|Received:||7/17/2006 11:58:58 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I have been a business owner with the Quixtar Business since their launch in 1999. Prior to that I was a business owner with Amway, Quixtar's sister concern, since 1993. I have an undergraduate degree in Electrical Engineering and a Masters in Computer Science. I have also done several years worth of work towards my Doctorate. I currently work for as a senior Software Engineer for a major company in the IT field. This business has helped me develop a pathway to financial freedom, while keeping and progressing in my IT career. My wife is retired today, because of this business and I see my personal financial freedom within the next 24 months. All of this would not have been possible, if not for the Quixtar Business opportunity. I am responding to the proposed FTC 'Business Opportunity' rule as I believe it will have a significantly detrimental impact on the operation and growth of my business, if it is implemented in its present form. My main concerns are as follows: • Litigation rule: I joined the business and have been diligently building it with hard work and integrity to my best ability for over 10 years. During this period, I have never been required to or asked to do anything which violated any law or my personal values, to the best of my knowledge. Given this, I see no reason to have to collect and present a record of all litigations against the company and all other business owners affiliated with the opportunity, to my prospects. First, I would never know how to go about collecting this information. If I hire someone to do it, the cost would be prohibitive. Secondly, I do not see myself responsible to the actions of others and should need to track and disclose their litigations, even if they are involved in the same business opportunity as me. If I am looking to purchase a McDonalds Franchise, I really would not care if another McDonald’s owner in Florida is being sued for spilling coffee on a customer. • Financial disclosure rule: there already an FTC rule which we follow which requires us to disclose the average income made by each business owner involved with Quixtar. This is printed on every piece of literature we use and we are required to give it to every prospective business owner. There should be no need to disclose personal finances beyond that. First of all, that is personal and private information. Secondly, my success or income does not guarantee success or income to anyone else. • Regarding giving references of other business owners: this is something we already do, though in an informal manner. We introduce prospective business owners to other successful business owners when they attend our business expansion seminars. We prefer to do this in a controlled environment and in our presence for one main reason – every other business owner is a competitor. If I allow my prospective business owner to establish contact with other business owners in the area, he may choose to join one of them, despite my doing all the hard work. • I am responding to the rule regarding a 7-day wait period last because that rule will all but destroy the growth we are experiencing in our business. It would be like requiring every car salesman or realtor to not be able to close the sale for 7-days after the prospective buyer has made a decision to buy. Anyone in sales will tell you that such a policy will put a big impediment to sales. Life gets in the way, people start overanalyzing and the emotions under which the decision to buy was made is gone. The alternative, which we follow today, a 180-day money back guarantee on the joining cost, is a much better solution. It allows easy, no-questions asked exit for anyone who changes their mind.