F.T.C. Public Comment 92

Okay, these people have these bullshit ads here and I have to compete with them. So what you're asking the franchisors to do is to be sneaking and conniving, and try to find a way to compete with the same ad without saying what this ad says.

FTC.jpg

U.S. Federal Trade Commission
June 4, 1997

Public Comment
Lance Winslow, franchisor

Request for public comment on possible revisions to The Franchise Rule.

Comment #92

ANPR Hotline

June 4, 1997 3:20 pm

Hi. Lance Winslow, Car Wash Guys, International, 888 Wash Guy. The address is 5699 Cannon Road, Suite #130, Agora Hills, California 91301.

I am reading the June issue of Franchise Times this year and I'm reading in the business opportunity section a couple of classified ads. Here's one.

"Make up to $66 K 2 hours a day, guaranteed, gold plating. $1,295 investment."

That I'd like to see. How about this one:

"Show me the money!" reads the ad.

"$300,000 plus, plus, plus potential. Home-based business.

Personal development industry. Not multi-level.

No inventory. Turnkey. Low start-up.

Full team support and training. You can do this.

800… ."

And an 800 number. And its has an extension number on the end of the 800 number.

And I did call that cause I wanted to see what it could possibly be. And it turns out the person did not get back to me for about a week. And the person said I'm sorry, I was in Jamaica all week. Sorry for not returning your call. We can help make you rich. And he went on and on with this sales pitch that you would hear from someone who is doing a non-registered investment, securities type of investment. And I thought what is this guy selling. Oil fields? Is he selling… . What kind of scam is this? And it turns out it is multilevel and it is just what it says. It is junk. It is impossible. No one can make $300,000 potential a month.

But, yet they can advertise in a franchising magazine. Yet, if I were, and I'm registered in California. If I were to try to get the same ad, there is no way in hell I could get that ad. Not only that, it would be a lie, and I'm not allowed to lie. Cause I'm a registered franchisor. Yet these people who are selling a business opportunity and doing basically the exact same thing I am doing, except they are not charging on-going royalties. And they are allowed to say this stuff in a franchising magazine.

So what happens is, the franchisors have to compete with these bullshit ads. Excuse my language. No, don't excuse it, it's bullshit ads. Okay, these people have these bullshit ads here and I have to compete with them. So what you're asking the franchisors to do is to be sneaking and conniving, and try to find a way to compete with the same ad without saying what this ad says. So on the one hand you're saying, you have to compete with all of these people who do not have to register, but you can't do what they are doing. Then you say good luck. Then you look at their mail-out packages some of these franchisors send. And I have over 400 of them because I send for everybody's mail-out package, because I want mine to be better. But I'm looking at some of the other ones. And they don't care if I'm in California and you can't say "successful" and "profit" and those kinds of words in there. They just send them out. And California has different laws. And even the FTC laws. There are certain things that we can't violate, yet you let these people get away with this day in and day out, in every single
newspaper. Every single magazine and periodical you can possibly find in this entire nation. And they are allowed to do this stuff. And you know what. People are generally stupid in the United States. I think we have a down-turn. People …

For Review, see FTC “Table of Commenters”
http://www.ftc.gov/bcp/franchise/comments/tabcomm.htm


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Risks: F.T.C. Public Comments, United States, 1997, Model of de-regulated free-marketeers, United States, 19970604 Comment 92

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