The regulatory bodies at both the state and federal level require much disclosure from Franchisors. So, much information in fact that it indeed puts them at a disadvantage to both their foreign and domestic competitors who may not be franchise companies and therefore do not require the same level of disclosures. The Uniform Franchise Offering Circulars or UFOCs. This puts franchise organizations at a severe disadvantage and executive business management teams need to be cognizant of this fact when extending brand name a outlets thru franchising in the market place. I believe that these disclosures help hurt franchisees thru competitive businesses snooping for information more than they help franchise buyers with disclosures. You have to love the government always giving away proprietary information to help hurt your company. In fact a competitor can find more out about your company in the 250 page uniform franchise offering circular then they can going through your office for an hour and having access to all your computers. Therefore a business management team needs to discuss these issues of over disclosure and how they put franchising companies at a competitive disadvantage before attempting to use franchising as a method to extend brand name and reach into the marketplace. Please consider all this in 2006. |
