|Received:||7/1/2006 9:07:03 AM|
|Organization:||Moore & Moore, Intl.|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:As an active and profitable owner of a Quixtar business and also as a 25 year practicing attorney in the area of business law and taxes I am submitting my comments about the proposed new disclosure rule. Having served for four years on the National Advisory Council to the U.S. Small Business Administration in the 1980's under then Presidnet Ronald Reagan I can appreciate your concerns in this area and applaude your efforts at addressing any past or future abuses in ths area. However, I think the proposed new rule would destroy my efforts, and others like me, in building my business. I have been building my Quixtar business for almost 20 years and I believe that the only portion of the new rule that would be of benefit to "prospects" would be the requirement for a list of 10 "references" that would be provided to a new prospect. The other aspects of the rule involving the 7 day delay and the calculations, disclosures and "substantiation" for the income claims would virtually put me out of business. I totally agree with the requirement for these discolsures, however, our parent company has all of this information available right now to anyone we contact to about our busienss. In fact, our procedures require us to provide a one page summary sheet to each prospect with all of this information on it after we share our marketing plan with anyone. The 7 day delay would be particularly onerous due to the "perception" it would create that if the law requires such a dely there must be something "wrong" with our business. Just think what it would do the the automobile business, for example, if all salesmen had such a requirement. I also agree with the disclsoure of any litigation involving a particular comapany. However, I again believe that such information should be made available to a prospect directly from the corporate offices of the main company. In our case, such information is available by contacting the lgeal dept. of Alticor . I can assure you that in 25 years of practicing business, estate planning and tax law that more disclosure rather than less is always the best course. However, if you place this important and difficult task on the IBO out trying to build their business with integrity and accountability there will be indvertent errors and not only the possibility by but moreover the likely hood for the creation of incorrect information (in most cases accidentally but I'm sure in other cases purposefully). The other analogy that comes to mind is franchising which provides potential franchisees with all of the data regarding costs, risks and income potnetial again at the corporate level. We agree totally with any process or requirement that weeds out harmful and fradulent businesses. However, to place burdens on the rest of us that have operated legal, moral, ethical and successful businesses with integrity as our foundation for almost 50 years is like throwing out the baby with the bath water. Thank you for the opportunity to make my comments known.I am available for further input if you like by email at , or by phone at The Law Offices of James L. Moore, P.C.