Today's news for the franchise & small biz owner

If you own a business, you may have considered expanding by franchising. Other companies have found success through franchising, so why couldn't you? Before making any decisions, it is important to understand what franchising would mean for your business. Once you are aware of the pros and cons, you can make an informed decision about whether franchising is right for your business.  First, let's discuss the potential benefits of expanding your business through franchising. One of the aspects of franchising that many business owners find enticing is the fact that it can be an inexpensive way to grow. Most business don't have to spend too much to open new locations since franchisees generally buy the locations, and the right business tactics can net high profits. ...

What happens to a franchise if a franchisee passes away? Can the franchise be transferred to a qualified successor? Or will the business automatically be terminated? Frequently, franchise agreements answer these questions. Most agreements allow the franchisee's heirs to operate for a given period of time—say four months—and then the franchise must be sold to a qualified buyer, who may be one of the heirs. But many agreements do not permit this flexibility, in which case it's important to look to whether state statutes address the question. A number of states have covered this issue. Franchise succession in California After the death of a franchisee in California, a surviving spouse, heir, estate, or majority shareholder may own the franchise for a reasonable period of...

Last week I fielded an inquiry about the biggest questions retailers are asking in cross-channel right now, and I figured the answer was worth sharing. So here are the top questions that I hear retailers currently asking about their omni-channel strategies and/or operations. These are the “big” questions, mind you, not the tactics. 1. What is the future of the store and how do we make it relevant in an increasingly digital shopping experience? I’ve been saying since 2010 that the store is in trouble, and that hasn’t changed much in the intervening years. The store simply is not keeping up with the standards for a customer shopping experience that are continually being raised online. Between personalization, rich product content, and access to other shoppers with...

Section 1.1031 of the Internal Revenue Code provides for the deferral of capital gain taxes. This is granted in exchange of like property that is being held as an investment or for productive use in a trade or business. There are many rules that must be stricly followed including one known as the same taxpayer requirement. The taxpayer or exchangor can be an individual, husband and wife, trust, partnership, corporation, multi or single member limited liability company (SMLLC). The exception is known as a disregarded entity. To understand what a disregarded entity is, it is important to understand the basic rule for holding title to property. The rule is that the way one holds their title to the old property is the way one has to take title in the new property in a 1031 exchange. This...