The number of complaints to the Federal Trade Commission on Franchising do not indicate ramped fraud in the franchising sector. The FTC before Congress gave a report showing that the number of complaints was fewer than one tenth of one percent, lower than any other industry. Nearly all the franchising cases the Federal Trade Commission filed, were gray, crying wolf area of law and most settled as soon as possible; considering the slow nature of our courts in America.
Some of the cases the Federal Trade Commission had brought since 1970, which fell within their franchising rule jurisdiction were doctored up claims against smaller franchising companies, involving false declarations, secret Federal Trade Commission court filings and Federal Trade Commission runaway case worker investigations to prove themselves right once the target was sighted. I know this because our company was filed against in such a way. These tactics and thought process of course is part of the flawed human behavior to prove ones self right. The FTC's behavior in case filings is not too different from a student Thesis at University Level, Politicians justifying actions, policemen lying in paperwork and religious cults. We will not comment on the serious nature of the Federal Trade Commission, starting a case and working hard to prove guilt of the target to justify their existence or next years budget.
It is safe to say however that in franchising, significant checks and balances already exist along with the rights of private action which abound with the sharks of the legal system looking at small fortunes and pots of gold created by franchisors in the market place. The ambulance chasers are in fact ready to pounce on any possible violation or perceived violation in the franchise rule. If not these fake EMTs will attempt to create a gray area to slither thru an open window, cracked screen or drive the ambulance right through the front door like a crazed Islamic radical suicide bomber coming from a Cleric's meeting to snatch the cash, take the safe or just to collect the 72 Virgin C-notes in fees for filing the suit. The Federal Trade Commission also often abuses their power with regards to the franchise rule as they need to bring so many cases every so many years to prove they are doing something.
Think about it; should we really worry about International Terrorists or should we concentrate on the cancer within and the bureaucracy which threatens to destroy all we are and all we have built?
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs