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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.

Look at the modern day UFOCs now as franchising companies try to crystal ball every possible eventuality, thus putting the franchisors and franchisees into an unworkable box for fluidity of motion. If you study the competitive aspects of business in relation to war you will see that for any army to advance and win a battle or any business to attain and advance market share fluidity of motion is key. It is what one of the components that takes good companies to great and Jim Collins and company along with his Stanford research staff would agree. If companies cannot adapt fast to changing consumer trends such as Atkins or South Beach Diets and Low Carb lifestyles then the franchise systems will fail, if the documents are so tight to include every current issue in the franchised business model, then in the event of a slight change will not be able to compete and will lose market share.

In war it is no different those who doubt this should read up on Carl von Clauswitz (On War), Colonel Boyd (OODA Loop Theory) and Sun Tzu (The Art of War). In war people die, in the franchising model franchisors file bankruptcy (i.e. Schlotzky’s Deli recent BK) and franchisees lose their investments and their American Dream. Surely the Federal Trade Commission is not so adamant about rule making simply to make rules that they will deny the truth of competitive free markets. Rules must make sense and the Federal Trade Commission should come back to Earth and live in the reality of the business world where customers vote with their dollar of their own free choice and free will. Think about it.

By Lance Winslow

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