The Federal Trade Commission has an obligation to the general public, its stated mission of consumer education, and to the overregulated franchise industry and small business operators running Biz Ops to separate the two business models by way of legal definition. . Any failure to fully separate them will trigger additional problems down the road and will cause the current ongoing rule review process to continue, without any formalization for decades.
This, of course, is good for the lawyers who make money off these ambiguities for lawsuits and great for tenure and Federal Trade Commission job security. Some also realize that it could allow for additional travel budgets from government employees during these taxpayer money rulemaking processes. It would also lead to more wait time, “let’s think about this,” coffee breaks on several floors of the Federal Trade Commission’s fully furnished 1970s desk-style environment. However, it is not good for consumers or the industry and creates an uneven playing field on the one hand and complex barriers to entry for start-ups with regional dominance and efficiencies, which lend themselves well to the franchise business model on the other. the other. This is because Biz Op MLM marketers pretend that they are similar to franchise businesses, by using terms like ‘Private Franchise’ in their presentation.
These MLM businesses are being sold in coffee shops and public presentations, which would send shivers down the spine of any actual franchise executive or franchisor. So what is a real franchisor? What is the private franchise? What is a Business Opportunity? What is an MLM business? What is a hybrid or cross of any of these combinations? How the heck, in layman’s terms, can the Federal Trade Commission explain this to us, so that we can explain the differences to consumers when asked? Where on the Federal Trade Commission website is there a place that describes all of them and the possible variations? Due to the introduction of the term “Private Franchise” in the interval between the 1999 comments and the 2004 evaluations of potential definition revisions by the Federal Trade Commission, it appears that the real-world definition landscape is hyperspacing the Franchise rule definition updates on the wonderful world of bureaucracy. We should not fool ourselves into thinking that the latest FTC report or any subsequent changes will change anything in the actual market in terms of the amount of; Non-existent fraud events in franchises. The number of franchise fraud cases is basically nil according to the Federal Trade Commission’s own statements to Congress. However, the MLM crowd is being manipulated for not using the word franchise and that misrepresentation is hurting consumers. Think about it.