| Comment Number: | 522418-04894 |
| Received: | 6/28/2006 5:48:30 PM |
| Organization: | The Shepard Company, Inc. |
| Commenter: | Richard Shepard |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
This is in response to new Trade Regulation on Business Opportunities. I have been an independent business owner since 1995. During that time, we have built a successful distribution organization based on integrity and honesty, providing opportunity for growth and income for those who have chosen to utilize this form of free enterprise. When we saw the opportunity, we received detailed information about the business plan and met and discuss what we received with other knowledgable business owners. Having worked in business planning for 35 years, I found this plan to fit the ideal business I was looking for so I have recommended it to others. Our decision was based on cold-hard facts presented in a clear and straight-forward manner. I have used the same approach since we entered the business. Since we are building a solid, growing business, I have no time to misrepresent, then have to undue poor business practices. We spend time to show prospects that this business, any valid business is not get-rich-quick. I stress that in 40 years of business experience, get-rich-quick is usually followed by get-poor-just-as-quick. We share about our personal success, but stress that their success will result from their own personal efforts to build an honest, ethical business. Those who have joined our business capitalize their start up with $50 to $150. This covers registering, internet access and initial products for their use and sharing with others. Most of those registered begin at $100 or less. Some have decided not to pursue what they started and our policy is to return their registration if they quit within 6 months. I don't know how to make this any more fair. The proposed ruling to force a prospect, who has made their decision to build a future, to wait 7 days would be the same as requiring a car buyer to wait 7 days before closing the sale. We bend over backwards to be sure that a prospect wants to move ahead. A 7 days wait delays the work a prospect could do in starting their business. What does this delay do to those wanting to build their future, it delays the creation of income which is the reason they chose to build their business. When I present our business plan to a prospect, I cover the income based on a plan that has been approved by the FTC (Quixtar) and provide a printed brochure the includes all the math for how income is generated. We provide disclosures and explanations of income potential as required in our contract with our distribution supplier. Why would more be required? The requirement to provide a list of other business owners creates the opportunity for others to register our prospect after we have done the work of presenting the plan. This is the equilalent of having the car salesman provide the names of 10 other dealerships or salesmen to a potential customer. This defies logic. The requirement to provide a Litigation List is unworkable. Who is a seller?. Does this include all suppliers with whom we are affiliated? Does it then reach through and include suppliers to our sources? Does this apply only to cases found against the seller or even cases found with no merit? Unworkable. Financial Substantiation: What can I say, 45 years ago I found that talking about what I make destroyed working relationships. I do not, nor will I talk about my income with anyone outside my immediate family. Remove this requirement. It is an invasion. In closing, I have found that rulings like this are typically initiated by one or two situations caused by an unscrupulous individual. To address the issue a all-covering blanket is thrown at all who are doing business in an ethical and honest manner. The effect is to dampen, even cripple solid, durable businesses. I've also seen issues like this generated by competitors who want to hinder the growth of other forms of commerce. Government should deal with those individuals who are unethical and encourage those building our free enterprise economy