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From: Lance (Automotive Franchises in Franchising)
Date: 15 Apr 2004
Time: 23:01:33
Two really great articles this week in Scottland. Boy it is sure looking as if countries other than the US really understand the benefits of franchising and economics. Too bad the United Countries (States) of America cannot get their act together with regards to burdensome conflicting and duplicating laws, rules and regulations? Oh Well, America's Loss the rest of the World's gain? Here are two articles worthy of mention to illuminate my point: Scottland and Franchising, someone is paying attention: HELP with franchising fees. Source: The Scotsman - Edinburgh,Scotland,UK ... quality to attract buyers. It should be remembered that help is at hand with the financial elements of franchising. The Royal Bank is involved and dedicated to the cause. http://business.scotsman.com/management.cfm?id=422912004 ------ SCOTLAND embraces concept of being your own boss. The Scottish Dream. Something America promised and has failed to deliver as it got lost in all the wordsmithing and self engrandized regulators and private litigation. Too bad really. But Scottland on the other hand has no dirt on their windshields, they can see it clear as the day. The Source again: Scotsman - Edinburgh,Scotland,UK Formed in March 2002 after the BFA recognised a real potential for franchising and the need to co-ordinate efforts to raise the profile of the sector north. http://business.scotsman.com/management.cfm?id=422902004 ----- This thought process is happening elsewhere around the world too? For instance recently the UAE jumped on board inviting World Wide Franchisors to come and set up shop. And this article in Malaysia too: Franchise expansion seen up 20%. Source: The Star - Malaysia THE Malaysian Franchise Association (MFA) is expecting about 20% growth in the turnover of the country's franchising industry this year. http://biz.thestar.com.my/news/story.asp?file=/2004/4/12/business/7711889&sec=business . Gee Whiz is the US the only country that has turned it's back on franchising? Look at states like NY, CA, MD, VA, IL, WA and HA for instance? In Hawaii they are totally out to lunch with their inventory buy back policies and rules for franchisors. Leaving Franchisors with all the risk and nothing to gain? And to that end few wish to participate. Kind of funny a market like that self encapsulated wanting to forgo franchising, because in franchising the money re-circulates in the economy. Where as box stores it goes back to the Corp. HQ and leaves the region, so much for those three stories worth of Hawaiian Economic Development and that beautiful CD ROM with all kinds of data encouraging economic development and businesses on to the islands to provide jobs? Oh well few really want to work there anyway. About a 1/3 of the population of the Island has become life long welfare recips. And look at Washington State, how silly can you be? You have one man doing all the registrations and renewals and what are you going to do when he retires? And please there are parts of WA where the unemployment is 9.7% Oh that is just great, real pro-jobs there, hassling franchisors? And just think all those Boeing union people out of work there? http://www.parthe.net/_cwg1003/0000006b.htm and http://www.parthe.net/_cwg1003/00000072.htm . So much for the People's Republic of Washington State, oh well great apples. And as far as the comment as California goes so does the rest of the nation? Well that seems to be holding true as MD tries to pass ridiculous franchise rules for more auditing of franchisees units at a time when Sarbaines Oxley has really hurt franchisors with the Auditors at a premium along with their errors and omissions insurance premiums? Isn't it funny that a great power house like the US five times the GNP of the number two nation, acts as if it is a male Catholic teacher moderating a sand box with blindfolds at a private school, but I guess they know what's best as they fondle the forth grade boys in the closet? Oh, hush, to outspoken for you? To outlandish, unprofessional? It is a joke people. The rest of the world has the idea, but for some reason the US has lost their promise to free enterprise and the small businesses which make up franchising and the American Dream it represents, because law makers, lawyers and regulators who actually have for the most part never held an actual job or run a business are clueless to the realities of free markets. Still too harsh? Well, it is the truth, and I would sugar coat it for you, but Atkins is in, perhaps the regulatory budgets and the blob of bureaucracy might learn something from such a diet? AH HA, now you agree, now I have your attention? So what we should do is reward franchisors with long standing good records with free passes and those new entrants with kudos and support and perhaps the regulatory bodies in the registrations states should pay franchisors for providing them the right to franchise in those states rather than charging them. After all when Senator Kerry says he is going to provide 10 million jobs if elected, exactly how is he going to do this without franchising? Perhaps he is magic. We need tort reform, we need downsizing of government, we need a little help in the franchising community and then you can have your jobs? Question, why would we need Kerry for that? Other countries are doing it, what happened to the USA, wallowing in this unending sea of regulation, (OSHA being 47 stories tall if you stack the pages up), private right of action, case law, intent of law and letters of law? Exactly what does this have to do with getting a hair cut, buying a Burger, purchasing a car? Because last time I checked those are just 3 of the things franchisors can do better than anyone else. If we do not curtail this insanity and let the free markets set us free, then freemen will no longer reign in the country which was built on the principles of freedom. Excuse me for saying so, but the US is not the leader in franchising anymore, they are losing faster than gaining and although some of the numbers are bit smaller in other countries the growth rates of double digits are not. This is what America needs, but for the sleeping giant to awaken we need to turn out the lights on over regulation. If anyone has any comments email me, Lance Winslow Lance@carwashguys.com If you disagree, prepare to draw your sword and be well versed in the realities of life on the surface of the planet or die in your own sea of red rhetoric. Truth crushed to the ground will rise again. (My family motto). The challenge is yours.
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