So often what we perceive as rules and regulations on business to protect consumers, turn out that indeed they actually damage the consumer. Let's take as an example the franchise rules and regulations in the Commonwealth of Virginia. Franchisors must file paperwork and submit to rules, which cause issues with their franchise system, simply in order to do business there. For this reason many franchisors choose not to do business in Virginia. This of course is their choice to forego that market of course, but it also hurts consumer choice when a franchisor skips that state. If the franchisor decides to bite the bullet and deal with the onerous regulations, then that adds additional costs and risks which must be passed onto the franchise buyer, investor and consumer in higher costs. These higher costs are then passed onto the franchisees customers who pay more for a haircut, room, pizza or in our case a carwash, as we are in the carwash business. But how do you explain this to the franchise buyer when they ask; "Why are you not selling franchises in Virginia?" Well let me give it a try; "We are not offering franchises in VA, we are saving this region for family members because of the outrageous franchise laws in the Commonwealth. Normally we would have sold the franchise and allowed the local franchisee to make the profit, but instead now we will exploit the labor and remove all profits to re-invest in a more friendly business climate environment. This of course is a decision purely based on the reality of onerous over regulation of the business model." So let this be an example to all those who wonder why our businesses are outsourcing labor to off-shore and to foreign countries and why many Corporate HQ are no longer in the US. If you wonder why businesses are doing business and taking profits for expansion in foreign markets, then you need to look no further than your own condemnation of business you purport in your sound and fury. In fact it could very well be your fault that businesses leave markets and you are paying more and getting less in your standard of living and quality of life. Be careful when calling for more regulations and laws, as they end up hurting you more than me. Sincerely an entrepreneur. |
