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Small Business Information
Street Wars Between Mobile Car Washers and Mobile Auto Detailers
There is much competition in the mobile auto detailing business. There are two different lines of reasoning emerging as to how the business should be run. One is go for volume and discount and wash the world. The other is go after the high end customer which is 10% of the market, do exceptional work and charge as much as the market will give. These two principles are the reason for a war between mobile auto detailers and mobile car washes. Mobile car wash companies are often seen washing the Honda car for the single mom in an office complex. While the auto detailers would not touch the car unless she was a total babe and they thought they might get a date out of it.
Expanding Franchisee Advice
Franchisor expansion policies are not as simple as one might think. On the mind of every businessperson is the idea of expansion. We think we will make more money when you expand to a second, third, fourth, etc. unit, store or work truck. So you would think if you are franchisee of a large franchise system that the franchisor would want to help you into that additional outlet as soon as possible or, like some franchisors, much sooner. After all they will make more royalties and have an additional unit or push pin on their map of the country or state. The franchisor?s goals are actually more complicated than that. Our goal is your success-profit-happiness. Running an additional unit can create tremendous amount of headaches, which a franchisee may or may not be ready for.
Expanding A Mobile Car Wash Business
What is the best time to expand a mobile car wash business? If everything were perfect and you could choose the best time to buy a new mobile car wash rig, you should buy it in April and have it running by the 20th of May. If you have 1.5 times the business of your first unit, then you automatically have enough business for one-half of a second truck, van or trailer unit combination. In June, the seasonal increase would take care of the rest. That is the simplest way. If you buy an additional truck in November and it is ready by the 20th of December, you will have holidays and rain. Unless you have a huge industrial account base, we don?t recommend this to you.
Basic Psychology of Franchisee Ownership and Expansion
If you are a franchisee of a large franchise system; before you expand your franchise to include more stores there are some questions you might ask yourself. If, however, you bought your franchise to expand, grow and amass a small empire of your own, your franchisor will be the last person to stand in your way. Franchisors applaud those who are true entrepreneurs and believe in no limits. Your Franchisor will help you achieve your goals, even if they have to be the ones who push you over the top. No matter what your objectives are; for instance; To have a good paying job, more freedom, become rich or build a small empire; your franchisor is there for you in heart and soul. You must choose your destiny, keep them informed every step of the way and remember, the sky is not the limit, the ground is!
Private Franchising is not Real a Real Franchise
One major issue not being addressed right now in the regulatory definitions which guide consumers and lawyers in business opportunities and franchising is the new term being used; Private Franchising. The Federal Trade Commission decided it would revise its definitions of such opportunities in 1995, but failed to address this issue. The use of the term; Private Franchising has grown over the years.
Franchising VS Business Opportunity; What is the Difference?
The modern Franchise business model and the much different business opportunity are much different and dissimilar. The definition of these two business models should be broken into completely different parts to better fit the two-different business models and have their own set of regulations, which would contain similar stipulations with regards to prohibitions, definitions or basic rules of law. The Federal Trade Commission is considering a redefining of these two models under their legal description.
The Franchisors Heavy Load
Why are we over regulation the franchising industry, what purpose does it serve? Rules and laws are fine, level playing fields are nice, but the customer votes with their dollar and the entrepreneur and companies can only sell what people are willing to give up that unit of trade we call a dollar for.
Why the Over Regulation on the Franchising Model?
Franchising is the fastest way to build small businesses, provide jobs, create money flows. Currently the Federal Trade Commission wishes to increase the over regulation on the franchising sector. The way the Federal Trade Commission conducts itself provides little incentive or allows few new entrepreneurial companies to merge from the ashes to become the next Wendy?s Hamburger, McDonalds, Duncan Donuts, Century 21, KFC, Dominos Pizza, Midas Muffler, etc. Why? What are we really saying here? More complicated laws slows progress of the species, to move commerce forward.
Franchise Rule to be Revised; Why?
The FTC, Federal Trade Commission, is considering modifying the franchise rule. So far it has be a ten-year process; just imagine working that slow in your business? In 1995, 1997 and 1999 when the comments were first considered and taken in, which spans a ten-year period. When you combine those comments with this current rule making period they may have broken the record for the longest rule making session since voting on the slavery issue; one heck of a long rule making period by any means.
More Rules for Franchising?
The FTC- Mighty Federal Trade Commission has unilaterally decided to change the franchise rule. They changes are sure to hurt American business, Franchisors and the over 400,000 Franchisees in the United States today. These regulatory changes even if mere interpretations and opinion cause events which have unintended consequences. Such changes are rarely forgotten as one simple stroke of a pen by a Federal Trade Commission attorney who does not understand the real world of franchising can wipe out several quarters of profits.
Who Does Over Disclosure Really Hurt In Franchising?
Costs of over regulation and over disclosure end up hurting the very consumer that the regulatory bodies are trying to protect. Over disclosure and over regulation is in itself the worst evil of civilization, as it stifles free enterprise, innovation and free markets. In franchising the disclosure documents have in fact grown to over 200 plus pages in length on average. You should be happy you are not a tree in the forest right now.
The Number of Pages in the UFOC in Franchising is Still Growing Today
Today required franchise disclosure documents are over 200 pages generally. How many pages do you think the Uniform Franchise Offering Circular; UFOCs were 35 years ago for these ten-foot tall pillars of the franchising community like Kroc, Monhan and Rosenberg founded their companies? They were of course the founders of McDonalds, Domino?s Pizza and Duncan Donuts.
FTC Adding to the Franchise Rule
Last summer the FTC put forth a report and then asked for comments on modifications of the franchise rule. There has been no real significant changes since the 1970?s, but lots of opinions and case law along the way. All these complications of rules and the rules proposed today by the Federal Trade Commission do not help franchisors remain efficient or franchisees sell more pizza, hamburgers or donuts.
Too Many Lawyers in Franchising Today
Attorneys and Lawyers are ruining the franchise industry. It is too bad too, because franchising represents over 400,000 businesses in our country and accounts for just over one-third of every consumer dollar spent in this country. By over regulating and over lawyering the industry we are weakening our free markets and suffocating our up and coming entrepreneurs.
Lawyers Everywhere Telling Regulators What Laws to Make
The Federal Trade Commission decided to sit down and revamp the franchise rule of the 1970?s. They started to do it in 1995 and postponed it then had some comments collected in 1997 and then in 1999. One thing, which is very interesting is most all the comments came from attorneys who specialize in either suing franchisors or suing franchisees. A little conflict of interest isn?t it. Worse off; the government looks at their comments closely when determining new rules of law. Lawyers are out to make money suing business people, not helping free-enterprise, few of them have ever worked an honest day in their lives.
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