Overregulation of our free markets is stifling our growth in America and killing the next superstar entrepreneurs. Let’s discuss how bad it really is. Let’s talk about Ray Kroc, founder of McDonald’s and father of franchises. In this philosophical discussion, let’s take a look at history for a moment, shall we? If Ray Kroc had to pay $45,000 to create disclosure documents for the franchise from scratch, could he have had the capital to do it? Would he have wanted too? What if he had to pay an additional $15,000 per year to remain registered in all states; another $10,000 to $20,000 to keep up with changes in the law and case law? Could he really have stayed in business?

If Ray Kroc in those early days had to pay $25,000 for financial audits, could he have survived? If the number of accountants willing to perform audits were cut in half due to current errors and omissions, peer review costs, and insurance, would Ray Kroc have been able to juggle that during his first five years of traveling the country and sleeping in hotel rooms, while building the business? Remember, Ray Kroc wasn’t married to wealth like the late Sam Walton, who rode the country in an RV site-seeing and studying the competition. Both Ray Kroc and Sam Walton had to do it the hard way, but Ray Kroc was doing it for cash flow. With the current problems in complying with all accounting audit issues in franchises after the most recent Sarbaines Oxley Act, causing delays in necessary audits in a timely manner due to fear of violations in the accounting industry, the demand for more audits in all sectors causes a serious offer. and demand problems to conduct an audit in time for franchise registration renewals are difficult?

Could Ray Kroc have accomplished this as well, along with the additional costs and state registration deadlines? Wait, we’re not done yet. If Ray Kroc had to comply with all of these proposed rule changes and existing rules and review his disclosure documents every time a lawyer created case law that could be detrimental to the entire system, could he have survived the first five years? ? Yes or no? If Ray Kroc had to deal with all the different state laws and inconsistencies in Federal Trade Commission rules, could he have done it? Remember that his first stores were in “Cal-if-Forn-ia” (Arnold Humor) and Illinois. I am telling you that Ray Kroc could not have done what he did and that McDonald’s would never have come into being. I also tell you that NPR would be closing its doors and going off the air this year if it weren’t for the donations from his wife. The Ronald McDonald House would also not be available. Millions of Americans would not have learned customer service or had that first job to teach them such important aspects of the business. The State of Idaho, where Simplot Potatoes grows its crop, would not have made the profits or paid the tax revenue that allowed that great state to prosper. The beef industry would have been badly affected as well, how would that industry have fared in the heated media hysteria of mad cows or droughts that caused cattle to be driven to slaughter early? Would those frivolous lawsuits in Canada for being fat leave our Canadian neighbors with nothing to complain about and we wouldn’t want that? Also the reality of the need for a misguided reform example of spilled coffee would never have existed? Do you doubt what I’m saying? Well, then Ray Kroc’s book “Grinding It Out” can still be found and should be required reading for every Federal Trade Commission employee who has never had to pay a payroll and any lawyer who has never earned the law. legitimately living in a business he owns. your own before commenting on this proposed rule set. It seems that the word smiths is in full force and we are having an ongoing dialogue starting from a topic proposed in 1995, with comments in 1997 and 1999 at a time when many of those comments are in fact irrelevant here in 2004. One more discussion relevant would be how best to separate the business opportunity rules from the franchise rule and then shut down the franchise division of the Federal Trade Commission entirely, as there are currently no perceived or known issues. Does anyone doubt this truth?

Perhaps another example, forget about Ray Kroc the father of franchising for a moment, let’s say for the sake of argument that this current situation in the industry existed back then and Ray Kroc grew up a bitter old man and retired salesman. Forget that the McDonald’s Big Mac is used by the International Monetary Fund as a guide to the international cost of living standards in modern and developing nations. Think of the story “death of a salesman” and leave it at that. Put Ray Kroc in the same place as any of today’s current and emerging entrepreneurial superstars, suffocated by a tsunami of tort law and a hurricane of overregulation. Why can’t we end this storm, why aren’t we willing to see the truth at the Federal Trade Commission? And that’s just one of the many agencies Ray Kroc would have to deal with today, think about it.