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Most in the franchising industry are too afraid of the Federal Trade Commission to speak out against their abuses of power. Most attorneys kiss their rear ends to make sure they are not closed out of the loop, insuring that they get positive opinions on areas of law when they ask for an interpretation. Lawyers in the franchising industry are careful to hob knob with the regulators to help their clients positions and often have brilliant comments, kiss butt style letters and extremely warm words for the FTC’s franchising groups endeavors. But alas, there is a completely dark side to the Federal Trade Commission’s Consumer Division, which houses the franchising group there.

Few citizens realize that it is a complete fraud. Completely, most franchise attorneys and most franchisors do not have the experiences I have in dealing with their lies to understand the ramifications to our economy. The attorneys in the industry are either lying in their comments and letters on rule making or are absolutely wrong in their perceptions of what actually goes on at the FTC.

If one digs deep enough into the FTC Franchise Groups inner workings there is more than enough documented proof of their fraud against the consumers to make any free man puke. There is not one redeeming quality to their endeavors in franchising. They need to have their budget axe’ed. Steve Toporoff, who has run the franchising group for decades should be fired and lose his pension and his staff should be let go too. Anyone who has ever worked under him should be forced out. The dismal performance is unbecoming of such an important sector of our economy. The grandstanding is unacceptable and the quality of work is some of the worst many have ever seen. The sooner he and his staff are let go the better for the American Economy and franchising in general which is a huge part of it. There is no reality based thinking at the FTC Consumer Franchising Division. The new rules hurt the smaller franchises and protect the bigger ones to the detriment of free markets creating artificial barriers to entry and lessening consumer choice while raising prices to the very consumer they claim to protect.

http://www.ftc.gov/os/comments/franrulestaffrpt/OL-100001.pdf

This is only part of what is wrong there at the Federal Trade Commission. Every action they take stifles free enterprise and hurts the consumer. One could write a thousand pages of examples. For those who are an attorneys in the industry, it behooves them to be cordial and gentleman like in their comments and letters and of course talk the party line of course, I do not condemn anyone for doing what is in their best interests. But I totally disagree with the attorney’s comments and they either know or should have known the truth if they truly follow the industry.

FTC rule after 15 years of nothing is now going through its final changes? Better late than never one might say. Unfortunately the FTC is incompetent and the biggest waste of Tax Payers money I have ever witnessed in my travels to every city in the US over ten thousand people and after having set up franchised businesses in 23 states and four countries. The FTC is a fraud, completely, absolutely and there can be no debate.

The Do Not Call List is a sham. It allows some business models to call and restricts others, it is not real, PR Fluff. Corporate mergers, no, they fall down there too. The Federal Trade Commission often delays mergers and that costs people jobs and investors billions per year in their portfolios. The Federal Trade Commission cannot stop SPAM, Identity theft or anything else, always passing the costs on to the companies and then of course that gets passed on to investors and consumers. Making more rules, which they themselves do not even follow, must be nice? A reality check is needed, that agency needs its budget cut to a third immediately, everyone should be fired.

One attorney in an interview said:

“I recall a conversation I had at a breakfast with one of the FTC Commissioners a few years ago in which I asked her if she saw any significant problems with franchising. After a few moments for thought, she replied that she didn’t, other than possible issues related to overlapping regulation by both the states and the feds.

So, for me, the FTC has done a fine job in promulgating and revising the Franchise Rule over the years, particularly given that there are other areas of much greater concern to them, such as Bus. Opp. fraud, consumer financial privacy, the National Do Not Call Registry, regulation of Truth in Advertising, overseeing corporate mergers, etc.

We shouldn’t let our focus on franchising become parochial and forget that our field is just one small part of the big picture, at least from the FTC’s standpoint and probably from that of regulators generally. It’s probably a tribute to the relatively good health of franchising that we don’t get more regulatory attention than we do!”

I disagree on all their points, this law firm is totally incorrect. You can meet with all the commissioners you want, they do not have control of their vindictive rank and file who have never had to make a paycheck. Coming out of academia LA LA Land or the Gay Washington DC Bars the night before. Deny it. Even if you have 5 good and decent caring Presidential appointed super stars as commissioners who are somewhat reality based, what is the point. The Federal Trade Commission attacks businesses, they destroy lives, jobs, tax base, stock portfolios, pensions and cause off shoring, trade deficits, over regulation and under performing economies.

This one agency contributes more strife on free enterprise than any other agency in the history of mankind in my opinion. Look at the havoc they cause American Businesses? Filing false documents in court, making up stuff as they go, coaxing lies in declarations; not a single bit of the help to the American Consumer they purport is reality. It is a contrived bunch of hooey?

How can anyone including a ‘truth telling lawyer’ honestly believe that they are helping America? That is silly. I am not speaking merely of “Franchising” which happens to account for 1/3 of every consumer dollar spent and represents 400,000 businesses. I am talking all the way around. Their economists are linear thinkers, their lawyers cannot get a real job and their attacks on the American Economy is worse than anything Osama Bin Laden could dream up.

I appreciate the franchise attorneys wanting to cover for themselves to make their law firms look like a stand outs. I appreciate these lawyers pretending to take the high road but to live a lie that is so blatantly obvious is unbecoming of even a lawyer. The hypocrisy of the FTC is unnerving to say the least. Whether or not; “The Attorneys Believe” the FTC is doing a fine job is immaterial, because they are not. The FTC is a fraud against the best that this country has to offer, as well as against freedom and free enterprise as we know it. That is the truth, it must be known.

I call for a reduction of the Federal Trade Commission’s Budget by 1/3 immediately and decrease of at least that much the following year. Also downsizing of staff, removal of the statute out front and setting up their offices in Newark, NJ; because that is what they would turn this country into if they could.

FTC doing a Good Job for America; what are you lawyers thinking? You don’t actually believe that do you? The Justice Department ought to be ashamed of that division? Ouch. Truth, Justice and the American Way at the FTC, no way, it does not exist. Unfortunately it is all a lie, there is no justice; only grandstanding, press releases to 7500 news organizations, a few press conferences and puffery. It’s really too bad, because their mission statement sure makes one feel good, safe and proud to be an American. If only it were real, wouldn’t that be something for the United States of America? Think about it.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

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If you are having difficulty knowing what to charge, then check out your competition and find out what they’re doing. Find out if they post prices or fees on their website or if they have “packages” or deals. Do they have payment options?
While you are researching, keep in mind just because your competition is charging one way it is not necessarily how you should be charging.

One of my clients is a business and life coach. Most coaches charge for a set number of scheduled phone meetings, which seems to be a standard for “the coaching industry,” but that doesn’t mean it’s the best way.

I encourage my clients to charge fees that match who their clients are and what they are trying to accomplish. It’s very refreshing to do what works for you and not necessarily follow the “industry standard.” If you don’t feel comfortable with the way your industry charges, by all means change it. Just because the industry’s doing it doesn’t mean that it’s right.
Another client of mine, Shelly, is a wedding planner. When we first began working together she had three “wedding packages” because that’s what “everyone else does.” She ran into problems with pricing because most of her potential clients didn’t fit into the standard package and therefore Shelly had a long list of “upgrades” and additional items. She also had to charge more for weddings above a certain number of guests and weddings with over a specific number of attendants in the wedding party.

Potential clients became fixated on the package fees and felt ripped off when Shelly began adding additional charges all over the place. The packages were supposed to make things easier for Shelly’s, but they actually created more problems than they solved.

Shelly was so relieved when she realized she didn’t have to use the standard pricing packages most wedding planners used. She never felt good about them, but didn’t trust her own instincts on how to charge. We worked on making a pricing structure that wasn’t based on hours or packages but on the value to the client. She was able to quickly raise her fees and increase her client base simply based on her fee changes.

Are you charging your clients based on the value you are providing them or based on the “industry standard”? Is the industry standard an effective way to charge or is just what everyone else is doing?

Take a good look at the way you set your fees and handle client charges. Is it right for you?

Kirstin Carey is the author of “Starving Artist No More: Hearty Business Strategies for Creative Folks.” Kirstin knows how much most creative people hate sales, contracts, and discussing money and she consults creative people on the business side of creativity so they make more money, get better clients, and still love what they do. She put together a resource full of proven strategies and insider secrets guaranteed to help creative types get the business help they need so they don’t have to starve anymore! Go to http://www.MyCreativeBiz.com

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Angel Investors are considered by many to be the best type of investor in your business. Angels are usually successful business owners and entrepreneurs who can also bring you valuable industry experience, executive knowledge, creative ideas and contacts. They can usually afford to indulge their love or risk and are often seeking new business challenges. To be an angel in the USA, one must be an “accredited investor,” which the Securities and Exchange Commission defines as someone with a net worth of at least $1 million or an annual salary of at least $200,000. Similar rules exist in other countries.

So how do you attract and investor to your business and are they really what you want?

Build a Convincing Case: Angel investors may be willing to take on more risk than most, but they still need to see a well thought out business plan with a proven product that has a recognizable and eager market need backed by a competent management and development team.

Establishing Your Market: Your angel will need to be convinced that your business will meet the market need and that there is a clear “barrier to entry” from competing companies. They will hardly want to invest in your company only to see your marketing advantage disappear. Typical barriers to entry are: patents, cost of development and proprietary processes.

Your Management Team: Angels they will want to know that their investment is in safe hands. They will want to know the quality and experience of your managers and that they are all committed to your company.

A Great Business Plan: This defines your business, market, potential customers and your goods and services as well as the strength of your management team. It lets your angel have a good idea of your financials and how they will profit from investing in your business. Your business plan is not only a great selling tool it also assists you in planning and developing your business, placing it on a firm foundation. Consider using a professional business planning service for this. Not only will they work with you in producing a great business plan, but a good company will identify your business weaknesses and suggest better ways to do things. By a good business planning company - that is not one that charges less than $500 - you’ll get a plan and nothing more. Look for a company that charges a rate that allows them to offer you consultancy, advice and assistance as well.

Put Your Money where your Mouth is: If you want to start a business, be prepared to invest your own money. Entrepreneurs who expect angels to risk money in their venture, should be as confident about their own money. Entrepreneurs who are not willing to assume such a risk are not considered serious by investors and will probably not receive funding.

Find the Right Angel: Angels typically invest in companies that they know something about. Identifying appropriate angels will increase your chances of success. When pitching, ask them what they look for in a company, how much they typically invest, what kind of return they expect on their money.

Expect the Angel to be Involved: Entrepreneurs should also be choosy about whom they take money from. Make certain that you really know your Angel, understand their motivation and expectations for exit strategy and ROI (return on investment). Your angel will probably want a seat on the board and definitely a say in how you spend their money. Be prepared for this - not only do they need to protect their investment but they also will have knowledge and experience that your company will greatly benefit from. Being able to answer angel questions without feeling threatened is crucial to building a professional and mutually profitable relationship. Knowledgeable angels with good connections can jump start a company and keep it thriving. Well-connected angels can even make it easier to get additional rounds of financing including venture capital.

Professionalism Persistence and Patience: Raising capital is a time-consuming, ego-challenging process. It is not unusual for a startup entrepreneur to spend 50%-70% of his time raising capital from angel investors, a process that can average 3-6 months and in an uncertain market, it take even longer. Efforts to horde stock, inflate valuations or produce unbelievable financials will make the company less attractive to suitors. Let experienced professionals - produce your financials and manage your legal activities.

Lastly entrepreneurs must be determined, passionate about their business and thick skinned. Remember this and good luck.

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© Copyright 2006 Biz Guru Services Ltd

Lee Lister, writes as The Biz Guru, for a number of web sites including her http://www.clikks.com where she sells her informational products. With over 20 year’s management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses.

If you would like a professionally designed business plan with success written all over it - then contact us at http://www.bizguru.us

This article may be freely distributed if this resource box stays attached.

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