Al Mohajerian
Starting a new business involves a lot of work, so you might accidentally ignore taking steps to protect your business from litigation. Contracts are some of the legal documents that remove misunderstandings and confusion. When properly drawn, the contract can reduce liability if something goes wrong. Discover common types of contracts that are essential to a small business.
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If you are a business owner in California who has employees, you may have to deal with one or more unemployment claims. Claimants have filed more than 28.4 million claims since March 2020, which have paid out more than 185 billion dollars.
While some of these are valid claims, others are not. These invalid claims cost your company time and money. But how do you figure out which is which, and how do you challenge an invalid claim?
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When most individuals think of a trademark, they think of words, logos, or other symbols used to identify a particular brand. But color is also a critical aspect of brand identity and can be protected under trademark law. Read on to understand how you can own colors and if you can sue other corporations for using certain colors.
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Buying a franchise is a great way to start your own business without going through the tedious process of starting from scratch. This process gives you access to an existing trademark and a proven business model that can help you get up and running faster.
However, as with any significant purchase, you must proceed with caution when buying a franchise. Otherwise, you may make mistakes that could harm your end goal. Discover some steps to follow when purchasing a franchise.
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Trademarks have existed since the medieval age. Even though the process of trademarking has changed over time, the fundamental purpose remains. Trademark protects businesses and their products or services from being copied or imitated by others.
A trademark helps consumers differentiate between products or services in the market and can also symbolize the quality of a business’s goods or services. But for a trademark to be effective, you must register it with the relevant authorities.
Trademark registration can be complex and confusing, and even a slight mistake could cost your business dearly. Here are some common mistakes people make when applying for a trademark and how to avoid them.
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Every entrepreneur should consider incorporating a lawyer onto their team in the modern business world. For example, a business must comply with various legal aspects before operating. For example, when you select the correct type of business entity you want to set up and choose your business name, a business attorney can help.
However, you may also realize that you still need a business attorney as the business goes forward. A business attorney helps you protect your business investments, prevent misunderstandings with your partners, and protect you from personal liabilities for business debts and legal obligations.
A business attorney protects your business interests, understands how to file legal documents for your business, knows the pros and cons of a legal situation, and generally understands the law. A business attorney can prevent you from making legal mistakes. Below are five reasons you should hire a lawyer for your business.
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Corporations may spend a lot of time and money interviewing and selecting the best employees. For example, the company has to craft job descriptions, advertise the job opening, and shift through many applications. In addition, you may have to interview the shortlisted candidates and choose the most qualified person. Therefore, the company may lose a lot if this process were to halt due to legal problems.
This blog post explores the reasons you should hire an attorney to shield your business during the hiring process.
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Buying into a franchise is one of the best ways to make huge profits in business. However, franchising may quickly become a regrettable decision without proper planning and preparation. That’s why you’ll find it best to take measures to protect yourself from any undesirable consequences.
Franchise agreements are challenging to navigate for someone new to the franchising business. Business persons who have been franchisors also need assistance working through franchise contracts.
One of the best things you can do to ensure your franchise deal moves smoothly is seek legal assistance. This article looks at four reasons why it is best to hire a lawyer when buying a franchise.
1. A Franchise Lawyer Helps You Assess the Franchisor
When buying a franchise, you will encounter a franchise disclosure document (FDD). The FDD contains pertinent information about the franchisor. Some information included in the FDD includes:
• The franchisor’s litigation history
• The franchisor’s financial statements
• Franchise owners’ obligations
• Contracts
• Supplier restrictions
• Trademark and copyright rules, etc.
You must read a franchise agreement before you sign it. However, the FDD is a hefty document, and you may have difficulty evaluating it on your own. An attorney works with a team that can review the hefty document and gives you a breakdown of the franchisor’s information.
With this information, you can decide whether or not to continue with the transaction.
2. A Franchise Lawyer Helps You Understand the Franchise Agreement
A franchise lawyer has appraised multiple franchise agreements. Therefore, they know to look into the fine print.
The person selling you the franchise will have their legal team prepare an agreement that protects them. Thus you need to ensure the terms of the contract are favorable to you. When an attorney looks over your franchise agreement, you can trust them not to miss important details.
Your attorney looks into contract clauses discussing your roles and obligations. They also consider the terms addressing the timelines for contract termination and consequences for terminating the contract before the agreed time.
Thus, with a franchise lawyer by your side, you are sure of the terms you sign in the franchise agreement.
3. An Attorney Advises You on What Works and What Doesn’t
An experienced franchise attorney knows the pros and cons of different franchise set-ups. Thus they advise you on the best way to set up your franchise.
If you are unsure whether investing in a franchise is the best choice for you, your attorney helps you evaluate the risks of the franchise to make an informed decision. They also help you choose the right legal entity for your franchise.
Because your attorney represents you, they look after your best interests. Thus, they give you more information than the party selling the franchise will. If your attorney has dealt with the franchisor, they may even give you insider information.
4. A Franchise Attorney Saves You Money
Not hiring an attorney when making a franchise deal may save you money in the short term. However, it leaves you vulnerable to future losses. Remember, a successful transaction does not eliminate the chance of future disputes.
Ideally, you could anticipate all potential disputes and include resolution measures in the franchise agreement before signing it. Otherwise, you will spend a lot of time and litigation fees resolving disputes in the future.
As a novice franchise owner, you’d be hard-pressed to spot all the clauses in a franchise agreement that may cause future problems. A franchise lawyer has extensive knowledge of franchise contracts. They leverage their knowledge to devise solutions to problem areas before they become costly disputes, thus saving you money in the long run.
You need an experienced franchise attorney if you want a good outcome in your franchise deal, and the franchise attorneys at Mohajerian are the best. Contact us today for legal assistance on your franchise deal in California.
San Diego and SDG&E Reach Agreement
On May 25, 2021, the San Diego City Council voted 6-3 to approve a franchise agreement between the city and San Diego Gas & Electric. SDG&E, an energy utility that provides gas and electric services, is a subsidiary of Sempra Energy, which is likewise based in San Diego. The agreement means that SDG&E will continue to provide energy services to San Diego residents for the next 10 years and includes an option to extend the agreement an additional 10 years. The franchise agreement was approved after a lengthy debate and public comment by 120 citizens. In exchange for providing energy, SDG&E will be paid $80 million to cover the franchise agreements while an additional $30 million will be allocated to help meet the City’s climate-related goals. In the end, the City Council and SDG&E determined that the deal, which was negotiated by Mayor Todd Gloria, was too good to pass up. The agreement has several out clauses and also allows for the city to purchase SDG&E from Sempra at the going rate and municipalize the utility under public oversight. Though the agreement is new, SDG&E has held exclusive franchise agreements to provide energy services with San Diego for over 100 years.
In Spite of Agreement, Questions Remain
Although the City and SDG&E agreed on an $80 million franchise fee for providing energy services, they are still at odds over other issues and outstanding franchise agreements. In January 2020, the City of San Diego sued SDG&E for more than $35 million after the City had to pay to move the utility company’s equipment during the Pure Water project. Then, after the previous energy services franchise agreement expired in January 2021, the two sides began bickering over SDG&E’s progress in burying power lines across the city. San Diego’s city attorney’s office has claimed that SDG&E was both overcharging for its services in burying the power lines and had engaged in a purposeful slowdown on the project while waiting for the new franchise agreements to be signed. SDG&E, however, claimed that they were not authorized to work on burying the lines after the prior franchise agreement expired, but some in the City saw that as little more than an excuse. Indeed, some members of the City Council expressed concerns that San Diego was agreeing to a massive, new franchise fee with SDG&E while the two parties are engaged in litigation over Pure Water and a contentious standoff over burying the power lines.
Going Forward
In spite of these outstanding issues, the City voted in favor of the new $80 million franchise agreement after it received support from a broad cross-section of individuals and groups, including San Diego residents, politicians, union members, and local business interests. A massive deal of this kind can only mean good things for other businesses and entities looking to sign franchise agreements in the State of California in the future.
Sources:
https://www.kusi.com/san-diego-city-council-agrees-to-franchise-agreements-with-sdge/Filed Under: Franchise & Distribution
CA’s Mandate Ends
In mid-May 2021, California Governor Gavin Newsom announced that the state’s COVID-19 safety mandates would be extended until June 15. But now, businesses are free to open without capacity restrictions or physical distancing limitations and fully-vaccinated persons are no longer required to wear masks in buildings. Rumors persisted that the state would keep the mask mandate in place even after reopening but this announcement brings the state into alignment with the newest Center for Disease Control guidance. This is welcome news to California franchises, which have faced numerous challenges just keeping the lights on in the wake of the pandemic and subsequent year-long lockdown. Without capacity restrictions and physical distancing requirements, franchises can finally open up and go back to making money once again. California has also brought its statewide travel guidelines into compliance with current CDC guidance, opening up even more avenues for business.
Rebuilding after a Lost Year
After more than a year of forced closures, limited capacity reopenings, and minimal foot traffic, California franchises can start to see a light at the end of the tunnel. It goes without saying that the global and local economies suffered greatly during the pandemic and, sadly, the lack of a steady stream of business caused many longtime franchises to permanently close. However, franchisors of all types can now begin rebuilding with California fully reopening for business. Allowing a return to full capacity means that restaurants finally have their full complement of tables and do not have to worry about vaccinated patrons being turned off by having to wear masks while dining. Storefronts and boutique shops are seeing an increase in foot traffic as the state reopens and people feel safe to venture out of their homes and start spending money again. Car supply and auto parts businesses look forward to increased revenues as more people return to working in offices and thus need to maintain their vehicles for the commutes. Even movie theaters look set to make a comeback with people also ready to pick up old leisure activities after the isolating shutdown. As you can see, the move to full capacity will have a positive effect on franchises of all types and franchisors must be ready.
Ready For Business
With California’s reopening, franchisors have begun to prepare for the huge increase in business. They should ensure that their franchise is fully staffed at this point to handle the uptick and that all workers understand what the changing guidelines mean for customers. Franchisors should also expect changes from customers as some guests may continue to wear masks indoors as a precaution, even though it is no longer mandated by the state. Finally, franchise owners should begin planning for a brighter future.
Sources:
Filed Under: Franchise & Distribution
