$MI ($cientology Mission International)
[24 February 1999]

Gerry tells about Hubbard's orders which laid out his plan
(called a "billion dollar caper") for $elling $cientology franchises

From: Gerry Armstrong <armstrong@dowco.com>
Newsgroups: alt.religion.scientology
Subject: $MI ($cientology Mission International)
Date: 24 February 1999

Does anyone know if the set of Hubbard orders which lay out his
plan (he called it a "billion dollar caper") for $elling $cientology franchises
has ever been webbed?

Here's a little bit of Hubbard from his despatch to Sue Mithoff
dated September 10, 1979:

The point of "selling" a franchise area has been misunderstood by
Legal WW. One cannot sell a territory. But one can sell a very
posh package of setup materials for thousands and thousands of
dollars which is a starter package. One sells the starter package
and what goes along with it is a district and SMI contract. The
money which is received is from the starter package and the money
which will be received is from the percentage which will be paid
to SMI. There is not the least bit of legal difficulty at this if
one takes a look at it. This idea has not been put on the lines
previously. But it is very easy to resolve it and no reason to
block the sale of franchise districts just because you can't say
"Chicago southend is now sold for $25,000." You can say "The
district Chicago southend is granted between block number so and
so and block number so and so to the (corporate name of the
franchise acquirer) who must now buy a starter package for his
franchise of so many books, so many this, so many that, so many
meters, so many this, so many that etc., at such and such a price
and in return for signing the SMI contract which requires the
payment of so many percent tithe to SMI." What is added to the
contract is up to the GO as a series of protective clauses which
are advantageous and otherwise. Do you realize that when this
organization is put together as a Church from SMI, it will have
all manner of tax benefits and everything else. It can trade, buy
property etc., etc. and all of these things are tax exempt. There
is one hell of a sales pitch that can be launched back of this.
In the last issue of "Spotlight" newspaper there was an ad from a
Henshal or Benshal about the United Church league, or some such
thing, who laid out the benefits of being a church under the
heading of the "fastest growing religion in the world." This guy
sells ordinations, and is getting away with it. What he says is
true. It has terrific, terrific advantages from a tax point of
view to run a church. A copy of this should be acquired, or I can
get it back and send it through, but the point is this can be a
highly advantageous thing that the guy is buying. What he pays
for is the starter package and the promise to give a certain
tithe to the basic organization and he also is therefore and
thereby disconnected from the C of S of California, and from
liability to the C of S of California, and this is what we're
trying to do and this is the only reason we're organizing SMI.
I have added to it the additional reason that it can make a
fortune. It also gets this franchise scene under control. What
has been overlooked here is the reasons why this organization is
being created. We have just lost now the Kristofferson suit, a 2
million dollar suit, because of the sloppy contracts and
relationship of the franchise network to C of S of California.
Therefore, it has got to be handled and it is behind times
already. One has to sort out the sales pitch, how one will get
money from it, the advantages, and get this fully understood by
anybody along the line, or nobody will be able to sell a damn
thing. This is actually not a very bright conclusion at Legal WW,
but then they are concerned with the law and not with promotion
and Marketing. These new franchises have to be marketed,
marketed, marketed. It's a piece of cake. You can sell a dozen of
them in every major city in the world. They gain in this enormous
tax advantages, a good business that pays money, ways and means
to invest money and hold money without tax ripoff and it's
actually like selling warm mittens to a frozen eskimo.

[End Quote]

There are about 20 typed pages in this set of Hubbard $MI
documents. They were handed around in the 80's. If someone has
them, please send to me, or let me know.

These are excellent documents for showing that the "religion
angle" which Hubbard concocted in 1953 was still alive in his mad
mind in 1979-80.

(c) Gerry Armstrong

Copyright © Gerry Armstrong - All Rights Reserved.