There are federal rules and regulations in the franchising industry, but there are also some states that have franchise regulations on top of that.
Many of these state regulatory bodies very much hurt franchising companies, and prevent them from coming into their state, slowing down their progress, or providing barriers to entry.
This does a number of things that actually ends up hurting the economy in those states, but let me explain.
You see, there are states like North Dakota that have franchising regulations.
But North Dakota has very few viable markets for a franchise system.
Cities like Minot, Bismarck, Dixon, Jamestown, and Fargo North Dakota.
There are not a whole lot of viable cities in North Dakota for a franchisor to put a franchise in.
This means that most franchisors skip ND, thus, no jobs will be provided by franchisors, and no local business people who might have bought the franchise will be able to partake in the strength of the brand name which will drive customers into shop and spend money.
This means everyone loses, and there is less choice for the consumer, thanks to the infinite wisdom of legislators putting additional regulations on franchising, supposedly thinking at one time they could keep out progress, or more efficient business models.
The loss in tax base in franchise registration states has to be in the tens of millions or billions of dollars per year for some of these states.
But they have no one to blame but themselves.
Additionally, competition is good for the market and franchising companies put in franchised outlets that are quite competitive, raising the bar.
Thus, they cause all small businesses to become more efficient and make greater profits.
Companies that make more money can pay more money to their employees, and they can afford to expand their businesses buying more equipment and more units.
Everyone loses when Franchise Regulation States put in onerous rules and regulations above and beyond federal regulations.
It slows economic progress.
Please consider all this.