ALERT - ADMIN EMERGENCY SMI

8 January 1980

WDC
cc: CO CMO INT
cc: DCO CMO INT
cc: IPC
cc: FLB PGMS DIR
cc: D/MGMT OPS
ccMGMT OPS
etc.

RE: STARTER PACKS FOR SMI MISSIONS INTERNATIONAL

Dear WDC

Boy is it a good thing this came my way. The PBVF, Project Boom via Franchises locally, has got a total mis-U on "Starter Pack" in the caper. They think it's something like a course pack. How are you going to get any money from these people if this is not a small boxcar load of stuff? You better send out cramming orders fast and review this whole scene both through the PR's on it and to this project because they did not read how we are going to sell these frnachises. I wrote this up extensively. They just haven't got it. They're about to blow the whole program and cost us about a hundred million dollars. They have "Starter Pack" mixed up with a course pack, meaning something between covers which contains some policy letters. This is bunk. In the first place I don't say "Starter Pack", I say "Starter Package". That isn't a "Starter Pack". A "Starter Package" consists of reams of various forms. They are all in cases. A starter package is at least $10,000 worth of books. They may have surveys of what the franchise needs to start up, but these missions guys of course didn't tell them that you need a fully set up bookstore and all of its promotion, all of the forms, clay, anything it takes in the way of materials, repeat materials, to start up a franchise. The exchange here is that SMI gives them a district and in return for that the SMI contractor gets a charter for that district and buys about $10,000 worth of books and materials which is called a Starter Package and the right to continue in business by paying a tithe weekly or monthly to SMI. You better run this down because somebody was about to blow the whole caper and make it totally nonviable. A person can't have a franchise unless he buys a Starter Package and the definition of Starter Package is all materials and books necessary to run a franchise. This list submitted here is just a little tiny pack like a course pack and is a nothing. I am sure it is quite vital to issue this, but that is something like putting out a plate with a fly speck on it and saying the fly speck is for the dinner. Get this one under control and quick, as it's off the rails badly, badly, badly.

The reference I'm talking about was an exchange with WW who were busy saying that "it was illegal to sell a section of a city", so therefore nobody could do anything about SMI. This was straightened out by telling him how you did bring about the exchange. You gave them a charter for a section of a city and in return they bought a Starter Package which was worth money, repeat money, repeat money, repeat money. This communication has apparently been lost off lines, but certainly somebody is at it again. If permitted to be carried on this way, we would wind up with SMI costing C of S its shirt without any exchange of any kind whatsoever. The operative words are "books that will be sold with the starter package", "items that will be sold with the starter package". Those books and items are, repeat are the starter package. Nobody sells them additionally so and such and such and such and such and so many books and so many packs and so many hat packs and so many this and so many that and those things are the starter package and SMI candidates or applicants have to buy them. There is no option connected with it. There is no additional purchase. That is the starter package. Act fast.

L.

R