| Comment Number: | 522418-06665 |
| Received: | 7/6/2006 11:52:17 PM |
| Organization: | The Nichols Group (Quixtar business owner) |
| Commenter: | David Nichols |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-06665.pdf Download Adobe Reader |
Comments:
My wife and I have been Independent Business Owners with the Quixtar Corporation for 6 years. Our Quixtar business provides a secondary income for us. We are using this business to build a retirement income. It has also been an educational experience in how to organize and run a business. We have applied these lessons to our other business (My wife trains executives in presentation skills and media appearances.) When we started our business we investigated Quixtar before starting. I found it easy to get accurate information about the corporation and it’s history. It was clear to us, and we make it clear to anyone joining our team, that this is a real business. It requires work. It is not a get rich quick plan. Typically individuals joining our team spend between $175 and $200 to start their business. They understand this is fully refundable for up to 6 months after they register their business. In the six years we have been in business we have only had 1 person request their money back. Everyone else felt they received value for their money even if they didn’t continue to build a business long term. In reading the proposed requirements I don’t think they will protect prospects considering a business of their own effectively. Instead they will hamper an individual from being able to successfully grow a business. 7 day wait period? Quixtar gives an unconditional money back guarantee for 6 months…..if anyone starts a business then finds they don’t want to continue they receive their money back. That is better than a 7 day wait period. Why require any wait period when a refund is guaranteed? If a 7 day wait period is required, new business owners will find it to be a barrier to growing their business as everyone has to wait at least 7 days to start. Reference list of local business owners given to prospective business owners? Quixtar has endorsements from the CEO’s and executives of the companies they represent. Isn’t the stamp of approval from Office Depot, Barnes & Noble, IBM etc worth more than someone just starting or refining their business. In the midst of America’s current privacy concerns it is counter productive to ask current business owners to make their personal contact information and business information available for distribution to anyone by other business owners. I managed a travel agency for 6 years. I know we would not have had any clients if they were required to make their personal information available for distribution to other prospective clients. Litigation list? Seems like a meaningless list to me. Walmart is sued every hour. It would be silly to require them to list all lawsuits against them (whether false or valid) in the front of their store. Every large company has litigation against them….sadly many of the suits are frivolous and not justified. Giving a list of litigations is not helpful to protecting a prospective business owner. If anything it is probably a skewed, misrepresentative view of any business. Substantiating my business income to prospects? The prospective business owners I have helped start businesses are interested in what they can earn. They don’t want it limited by what I have earned. Plus they understand they can earn more money than I have. I tell people…..tell me how much you want to make and I can show you someone making about that amount. You can make zero or a lot, depending on how you work. This is the truth. In business they will get results proportionate to their effort. Quixtar has a FTC approved presentation for earnings. That is sufficient protection for prospective business owners to know what is practical and how it is created. I encourage any FTC adopted regulation to take the view point that people can think for themselves. Regulations should not hinder legitimate business while attempting to prevent illegal businesses from succeeding. Thank you for considering these items. David and Elizabeth Ni