| Comment Number: | 522418-05700 |
| Received: | 7/3/2006 2:11:30 AM |
| Organization: | Quixtar Independent Business Owner / DBA GK Group |
| Commenter: | Garrett Deane Jr |
| State: | PA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My wife and I were sponsored into the Quixtar business on January 1st 2005. We were pleased and comfortable with the forthright, clear, and professional presentation of the business opportunity on the occassion of being registered into the Quixtar business as IBO's (Independent Business Owners). All subsequent information, communication, and business transactions with Quixtar have met or exceeded our expectations. After completing one year in the business, we were able to declare to the IRS our full business outcomes in detail thanks to the expertly prepared tax information provided by the Quixtar IBO leadership. Quixtar products and services are of the highest quality and represent good value to us, our fellow IBO's, and Clients. We are in favor of the Business Opportunity Rule (16 CFR Part 437) only in that it would help eliminate fraud by providing a ruling that is reasonably and equitably applied to every business venture. We have serious concerns as to certain specific requirments in the proposed Rule that, in our opinion and experience, are unresonable and inequitable in relationship to most business enterprises on offer in the USA. We ask ourselves; "would any business opportunity ever provide specific earnings disclosures to prospects?" In our experience, any business would keep this kind of information private and proprietary. Having said that, we have been very comfortable with the extent of disclosure of earnings given to us by Quixtar IBO's, or given by us to those we have registered into the business as IBO's. It is our practice to provide a package of information for prospects who are considering the business opportunity. In it, is The Independent Business Ownership Plan brochure that gives detailed information about the opportunity. It includes the compensation plan and the average monthly gross income of active IBO's. We once registered a couple into the business and they decided within a few weeks that it was a mistake, and wanted to reverse their decision. They had paid the usual $140.00 to register and purchase an initial product kit. The entire amount was refunded to them, and they were allowed to keep the products. This was consistent with the good working practices of Quixtar's excellent customer service department. On a few occassions where product was purchased by our Clients, and the product was not satisfactory, the 180 money back guaruntee was honored by Quixtar. Requiring disclosure of a Litigation List could lead to unfair misrepresentation of our business in those cases which may be on file that have no merit. Many of our affiliate partner companies have litigations on file, but they are not required to disclose them to their business propects. If they were required to do so, it would make doing business impractical and unwieldy. The 7-Day Waiting Period would have a negative impact on the conduct of our business. Most prospects are eager to get started. This ruling would unnecessarily impede initial business growth. The profitability of our normal business venture would be severly retarded by this ruling. We don't see value in it, as all our prospects are more than adequately informed prior to being registered, and are free to decide if and when they will register in the business. We object to providing References to prospects. This ruling would unnecessarily impinge on, and potentially jeopardize our privacy. Our prospects are offered the opportunity to attend team meetings where they may meet other business owners they would potentially work with. Companies are not expected to provide substantiation of the financial records of their managers and owners at a job interview. Financial institutions do not disclose their finances to those applying for funding to start a business, but they expect all financial details from the applicant. We appeal for an equitable ruling that is consistently applied to all business ventures. Sincerely, Mr Deane