|Received:||6/30/2006 7:46:41 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I am writing to oppose the Business Opportunity rule listed above. I have been an independent business owner (IBO) since 1999 with the Quixtar business opportunity. At the time I was registered I received more than enough information to make an intelligent and informed decision on what the business has to offer. 7 Day Requirement and References The requirement of a 7-day waiting period would be severely detrimental and in fact should be considered quite anti-competitive. When we start new IBOs, they are starting a business to make money. By having to wait 7 days, this would present an unfair and unnecessary burden on their ability to compete in the market place. This hampers trade rather than enhances trade. I know of no other properly licensed business that would then have an arbitrary waiting period. In our business one of the first goals we have is to have new IBOs meet our network team. The support system allows for ample ability of any new or potential IBO to see successful entrepreneurs for purposes of a reference. Litigation List With regard to the "litigation list," why would anyone focus on the people who make mistakes? In any other franchising business are they too required to provide all of the litigation in which the company has been a party to in ten years or any other time frame? I sincerely doubt it. Case in point, does McDonalds disclose every lawsuit against the corporation or franchisee to potential franchisees, or should it be the responsibility of the franchisee to do their homework before starting a business! The answer is obvious to a person who knows business. Earnings Disclosure With regard to sharing specific earnings disclosures, every time someone in our business shows the business opportunity plan, they show not only the average earnings of IBOs, but also all of the potential earnings the business has to offer. Someone who wants to be average would not want to be a part of this business, but we do disclose it. I feel personal earnings are a private matter and should not be disclosed. That would be akin to showing everyone your personal tax return. Would you at the FTC want to do that? I think not. We do share with everyone the fact that we continue to make money and enjoy a better life style due to the current earnings in addition to expected future earnings potential as shown in our sales and marketing plan. In summary, I feel it is unnecessary and trade prohibitive to impose such rules on a business that has done nothing but maintain its integrity for many years!