Audra, Author at Franchise Dictionary Magazine

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So far Audra has created 215 blog entries.

1 12, 2018

How Game-Changer Franchises Handle Legal Issues

Audra2019-06-02T13:48:20-04:00December 1st, 2018|Tags: creating opportunities for others, franchise agreement, Franchisee-Friendly Franchise Disclosure Document, game-changer franchises, health of the overall franchise system and its individual franchisees, help franchisees get past hurdles, helping communities, terminating franchise agreement|

How Game-Changer Franchises Handle Legal Issues

By Jonathan Barber

Game-changer franchises are filling niches, raising the bar on service, helping communities, building cult followings, creating opportunities for others, and generally turning heads everywhere. Aside from growing their franchises, game changers are truly interested in their franchisees’ well-being, and so they’re also rethinking how they view—and handle—legal issues.

Instead of dropping the hammer and collecting, game-changer franchisors are electing to help franchisees get past hurdles. Here, we’ll show you a few ways franchisors are changing the game and looking out for their franchisees on the legal front. Incidentally, this strategy is great for business because when the system works together, the brand takes off.

The Franchisee-Friendly Franchise Disclosure Document

We all know that the franchise disclosure document (FDD) is flat-out hard to read. Even though the federal franchise rules require FDDs to be “written in plain English,” lawyers just have a field day typing up run-on sentences chock full of four-syllable words. At the end of the drafting process, the franchisor has a 200-to-300-page document that they don’t fully understand.

Fortunately, there is a growing movement, particularly among younger, more entrepreneurial franchisors, to keep FDDs short, sweet, and to the point. My firm has recently drafted a few that, including the franchise agreement and all exhibits and addendum, come in at (or under) 100 pages. While the FDD and franchise agreement are at the heart of the franchisor/franchisee relationship, there is so much more that goes into running a successful franchise. The FDD shouldn’t be something that scares away prospective franchisees. In fact, it’s the franchisor’s biggest sales piece, and it should be drafted and treated like that.

Handling Franchisee Problems

A “default” occurs when a franchisee breaches the terms of his franchise agreement. Traditionally, when a franchisor caught wind of a franchisee doing something wrong, the franchisor would send a Notice of Default and then, if warranted, terminate that franchisee’s franchise agreement. Now, however, there is a growing trend among newer, younger franchises, in which the franchisor is more willing to work with franchisees to fix things.

A great example of this is when a franchisee gives a franchisor notice that the franchisee will not be able to meet its financial obligations for one reason or another. The franchisee may have cash-flow issues, staffing problems, or even personal things going on that could lead to this problem.

At this point, a franchisor has two options. On one hand, the franchisor could put the franchisee in default and proceed with terminating their franchise agreement once the opportunity arises. Then the franchisor could legally go after the franchisee for past due royalties, liquidated damages, attorney’s fees, and other expenses through the franchisee’s personal guaranty. That could be devastating to an individual franchisee and his family. Nevertheless, this has happened many, many times in just about every franchise system out there.

On the other hand, the franchisor also has the option to work with the franchisee. The franchisor could waive, reduce, or defer royalties for a few months. He may even send some support staff to help the franchisee operate the business more efficiently. The franchisor could even facilitate the sale of the business to another franchisee or someone outside of the system. In certain cases, the franchisor may even opt to buy the business and take it on as a corporate or affiliate location. These options show that the franchisor puts the health of the overall franchise system and its individual franchisees above its own interests.

Jonathan Barber exclusively practices franchise law as a partner at Barber Power Law Group, in Charlotte, North Carolina. He has assisted hundreds of clients world-wide with their FDDs and franchise purchases. Barber also represents emerging and established franchisors. Contact Barber at 980-202-5679 or JBarber@barberpowerlaw.com. Visit www.barberpowerlaw.com.

27 07, 2018

Protect yourself: Form an Entity

Audra2019-06-02T13:49:27-04:00July 27th, 2018|Tags: form a business entity, franchise agreement on behalf of an entity, limit your personal risk, limited liability company, protect your personal assets|

Protect Yourself: Form an Entity

By Jonathan Barber

If you’re buying into a franchise, you’re probably about to make one of the biggest investments of your life. You’re likely spending hundreds of thousands of dollars and taking a great leap of faith. Maybe you’re taking out a small business loan or rolling over your retirement funds.

Maybe you’re using your parents’ hard-earned money that you just inherited. Regardless of how much skin you’ve got in the game, you’re heavily invested in this new venture and there is a ton of risk involved. Forming an entity is one way to protect your personal assets and limit your risk.

Limit Your Liability

When John Smith signs a contract in his own name, John Smith is personally liable if things go south in that deal. However, if John Smith forms Smith Holdings, LLC, and signs a contract as Smith Holdings, LLC, he is generally not liable for the obligations of that contract. The limited liability company that John Smith formed is responsible for performing the terms within that contract. This scenario applies directly to franchising. Before you sign your franchise agreement, you could form a business entity such as a corporation or a limited liability company. Then, if you sign that franchise agreement on behalf of your entity, you have greatly limited your personal exposure.

Most franchise agreements require that the franchisee sign a personal guaranty. This isn’t a dealbreaker, it’s an industry standard. A personal guaranty will make you liable even if you sign the franchise agreement on behalf of an entity. Almost all franchisors require this, because they need to ensure their franchisees are all-in with the franchise. If a franchise doesn’t require franchisees to sign a personal guaranty, those franchisees could essentially walk away halfway through their terms with no consequences.

With an entity in place, however, you’re still largely protected. For instance, if a man slips and falls in your store, he most likely won’t be able to take your house and the clothes off your back if you have an entity in place. He could sue your entity for negligence, but as long as you didn’t do anything malicious, he will likely only be able to get to the entity’s assets. Likewise, if your entity enters into contracts with vendors or employees, those parties would really only have claims against your entity—not you individually. The “limited liability” aspect of corporations and LLCs literally limits the liability of an entity’s owner. Some states are different though, and you should consult with a business attorney within your state for further guidance.

By purchasing a franchise, you are putting your business and personal assets on the line, and it’s impossible to completely eliminate your risk. However, you can balance that level of risk against the potential reward your franchise offers. You can also limit your personal risk for non-franchise issues like personal injury and negligence by forming an entity—and the low cost of doing so is worth the personal protection.

Jonathan Barber exclusively practices franchise law as a partner at Barber Power Law Group in Charlotte, North Carolina. He has assisted hundreds of franchisees with their FDDs and buying into franchises all over the world. Barber also represents emerging and established franchisors.

27 07, 2018

Funding Your Dream

Audra2019-03-12T11:54:19-04:00July 27th, 2018|Tags: fund a franchise, Rollovers for Business Start-up (ROBS), Small Business Administration (SBA) loan, start your franchise cash-rich and debt-free, Using retirement funds|

Funding Your Dream

by Dallas Kerley

Entrepreneurs are dreamers, innovators, and go-getters. They are driven enough to start their own businesses. Many, however, lack the funding needed to open the doors. Or, do they?

There are plenty of ways to fund a franchise. Yes, you can borrow from the bank or find investors; of course, that means you’ll be starting your business in debt. But what if you had a pile of cash that allowed you to start your franchise cash-rich and debt-free? If you have money in a qualified retirement plan, you are cash-rich and can fund your franchise with a process known as Rollovers for Business Start-up (ROBS).

How does ROBS funding work?

A Rollovers for Business Start-up plan lets you use existing qualified retirement account funds, such as a 401(k), 403(b) IRA, or other qualified retirement vehicle, to fund your franchise tax-deferred and penalty-free. Because of the way a ROBS is structured, you can still contribute funds to a tax-advantaged retirement account as your business grows, enabling you to continue to plan for your retirement.

How do I get started?

Using retirement funds for your start-up involves four key steps:

Step 1: Establish a Corporation. In order to be eligible for a ROBS arrangement, you must form a new corporation.

Step 2: Create a New Retirement Plan. The corporation will sponsor a new retirement plan that has provisions allowing investments in the parent corporation stock.

Step 3: Transfer Retirement Funds. Once the plan is established, your existing retirement funds will be rolled over to the new plan. Because the funds are rolling from one qualified plan to another, no taxes are due and there are no withdrawal penalties.

Step 4: Launch the New Business. Once stock is purchased in the new corporation, you now have the cash to invest in your new franchise.

The Advantages

Tax Benefits. Under the ROBS plan, you maintain tax-deferred status and do not face any early withdrawal penalties.

Flexibility. The funds can be used for many different purposes. The money can be used as a cash injection for an SBA loan (Small Business Administration), to pay franchise fees, build or renovate a site, or buy equipment. You can even use the funds to pay yourself a salary. If you don’t need the money, don’t spend it—you aren’t required to use all the funds you’ve transferred.

Ease and Speed. In some cases, you can get access to your funds in as little as 10 days.

Funding isn’t dependent on your credit. Unlike other borrowing options, a ROBS doesn’t impact your personal credit. If you borrow any money for your business, your personal credit may suffer. Plus, if you have issues with your credit, you can still use the ROBS for your franchise.

Peace of Mind. Using your retirement plans means you are not incurring additional personal debt. And you’re spared the headache of negotiating with lenders for funding.

Need help figuring out how to best fund your franchise? Benetrends helps entrepreneurs make their dreams a reality. The ROBS program, known as the Rainmaker Plan®, provides guidance and support, so you can focus on your business. To learn more, visit www.benetrends.com.

13 12, 2017

“Deck the Halls” Christmas Spectacle Returns to sweetFrog Frozen Yogurt

Audra2017-12-22T04:04:04-05:00December 13th, 2017|Tags: food franchise, franchise advertising, franchise business, franchise magazine, franchise marketing, franchise opportunities, franchising, home based business, home based franchise, small business owner|

Richmond, VA (PRWEB)December 13, 2017

sweetFrog Frozen Yogurt, the nation’s leading frozen yogurt chain, named America’s Best Frozen Yogurt by The Daily Meal and a Top New Franchise by Entrepreneur Magazine, will put on a real Christmas spectacle throughout the holiday season with “Deck the Halls” benefit nights hosted by participating locations from coast to coast.

Church and school choirs throughout the country have partnered with local sweetFrog shops to host benefit night fundraisers. These choirs will perform all the holiday favorites as part of “Deck the Halls” events built to help them raise much-needed funds for local initiatives. To make these events even more special, sweetFrog will produce a video Christmas Card, using a montage of local choirs performing all over the country. The video Christmas Card will then be posted on all sweetFrog social media outlets.

As part of the “Deck the Halls” event, each participating sweetFrog shop will help the choir raise funds while providing each member with a free frozen yogurt. And for parents, grandparents, neighbors, friends, and other choir supporters who come to enjoy the music, sweetFrog will donate a portion (25% recommended) of the sales from all items purchased by those guests while the choir is performing.

“All of us at sweetFrog love this annual event that gets us in the Christmas spirit,” said sweetFrog’s CEO, Patrick Galleher. “It’s a wonderful time of community fellowship as people come together to celebrate Christmas. What better way to do that than enjoying the sounds of the season sung by local choirs? We are proud to showcase great local talent and support local churches and schools, while helping our sweetFrog owners generate some serious winter foot traffic!”

Two sweetFrog owners, in particular – Holly Silveous of Charles Town, WV and Angela Houle of Biddeford, ME – are all-in on Deck the Halls this year and are thrilled to give back to their community. Silveous, who also works as a teacher in her small town, is excited to host the first “Deck the Halls” event in her store on Wednesday, December 13th.

“We invited a local school choir of 4th and 5th graders to perform,” according to Silveous. “Because its kids, I’m anticipating a huge crowd, which is great. Children really shine when they have a chance to perform in front of an audience, so I want to pack the place out. We’ll move tables out of the way to make more room, if needed! Also – my manager will be taping their performance because I want to make sure they’re included in sweetFrog’s video Christmas Card. How cool will that be for them to be a part of something this big?”

Similarly, Houle is gearing up for “Deck the Halls” events with a girl scout troop on Thursday, December 14th and a local high school choir on Friday, December 15th.

“We’ve been looking forward to ‘Deck the Halls’ since we launched our sweetFrog store earlier this year,” said Houle. “We’re very close with local high schools and girl scout troops, so it was easy for us to coordinate these benefit nights. As the mother of a chronically ill child, it’s very important for me to give back to local organizations because I am acutely aware of their importance. The holidays are our happy place as a family, so hosting ‘Deck the Halls’ nights will be a staple of us. We can’t wait!”

For more information about sweetFrog’s “Deck the Halls” Christmas spectacle and other fundraisers and benefit nights, please go to http://www.sweetfrog.com.

To learn more about sweetFrog Frozen Yogurt franchise opportunities, please visit http://sweetfrog.com/franchise.

About sweetFrog Frozen Yogurt: sweetFrog (http://www.sweetfrog.com) is the fastest growing self-serve frozen yogurt restaurant company in the country. With a wide selection of premium frozen yogurt flavors and fresh toppings choices, sweetFrog was named Best Frozen Yogurt in the USA by The Daily Meal in 2014 and 2016. sweetFrog has over 340 stores and mobile units including retail, mobile trucks and non-traditional locations (such as sporting venues) in twenty-seven states in the U.S, Dominican Republic and Egypt. The company was founded in 2009 and is based in Richmond, Virginia. sweetFrog prides itself on providing a family-friendly environment where customers can enjoy soft-serve frozen yogurt, ice cream, gelato and sorbets with the toppings of their choice. The company was founded on Christian principles and seeks to bring happiness and a positive attitude into the lives of the communities it calls home.

13 12, 2017

Hyatt House Brand Introduces New H Bar Menu Featuring Elevated Bar Bites and Craft Cocktails

Audra2017-12-22T04:03:57-05:00December 13th, 2017|Tags: food franchise, franchise advertising, franchise business, franchise magazine, franchise marketing, franchise opportunities, franchising, home based business, home based franchise, small business owner|

CHICAGO (December 12, 2017)

The Hyatt House brand today announced its new bar bites and craft cocktail menu, H Bar Sip + Snack. With new, shareable bar bites and an expanded list of craft cocktails, the H Bar Sip + Snack menu has everything guests need when hunger strikes. Whether craving something healthy, decadent or somewhere in between, guests can find balance with delicious, quality ingredients and flavors.

Expanding on its “You’ve Come Too Far to Settle Now” platform, the Hyatt House brand is inspiring guests to elevate their on-the-go routine with convenient dining choices that flex to meet their needs. The new Hyatt House H Bar Sip + Snack menu reminds guests not to settle when it comes to eating while on the road.

“We want to give our guests go-to choices throughout the day that allow their trip to feel personalized and unique – the H Bar Sip + Snack menu provides the flexibility and variety our guests need to keep up their routines while on the road,” said Steven Dominguez, vice president of global brands for Hyatt House. “We continue to evolve our food and drink options so that our guests never have to sacrifice taste and quality. From Korean street tacos to charcuterie boards, barbeque pulled pork sliders to grain bowls, the H Bar Sip + Snack menu has a snack, meal or drink for every mood and palate.”

Mediterranean Bowl: Ancient grain and kale blend, grilled chicken, roasted red peppers, baby spinach leaves, Kalamata olives, tomato bruschetta, and toasted pumpkin seeds, served with zesty Italian herb vinaigrette
Taste of Tuscany Board: Fresh mozzarella, prosciutto, pepperoncini, roasted red peppers, stuffed cherry peppers, cornichons, and tomato bruschetta, served with a sliced warm baguette
Korean Street Tacos: Choice of grilled chicken breast or pulled pork tossed in a sweet and spicy sauce, topped with diced red onions, shredded Monterey jack cheese, and crushed peanuts, served on flour tortillas
BBQ Pulled Pork Sliders: Pulled pork tossed with barbeque sauce, topped with chipotle aioli vegetable slaw and pickle chips
Grilled Chicken Spinach Salad: Baby spinach, grilled chicken, hard-boiled egg, fresh berries, red onion, sliced almonds, and golden raisins, served with balsamic vinaigrette
All-American Cheeseburger: Grass-fed beef burger, topped with hardwood smoked bacon, cheddar cheese, lettuce, tomato, and caramelized red onions
Turkey Club Sandwich: All-natural, sliced turkey breast, topped with roasted red peppers, baby spinach, bacon, and basil pesto aioli, served on toasted multigrain bread

Additionally, the H Bar Sip + Snack menu offers a wide selection of beer and wine, as well as an elevated selection of spirits that draw from some of the classics.

Old Fashioned: Maker’s Mark Bourbon, honey syrup and chocolate bitters, served over ice
Whiskey Sour: Maker’s Mark Bourbon, Disaronno Amaretto, fresh lime juice, pineapple, and bitters
Red Sangria: Courvoisier, orange liqueur, orange juice, mango syrup, and cabernet sauvignon, served with fresh fruit and a cinnamon stick
• Classic Margarita: Hornitos Plata, fresh lime juice and orange liqueur
Bloody Mary: Pinnacle Vodka, spicy Bloody Mary mix, lime juice, and Old Bay seasoning on the rim, served with a jalapeño, olive and pepperoni
Classic Martini: Pinnacle Vodka and dry vermouth, served with an olive or a twist
White Sangria: Cruzan rum, orange liqueur, pineapple syrup, and sauvignon blanc, served with fresh fruit

Alongside the new H Bar Sip + Snack menu, Hyatt House hotels also recently introduced a new “Omelet of the Day” breakfast experience, enhancing the current made-to-order, complimentary breakfast offering by giving guests daily breakfast inspiration while on the road. With upgraded ingredients, variety and customization, the new “Omelet of the Day” breakfast offering provides guests with delicious, quality ingredients and flavors that will help kick start their day.

To learn more about Hyatt House hotels, visit hyatt.com/whysettle.

Source: http://newsroom.hyatt.com

About Hyatt House Hyatt House, a brand of Hyatt Hotels Corporation, launched in 2012 and offers more than 80 locations throughout the United States, China, Germany, Mexico, Turkey, and Puerto Rico. Inspired by extensive research into guest experiences, Hyatt House hotels offer services, amenities, upscale spaces and a casual, comfortable environment that reminds guests of home. For more information, please visit hyatthouse.com. Join the conversation on Facebook and Instagram, and tag photos with #HyattHouse and #WhySettle.

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