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Entrepreneurship Story; Over Regulation in Franchising Final Chapter


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Sally and Jim have launched their automotive franchise Business and are now selling franchises; problems arise as lawyers and over regulation threaten to ruin their life's work, see how it ends; tragedy or success. A realistic story of modern day franchising. . .

Sally says "well we do not need to do site selection because we were going to go to that shop it is a great location, besides since Joe is a long time employee we are giving him a discount." The S2D2 is so smiling now seeing as they have been on the phone nearly 45 minutes at his billing price of $150 per hour and he loves to round up, over billing may not be his middle name, but definitely in his family tree are the family names of White and Waters, he continues smiling. The S2D2 says "you cannot give him a discount if his parent partners are from IL and you have to offer the same exact deal to everyone in IL and it will severely jeopardize your future franchising in IL." Sally enraged starts to say something, "This is b-," but doesn't she just is thinking how much she wants to kill the adulter'ing, over charging, scum and S2D2 (Sally thought this not the author of this truly purely fiction story) for not explaining all this ahead of time, they promised Joe. Jim and I honor our word and besides we are about to open the new shop and Joe has waited for this and we are over loaded with Business as it is, even if we opened the shop ourselves either way, it must be opened to meet customer demand, we just cannot wait, no way.

The S2D2 feeling the tension, which usually brings him his best money clientele, says quickly. "Okay, I think I can work through this, we will figure it out, why not come in tomorrow to talk about it?" Jim says "We can't, we are stacked with cars at all three shops, down two mechanics and Joe will be gone to MI to talk to his soon to be partner. They are going Fishing, Joe needs some time off." The S2D2 says "well tell you what let's get your bill paid current and we can meet, I have time next Wednesday, (six days away) meanwhile tell Joe to hold tight on the meeting, wait on the disclosures, see if Joe can get out of the lease deposit or transfer the deal to your name. Tell Joe to alert his parents that he will not be cashing the check until I can call the states of Illinois and Michigan and get those documents in there." The attorney knows some folks in Michigan from college to drop names so he figures he can easily get the exemption for making an offer but not selling yet, as he remembers reading something in the regs on that a few years ago. Illinois will be a different issue, he has to think on this and be careful not to get himself in trouble.

Jim says "we have to wait another week?" Jim thinks to himself, do I have to call you when I need to use the restroom too, you would probably like that to hold me and help me aim, he decides he will just be quiet and listen? The S2D2 says "Yes, Jim, I am afraid to say yes. And meanwhile contact an Accounting firm and make sure they do audits." Sally says "but, you said we did not need audits for two-years?" The S2D2 says, "Well yes that is true but you are franchising in IL now, they require audits. Unless Joe has another way to do this Business on his own?" Sally says "I'll ask him, but I think he has no credit, especially after his divorce two-years ago, his wife ran off with an attorney." The S2D2 sensing some hostility being aimed his way says "I am sorry to here that, but maybe you can figure something out, maybe there is another way, meanwhile. It is 5:30 pm and I have to take my daughter to Harp Lessons and then to the Batmitzvah rehearsal, we are so proud of her. Besides we have been in high time billing for 30 minutes. Tell you what I will work on this first thing tomorrow, get your bill caught up, check on the CPA firm, I have a friend who does a little of that if you want a name?" Sally says, "NO, we will find one." Jim says, "thanks for your time, we will do what we need to do." The S2D2 says "Don't thank me, you are paying for it." Then he turns to his secretary and says, my w

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