What CA needs to do to address problems in Franchising
We must not allow more degradation of California through incessant over regulations in the franchising sector . No other sector of our economy provides many jobs as franchising . Some people would say : retail , more than half of all retail jobs are franchises . Well, there is a problem in the franchise community with the way the Department of Enterprise is about the business . First, there are only 12 franchise registration states in the United States at this time , down from 14 two years ago . California is one of them , even by lawyers who make their living filing is the most stressful .
It is considered the most hostile by active franchisors as well, of which only 2,230 in total in the U.S., approximately 380,000 franchise outlets at an average of 15 employees . Not all franchisors offer these businesses or franchises in California to the many displaced workers there . The reason is the slow nature of the process at the Companies and the hostile and suspected hostile bureaucracy of the department and the hassle and horror stories , which are discussed in the industry department. Third of every consumer dollar spent in the state of California is going through a franchise business. If these companies do not exist, then no one works there , no cities derive income from taxes on the sale of products , since no products are sold where no shop exists , there is no state income earned because nobody has a job, buildings remain vacant and people who want to own their own business remain unemployed or underemployed and never got a chance to pursue to get that. part of their American Dream
Less franchisors franchise mean higher prices for those who participate due to lack of competition and the consumer or business less of a return on investment for the business as a result of these prices . The Department of Corporations is suppose to help consumers , not ensure that they pay higher prices for franchise companies to pursue . Their American Dreams You can then exacerbate that with less choice for consumers and the slowdown in funding / supply, which means less revenue for the state. The adverse effect caused by this department is completely in - excusable and that is nice and Gentile. All this took place in California because of the doubling of the Federal Trade Commission Laws in California Franchise registration and renewal .
Business Opportunities Franchises are not like that much fraud occurs in franchising is a long term relationship and one that is closely examined by lawyers in the franchising field . In other words, any franchisor trying to pull a fast one would have to deal with many private lawsuits and the subsequent FTC to consumers. Yet the Department of Corporations and unnecessary adds a third tier to the situation in which the free enterprise stifled by slow processing of applications and renewals. Because the laws are a little different these compounds the problems of the uniformity of understanding and thus hurts economies of scale , to enjoy that franchisors and franchisees so they can compete against the bigger box type stores, which crush the little guys . Little boys significance of small businesses, which employ two thirds of the population in the state of California . Each time is delayed in the application or renewal times the cost the state money in tax revenues and Californian voters in jobs, lower living standards , higher prices ( artificial inflation) , reduced choice and options in pursuing their American Dream . If any of these franchisors
What started as a good idea to arrange the DOC Franchise Businesses in California for many years before is no longer necessary as to complain , the private right of action lawyers who specialize in franchising , business associations and the Federal Trade Commission have more than filled in the hole . The pendulum when the DOC is added by unnecessary duplication , extra paperwork , time only process compounds the problems of slow recovery or our CA economy and of course lost tax revenue sales to cities and income tax payments and fees to the Great State of California to the equation . Recently the ABA - American Bar Association for Franchising is online " list serve " the franchise lawyers in our great nation , many practice law in California were commenting on the problems with the franchise registration and renewal applications be deferred for a stamp of approval . The cost is not bad considering the CA market size , $ 600.00 but the review process is a real quote : " bitch " . Do not just quote me , the whole industry agrees , it is a universal truth now as perception is reality. And even though several years have seen a rapid return of the application other years they had many months , that is quite been . A more common occurrence With this bad business attitude few franchisors looking forward to the California market , regardless of its status as the seventh largest economy in the world , which apparently has gone to the heads of a few people . The reality is that the franchisor , which are among the largest group of economic inflows are not as enthusiastic as you might think , on the contrary . Many fear the day that their brands are so big that it's time to finally go into the CA market . And do not take it from me , ask around the franchise industry which is the worst place to do business as a franchise ? Affairs The state that the duplication of resources with the Federal Trade Commission is cutting off the hand that feeds them .
Think of this , we are hurting 2,230 companies which account for one third of every dollar that passes through the hands of consumers , which is 33 % . No other company can compete with Wal format - without saving the incredible synergy and economies of scale that franchising provides Mart box. Wal - Mart by the way does Nationwide only 10% . Consumers of California deserve a break , the franchise community drowning in paperwork , the DOC can not do the job quickly enough and to top it off it is a complete duplication of the rules? With cuts the DOC will slow further processing , when in fact if you closed the franchise department at the DOC , you could be millions per year and increase the flow of capital and jobs to maintain the state and a greater influx of tax revenue to the city, county and state governments . This is not really to do , if you are looking to cut a very difficult choice , there is no better place than the DOC Franchising Division . If you need to continue , they may reduce the cost to $ 400.00 per year for " franchise notification" ( notice can be done online and reporting fees can be mailed or taken by credit card - if you need web help, I will volunteer my web team free of charge and have it up and running within a week ) and have the franchisors agree with the rules of the Federal Trade Commission about franchising ( this is done in both Florida and Texas , where no problems are heard ) , and watch the franchisors of this land and set up companies for unemployed Californian 's who use $ 60,000-100,000 per year , so they pay income to the state, by setting up franchise and were using more people . tax
This franchise units , jobs , job turnover suburbs who tell me that they could really use it now , even with Schwarzneger the recent release of funds to them . This will also spur growth in commercial real estate and fill some of those buildings that are empty , with warm bodies who are making a living and pursuing their dreams . The average consumer in California lives in a house they put 3 % down on , refinanced twice , driving an SUV they bought for zero / zero , try soccer afford for their 2.2 kids and figure out how they are going to pay all those credit cards and student loans for degrees that will not help them in the future . You can do the real problems and see this simple solution . Our company has estimated that we could provide to the State of California alone, 4,000 jobs in three years but we have concentrated in 23 other states in this nation . See the truth , we are hurting the business I worked me hard all my life to a company to build and doing my part to strengthen our state and my country. Help me with the regulatory nightmare and I and all my colleagues franchisors will help to solve this problem. When I started my business at the age of 12 , I was told that I was part of the ten percent of California ' s who were self- employed , we employed along two thirds of the people and that I and my colleagues - entrepreneurs were of value .
If so , why do we all layers and duplicate registrations, applications , paperwork , rules, etc on top of each other and present a clear message that California is all show and no go and that we do not believe in small business and entrepreneurship . If you continue to send these negative message and if this is true , how can we believe in you ? Would you please remove the franchise division of the Department of Enterprise , because it is an unnecessary division of that department. By doing this you will achieve the following goals : 1.) Hitting the taxpayers , 2 ) to help the economic growth through the use of civilians 3 ) generating tax revenue to my state 4 ) send a signal to the franchising and business that means California . . . business Please help me so I can help them and they can help you and you can serve us and together we can all live free , feed our families and enjoy all that California is the largest state of the country .
Signed, The Entrepreneur .
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