Not long ago, I was discussing with someone the Republican presidential ticket this year, going up against Barack Obama in November of 2012. I recalled that there was a candidate who had worked in the franchising industry, a pizza man, prior to his retirement and indeed had also done a stint with the restaurant industry association. Although he bowed out of the Republican presidential nominee race early on, I always thought to myself that he might be a good person to run the Small Business Administration. Why you ask?
It's simple, because if we are going to have an economic recovery in the United States, it's going to have to be done at the small business level. That is to say we need to get these little companies generating revenue, and hiring more people. This will soak up the unemployment numbers, and bring things back into a positive state. It seems to me that franchising could go a long way to helping a small business recovery in the United States. You see, there are over a half a million franchises in the US, and just think of every one of them hired three people? That would sure be a positive shot in the arm for our economy wouldn't it?
Well, it seems we are going the other way because we are making it more difficult for franchisors to compete in the marketplace. We are making it harder for them to get loans so new franchisees can start, and we are making it more difficult for franchising companies to make sales due to all the onerous disclosure documents which are required. As a former franchisor I can tell you that our disclosure documents were over 260 pages long, but if you go to Mexico only 10 pages are required. There's no reason we couldn't make a very short form, and leave that as the only real requirement.
It is amazing to me all the bureaucracy and forms that we have to fill out for just about anything in our civilization or society. Yes, I understand much of it is because of lawyers, but then the government gets involved and makes greater regulations. Look how much it takes to get a home loan these days, buy a house, or even make a deal with your real estate agent to sell a home? Look at all that is required when you buy a new car, what is all the writing on all those pages that you sign your name to? Does anyone really know and if they don't why is it required?
If we make franchising easier the United States, there would be more small businesses created, more jobs created, more tax revenue generated, and as far as I'm concerned that's just good for business, and it's very good for our economy and economic recovery. We should do everything we can to help the franchising industry help itself. I'm not talking about giving away guaranteed loans, grants, or gifts from government - no crony capitalism is required. We just need to move the debris and minutia out of the way in the franchising sector. Please consider all this and think on it.
It's simple, because if we are going to have an economic recovery in the United States, it's going to have to be done at the small business level. That is to say we need to get these little companies generating revenue, and hiring more people. This will soak up the unemployment numbers, and bring things back into a positive state. It seems to me that franchising could go a long way to helping a small business recovery in the United States. You see, there are over a half a million franchises in the US, and just think of every one of them hired three people? That would sure be a positive shot in the arm for our economy wouldn't it?
Well, it seems we are going the other way because we are making it more difficult for franchisors to compete in the marketplace. We are making it harder for them to get loans so new franchisees can start, and we are making it more difficult for franchising companies to make sales due to all the onerous disclosure documents which are required. As a former franchisor I can tell you that our disclosure documents were over 260 pages long, but if you go to Mexico only 10 pages are required. There's no reason we couldn't make a very short form, and leave that as the only real requirement.
It is amazing to me all the bureaucracy and forms that we have to fill out for just about anything in our civilization or society. Yes, I understand much of it is because of lawyers, but then the government gets involved and makes greater regulations. Look how much it takes to get a home loan these days, buy a house, or even make a deal with your real estate agent to sell a home? Look at all that is required when you buy a new car, what is all the writing on all those pages that you sign your name to? Does anyone really know and if they don't why is it required?
If we make franchising easier the United States, there would be more small businesses created, more jobs created, more tax revenue generated, and as far as I'm concerned that's just good for business, and it's very good for our economy and economic recovery. We should do everything we can to help the franchising industry help itself. I'm not talking about giving away guaranteed loans, grants, or gifts from government - no crony capitalism is required. We just need to move the debris and minutia out of the way in the franchising sector. Please consider all this and think on it.
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