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April 2023
600 Stewart Street #1300, Seattle, WA 98101 | westcoastfranchiselaw.com | 206-903-0401
Don’t Leave Money on the Table
Are You Eligible for the Employee Retention Credit?
“Amending your previous years’ tax returns before the ERC expires can produce a massive windfall for your franchise.”
We’ve all got bills to pay — and now that
qualify. But they couldn’t be more wrong. Many businesses are still eligible for partial benefits under the ERC. In several cases, we’ve seen seven-figure results with our clients. Ultimately, multiple clients who came to us with financial problems walked away without any. I’m not exaggerating when I say money has appeared in their bank accounts and solved their various dilemmas. The ERC is saving a lot of headaches and heartache.
post-pandemic life has stabilized, many of them are coming due. Creditors willing to put payments on hold are now demanding what they’re owed, and
some amounts are enormous. Clients keep showing up in my office for assistance making it all work, and I’m amazed at how many are unaware of a simple and lucrative solution.
But you can’t benefit without applying. If you believe you may be eligible for the ERC and have not claimed it, please call our office at
206- 903-0401. We will connect you with a trusted tax law firm that will assess your eligibility for a reasonable contingent fee. I even encourage you to reach out if someone previously claimed you
The Employee Retention Credit (ERC) was a part of the CARES Act, the federal government’s attempt to incentivize small businesses to continue employing people during the pandemic. Like most large- scale relief programs, it was an imperfect solution. But it’s also highly beneficial for many of my clients — and most don’t seem to know it exists. ERC-eligible businesses had fewer than 500 employees during the pandemic and experienced a financial impact from COVID-19. During the covered periods, they
didn’t qualify. There have been a lot of misconceptions about the ERC, and our trusted resource can help you confirm your options.
Amending your previous years’ tax returns before the ERC expires can produce a massive windfall for your franchise. The government created this program to help ensure our nation’s small businesses stay afloat while keeping Americans employed. There’s no reason you shouldn’t take advantage of an opportunity specifically designed for you! Please don’t risk missing out on an incredible resource. Call us, talk with our experts,
can receive a tax credit of up to $6,000 per full- time employee per quarter. It doesn’t take long to see how quickly that can add up, and leaving money on the table makes no sense.
and determine how you can benefit.
– Nate Riordan 1 206-903-0401
Understandably, business owners who didn’t lose income or have more than 500 employees in the aggregate assume they don’t
All Aboard the Extended Vacation Trend Top 3 Vacation Destinations for a Longer Stay
The pandemic slowed us down. Over the past few years, we collectively took fewer vacations, boarded fewer cruise ships, and avoided airports. However, many studies and reports show that now, more than ever, Americans are taking longer vacations! Why might this be, and what are some of the greatest destinations for an extended stay? According to Amex Travel’s 2022 Global Travel Trend Report, 55% of vacationers are interested in taking longer trips because they can work remotely. The trend of swapping homes is also on the rise. HomeExchange’s website reports that home exchanges of two weeks or more increased by 13% in January-May last year. According to Travel Pulse, 26% of people opt to take a trip that exceeds 10 days.
natural gems in just a couple of weeks! Many national parks also accommodate RVs for comfort and convenience. DRIVE THE CALIFORNIA COAST. A trip up and down the California coast never disappoints. With so many great places to stop and breathtaking views to absorb, you’ll need at least two weeks to experience them properly. You’ll want to explore the Redwood National Forest, the Lost Coast, Pebble Beach, Monterey Bay, Half Moon Bay, Big Sur, Venice Beach, and many more! HOP ABOARD A CRUISE. A cruise is one of the best ways to see many destinations in one trip. You could visit several countries in just two weeks, stopping in different ports to explore! On a cruise, you could see the Caribbean one day and wake up somewhere completely different the next day with a new adventure ahead!
job went remote, you lost out on travel time in 2020-2022, or you saved on gas money while working from home, here are some great destinations that support a longer stay. VISIT THE NATIONAL PARKS. There is no better way to connect with nature than to tour the national parks. Several epic national park road trips could allow you to pack in a dozen or more of these
If you are interested in taking a more extended vacation, whether it’s because your
The Right Time to Diversify
IS YOUR PORTFOLIO READY FOR A SECOND BRAND?
The franchise you own is more than a business — it’s an investment. Standard financial advice states you shouldn’t put all your eggs in one basket, and by sticking to only one franchise brand, some experts believe you’re doing precisely that. Still, adding another
Most importantly, are you willing to put in the time and effort it will take to get a new franchise off the ground? At the same time as you’re learning the ropes, you’ll need to train a management team you can trust with your investment. The process will require passion and dedication, so ensure you’re up to the task.
Be cautious about rushing things. You probably didn’t sign up with the first franchise you found when you started your business, and you shouldn’t now. Don’t choose a brand just because you like its product — take time to do the math. And don’t forget to conduct a culture check. You should select a franchise that matches your values and work style. There are many reasons to add a brand to your portfolio, but the move isn’t right for everyone. Sticking with what you know has its benefits, and some people don’t want to deal with multiple target demographics, suppliers, and different franchise structures. So, weigh your options carefully before taking the plunge — and as always in business, make sure you have an exit strategy in case things don’t work out.
brand to your portfolio is not something to take lightly. So, how do you know when to take the plunge? Before adding a franchise brand, every owner should examine their finances, skills, and bandwidth. Can you afford to
Your new brand and industry are critical if you decide to move forward. You may think you’re capturing a larger market share by owning two similar franchises, but you risk competing against yourself. Ideally,
start a new franchise? Remember, the overhead costs will likely be higher than opening another location for your existing franchise. Further, will your skills transfer to a new franchise — or can you find a franchise that plays to your strengths?
someone looking to add a new franchise to their portfolio should find a brand that uses similar operation structures while selling different products. If you choose another route, be aware you’re creating a more significant challenge for yourself.
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The Price of Doing Business The Costs and Value of Franchise Fees
Franchise skeptics often believe franchise fees are “too high.” They imagine they can make the same amount of money without the help of an established brand and are better off flying solo. In truth, they’re missing out on a substantial investment opportunity. The term “franchise fees” usually refers to the fees charged at the beginning of the franchisor-franchisee relationship. They’re a one-time upfront cost, typically starting at $20,000, and can increase substantially. Franchise fees permit you to use the company’s systems, processes, and marketing, alongside other perks of owning a franchise. They pay for the franchisor’s upfront costs of onboarding your business and are only a fraction of total startup costs.
franchisors charge. Marketing fees are recurring fees calculated as a percentage of monthly revenue. These fees usually go directly to the franchisor, but sometimes, they’re collected by a regional cooperative. The marketing fee rate is usually 1%–5%. That might sound like a lot to the uninitiated, but if your franchisor is holding up their end of the bargain, you should be getting your money’s worth and then some. After all, widespread brand recognition is one of the top reasons people enter franchising. Some franchisors also charge operational fees to pay for technology or support. They should provide a tangible value to your business, not be a source of revenue for the franchisor. Franchisors don’t make money based on any of the above fees. Their profit comes from royalties. Royalties are the largest overhead cost franchisors directly charge to the franchise.
Franchisors usually calculate royalties as a percentage of revenue, and the amounts can range significantly. High-volume businesses with higher revenues (like quick-serve restaurants) usually have a lower royalty rate, while lower-volume franchises typically pay a higher percentage to their franchisor. Those who feel royalties and other franchise fees are “giving money away” fail to understand the basics of the business model. Franchisors only profit if their franchisees make money, incentivizing them to keep fees as low as possible. Further, entrepreneurs partner with franchises because they get more out of the agreement than they give. When someone’s franchise fees are “too high,” it’s usually because they picked a subpar franchise or are in the wrong line of business.
But experienced franchise owners know that “franchise fees” are not the only fee
TASTY SPINACH ARTICHOKE DIP
TAKE A BREAK
Celebrate Earth Day by eating a tasty and healthy snack — spinach artichoke dip!
Ingredients: • 8 oz spinach leaves •
8 oz cream cheese, softened
Inspired by DinnerAtTheZoo.com
• •
1 cup sour cream
3/4 cup chopped marinated artichoke hearts
• •
1/2 cup grated Parmesan cheese 1 1/2 cups shredded mozzarella cheese, divided Sliced bread, crackers, or tortilla chips for serving
• • •
1 tsp minced garlic
1/2 tsp salt
•
1/4 tsp black pepper
Directions: 1.
Preheat oven to 375 F. Coat a small baking dish with cooking spray. 2. In a medium pan, steam or sauté spinach until wilted. When spinach cools, wring out excess water, then chop coarsely. 3. In a large bowl, mix cream cheese, sour cream, spinach, artichoke hearts, garlic, salt, pepper, Parmesan cheese, and 3/4 cup of mozzarella cheese. 4. Spread the mixture onto the prepared baking dish. Top with remaining mozzarella cheese. 5. Bake for 20 minutes or until the dip is bubbly. Turn the oven to broil and cook for an additional 2–3 minutes so the cheese will begin to brown. 6. Immediately serve with bread, crackers, or tortilla chips.
Solution:
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600 Stewart Street #1300 Seattle, WA 98101
westcoastfranchiselaw.com | 206-903-0401
IN THIS ISSUE 1 The ERC Can Save Your Franchise Big Money
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Top 3 Extended Stay Destinations Should You Add a Brand to Your Portfolio? Why Franchise Fees Are an Investment Tasty Spinach Artichoke Dip The Latest Way to Lengthen Your Lifespan
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Increase Your Lifespan With the VILPA Method It Only Takes 6 Minutes Each Day!
HOW SHOULD YOU START? It’s easy to try out the VILPA method: Simply take the stairs instead of the elevator and carry your groceries to the car instead of pushing them in the shopping cart. That said, we recommend visiting a physical therapist before you jump in. Many PTs offer free or low-cost health screenings that can identify problem spots and weak areas of your body. Scheduling a screening before you push yourself with VILPA can save you from injuries down the road.
Picture this: You’re sitting in your doctor’s office at the end of a checkup, waiting for her final words of wisdom on your health. “Things are looking good,” she says, nodding thoughtfully. “But you could do better. I know a way to increase your lifespan by doing a simple task for just six minutes each day. Do you want to try it?” That scenario might sound like science fiction — after all, we don’t have a pill for longevity yet — but according to the latest research, it could very well happen on your next doctor’s visit! This January, the Journal of the American Medical Association (JAMA) reported that by practicing a method called VILPA, it might be possible to lower your risk of death from any cause, including cancer, by 38%–40%. The method may also decrease your risk of death from heart disease
specifically by 48%-49%. Both of these effects essentially increase your lifespan!
WHAT IS VILPA? VILPA stands for “vigorous intermittent lifestyle physical activity.” In other words: exercise. Specifically, VILPA involves doing short, intense bursts of challenging exercises like climbing stairs or jogging down a hallway — anything that gets your heart pumping. According to the study, you only need to practice VILPA for 1–2 minutes three or more times per day to get the protective effects!
DO YOU NEED TO BE IN SHAPE TO TRY VILPA?
Nope! The VILPA study JAMA reported involved more than 25,000 people ages 40–69 who identified as “non-exercisers.” They never hit the gym; the most strenuous exercise routine they reported was a leisurely walk once a week.
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