Franchise Seller Definition in the Franchise Rule
Recently the Federal Trade Commission has attempted to report on the franchising industry in a 432 page report. On page 44 of the report they discuss the definition of “Franchise Seller,” which no one ever uses in the real world. The term we use in modern day franchising is; Franchisor.Many years back it was determined that in fact all franchisor documents be made in plain English, yet when we use a term never used in plain English we negate that valuable ideal. Franchise Seller? First of all this is a bad term, in franchising you are not selling anything, you are basically leasing a business. So describing a “franchise broker” or even “Franchise Salesperson” as a “Franchise Seller” is not actually correct.That is not using common English, or common language, which I thought was suppose to be a theme in the disclosure documents? This term “Franchise Seller” is somewhat misleading and although it is currently used, it does not adequately describe the situation, which is occurring and thus is of detriment to the consumer. But it appears the Federal Trade Commission does not wish to change this because, it is too hard and too difficult to change it midstream with out building a dam? Let the fish swim, why do we put a dam across the free flowing river of free enterprise and commerce? Why is it okay to do something the wrong way? Federal Trade Commission’s answer: because we have always been doing it this way? Even if it is wrong and misleading to the consumer whom we are trying to help? Interesting this hypocrisy at the Federal Trade Commi