who have received a UFOC from the franchisor, which they are interested in buying from.

What about the current franchisees rights to privacy? Remember the FTC recommends buyers to call them? Many franchisee like 100 million other Americans are on the Federal Trade Commissions “Do Not Call List” yet the FTC is forcing franchisors to put their phone numbers on these document attachments and further recommending to call many of them on the list at random as part of the consumers due diligence?

Many of our Nation’s franchisees operate out of their homes. This is an invasion of privacy. Worse off what if an International Terrorist starts asking them lots of questions about how the a certain franchisee’s business equipment works, what you can use it for? What if they ask this of a company, which uses a spray rig in the business. How about a lawn care business, carpet cleaning company, mobile cleaning service? What if they ask; what can you spray with it, Gallons Per Minute, soap ratios, inline injection nozzles? We already know that someone tried to use an SBA loan to buy a crop duster aircraft to go into business in FL who was a member of Al Queda? How do you know they did not shop franchisors too? Gaining valuable information? Do you know how many ChemLawn type businesses and opportunities are available in Florida alone? Do we really need to have so much over disclosure in franchising from the FTC to protect the consumer? Any more disclosure we are liable to kill the consumers of America and the FTC will be yet another accomplice to the demise of our country.

“Lance Winslow” – If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

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