Business Opportunities Advice
Franchising VS Business Opportunity; What is the
Difference?
By Lance Winslow
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.
I would beg to differ from those who propose similarities
in rules of law or basic definitional properties of business opportunities
and franchises, which did not co-evolve between 1970 to 1995, but rather
Franchising branched off completely to form a divergent and much higher
cognitive state. Business Opportunities on the other hand meandered to
experience a multitude of developmental digressions, which now encompass
everything from MLM businesses and ATM machines to Kiosks and online vitamin
supplements.
When the Federal Trade Commission considered additional regulatory over
sight and disclosure of the franchise rule in 1995 the business models
should have forever been severed as distinct and different species, even
though one could say they were born of the same evolutionary branch. Now in
2005 we see that these two methods and business models do not even belong in
the same ballpark at all. Business Opportunities are evolving quite fast
like a virus where as franchises are a more complex and ongoing life form.
Franchising and business opportunity law must be separated completely if we
are to make any relevant progress. If the goal of the Federal Trade
Commission, which is somewhat unclear in concept is to protect the consumer
and assist the industry with any sort of appropriate guidance, there can be
no further consideration that business opportunities should remain in this
line of discussion. Nowhere in the franchise rule should the name business
opportunity occur unless describing a situation where a franchised business
model did not meet the minimum criteria in initial fees or ongoing payments
in the definitions of a franchise, however did qualify under a new
definition in the Federal Trade Commission of business opportunity
definition.
We must be careful in business when describing either business model to
properly label the particular opportunity exactly what it is to prevent
confusion. Government needs to also come up with a clear definition to help
consumers. Think about it.
By Lance Winslow
Article Source: http://EzineArticles.com/
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