Why would a franchise company which has master franchisees in charge of regions and those regions in charge of the franchisees and the franchisees in charge of their stores and each store has a manager in charge of the employees? After all doesn’t that represent 5-levels of marketing? Isn’t franchising the duplication and replication of a business method and brand name? Why would Franchisors be angry at a Multi Level Company which basically in “abstract theory” anyway operates in such a similar way?
Well, I am a franchisor so let me explain my beef with this particular situation. You see as a franchisor, I have all these rules of what I can and cannot say. In fact there are some laws, which prohibit things I am allowed to say even if they are true, unless I pay a high priced accountant to do many audits of my franchisees to prove that it is true.
If those are violated or rather if a franchise buyer tells the government I told them something that I was not supposed to, whether I did or not is immaterial, they launch an investigation against my company. The franchise buyer may simply be saying that to break his contract with me, so he can use all my life’s work to do it on his own and then compete against me, it is your basic traitor syndrome. But what the hell some say, deal with it, Jesus had a traitor in his group too. Think on this in 2006.