Business

Morris Friedman was president of Tiny Doubles International, Inc. He sold business opportunities for Tiny Doubles Studios, which made small photographic statues of people for customers. Friedman was the primary negotiator with prospective buyers of these studio business opportunities. He advised buyers up front that the opportunities were not franchises, and, accordingly, he did not provide all of the information set forth in the disclosure rule on franchising, although he did provide full answers to all questions asked. Many businesses closed, however, because of lack of success. The FTC claims that Friedman violated its disclosure rule. In the event strength-weakness opportunity-threat (SWOT) analyses were to be undertaken, based on the information in the foregoing scenario, what would be some weaknesses and threats that are readily detected