When a loved passes, many issues arise regarding assets IE: succession and the distribution of acquired wealth. This includes all personal property, real estate and in many cases, a business. Usually a trusted family member was assigned the task as “executor” of a Will. However, what happens if that person is mishandeling the process through negligence, incompetence or for personal gain. Today our guest contributor; Spencer Lauterbach, Esq, addresses the problem and the solution. Take this advice when planning your business succession plan you put in place
If a loved one has recently passed away and you believe his or her executor is mismanaging the deceased’s assets in some way, you may wish to have him or her removed from the position. If you are looking to remove an executor, here are some of the questions you may have:
What does an executor do?
Executors bear a lot of responsibility. First, they will open probate and identify the deceased’s assets. An executor will then notify all beneficiaries, pay off the deceased’s remaining debts, distribute assets amongst heirs, and finally close out the estate. Executors are essentially responsible for ensuring the administration process goes swiftly, smoothly, and according to plan.
What is a valid reason to remove an executor from the position?
* He or she is ineligible for any reason
* He or she is incompetent or has become incapacitated
* He or she is unqualified
* He or she is purposefully or negligently mismanaging the estate
How can an executor behave irresponsibly?
There are several ways in which an executor can either behave negligently or break the law. Executors must obey the following rules:
* Never sign a will on behalf of the deceased
* Never change provisions in a will
* Never carry out a will before its creator is deceased
* Never deter, coerce, or prevent beneficiaries from contesting a will
* Never sell the deceased’s assets for less than fair market value without the beneficiaries’ consent
How can I remove an executor?
Fortunately, those who believe an executor is mismanaging assets have legal options to get the irresponsible executor removed. Rather obviously, talking is a solid first option. You should not have to get involved in a nasty legal situation with a relative if you can simply voice your concerns and move on. However, if you have already tried, or are unable to communicate with this person for any reason, you may petition the court to remove the executor. Once you do, you and the current executor will attend a hearing, where a courtroom will listen to both sides of the story. From here, the court will decide whether to remove the current executor and appoint a new one.
Additionally, you may file a civil lawsuit against the executor as well, especially if you can prove he or she acted maliciously or dishonestly when carrying out his or her duties as executor. If you have suffered significant damages and can prove it was because of an irresponsible executor, there is a very good chance you can recover some of those damages through a lawsuit.
About the author: Spencer Lauterbach, Esq.
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.
Our guest contributor, James A. Meaney shares his insights on why franchisors should seek mediation when settling disputes with franchisees. saving costly legal fees not only benefits both parties but often times leads to a better outcome.
Why I Love Mediation and You Should Too! By James A. Meaney – Franchise Attorney
The majority of franchise agreements that I come across or create these days have a mediation clause. For those of you who have no clue what I’m talking about, when a dispute arises, the disagreeing parties have only a few options: do nothing, file a lawsuit, go to arbitration, or sit down and try to work it out a/k/a MEDIATION.
Avoid spending a fortune
This is not the first time I have addressed this important topic and you can find earlier posts here. And, full disclosure: I serve as a mediator when selected by the parties or their counsel. But, here is why I love mediation and you should too! To help your clients or your company resolve disputes before spending a fortune.
Litigation and arbitration can burn up a very large sum of money. Remember it is a battle. The courtroom or the arbitration room is the battleground and counsel are the warriors. Let’s not get too carried away here but some of these disputes run from tens of thousands of dollars to over hundreds of thousands of dollars.
WORK TOGETHER
Mediation is a process that allows parties to work together, usually with the help of a trained and experienced mediator (often a lawyer but not universally), to settle a dispute before an action is filed and sometimes after. Mediators come in all types (ex. commercial law, domestic disputes) and styles (ex. objective neutrals, aggressive, evaluative). But the hallmark of an effective mediator is keeping the parties engaged, keeping them talking and negotiating. Also, an astute mediator may offer “creative” solutions that the parties did not consider.
So counsel, if you have a long-standing client, wouldn’t you want to save them time and money? Wouldn’t it be the best advice you can provide under the circumstance? Besides, litigation or arbitration is always on the table but why not think of it as a last resort? Company officials or franchisees, not only could you save those precious funds, but you may find a solution that preserves the relationship. The earlier you seek resolution, the more latitude you have.
Of course some disputes cannot be resolved through mediation but, even when there is a small chance of resolution, it seems like a wise investment. And, as any commercial lawyer knows, whether a litigator or transactional lawyer, serving our clients’ needs is our top priority.
About The Author:
James A. Meaney is an Attorney on the Zaino Law Team. Zaino Law Group, LPA, in Dublin, Ohio, serves clients in Columbus, Dayton, Springfield and communities throughout Central Ohio. Our lawyers offer a unique blend of practical advice and a thorough understanding of legal issues. We recognize the importance of being part of a total planning team. Our attorneys consult and work closely with your accountant, your financial planner, your insurance professional and other attorneys in order to provide comprehensive legal counsel.
As a long-time restaurateur primarily in the franchised, fast-casual business, I understand the need to outpace and add more value & service to customers. Our contributing writer today, Roger Lipton highlights and adds his insights to what he calls the “The Last Mile” in the restaurant business. As more and more operators are fighting for the same dollar, speed, value, and convenience become the point of differentiation for many restaurant brands. Enjoy Roger’s take on ‘Delivery Land.”
Another potential problem, as pointed out by a group of restaurant operators in Los Angeles, is that delivery agents are not trained in food handling and temperature maintenance standards. One LA-based operator said, “If a customer gets hepatitis, they are going to sue the restaurant.” Another stomach-turning pitfall, as described, is the hungry delivery person that helps themselves to part of the milkshake or a couple of the ribs.
DELIVERY, THE BIG THING IN RESTAURANT LAND – THIS IS WHAT “THE LAST MILE” LOOKS LIKE.
Restaurant companies are unanimous in their pursuit of delivery as one of the huge opportunities to increase the productivity of their physical plants. Too much square footage continues to be a burden on productivity, especially when it takes labor at $15.00 (ex the tip credit) per hour to service the space. It’s also clear by this time that control over the “last mile” is of major concern to restaurant operators. Not only is the reputation of The Brand at stake, but valuable information relative to the customers is in the hands of the third-party agent, potentially not as useful to the food provider.
A reality of this new source of business is that margins for the restaurant company will be affected since 15-30% of the ticket is paid to the delivery agent. While some argue that a large portion of the delivery dollars is “incremental,” it stands to reason that a customer who receives the product at home on Wednesday night is less likely to visit that restaurant on Thursday or Friday. On the hopeful side: delivery companies are already competing for market share, negotiating their fees lower, therefore improving the remaining margin for the restaurant. Overall, this is a portion of dining dollars that is very much in a state of flux.
ON THE GROUND IN DELIVERY LAND
Two articles caught our eye in the last day or so, in the New York Times and the New York Post, describing the reality of “the last mile,” and it’s not pretty.
The Post described how a delivery worker (from DoorDash) punched a pizza store employee in the head because the order wasn’t ready for pickup. We are not trying to focus on DoorDash (DD) in particular, because this could happen with any third party agent, but another DD employee posted a negative review on Yelp because the food “trash” wasn’t ready on time. Another DD hire made a scene after getting a parking ticket while waiting for a delivery pickup. Since delivery agents, including DD, UberEats, Postmates, and others, get paid primarily for completed deliveries and little, if anything, for waiting time, they are obviously very sensitive to the availability of the order. At the same time, restaurant employees, including one cited at (well run) Cheesecake Factory, are not necessarily treating the delivery person with great courtesy.
TRAINED TO DELIVER FOOD BUT NOT HOW TO “HANDLE” IT
Another potential problem, as pointed out by a group of restaurant operators in Los Angeles, is that delivery agents are not trained in food handling and temperature maintenance standards. One LA-based operator said, “If a customer gets hepatitis, they are going to sue the restaurant.” Another stomach turning pitfall, as described, is the hungry delivery person that helps themself to part of the milkshake or a couple of the ribs. All of this can be considered “anecdotal,” but the proper selection and training for third party agents are no doubt far from optimal at this early point in the evolution of the food delivery industry. Parenthetically, stock investors might well keep all of this in mind before they pay a considerable valuation for DoorDash when it comes public.
The New York Times described the experience of a bicycle delivery person in Manhattan, obviously a unique market, but still indicative of urban issues. The bicycle person, working for UberEats as well as Postmates, had continuous decisions on the run to make, all while anticipating traffic patterns and potential delays. Should he pick up several orders at a Mexican restaurant five blocks away for UberEats, or divert to two orders for Postmates at Shake Shack that was a little closer. As he said, “I had to decide: take on three orders at once and risk falling behind? Stick with UberEats, which was running a $10 bonus for doing six deliveries by 1:30, or try for a Postmates bonus? Information was limited. The UberEats app doesn’t tell you where the delivery is going until you pick it up. I could not know what the Postmates job would pay. The Postmates clock ticked down – you have seconds to accept or decline an order. I was threading my way around lurching honking trucks and oblivious texting pedestrians and watching for cops and looking down at the phone mounted on my handlebars and calculating delivery times.”
The article goes on to describe the intense competition among companies like Grubhub Seamless, UberEats, Caviar, DoorDash and Postmates, and delivery agents are often representing more than one company. The restaurants have been forced into the e-commerce business, outsourcing their product to the hands of a fleet of freelance personnel who may or may not appropriately represent the restaurant Brand. Especially as competition has increased, the net hourly pay for delivery agents has become closer to $10/hour than $20, sometimes even less than $10. We can only imagine the professional skills, or lack thereof, of a person that is going to subject themselves to this kind of pressure for that kind of wage. There is a myriad of other hurdles that delivery agents in urban areas will have to deal with, but that will vary by venue. We can say with assurance; however, just as above described in suburbia, there is enormous work to be done to iron out the issues, reduce the risk, and improve the profitability for the restaurant operator.
CONCLUSION:
The challenge remains to make delivery incrementally profitable, without taking on considerable risk to The Brand in the process. To whatever extent possible, maximum control over the delivery process should be at The Brand level. In the meantime, takeout and curbside pickup may be convenient enough to maintain market share, without incurring the risks as described above. Perhaps orders, above a specific size at limited times of the day within a certain radius, can be delivered by properly trained store-level employees. There is a large market to be served, but not necessarily at the risk of The Brand.
If you own a business, franchised or otherwise, succession planning is key. What happens to your business when you’re gone, or disabled or decide it’s time to exit the business and retire….These very important questions are often overlooked by the business owner only to create difficult situations for family members, partners and other stakeholders.
Our article today is presented by Neel Shah or Shah & Associates, P.C. Please free free to contact Neel directly after you read the article and have questions regarding a succession plan for your business
Look at all the Pieces
Having an estate plan for your business is just as important as having an estate plan for your individual purposes. There are many different components that go into a business estate plan including a will, a living trust, a financial durable power of attorney, a succession plan, a buy/sell agreement, and life insurance.
All of these can be discussed directly with an experienced attorney. Your will and your living trust are the cornerstones of your business estate plan.
A will enables you to name who you wish to receive your assets, including your company, if you wish upon your death. A living trust is similar to a will in that it allows you to decide who will receive your assets when you pass away, but this is a private document that has benefits when compared with a will. A financial durable power of attorney enables you to authorize an agent to act on your behalf if you are unable to do so for yourself.
Avoid Mistakes
Your succession plan which might also include considerations of a buy/sell agreement and life insurance is your opportunity to outline what will happen to your company in the future if you were to leave. Many people anticipate that they will continue working in their business forever. However, it can be a big mistake to assume that you will always be able or interested in working on your business. Scheduling a consultation with an estate planning attorney who has familiarity with adapting and creating business succession plans should be the cornerstone of the next steps that you take in planning your company’s future.
———————————-
Meet the Author: Neel Shah
My law practice is focused on helping individuals, families & business owners to protect their wealth & their legacy for current & future generations. Estate taxes, lawsuits, poor/inadequate planning, the escalating costs of nursing homes/long-term care are such sources of attack.
My past & present clients include parents, grandparents, children, established corporations, LLCs, individual entrepreneurs, and start-up ventures.
Clients value my diverse training & expertise across the Wealth-planning, Business Law & Real Estate Law disciplines.
I use my skill set to foresee, analyze & implement business-succession techniques for my corporate and individual clients as they initiate different stages of their lives & business ventures. I provide relevant, actionable advice for Estate Planning & Asset Protection strategies for families, business owners & real estate investors so their business actions do not jeopardize their family’s wealth.
According to a NY Times interview with Ms. Husler, she said her boss tasked her with specific instructions to find things wrong. “I was kind of his hit man,” she said. Ms. Husler went on to say that Mr. Patel considered his own interests when determining which stores were to be sent into arbitration.
A Bite Of The Sandwich From Both Ends?
By Gary Occhiogrosso – As seen in Forbes.com
Like a “Player/Manager” of a baseball team, there are often conflicts that never seem to settle and resolve. The recent news that Subway, and it’s “Development Agents” are allegedly “pushing out” other smaller Subway operators is not unlike the player/manager deciding to bench a good teammate so he can get more playing time. As a 35-year veteran of the franchised restaurant industry, I know I am not alone in my opinion. You can’t play both sides of the fence then expect not to run up against motives that may sometimes appear to be questionable.
Subway has grown to its behemoth size by employing a program whereby some franchisees are also sales agents and operational support personnel for the parent company. They are titled “Development Agents.” On the surface, it seems like a good idea. It seems to make sense to appoint brethren franchisees to help build out territory by recruiting new owners and then assist them in setting up their shops and growing their business.
Cutting the Sandwich Business Into Pieces
Subway divides its roster of sandwich shops into more than 100 regional territories. These territories are controlled in part by a development agent. The development agents are responsible for recruiting new franchisees and finding & approving buyers for existing shops. As compensation for this sales effort, they receive a portion of the upfront franchise fee for a new shop or transfer fee if it’s the sale of a current location.
Also, for a share of the company’s royalty fee, they are obligated to visit shops and conduct shop audits focused on operational compliance. This inspection task is carried out through the use of inspectors — known as field consultants. The question of conflict comes up when you consider that many of the development agents are also franchisees themselves. As this is the case, it’s hard to separate the idea of running their own shops, and be responsible for inspecting shops which directly compete with them. The question of motive grows more plausible when you add in the fact that these development agent’s shops are self-inspected by their own paid staff members.
Is Rapid Growth Always a Good Thing?
Consider the history of Subway’s voracious appetite for growth and the lack of exclusive territories granted to their franchisees. In my opinion, all franchised units regardless of the brand, should have a protected territory. These protections help prevent the parent company from encroaching on the trade area of an existing operator and hurting their sales. This protection is not the case with many Subway franchises. There is not exclusive territory protection. The location of a new shop is at the discretion of the company. So it should come as no surprise that the brand has overdeveloped in certain territories. These saturated markets are at a point of sales cannibalization. Mr. Deluaca’s dream of 50,000 Subways has now left some franchisees feeling like their local development agents are pushing them out of business to gain market share for themselves.
Case in point, as reported in the NY Times, Subway franchisee Manoj Tripathi felt that someone had a vendetta against him. The 20-year franchisee noted that each time the inspector arrived, she would find more and more minor infractions. Things like fingerprints on the doors or vegetables cut incorrectly or the wrong soap in the restrooms. On one visit, Rebecca Husler, the Subway inspector who worked for Chirayu Patel, a Development Agent in the Northern California region, noticed that a single light fixture needed a new bulb. Mr. Tripathi replaced the bulb before she left; nonetheless, it was a violation. Mr. Tripathi wasn’t overreacting to his feeling of being set up to fail, as it turns out within a year he was terminated, and he lost his shop.
According to a NY Times interview with Ms. Husler, she said her boss tasked her with specific instructions to find things wrong. “I was kind of his hit man,” she said. Ms. Husler went on to say that Mr. Patel considered his own interests when determining which stores were to be sent into arbitration. Mr. Patel made it “very clear that his stores were to pass” and that “the people he wanted out of the system were to fail out of the system.” she said in the interview. The light bulb incident gave her pause to say, “We’re ruining these people.”
Systemic or Isolated?
One of the people on the company side of this debate is Don Fertman. Mr. Fertman is Subway’s chief development officer and a veteran of the company for 38 years. He claims development agents owning restaurants helps give them “a better understanding of all aspects of owning a small business.” He went on to explain that the company reviews the agents’ work and expects them to uphold ethical standards, dealing with violations “on a case-by-case basis.” He continued by saying, “Our business development agents are well-respected members of our business community,” he said. “And when we hear these allegations, I would say that they are false.”
My takeaway is not this stunning revelation of alleged unfair business practices, but instead that it’s taken this many years to consider that Development Agents competing with other franchises might abuse their position when auditing competing shops in their region. As a former franchisor and development consultant, I do see merit for brands to use the development agent system. I believe there needs to be a robust system of oversight by the parent company to prevent abusive business practices by development agents. This is not to say that Subway corporate hasn’t developed a system of checks and balances, but the allegations from its franchise community leave one to wonder how vigorously it is employed.
Given the number of Subway units in the USA, this may only be the beginning from Subway franchisees who feel Subway is taking a bite out their business.
It could be a Wine Bar with small plates, or a BBQ theme or a Create Your Plate concept. Whatever you decide, it is critical that the environment and “vibe” within the restaurant places the guest firmly inside the experience you’re attempting to create. Don’t confuse the guest with a concept that’s disconnected. As I often remind my clients, “everything touches everything else.”
BY GARY OCCHIOGROSSO – FOUNDER OF FRANCHISE GROWTH SOLUTIONS.
Tripwires to avoid – Desire and passion will only get you so far. Create your business plan as a road map.
For many people, opening a restaurant is a dream. One of the many things I find so interesting about the restaurant business is the blend of creative artistry and the detailed and challenging business aspects necessary to be successful. As an Adjunct Instructor at NYU’s School of Professional Studies, I teach restaurant concept development and business planning. On several occasions, I have been asked by my students to summarize the top issues that one must consider when planning to open a restaurant. Generally, regardless of the type of restaurant, the planning and considerations are the same. I’ll cover a few of the top line elements here.
At the beginning of the process, you should write a simple business plan. It would help if you thought about the many pieces of the puzzle connected to a successful outcome. Many novice restaurateurs, very often chefs, only consider the food component, but there is so much more. A well thought out business plan will include creating a unique concept, a competitive analysis, site selection, financial projections, equipment needs, staffing, and of course, the menu.
Let’s start with a concept
It’s essential that your restaurant offers a unique experience. It could be a Wine Bar with small plates, or a BBQ theme or a Create Your Plate concept. Whatever you decide, it is critical that the environment and “vibe” within the restaurant places the guest firmly inside the experience you’re attempting to create. Don’t confuse the guest with a concept that’s disconnected. As I often remind my clients, “everything touches everything else.” For instance, you wouldn’t use elegant tableware in a fried chicken restaurant or disposable plates in an upscale steakhouse. As obvious as this may seem on the broader elements, it’s essential to take that idea to every detail of the restaurant concept, no matter how small. Everything from the paint color to the music to the tabletops to the wall hanging must work together. The decor elements, the menu, and the service level need to provide the guests with a seamless experience that, when done well, goes almost unnoticed because it’s natural and authentic.
If You Build It, Will They Come?
Building a clientele is never as easy as hanging a sign over the door. It takes smart planning, execution of marketing, and living up to the promise in your mission and brand position statement. You should never assume, “if you build it, they will come.” Questions to ask yourself are; how will my restaurant connect with people? Why does my restaurant exist? What type of people am I looking to attract? What do they read or watch? How do they spend their spare time? What is the best way to reach them? Your concept should appeal to a particular, selected audience. There is no such thing as “everyone is my customer.” Knowing why and for whom your restaurant exists is crucial to success. Your marketing plan should offer compelling reasons why that guest base should frequent your establishment regularly. Is the concept created for health-conscious people? Is it aimed at Millennials or Baby Boomers? It is a full menu or dessert brand or a convenient, fast food, value-based concept. Your social media, print ads, and community outreach should focus on one single audience with one single message. Once you’ve built a loyal base of customers and repeat business, then you should consider expanding your base by marketing to others in the area with a proposition that appeals to them.
Your People Plan is Key
A great team will help you win everyday. Hiring great people is the first step in delivering service excellence and a consistent product to your guests. Your mission statement “the why” along with a corporate culture that emphasizes respect for employees, commitment to your guests, service to the community, and concern for the environment will guide you when selecting your staff. It’s not enough to hire people with restaurant experience; they should also understand and be excited about the mission of the restaurant. If not, they will go through the motions with an inauthentic approach and often fail at exceeding guest expectations. Examine your corporate core values and hire people that match it. Next, supply your staff with comprehensive, ongoing training and the proper tools so can they carry out the day to day tasks flawlessly. Hire for qualities, train for skills.
The Market and Competition
Understanding the market area where you’d like to open your restaurant is a crucial element to the plan. Carefully research the demographics to ensure there are enough people in the area that match whom you believe will embrace your concept. When looking for your location, work with an experienced commercial broker that can supply you with data to help you choose the area and the site correctly.
A full competitive analysis is also essential. For example, check the pricing of your competition. Be sure you’re not over or underpriced for the market. Check other services they offer, such as delivery and online ordering. Spend time in the market area, dine several times at as many competitors as possible, and position your restaurant to address the missing needs in the market. Having a unique value and selling proposition will keep you ahead of the game. Remember, everyone is vying for the same consumer dollars, so you need to create points of differentiation that will help your establishment stand out from the competition.
Consistently Great Food
Your menu must not only be relevant to the concept and the market but should be prepared and served perfectly every time. Restaurant guests expect dishes they grown to love to have the same flavor and high quality each time they visit. Inconsistent products can lead to disappointed guests, bad reviews, and slumping business. Your menu should be not only delicious but also simple to execute. The more straightforward the menu, the less chance of mistakes in preparation. Consistency increases guest satisfaction. Some chefs and “foodies” create menu items that are too complicated and require a highly skilled professional in the kitchen. This approach is fine if you intend to open a high-end restaurant staffed with high price personnel, but not in a fast-casual or family restaurant setting. A winning menu is simple, fresh, relevant, and great tasting. A competent chef can assist in developing dishes that are unique and great tasting that are also simple to produce with less skilled labor. If you have aspirations of owning more than one location, then simple execution, and consistent products are a must to achieve the goal of operating multiple restaurants.
Cash Is King
There are many reasons why restaurants fold. It could be the wrong concept, poor choice of location, not correctly researching the competition, poor service, an uninspiring menu, or bad food, to name a few. That said, the negative impact of undercapitalization may be the most frequent cause of restaurant failures. Knowing how much money you need to launch the restaurant is only the tip of the iceberg. You must assess ongoing cash needs while the restaurant is newly opened and gaining momentum. It may take many months for a restaurant to break even and then eventually become profitable. Being able to support the financial needs during this phase is often the “make or break” challenge that many new restaurateurs cannot overcome. A well thought out projection model that you create with the help of a professional financial advisor can save you from the frustration, negative financial impact and heartbreak of a failed restaurant. Considering capital needs for the first twelve to fifteen months is not only prudent but essential to the success of any new restaurant. You must be prepared to cover the operational costs and expenses as the restaurant “ramps up.” Carefully consider your cash needs and how much working capital you must have on hand, ready to deploy.
Have A Plan And Follow Your Dream
Owning a restaurant can be personally rewarding and profitable. Many people have built great restaurant companies following these simple guidelines. Desire and passion will only get you so far. Create your business plan as a road map. Your plan will help you stay on track when dealing with the many moving parts of launching and successfully operating a new restaurant.
ACAI EXPRESS A HEALTHY AND DELICIOUS FRANCHISE…While food fads come and go, real trends that point to major shifts in attitudes and behaviors are invaluable cues for entrepreneurs looking for emerging and sustainable business opportunities. “Consumer Trends in Health and Wellness”, published in Forbes magazine reveals “the “new healthy” is a consumer journey of contradiction and discovery: Progressive health and wellness consumers are seeking alternatives to fear-based information, a phenomenon that has been driving wellness views for decades.
(They) are paving the way, sharing their enthusiasm and knowledge with mainstream consumers who are hungry for guidance and direction. As shoppers, progressives are no longer thinking about condition management (lowering cholesterol or blood pressure) or dieting (low fat, low carb) but are focused on real quality food, positive nutrition, fresh, less processed foods, and beverages and fun.” Translation: there is a growing wave of consumers — particularly among Gen Xers and Millennials — who are looking for a change in wholesome eating and are prime targets for the Acai Express experience and a healthy lifestyle brand. Entrepreneur, Hector Westerband, founder of Acai Express, has developed his low entry cost franchise concept to meet the cultural lifestyle change that is underway. With three flexible footprints: brick and mortar venues, trailers and food trucks — and a menu featuring new health-rich options — acai berry and pitaya bowls, smoothies and natural juices — he offers solutions to consumers and franchise owners alike.
RIKO’S THIN CRUST PIZZA…Franchise opportunities abound in every business category, but entrepreneurs interested in the fast-casual space, and pizza, in particular, should have Riko’s Pizza on their radar as a brand poised for growth and success with ground floor opportunities for franchisees.
1. Pizza is a $50.7 billion dollar*1 American passion
The pizza industry was designated as the fastest-growing segment of fast-casual restaurants in 2017.*2 A Riko’s franchisee buys into a growth business with high consumer demand and a track record of solid growth year-after-year. The opportunity to bring America’s favorite comfort food to a franchisee’s local market ranks high among Riko’s attributes as a new franchisor in this extremely, profitable business category.
2. A proven business concept
The Riko’s business model has been refined over a 7-year period prior to expanding into franchise offerings. Riko’s founders have continually tried and revised products, systems, and operations as they evolved into a turnkey operation. Those hard-earned systems are passed to franchisees as easy-to-follow, foolproof guidelines for consistent results. The simplicity and ease of operations hold opportunity for owners with or without previous restaurant business experience.
3. Flexibility for Franchisees
Franchisees can choose from a flexible footprint that suits urban or suburban venues. The flexible business model is designed to work and succeed in any space. Riko’s fast-casual operation features take-out, dine in and delivery. Riko’s full-service casual restaurant features a family dining experience with a full bar and table service. Owners can purchase single units or multi-unit options that are commensurate with their experience and finances.
4. Multiple revenue streams
Diverse revenue streams including lunch, dinner, and late-night business with takeout, delivery, and fast casual dine in and full-service restaurant and bar options, gift cards and rewards programs offer multiple growth opportunities within a franchise.
5. Quality, quality, quality
Attention to details has made quality a hallmark of Riko’s brand. High-quality ingredients — nothing artificial — proven recipes, simplified menu, first-rate equipment, comfortable, contemporary venue design, staff training ensure business growth and a consistent brand image. Entrepreneurs are buying into a brand associated with quality at every level.
6. Streamlined, state-of-the-art business operating model
Riko’s has set standards and developed systems that are easy to follow and easy to replicate over and over. Pizza franchisees can produce consistent, great results. Both franchisees and their future customers are assured of the quality food and service that launched Riko ’s original success in three Connecticut locations. Pizza franchisees are armed with the tools and knowledge to produce consistent, great results. Riko’s is a turn-key business model that works across all processes. The goal: keep things simple and do them the best they can be done.
7. Traditional family values that resonate with consumers
Riko’s core philosophy: respecting family, serving great simple food with a family-friendly ambiance, offers an appealing alternative in an ultra-fast food world. The Riko’s guest experience is warm and casual, fast without being harried. It’s a comforting experience that engenders customer loyalty and on-going, multi-generational business.
8. Comprehensive training & support
A good franchise offering includes support and training . That’s why Riko’s consulted and hired industry experts to develop a first-class training program. A five to six-week long training program — with modules at the company modern training center and owner’s location — takes franchise owners through all phases of the business; covering all the components necessary to effectively and efficiently manage a Riko’s Franchise business. A full suite of manuals provides on-going reference and instruction for owners.
9. Owners with passion
As a franchisor with a passion for growth and quality, Riko’s future is guided by passionate, involved owners with a hands-on approach to day-to-day business as well as an eye on long-term growth strategies. The active 360º business outlook ensures Riko’s is prepared to adapt, adjust, and seize new opportunities as they arise. The formula is set, but it’s constantly fine-tuned for success.
10. Community-centric focus
The success of the Riko’s original locations is grounded in community involvement. Riko’s mission in all franchise venues is to be part of local family life. Franchisees are trained to be local in their location and engage in sponsoring local youth sports teams, supporting school events, donating pizza to community events and more as a means to building relationships and thanking customers for their loyalty.
WHEN BUILDING A COMPANY, YOUR CORPORATE POLICIES… will mold and shape the culture and mission of your brand. In addition, your team members performance and the aspect of becoming an “employer of choice” to attract the “best and the brightest” are directly connected to the polices you create for your organization. Warren Cook,President & CEO of SymbianceHR offers his thoughts on best practices when developing policies for your company.
Development of Policies that Make Sense
– By Warren Cook, President & CEO
In my experience, small businesses owners care tremendously about their staff, so much so, that at times they develop practices that can later place them at risk and expose them to liability for discrimination. For example, paying an employee for a “few weeks” when they are out sick or taking care of a family member but then when a new employee wants time off since they are not friends, they are told use their paid time off or the absence is unpaid.
Maternity leave is another great example, as I have observed everything from 100% pay the entire absence without a policy written to working from home during the maternity leave, all while trying to provide FMLA coverage (job protection) when the company only had 8 employees. At the same time, when a male employee decided they wanted time off to be with their spouse and newborn, they were denied the request.
In another situation, an employee was in an auto accident, and the owner felt bad, so they continued their compensation at 100% for several months. Yet another employee, later in the year, requested time off because they heard about the other employee getting paid, and wham, problem for the employer because they didn’t want to pay this employee.
Inconsistency in practices is the road to discrimination, even if unintended. These employers and many other examples I could share, also neglected other means to provide the support to their employee they desired, without breaking the bank and destroying company cash flow. For example, implementing a Short Term Disability program, employer or employee paid, could allow for an offset of the cost in your current practice. Why? You pay an insurance premium instead of the full cost of the employee compensation. Let us not forget benefit premiums during an employee absence, that also can become a double hit on the employer with poor leave policies in place.
I encourage you to strategically plan for the various situations that can occur with your workforce, and then determine what is the most cost effective and beneficial method to provide the desired support to your workforce. It may be insurance, it may be time off, it may be alternative work schedules, it may be remote work, or it may be another solution all together. Remember, setting precedence using a discriminatory approach can expose your business to tremendous risk and liability even though your have great intentions. Seek the right advisor to help guide you through the development of legally compliant and non-discriminatory solutions to take care of your workforce with policies and programs that make sense. Visit: https://www.symbiancehr.net/
=======================================
About the Author: Warren Cook
Warren is a conscientious human capital management leader dedicated to providing coaching and guidance to business owners and leaders in support of their continued success. With over two decades of practical industry experience across the public and private sector, and various industries from pharmaceutical to financial to telecommunications, Warren enjoys applying his depth and breadth of industry and academic (BS/MBA/MS) experience to solving the workforce management challenges of today. With a proven track record of implementing successful solutions to business challenges by effectively orchestrating change initiatives, strategic planning & execution, system and process engineering, people development, and modeling leadership behaviors to motivate the workforce, Warren is uniquely competent and capable of driving continued business success for your organization.
Warren enjoys giving back to the community, and accomplishes this passion through his workshops and training to non-profit organizations and industry associations across the region and across the country. To further this ambition Warren served the Delaware HR & Business Community by presenting at the DE SHRM 2017 & 2018 Annual Conferences and was the lead presenter at the July 2018 DE SHRM Diversity & Inclusion conference.
Warren authored the book “Applicant Interview Preparation – Practical Coaching for Today” and provides training and coaching on this topic in the local community at schools and non-profit organizations to support the development of the next generation of professionals.
If you want to benefit from the experience and capabilities Warren has to offer, you can reach him by email at [email protected] or by phone at 302-276-3302. Visit: https://www.symbiancehr.net/
FRANCHISE MARKETING – DO’S & DON’TS…Today’s featured post is courtesy of Harold Kestenbaum. Harold is one of the Top Franchise Attorneys in the country. He works exclusively with franchisors and has been involved in some of the most important franchises ever launched such as Sbarro, Ranch *1 and Five Guys. In this “double article” Harold shares his insights on franchise marketing and recruiting new franchisees.
The Dos and Don’ts of Franchise Marketing Materials
By Harold Kestenbaum
As an entrepreneur, it can often be worth your while to consider franchising your business. When you have a great product or service, franchising is an excellent way to create a new revenue stream, while increasing brand awareness. As with any new venture, the key to successfully franchising your business is laying the groundwork for a thriving enterprise. This begins with your franchise marketing materials.
Your franchise marketing materials are the key to attracting like-minded individuals to work with your business and grow your brand. It is important to remember though, that you must be careful with what you do and don’t say in these documents, as you want to remain legally compliant and truthful in your endeavor.
DO explain your brand, mission, and infrastructure. In your franchise marketing materials, it is vital to explain who you are as a company, how you operate, and why someone should want to work with you.
DON’T promise your franchisees any specific profits or financial gain. Since every market is different, it is important to refrain from making promises about a franchisee’s total profit or financial gain from buying into your business.
DO set the right restrictions. Your marketing materials should establish policies you have on hiring, training, proprietary processes, etc. but it should also allow the franchisees some freedom to make the business their own.
DON’T neglect to screen franchisees. Just as you would interview potential new hires for your location, you will want to screen franchisees once they have inquired about this opportunity. You want to build a network of people dedicated to your brand and mission. ======================================================
Franchise Marketing Materials 101: Establishing Your Recruitment Website
By Harold Kestenbaum
When you have made the decision to franchise your business, you will want to put a lot of time and money into your franchise marketing materials, especially at first. In order to grow your brand and find potential franchisees, these marketing materials must be appealing, straightforward, but also compliant with the law. As you begin working on your marketing materials and franchise recruitment website, it is important to work with a seasoned franchise attorney and remember these key tips.
Register your franchise: Before advertising your franchise to a particular state, it is important to know that many states require a franchise to be registered prior to the sale of any franchise location, but also any offer of franchise. This means you must take care of all necessary registration before launching your website in a given state or sending out marketing materials.
Understand the laws of advertising: Not only do you have to account for the franchise laws that apply to your business, but you also have to consider the other laws which affect advertising. These can include intellectual property laws, unfair competition laws, and deceptive trade practice laws. Your franchise attorney can review all marketing materials to ensure that you are not infringing on any other company’s rights and that you are in full legal compliance.
Provide clear, accurate information: To successfully gain leads from your website and marketing materials, it is critical for franchisors to provide clear, accurate information which provides potential buyers with enough evidence to make a purchase decision. This information should outline the requirements for buying into the franchise, as well as the type of support franchisees will receive once they are a part of the program. You will want to avoid words and phrases such as success and profit, so as not to mislead buyers about their expectations of buying into your franchise. You want to give franchisees truthful information, without making any specific claims about financial earnings, especially since every market is different.
Stay consistent: In all your marketing materials, you want to stay consistent in the way you represent your brand. You will want to avoid making promises that you cannot fulfill once a buyer signs a contract and purchases a franchise under your name. By staying consistent in all your content, you can avoid potential legal roadblocks down the road.
========================================================
About the Author
HAROLD L. KESTENBAUM is a franchise attorney who has specialized in franchise law and other matters relating to franchising since 1977. From May 1982 until September 1986, Harold served as franchise and general counsel to Sbarro, Inc., the national franchisor of more than 1,000 family-style Italian restaurants and, was a director from March 1985 to December 2006. From September 1983 to October 1989, he served as president and chairman of the board of FranchiseIt Corporation, the first publicly traded company specializing in providing business franchise marketing and consulting services and equity financing to emerging franchise companies, which he co-founded. Harold has authored the first book dedicated to the entrepreneur who wants to franchise his/her business, called So You Want To Franchise Your Business. It is a step-by-step guide to what a businessperson needs to know and do to properly roll out a franchise program. Harold’s book is available at major book stores and on Amazon.com or you can click here for more info on his book So You Want to Franchise Your Business.
