BIGGEST ANNOUNCEMENT in YTB History
At 10:21 July 15, YTB filed paperwork with the SEC that they are contemplating changing the business model from a Referring Travel Agent (RTA)model to a franchise system. Continue selling them through our Network Marketing (REP) business.
There are several things that we need to make PERFECTLY CLEAR concerning this announcement.
1) This will be INCREDIBLY GOOD for YTB and for it's RTA's. This has never been done in network marketing history. This will seperate YTB from all of the other network marketing companies, and put us in an environment with companies like McDonalds, Subway, etc.
2) This is not something that will happen this year and it not going to be discussed at the convention. This will happen in 2009.
3) Nothing changes for REP's ---- nothing ---- no comp plan changes --- no other changes.
4) When this happens there may be an increase in the price, but we do not know right now.
5) The RTAs that own existing businesses when this takes place will be "favorably treated".
6) This is NOT something that you can use to entice people into the business. You CAN NOT go out and tell people that if they buy a travel business today, that it will be a franchise later. That is a NO NO.
7) The reason that we are releasing this information in a Press Release right now is because of some of the other things that will be announced at convention, that are related.
8) All of you need to get a copy of the Press Release and have it with you, so if someone asks about it, you can show it to them. Use the article. Don't try to talk about it right now. We don't know enough to talk about it right now. PRINTABLE PRESS RELEASE
But think about this --- Let's say you were talking to a friend. Would you be more comfortable talking to them about a network marketing business, or a FRANCHISE BUSINESS?
This will totally seperate YTB from the negatives that people have in their heads about network marketing.
This is HUGE.
Answers on Franchise Press Release
DATE: July 17, 2008
FROM: Scott Tomer, CEO
RE: Franchise Press Release
I realize that many of you want more information about our July 14th announcement of the potential use of a franchise model at YTB. While there are some things we are unable to comment on at this time, the intention of this letter is to answer many of the questions posed by our Reps and RTAs. I also want to provide you with correct information regarding the rumors, misrepresentations and untruths being circulated on the Internet.
But first, let’s talk a little history. Our goal from day one has been to become the world’s largest Internet travel company. In 2007 we were recognized as the 26th largest seller of travel in America and we are in the top 10 of those that are Internet based. While we are delighted with these results, we believe the franchise model will enable even faster growth. Here are some important points for you to know and remember.
The founders of YTB learned direct sales from Art Williams and built one of the largest organizations in his company. We know how to build a successful sales force that will stand the test of time and the facts supporting this claim are easy to substantiate. 27 years later, my brother still operates a very successful business inside what is now known as Primerica Financial Services.
We know how to recruit, build a sales force and sell products and services using the direct sales or network marketing approach. We are convinced this is the best marketing system ever created and we are ABSOLUTELY COMMITTED to continuing the use of this system with YTB. While there will be changes to the process as it relates to the sale of franchises, the downline genealogy and network marketing division will remain intact.
People may question our decision but no one can question our commitment to this industry or our people. Many factors, none more important than the protection of our Reps’ and RTAs’ futures, and many months of due diligence preceded our July 14th announcement. I’d like to share some of our thoughts with you. Our commitment to becoming a world class travel company will be supported in the franchise system with additional tools and training for those who choose to actively pursue the travel business. The operations manual available to franchisees will provide details of the critical aspects of how to successfully operate their franchise. We believe a franchise model of our existing business will be easier to comprehend and more readily accepted by the general public. Since franchising is recognized as a traditional business model in virtually all developed countries, YTB’s timeline for global expansion will be accelerated. Additionally, franchising will allow us to rapidly diversify the products and services offered by our franchisees. This will enable YTB to more quickly attain our goal of becoming a major distribution channel for products and services sold in the U.S. and abroad. Now let’s discuss how this will affect our existing RTAs. We anticipate everything that currently exists for RTAs will be in the franchise model and any additional products offered through the franchise will be available to RTAs should they elect to become franchisees. We also anticipate providing favorable terms to those RTAs who convert to the franchise model although we have not decided on those details as of this date. If RTAs elect not to become franchisees, they will be able to continue with no change to their status with all income opportunities and privileges they currently enjoy. I acknowledge outsiders will question this decision. We’ve been questioned before. Many so called industry experts doubted our ability to sell travel, but they can’t argue with the fact that we sold $414 million of it last year. We became a publicly traded company in 2004 and the skeptics said we would never make it. People said we were crazy to introduce a Reps’ "Bill of Rights" at the 2005 "Your Time to Build" national convention. It was unheard of in our industry. No one had ever guaranteed earnings for its Reps prior to the 2006 "Business of Champions" YTB convention, but that didn’t stop us from introducing the Success from Home Magazine program with its $6,000 Guarantee. We became members of the Direct Sales Association in 2007 and added the "First Amendment to the Bill of Rights" at the "Cleared for Take Off" National Convention to the dismay of our detractors. We’ve never asked nor do I care about the opinion of our competitors and skeptics. Let them say what they will. So what if they don’t agree with what we do. While it disturbs me that they make inaccurate, deceitful, slanderous and outright fraudulent statements about YTB in an attempt to recruit people, I refuse to respond. What I do know is this. YTB is responsible for more travel sales through YTB Travel Network than all of the other network marketing companies selling travel combined. I stand on our record of Rep and RTA protections and challenge any of them to step up and compete. We’re building a company for the ages and I am proud to be in business with you.
YourTravelBiz.com
APPROVED FRANCHISE STATEMENTS
For the RTA:
- We anticipate everything that currently exists for RTAs will be in the franchise model.
- Any additional products offered in the franchise model will be available to RTAs should they elect to become franchisees.
- We anticipate providing favorable terms to those RTAs who convert to the franchise model although we have not decided on the details.
- If RTAs elect not to become franchisees, they can continue with no changes to their status with all income opportunities and privileges they currently enjoy.
- An Operations Manual will detail the critical aspects of how to successfully operate the franchise (not yet approved).
For the Rep:
- While there will be changes to the process related to the sale of franchises, the downline genealogy and network marketing division will remain intact.
General Statements:
- We believe a franchise model of our existing business will be easier to comprehend and more readily accepted by the general public.
- Our commitment to becoming a world class travel company will be supported in the franchise system with additional tools and training for those who choose to actively pursue the travel business.
- Franchising will allow YTB to diversify the products and services offered by its franchisees more quickly.
- Since franchising is recognized as a traditional business model in almost every country, YTB’s timeline for global expansion will be accelerated.
- Franchising will enable YTB to rapidly attain its goal of becoming a major distribution channel for products and services sold in the US and abroad.
YTB International Contemplates Implementation of Franchises
Tuesday July 15, 4:06 pm ET
Company Considers Adopting Franchise Operating System in 2009
Details regarding price, product offerings and the conversion plan are all under consideration, but the Company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal. Scott Tomer, Chief Executive Officer of YTB International, Inc. commented, "We have retained iFranchise of Chicago to consult in the planning and development of the franchise model and are excited about the potential impact on YTB's business." If a franchising model is adopted, its distribution is expected to be managed by the current marketing arm of the Company, YourTravelBiz.com, also known as YTB.com
The iFranchise Group brings decades of experience to franchise development and implementation efforts. Their consultants have worked with over 30 Fortune 2000 companies and with 98 of the world's top 200 franchisors as rated by Franchise Times magazine. iFranchise has worked with clients such as Blockbuster Video, Ace Hardware, and McDonald's.
* See Editors Notes below
Form 8-K for YTB INTERNATIONAL, INC.
15-Jul-2008
Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.
On July 15, 2008, Mr. Scott Tomer, Chief Executive Officer of YTB International, Inc. (the "Company"), announced that the Company is contemplating the replacement of its referring travel agent ("RTA") business model with the implementation of a franchise operating system, potentially in 2009. The Company expects that a franchising model, if adopted, would facilitate the Company's expansion into additional markets by providing more comprehensive training and a new proprietary e-commerce platform. Details regarding price, product offerings and the conversion plan are all under consideration, but the Company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal. If a franchising model is adopted, its distribution is expected to be managed by subsidiary and current marketing arm of the Company, YourTravelBiz.com, also known as YTB.com.
The information in this report shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and shall not be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filings, except as shall be expressly set forth by specific reference in such a filing.
*YTBREPORT Editors note:
The form 8-K you are currently looking at IS "Historical and Monumental." This is the kind of thing they write books about. This is History in the making.
It is the opinion of your editor and several other well respected individuals who have researched this industry that if YTB is successful in implementing the "Franchise" system at or near their current price point it could cause unprecedented record breaking growth and momentum. It has NEVER been done before inside of this industry. It could literally turn YTB into a "Household" name overnight. This would be a HUGE benefit for it's current RTA base.
In a surprising and controversial move that could end the era of multilevel marketing, Scott Tomer, CEO of YTB International, Inc. said the company is “contemplating the replacement of its referring travel agent (RTA) business model with the implementation of a franchise operating system, potentially in 2009.” YTB has been at the center of travel agents' concerns with the proliferation of multilevel marketing. In a filing with the Securities and Exchange Commission (SEC), Tomer said the company “expects that a franchising model, if adopted, would facilitate the company's expansion into additional markets by providing more comprehensive training and a new proprietary e-commerce platform. “Details regarding price, product offerings and the conversion plan are all under consideration, but the company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal," Tomer's statement continued. "If a franchising model is adopted, its distribution is expected to be managed by subsidiary and current marketing arm of the company, YourTravelBiz.com, also known as YTB.com.” YTB International, Inc. is a publicly owned company. It provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States and Canada. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies. YourTravelBiz.com, Inc. conducts business through the recruitment, enrollment, training, and support of its sales force. YTB Travel Network, Inc.’s business is comprised of arrangements to sell airline tickets, cruise packages and other services, plus travel sales, from the approximately 138,814 (as of 3/31/08) RTAs’ websites which it hosts.
YTB Considers Franchise Operations
