I am writing a series of reality-based articles on franchising and the franchisee-franchisor relationship.
As a primary source, I am seeking the wisdom , insights and experiences of America’s top franchisee attorneys – those brave individuals who advise, counsel, educate, defend and represent prospective, current and former franchise owners.
Franchisee attorneys: In exchange for your informational quotes and input, I’ll credit you and link to your website whenever possible.
My articles will also include disclaimers that your quotes and comments do not constitute legal advice.
Question: Is Franchising a “Highly Regulated Industry” as Franchisors and Franchise Salesmen Claim?
Franchisors, franchise brokers and franchise salespeople often claim that franchising is a “highly regulated industry.”
They say this to put prospect’s at ease that the government is policing franchise investments.
In a recent PA House of Representatives hearing, opponents of the HB 1620 Responsible Franchise Practices bill said franchise regulation is not needed because franchising is already highly regulated.
Subway franchisee and CFA Chairman disagreed, saying that each FDD makes it clear no one at the FTC (which has 1 person assigned to The Franchise Rule) is reading them, and franchisees are pretty much on their own.
What do you think?
Is franchising truly a highly regulated industry?
Do your franchisee clients believe there is more protection in place than there actually is?
If strict government oversight is just a franchise myth, how damaging a myth is it?
Feel free to post your comments below, or contact me through LinkedIn, or email me at SeanKelly[at]IdeaFarm.net
Sean Kelly is a franchise writer and web publisher with 25 years of franchise industry experience.