Notwiths tanding thi s fa c t , in t he publi c for um, t he F T mu
st t a ke the sta nc e t ha t " The R ule is Th e
R ule," a nd f ra nc hiso rs must be in full c ompl ianc e with The R ule or be e x e mpt or ob tain a wa iver
for spe c ial c irc umst a nc e s .
B y e x a mpl e , we a re a ll a wa re o f the fa c t t ha t t he r e a re som e state s in t he U nit e d S tate s tha
t
pra c ti c e a poli c y of no t e nfor c in g se a tb e lt law s un less the dr iver ha s c omm it ted some o ther
infr a c ti on in additi on to t he se a tbelt vi olation t o just if y be in g pull e d ove r b y a n o ff ic e r or
hig hwa y p a trolm a n.
Notwiths tanding thi s fa c t of r e a li t y in t e rms of
the pra c ti c a l a ppli c a ti on of t he se a tbelt l a w, no
state , including those w h o ha ve the polic y indi c a t e d a bove , tak e s the posit ion t ha t i t m a ke s sense
to adve rtise on bill boa rds or T .V. a ds t he f a c t t ha t " in our state , w e a re prou d to s a y that w e onl y
e nfor
c e se a tb e lt law viol a ti ons i f some other infr a c ti on ha s be e n c omm it te d."
This pol ic y , e v e n thoug h known, a t l e a st provides no a bsol ute g u a ra nt e e to a " viol a tor " of th e
se a tbelt l a w tha t he c a n "g e t a wa y with i t" a s long a s no ot he r violation i s c omm it ted.
Ye t, as a
pra c ti c a l m a tt e r, it doe s make se nse fo r some stat e s a nd jurisdi c ti ons t o follow thi s a pproa c h in
orde r to r e du c e the a dmi nist ra ti ve c ost as we ll a s the huma n re sour c e a nd f inanc ial c ost of
prose c uti n g e ve r y one wh o wa s vi olating the s e a tb e lt law
but wa s c omm it ti ng no othe r inf ra c ti on.
F inall y , in r e sponse to th e que sti on a s to whe ther t he re is ev e n a c onti nuin g ne e d for Th e R ule
it se lf, I w ould s ugge st t ha t for the ove ra ll publi c good a nd we lfa re o f the investor c omm unit y ,
pa rtic ular l y in t he f ra n
c hi se wor ld whe re so m a n y of the ne w pa rtic ipants a r e making th e ir f irst
for a y int o thi s t y pe o f a c t ivi t y a t t his hi g h a lev e l o f inve stm e nt, i t i s im port a nt t o obse rve that
ther e ha v e be e n som e sta rtling , posi ti ve be ne fits i n the a tt e mpt to i mprove the in
teg rit y , hone st y ,
c a ndidness, a nd viabili t y of the fr a n c hise indust r y since the inc e pti on of Th e R ule a lm ost 18
y e a rs a g o.
Toda y , th e fr a nc hise indu str y is on e of th e most im porta nt and e c onomi c a ll y sig nific a nt
indus trie s in Am e ric a , a n d with s uc h a major
role i n the ove ra ll e c onom y o f our N a ti on, ther e
must c onti nue to be some ove rsig ht, m onit orin g a n d re view of th e " d a y
-
t o
-
d a y busi ne ss
pra c ti c e s " of th e thous a n ds of c ompanie s that off e r the ir visi on of The Ame ric a n Dr e a m t o so
man y a spiring fr a n c hisee s.
The wor k of th e F TC i n thi s a re a h a s be e n c omm e nda ble to da te, a nd it is c lea r to me that ha vin g
The R ule in plac e prov id e s not onl y a c onsi stenc y in t he ove rsig ht provid e d b y the F TC, but a lso
provide s a y a r dsti c k b y whic h to m e a sure a nd a nt icipa te the c o
nse qu e nc e s of a c ti ons b y the
fr a nc hisors t h e mselve s, a c irc umst a nc e that wa s se ve re l y lac kin g in t he fr a n c hise indust r y p rior
to t he ince pti on of The R ule.
Modi fic a ti ons c a n im pro ve The R ule a nd a re n e c e ssar y , but t he y shoul d be looked a t for just that
pur
pose . The R ule its e lf i s a posi ti ve a nd si g nific a nt benc hmar k fo r the c on ti nuing grow th and
e x pa nsion of the fr a nc his e indus tr y , a nd I be li e v e a ll of the va rious pa rtie s a nd e nti ti e s invo lved
i n
fr a nc hisi n g ha v e a ve st e d stake in continui ng Th e R ule a s a b
a sic f o rma t fo r the indus tr y a nd in
9
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Notwiths tanding thi s fa c t , in t he publi c for um, t he F T mu
st t a ke the sta nc e t ha t " The R ule is Th e
R ule," a nd f ra nc hiso rs must be in full c ompl ianc e with The R ule or be e x e mpt or ob tain a wa iver
for spe c ial c irc umst a nc e s .
B y e x a mpl e , we a re a ll a wa re o f the fa c t t ha t t he r e a re som e state s in t he U nit e d S tate s tha
t
pra c ti c e a poli c y of no t e nfor c in g se a tb e lt law s un less the dr iver ha s c omm it ted some o ther
infr a c ti on in additi on to t he se a tbelt vi olation t o just if y be in g pull e d ove r b y a n o ff ic e r or
hig hwa y p a trolm a n.
Notwiths tanding thi s fa c t of r e a li t y in t e rms of
the pra c ti c a l a ppli c a ti on of t he se a tbelt l a w, no
state , including those w h o ha ve the polic y indi c a t e d a bove , tak e s the posit ion t ha t i t m a ke s sense
to adve rtise on bill boa rds or T .V. a ds t he f a c t t ha t " in our state , w e a re prou d to s a y that w e onl y
e nfor
c e se a tb e lt law viol a ti ons i f some other infr a c ti on ha s be e n c omm it te d."
This pol ic y , e v e n thoug h known, a t l e a st provides no a bsol ute g u a ra nt e e to a " viol a tor " of th e
se a tbelt l a w tha t he c a n "g e t a wa y with i t" a s long a s no ot he r violation i s c omm it ted.
Ye t, as a
pra c ti c a l m a tt e r, it doe s make se nse fo r some stat e s a nd jurisdi c ti ons t o follow thi s a pproa c h in
orde r to r e du c e the a dmi nist ra ti ve c ost as we ll a s the huma n re sour c e a nd f inanc ial c ost of
prose c uti n g e ve r y one wh o wa s vi olating the s e a tb e lt law
but wa s c omm it ti ng no othe r inf ra c ti on.
F inall y , in r e sponse to th e que sti on a s to whe ther t he re is ev e n a c onti nuin g ne e d for Th e R ule
it se lf, I w ould s ugge st t ha t for the ove ra ll publi c good a nd we lfa re o f the investor c omm unit y ,
pa rtic ular l y in t he f ra n
c hi se wor ld whe re so m a n y of the ne w pa rtic ipants a r e making th e ir f irst
for a y int o thi s t y pe o f a c t ivi t y a t t his hi g h a lev e l o f inve stm e nt, i t i s im port a nt t o obse rve that
ther e ha v e be e n som e sta rtling , posi ti ve be ne fits i n the a tt e mpt to i mprove the in
teg rit y , hone st y ,
c a ndidness, a nd viabili t y of the fr a n c hise indust r y since the inc e pti on of Th e R ule a lm ost 18
y e a rs a g o.
Toda y , th e fr a nc hise indu str y is on e of th e most im porta nt and e c onomi c a ll y sig nific a nt
indus trie s in Am e ric a , a n d with s uc h a major
role i n the ove ra ll e c onom y o f our N a ti on, ther e
must c onti nue to be some ove rsig ht, m onit orin g a n d re view of th e " d a y
t o
d a y busi ne ss
pra c ti c e s " of th e thous a n ds of c ompanie s that off e r the ir visi on of The Ame ric a n Dr e a m t o so
man y a spiring fr a n c hisee s.
The wor k of th e F TC i n thi s a re a h a s be e n c omm e nda ble to da te, a nd it is c lea r to me that ha vin g
The R ule in plac e prov id e s not onl y a c onsi stenc y in t he ove rsig ht provid e d b y the F TC, but a lso
provide s a y a r dsti c k b y whic h to m e a sure a nd a nt icipa te the c o
nse qu e nc e s of a c ti ons b y the
fr a nc hisors t h e mselve s, a c irc umst a nc e that wa s se ve re l y lac kin g in t he fr a n c hise indust r y p rior
to t he ince pti on of The R ule.
Modi fic a ti ons c a n im pro ve The R ule a nd a re n e c e ssar y , but t he y shoul d be looked a t for just that
pur
pose . The R ule its e lf i s a posi ti ve a nd si g nific a nt benc hmar k fo r the c on ti nuing grow th and
e x pa nsion of the fr a nc his e indus tr y , a nd I be li e v e a ll of the va rious pa rtie s a nd e nti ti e s invo lved
i n
fr a nc hisi n g ha v e a ve st e d stake in continui ng Th e R ule a s a b
a sic f o rma t fo r the indus tr y a nd in
9
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