Comments on: Franchise plus small business equals the Small Business Franchise Act

by: author

Fri, 14 Jul 2006 13:53:43 +0000

I’m impressed by your arguments and the way you are proving your point of view. The lesson from the history is very relevant and I can agree that the importance of that regulation is bigger than I thought at first. My opinion is based on the idea that franchisor has an incentive to provide that goods and services for the attractive prices because this part of his franchise program can make his business opportunity more beneficial for the prospective franchisee. I think that competition between franchisors is much greater this days that competition between producers of goods and services. Franchisee can evaluate the prices in advance and will not sign the contract at all. As I result franchisor will loose everything: the initial fee, the royalty payments, the profit from selling goods to franchisee and all other franchise benefits…
Anyway thank you for the comment. I think that you managed to change my mind a bit.

by: Master

Fri, 14 Jul 2006 13:49:14 +0000

I can not agree with you regarding the sixth place you’ve given to the trade dependence between franchisee and franchisor. I consider it mush more important! As you write the bill gives the right to any franchisee to buy resources from any source. I consider it to be he main achievement of that law. Before this the franchisor could include in the franchise program the item that franchisee could buy goods and services only from him. Franchisor could dictate the prices, and this decreased the competition greatly! Remember the history: there was the same situation between England and its colonies. Americans had to struggle for their trade rights, and this part of the bill is the result of the same struggle of franchisees for their rights! Today we call this democracy and protect it. It’s our life style! That’s why I say that that statement is much more important than you say.

by: Senderos

Fri, 14 Jul 2006 13:48:17 +0000

I like your idea to make the list of more or less important items of the bill. Maybe I don’t agree with you completely but this made me to evaluate some of my personal and business documents using the same approach. I realized that that a lot of statements that make the document larger are actually useless and only block up and overload it. And this results in loosing the sense. Thanks once again.