| One major issue not being addressed right now in the | | | | the typical MLM sales plan and methodology. |
| regulatory definitions which guide consumers and | | | | This is not a franchise, not even close in the Federal |
| lawyers in business opportunities and franchising is the | | | | Trade Commission definition, yet due to the lack of |
| new term being used; Private Franchising. The Federal | | | | guidance in true definitions, the words; "Private |
| Trade Commission decided it would revise its | | | | Franchise" has been adopted and the word |
| definitions of such opportunities in 1995, but failed to | | | | "franchise" is used throughout these loud |
| address this issue. The use of the term; Private | | | | presentations in coffee shops across America each |
| Franchising has grown over the years. | | | | day. As a matter of fact it is hard to sit in a coffee |
| There now exist some fraudulent activity going on in | | | | shop anywhere in this country without hearing one of |
| coffee shops across America with regards to | | | | these presentation on any given day. See for |
| multi-level marketing recruiters using this term, which | | | | yourself. A failure to completely separate the |
| disquises their business model as something it clearly | | | | entangled business models in the Federal Trade |
| is not. It appears that consumers have grown wise | | | | Commission's definition does so at the detriment of |
| to MLM business opportunity sales tactics and | | | | the consumer. The Federal Trade Commission's job is |
| therefore that form of virus has hijacked a new host | | | | to educate protect the consumer, yet it is failing to |
| (franchise industry model) and modified its intended | | | | act to this new biological threat which might harm the |
| definition. This is happening where the salesman, MLM | | | | current complex life form of the Modern Franchise |
| recruiter calls their business a "Private Franchise" and | | | | business model. The consumer begins to perceive |
| then spends about 20 minutes of the presentation | | | | that somehow an MLM business is exactly the same |
| discussing the incredible success of McDonalds and | | | | as a franchise. That they will receive the same things, |
| other franchising giants prior to drawing circles on | | | | expect the same things and receive similar |
| paper and making forward looking statements about | | | | presentations. |
| their parent company, without presenting a full audit | | | | This is false and misleading to the consumer and |
| and then make earning claims to the potential signer | | | | unfortunate for the ethical franchisors and franchising |
| up of the MLM program. The circles have names like | | | | industry. Think about it. |
| Diamond, Emerald, Ruby, Direct, Etc. All in line with | | | | |