Many government regulators believe that no industry can police itself and yet having been involved in a franchising industry I see that the industry itself due to its very nature and structure causes cooperation between franchisees who are the investors, and the Franchisors who want to expand their brand name. Many regulators will say they encourage us to clear our minds and consider that Franchisor is like any business will push the envelope on regulations in order to make higher profits. And for those folks I say to you; I am completely clear, and yet cannot forget all my experiences, observations and listening to franchisees, lawyers, government regulators telling me what I was seeing was not real and therefore I am very slow to judge a franchisor. You see, if a franchisor screws up then outlets fail and they go out of business. With fewer laws they have a better chance of making it and if they don't then they go out of business faster with nothing to hide behind, free-markets solve problems and bureaucracy makes them. And on the other hand I think I have seen my share problems in franchising such as the Decorating Den, Krispy Kremes, Boston Market, Schlotzky's Deli BK, Jiffy Lube crumble, 7-11 sold to Toyko Master franchise, etc. Still, many of the companies, which had pushed the envelope on ethics and it up in last place in the franchising community and in their competitive industries. Where as those corporations and Franchisor's which were more ethical and it up on top in the long run. There is an inherent good in franchising, which promotes honesty and integrity like no other industry. Unfortunately the government regulators do not understand this fact and this is what causes increased and unnecessary over regulation in the franchising industry. Please consider this in 2006. |
