Business Ethics; Is The Franchising Industry Self-Regulated Due to the Business Model

Many government regulators believe that no industrygo out of business faster with nothing to hide behind,
can police itself and yet having been involved in afree-markets solve problems and bureaucracy makes
franchising industry I see that the industry itself due tothem. And on the other hand I think I have seen my
its very nature and structure causes cooperationshare problems in franchising such as the Decorating
between franchisees who are the investors, and theDen, Krispy Kremes, Boston Market, Schlotzky's Deli
Franchisors who want to expand their brand name.BK, Jiffy Lube crumble, 7-11 sold to Toyko Master
Many regulators will say they encourage us to clearfranchise, etc.
our minds and consider that Franchisor is like anyStill, many of the companies, which had pushed the
business will push the envelope on regulations in orderenvelope on ethics and it up in last place in the
to make higher profits. And for those folks I say tofranchising community and in their competitive
you; I am completely clear, and yet cannot forget allindustries. Where as those corporations and
my experiences, observations and listening toFranchisor's which were more ethical and it up on top
franchisees, lawyers, government regulators telling mein the long run. There is an inherent good in franchising,
what I was seeing was not real and therefore I amwhich promotes honesty and integrity like no other
very slow to judge a franchisor.industry. Unfortunately the government regulators do
You see, if a franchisor screws up then outlets fail andnot understand this fact and this is what causes
they go out of business. With fewer laws they have aincreased and unnecessary over regulation in the
better chance of making it and if they don't then theyfranchising industry. Please consider this in 2006.