| Comment Number: | 522418-08531 |
| Received: | 7/12/2006 11:11:47 PM |
| Organization: | Quixtar |
| Commenter: | Gene Smith |
| State: | MI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am always for integrity in business and the need for comprehensive rules. I have been involved since 1989 and achieved the level of Platinum Distributor. Have learned many excellent and useful business practices via this business! When I became an IBO there was a good business presentation and when the starter kit arrived there was good info to read & study. In addition there was mentoring support. As I sponsor new people today the same information and integrity is there. When giving presentations I always inform new people that the business only works if they do and it is necessary to market products for quick income and to learn the business as they build. The initial investment is under $150 depending on if they choose to get the informational package. This amount is fully refundable for 180 days if they should decide to quit. The requirement of a 7 day waiting period will KILL sponsoring. Why? I sell $80,000 trucks and there is no waiting period required, even stocks & bonds only have a 3 day period. With our 180 day refund policy this is NOT needed. With a 7 day wait a new business owner will not be able to register friends and relatives quickly and develop a profitable business in a timely manner. Providing a list of local IBOs only confuses the issue and would violate the national "NO CALL" rule. Who wants a bunch of strangers calling them and asking about ther personal business, income, other IBOs etc. Also, it would encourage prospects to JUMP sponsors if they were acquainted with someone on that list. I always have new IBOs meet with their team members during the presentation and sign up time. Past litigation??? A. Who could possibly know this B.This does not take into account frivolous cases C.This would encourage competitors to create deceptive cases to muddy reputaion. D. Quixtar has an excellent arbitration program in place that quickly settles any disputes. Require earnings disclosures?? How much do YOU make?? Would you like to answer that? We provide average earnings data via a corporate pass out already approved by FTC. What earnings are being substantiated? Gross or NET?? This requirement is too general, Does McDonalds or Wendy's have the same requirement? Do some owners make more or less than the next? Business only works if you do!! I strongly support the efforts to keep business honest and believable! There HAS to be a way to accomplish this in a simple way. Do not burden good business with unmanagable restrictive rules!