| |
| |
|
patsbusiness2.com
|
|
|
|
Over Disclosure Hurts Businesses
Many investors and business ethics professionals are calling for more transparency and regulators are calling for more disclosure. Yet in the franchising industry this can spell disaster indeed. Often Competitors seeking information about companies will collect these documents and use it to the disadvantage of franchising companies. In my company we have done extremely well on the Internet in attracting people who want their car washed, we are well spidered on the search engines for key words, partly because our websites have been up prior to 1995. We therefore get a high number of website visits or hits; we have exceeding 1 million visits per month on many occasions. Many times people in the market sector of car washing will come to our site after searching the words that categorize their industry. They look through our site and then they find the opportunities page, and think to themselves, hmmm? These competitors then fill out the online form without revealing they are already in the business and actually competitors. The FTC's online complaint form also draws many such people to file complaints; few of these folks represent legitimate grievances. In the case of our company, The Car Wash Guys, like Ray Kroc who never sold franchises to those previously in the restaurant business, we will not sell to those in the car wash business. We believe that they have ingrained in themselves their way of doing things, which is incompatible with our system and methods and of course we feel are quite inferior to our business plan developed over 27 years. Had such competitors been as well developed they would be franchising as well. These competitors ask us questions thinking the can copy some of our idea, so they call up, email, and start asking questions. Sometimes about five minutes into such a conversation we often know they are not real, but not always. They are too knowledgeable about the industry and they usually slip up in one of their questions or just have to tell us how great they are and how many cars they are watching, thus giving themselves away. The Car Wash Guys like many franchising companies are in a really ugly and highly competitive industry, almost as bad as the garbage business before the massive consolidation by Wayne Hiezenga or trucking prior to the days of de-regulation. Luckily that comes with intense egos from independents and not a whole lot of smarts. Why should The Car Wash Guys send out a UFOC to a possible competitor when the UFOC they receive could be copied and a few changes made and potentially save them $35,000 in legal fees and take away from a practicing attorney (who pretend to works their butt off, when paralegals do all the work and they use CD ROMs and Boiler plate clauses). These attorneys often claim to be decent and hard-working professionals on the ABA Franchising Forum as they try to put a lock on their industry from those who might advise in a similar capacity? The UFOCs cost to send it out is just about $8.00 (including postage) and if those competitors realized I had to send them out they would have every one of the industry's 19,000 tunnel car wash owners across the country email us. So what is $8.00 times 19,000. Oh and there are about 35,000 estimated coin-op car washes too all of which are direct or indirect competitors of the Car Wash Guys (the only mobile car wash franchisor in the country). The UFOC contains estimated number of projected units and all kinds of information we do not want out. We are not a public company and until we know who is asking we prefer to keep our information close to the vest, as the competitive markets are not the level playing field we are led to believe as we study business in our educational institutions. Too bad the Federal Trade Commission cannot see this obvious fact. By keeping information secret we protect our current franchisee team members (consumers) from lose lips sink ships syndrome. Why add competitive disadvantage in the market place to our team against competitors we should not have to disclose information since they are independent businesses. The Federal Trade Commission fails to understand the extreme competitiveness of the marketplace, they fail to see how this hurts individual franchised units, who are small business people and the Federal Trade Commission fails to see how these independent franchised outlets of the franchisor are actually the same consumer they purport to protect. Therefore the logic that the incessant and unnecessary and totally over regulated and required disclosure is a bogus notion indeed. The Car Wash Guys do a disservice and can cause hurtful competition to our franchisees if we divulge information that easily. There is more information about our company in those 190-230 pages of the UFOC and attachments than on my personal computer or in my wallet. A person could go thru my trash, car jack me and steal my wallet, with one of our company laptops inside and still have less information than is now required by the current UFOC. The Federal Trade Commission purportedly cares about identity theft, yet demands personal information about myself, my employees and current franchises in a disclosure document that any one can get their hands on, even Osama Bin Laden? Who is the real terrorist? Is it government's job to help destroy franchising and all franchise systems? Then may I ask, who the Federal Trade Commission's franchising division will manage and regulate in the future when no one franchises anymore? When they admit they are destroying franchising to save it from the Domino Effect of the Evil Fraudsters. Is this 'my lie'? No it is the truth. Why are we burning down our global villages. Think about this simple logic and thanks for listening. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Power Tools for Business How do we keep track of our business deals?If you are only working with one or two deals, keeping track of them is a simple matter. However, most of us have far more than two deals on the plate and even more coming down the pipeline. Pressure Washing Companies; Pricing Dock and Deck Cleaning If you own a Pressure Washing Company and wish to get business at the local Marina there are a few things you should know. You need to be careful in bidding these types of jobs. What are the COSTS Associated with joining Leads Groups? When it comes to cost, how much can you afford or not afford?When it comes to cost, the first thing that comes to mind is money, the cost of membership. Although this may be a consideration, you should also look at the cost as part of the investment you need to make in order to improve the bottom-line. How to Make Your Business Image Stand Out Above The Crowd Traditional advertising methods are still being used for almost 90% of businesses today. The number one problem with this, is that all everyone else seems to be following the same old methods. Small Business Planning -- Three Myths Are you -- like 70 percent of small business owners -- working without a plan?Here are three myths that need to be dispelled about strategic planning for small business.1. Top Ten Resolves for Building Your Business in 2005 1. Resolve to build a consistent network system. How to Increase the Cash Flow in Your Private Practice in 30 Days If you have a busy private practice, chances are you also have pockets of cash lying around available for the plucking. It simply hasn't been collected yet, and may even have been overlooked. Secrets Revealed To Having The Most Professional Staff On The Telephone! Do you have all the customers your business can use?The seemingly simple task of taking phone calls is a hidden liability for not just some, but most businesses. You've invested precious dollars in advertising and marketing. Batting Cages Business - Making Profits With The Swing Of A Bat There is a Batting Cages Business for those people who love baseball and/or softball. This business will make you a profit and will help raise the self-esteem of the children who come to your facility. Small Business Savvy: Reaching Key Big Business Decision Makers As a solo entrepreneur or small business owner, one of our key challenges can be reaching key decision makers in larger companies. Getting to the right person who can seal the deal can be a frustrating experience, especially if you don't have a game plan. Becoming Recession Proof A lot of business owners I've spoken with lately have commented how their business is slow because of "the recession." If you are one of these people, you might want to reconsider your position. Is Your Business Property Safe and Secure? Security Professionals provide the products and services necessary to create a safe and secure workplace for you and your employees. Products such as lever hardware, panic and exit devices, desk locks and high security key control systems, as well as security boxes and safes, can help you protect your business and property. Buying a Franchise Buying a franchise is not for everyone. This guide will help you evaluate whether buying a franchise is right for you. Making a Donation to Bring MORE Business How a donation is different from a sponsorship and what is the advantage to you?Donations are different from sponsorships, as a sponsorship is more likely to headline you for an event whereas a donation will let you be listed as one of the many donors. You do not need to headline every event to get business attention; you can simply donate an amount of funds and be listed. 11 Things Small Business Owners Can Learn From The Miracle On Ice 1. Know Where You're Going - Coach Herb Brooks had a strategic plan for assembling the American team. California Department of Corporations Attempts to PR Their Benefits to Consumers On Monday the Department of Corporations in California revoked franchise registrations of two franchising companies. In a Press Release the Department said; "The CDC has taken enforcement actions that have resulted in the revoking of registration of two franchise businesses operating in California. Who Makes the BEST Alliance What types of companies do you want to align yourself with?What is the best company to align with? It is a company that does not quite compete with your core business. By this we mean that the company has offerings that dovetail into what you have to offer. Book Yourself Solid Key #5: Go Forward With Gusto & Articulate What You Do Want your small business to flip instead of flop?! Statistically half of the entrepreneurs reading this will be out of business in three short years. Establishing a long standing, profitable and successful business absolutely depends on your ability to convey a clear message. Specialty Advertising in C-Stores It appears the mini-blimp indoor theme and concept is making significant headway. We have seen them in the halls of Congress sniffing for anthrax. Six Sigma for Small Business It is not surprising that some people may perceive Six Sigma as being only for large corporations. Major corporations such as Allied Signal, Black & Decker, Dow Chemical, Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Motorola, Sony, and Toshiba have all rolled out Six Sigma efforts and achieved outstanding results.
|
|
Small Business Information | Traffic Building Information Powered By: Work At Home With Google - FREE! |
| © 2006 |
