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Entrepreneurship Story; Over Regulation in Franchising Part I

Jim and Sally run a successful auto gonna pass everything but a gas station
business, which they have built up over from here on out!"The next day, Jim and
two decades and have expanded to three Sally are over the negative observations
stores and many of their friends keep and Jim says "Well now we have the
saying, "You should Franchise." They documents let's go visit our future
think about this for about five years franchisees, finally after four months of
read a few books, like "Franchising for paperwork." Sally smiles. Jim says "you
Dummies," The "E-Myth", "The Franchising know I love you honey, we are finally
Bible" and many others on the shelves of going to do this." Sally says "good, for
the new big book store in town with the a second I thought you had the hots for
coffee shop inside. They finally decide that paralegal, he was sure checking your
that it makes sense especially as they rear end out." Jim says "oh great! But
have friends and loyal employees who wish I think I am more worried about his boss
to be associated with them and even own trying to screw both of us in some
the first franchises. So they set out to bizarre three-some."You see Mr. Federal
franchise. They visit an attorney since Trade Commission this is how it all
that says in all the books to do. Most starts, it all starts out on the wrong
books about franchising are, at least in foot. Why? This MUD is clouding the
part if not whole, written by S2D2s reasoning and strength of franchising.
(lawyers: S2P2s; Self-Serving Parasites Franchising is a win-win situation, when
of Planet) anyway, so they take that it is buried in MUD it creates an
advice and visit an attorney. The S2D2 adversarial relationship from the
explains the MUD and helps by charging beginning.Jim and Sally are ready and
them a good chunk of change; $35,000 to they call the attorney to make sure it is
prepare a boilerplate document which is okay for them to visit the prospects, who
so complicated they could not do it on are already to sign up. The attorney
their own without years of study. They says well, wait a minute we need to
give the S2D2 (scoundrel) the money and discuss this, because there are rules of
they look at the document and start disclosure and you should also think of
asking questions. They do not ask him setting up a sales department and have
about the price gouging laws that their forms for compliance.The cold electronic
state has after all the flooding from the like S2D2 right on que says; "tell me
remnants of Hurricane Ivan, although they about these prospects." Sally says "oh
feel severally violated in the outrageous they are so very nice. First; Joe has
costs to prepare the documents. After been a trusted employee for years and
all there is some new shop equipment they knows everything about the business and
need to test cars to stay in compliance he has a partner and his parents are
with the latest smog certificates and putting up the money for the equipment
they are not cheap either. So they ask for part ownership and helping him
some typical questions instead of why qualify for the lease on the building, he
they had to pay so much."But Mr. S2D2, we already has a location picked out, the
want to be fair and give this and that same one Jim and I were going to put our
assistance to the new franchisees, Bob fourth store, before we started to
and Margaret are long time customers of franchise instead." Well that is very
our shop and friends. Joe has been nice the S2D2 says to Sally "incidentally
working with our company seven years and Sally where do his parents live?" Jim
they want to buy the first franchises. says "They live across the river in IL
The S2D2 explains that the Federal Trade and his partner is from MI, he will be
Commissions Franchise Group is doing this moving here once the business gets
for the consumer's protection. Jim and going."The S2D2 is salivating
Sally understand this but what is all understanding that MI is a notification
this about termination, litigation, state and IL is one of the three worst
arbitration or mediation? Why does it states to do business for franchisors,
say we may give you this and that, of some franchisors have even gone to the
course we would support Bob and Margaret length to say that the state of IL is on
and Joe they are dear friends of ours and drugs like those 'fruits, nuts and
it is our name on the building, of course flakes' at the California Department of
we are going to go out of our way to help Corporations along with the rest of the
them."The S2D2 says, "yes, I understand population of girlie men in and around
that but this is for your protection San Francisco, although everyone likes
too." Sally says, "great but, it sounds the new 'Governator'. The S2D2 says;
so vindictive and mean, why would anyone "well Jim we have a slight problem." Jim
sign it?" The S2D2 says "there is much thinks to him self, uh oh, he remembers,
case law and history as to why these 'ah Houston, we have a problem' and then
things are in these documents and they says; "What, it is all set up, the
are to protect you, that what you are parents already sent a check to Joe for
paying me for." Jim thinks to himself, the first and last on the lease and he
we are paying you to pick a fight with signed the lease this week, Joe already
our new franchisees and long time dear gave them a deposit." The attorney says
friends. Attorneys are A-holes. They "well we need to slow down, first Jim and
are our worst customers at the shop and I Sally I do not know how to break this to
will never forget that time a one-week you, but MI has to be notified that you
temporary worker hurt his hand because he are offering franchises in their state
was not paying attention, then sued us. and IL needs full registration, I of
Even though it was on his way to work or course can do all that for you." (huge
so he said, we had to fight the case, we smile comes over the S2D2, even feels a
won but it costs us $17,000, gosh, I hate tingle in his thing and winks to the
attorneys. Jim just gives a slight paralegal as he reaches for his member in
aggravated look and gazes towards the a display of manliness, similar to the
window over looking the river and much of movie 'Wallstreet' or 'Boiler
downtown. How can anyone call what this Room'.)Looks like the S2D2's golf
guy does work?So Sally looks at the cover membership is in the bag after all he
page and the second page and the third thinks to himself; Sushi tonight, hell
and it says: "This sounds mean and ugly for the rest of the week, why not. This
almost vindictive." The S2D2 says, "this is going to be great; he thinks just
is to protect you, franchising is very maybe; I can sneak off with Liz, the
litigious." Sally: "But these are our secretary, for the weekend and tell his
friends." She looks at Jim and gives him wife it is another very important rule
a look, what are we getting ourselves making session in Las Vegas for the
into? The attorney also has an Federal Trade Commission's Franchise
interesting look, a grin. Knowing that group where important franchise attorneys
soon he will have much work defending from all over the country meet to discuss
them in lawsuits, he thinks to himself; the franchise rule which has had no
gotta love these entrepreneurial suckers, changes in 10-years. It has been
so naïve thinking they are going to do documented that law enforcement
good in the world, help people get into officials, judges, policemen and
business and make money at the same time, attorneys are the most likely professions
living in a dream world, oh well to have extra curricular affairs with
thankfully they do exist, although I am either members of their same sex or the
noticing a decline in such folks over the other. (Source: Netscape News Online
years, but this is live bait, and I will Oct. 2003).The S2D2 says to Sally and
make all I can while they still have Jim, "The registration for IL could take
money. The S2D2 then starts smiling as up to several months, if everything goes
they leave. Knowing he can return the perfect." "Several Months" shouts Jim.
favor to some of his fellow attorneys "Yes, well this is nothing compared to
nearby who specialize in divorce law and Cal-if-forn-ia." Explains the S2D2 and
bankruptcy, etc. He has seen it before, goes on to say; "our standard fees are
good companies franchise and then the $10,000 to register in IL and we can
lawsuits, divorce and bankruptcy, he can probably do the MI thing for a thousand
smell it. He does not think more than a plus fees." Sally says "But, we are not
second or two that he and his S2D2 are are only charging $10,000 for the
the cause of all of it. Even if we are, franchise fee to begin with and we are
we deserve the money, we are smarter than not franchising in IL or MI, surely not
everyone else, have spent years learning for a couple of years, we have a
all this dribble and besides I need strategic plan to 'Start Small and Finish
another new BMW and the golf membership Big', besides we want our first
is coming due. Must keep up with the franchisees close by so we can help them,
boys to continue to get those running a business is not easy you know
referrals.Jim and Sally are having second and we need to be available here."The
thoughts, but are committed to the plan S2D2 changes from friend to father
and already have the first three daughter mode and in a voice only
franchises sold to family, friends and grandfather's use he says; "Dear Sally,
loyal employees. "We promised Jim, we I think you are misinterpreting what I am
gave them our word, they are counting on saying here, I understand you are not
us." "Yes, but Sally, I really hate franchising in Illinois right now or even
attorneys, they seem so cold and they Michigan for that matter. But the people
don't care, look at what he is charging involved in your franchise have partners
us?" Sally says, "yes I know, but if we who will have interests in the franchise
sell enough franchises we can send our who live in those states you see and that
kids to law school, that is where all the requires you to be registered in those
money is, look how hard we work to build states or in the case of Michigan to
a business and that fat cat attorney, notify you are offering them a
just sits in that office with the view franchise." Sally says "but we are not
and works a few hours a day and that offering them a franchise, we are
paralegal in the back seems to do all the offering a franchise to Joe our employee.
work." Jim observes; "You know Sally, I Who is already to start and we want to
really want to do this, we have worked so give him that 'UFO thing', the U-Fuck, I
hard. Hey did you notice the way the mean U-fock as you call it, you said they
secretary was looking at the attorney? I have to have it for ten business days and
think they have something going there? there is a holiday weekend coming up and
Well maybe he is doing the paralegal Joe wants to start ASAP, he has been
too?" Sally says " yes I think you are buying new tools like mad from the Snap
right about the secretary, but the on Tool guy, he is so ready, he wants to
paralegal is definitely gay, you really get busy and make money before the 30 day
think so?" Jim says, "Heck, yes, he bill comes in for all those tools." S2D2
seems like the squirrelly type, I do not explains, "Sally, I understand your
trust him." Sally says "But, Jim you frustration, but that is the IL law. It
know his wife is a VIP in town? I agree doesn't matter, what you think the law
with your comments did you notice how says or what you have worked out with Joe
fast the attorney took you up on that of your own free will, you are in a
offer too give his car free service?" franchise now. Also Sally remember about
Jim "Says, well the lawyers are a the master lease clause and additionally
necessary evil, we ought to double the if Joe's parents pay for the lease and
price whenever they come in with cars to are a partner in the company and their
the shop." Sally says, we ought to deny residence is IL then we already may have
them service, so they do not try to sue a problem. We will disclose this to the
us." Jim says "Yah, but there is IL registration people, but it may delay
probably some law against it and then application since technically we are in
they really would sue us, maybe we should gray area and as per law a technical
just defer to Caesar on this one?" Sally violation. Meanwhile see if Joe can get
agrees, "Caesar was Right!" Jim shouts, his deposit back so you can sign the
"Take no prisoners, kill them all, ha, lease and sublease to him. Also in your
ha, ha." Jim gets on the on ramp and franchise agreement we agreed that site
lets all 455 cubic inches roar. "We're selection was part of the franchise fee.




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