West Coast Franchise Law - May 2024

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MAY 2024

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Dire forecasts that AI will put lawyers out of a job are not hard to find. Contests pitting human attorneys against AI are all over the internet. The ones that AI wins tend to go viral. But will AI replace lawyers? I don’t understand how that’s possible. I don’t see AI ever replacing higher-function legal work. There is a human and emotional interface between the law and people’s lives that is not necessarily apparent to a computer. AI certainly has potential to make some basic services, such as wills, trusts, and uncomplicated divorces, more accessible to people who can’t afford them, and I hope that happens. AI also will help answer technical questions about the law, such as listing employment laws and rules that apply in a particular zip code. I wouldn’t place 100% trust in that list yet, but eventually the makers of AI are going to nail it. However, what most people want from an attorney is a viewpoint. What do you think? What would you do? There’s a human twist involved that can’t be achieved by AI. Bots trained on the internet are certain to get some of the nuances wrong in advising and protecting the legal rights of clients. As John Nay, a Stanford Law School expert on AI, recently explained in a white paper on the topic, training AI to make judgments that sync with our goals and values is a major hurdle. When asked to choose actions, AI inevitably fails to capture the breadth and depth of the human judgment lawyers use to navigate complicated situations. Even after training, AI has only “a coarse map of human preferred territory” that leads them to act in ways that don’t align with our values, Nay says. When you’re facing a problem that affects your life in a major way, you need someone who can understand the law and your life and connect the facts, the emotions, and the feelings involved in that problem. In the past, I’ve done some bankruptcy The Irreplaceable Human Touch Why AI Can’t Replace Lawyers

work. In these cases, there is a clear legal path people or small businesses follow when they are struggling with debt. When I am walking clients down that path, I am also helping them manage what I know is going to be their reaction. I will sit down with them and say, “OK, here’s what we’re going to do, and let’s talk in advance about how this is going to feel. I’d like to get you through this emotional arc as quickly as possible, because I know you’re going to be fine on the other side of the arc. If I let you know in advance what to expect, maybe you can get through this process more quickly.” Then I explain how the client is likely to feel, at first and at the end. My clients often tell me later, “Wow, that’s exactly how I felt when we started. And at the end, I was wondering, ‘Why did I care so much?’” When you’re sitting with a client, you pick up on nuances that are important to them in a way that they may not even understand themselves. In other cases, the path to a resolution is clear, but when you lay it out, the client will balk and say, “I can’t do that.” And when you ask why, the client will say, “Well, that guy you’re talking about, that’s my wife’s cousin. We’ve got a Thanksgiving dinner table issue here. I just can’t do it the way you are recommending. We have to come up with something else.” AI is not going to take the place of lawyers in situations like that. It may replace sub-par lawyers. If you’re not working hard, and if you’re not good at what you do, then you might be out of a job. But I don’t think AI is going to move fast enough to replace me. Famous last words? We’ll see.

– Nate Riordan

No Slippery Slopes Prevent Slip-and-Fall Mishaps It’s one of a restaurant owner’s worst nightmares: A customer slips on a dining room spill or an icy patch in the parking lot and breaks something — an arm, a leg, or worse. Beyond the sheer, unintended human suffering that ensues, the resulting premises-injury litigation can be extremely costly. Taking safety precautions is essential in avoiding the risks of paying a victim a five- to six-figure settlement or the stratospheric legal fees that may be required just to avoid a settlement. Preventing premises-liability claims takes vigilance and close attention to detail. Uneven flooring, spills, scattered trash, or mats that buckle or turn up can easily trip up a customer. Employees are at risk, too, from improper footwear, kitchen-area spills, hot grease, or poor kitchen design. Restaurant owners can be held liable if an accident happens under dangerous conditions and could have been prevented or if it was caused by negligence on the part of management. The more customer traffic you attract, the greater your risk. Training employees is critical. Make sure every member of your staff understands the importance of noticing and eliminating safety hazards from all areas of the property. Teach them to manage and thoroughly mop up spills and place signs to mark wet or slippery spots. Alert employees to areas of the restaurant most prone to causing accidents, including steps, sidewalks, and parking lots, where 51% of slip-and-fall claims occur. Clear ice and snow from parking lots and entryways an hour before opening. Add mats at the entrances and exits of your restaurants and keep them in good condition. Coach employees on guarding against scattered cords, cables, hoses, poor lighting, or shadowy areas that could lead to falls. Place security cameras in high-risk areas and train employees to monitor them for spills, obstructions, or other problems. Security videos also can serve as exonerating evidence if a customer is injured. Taking all these precautions may seem like a distraction from your primary goal of delighting customers with great service and excellent food. But it is far cheaper and easier than managing the fallout from a slip-and-fall injury!

Dale Carnegie once said, "Develop success from failures. Discouragement and failure are two of the surest stepping stones to success." Failure is always challenging, especially in business. You spend money, passion, time, and energy on any business venture, and failure can feel overwhelming. Fortunately, there are countless success stories to draw inspiration from. One example is Danna Pratte, the CEO of the global supplement company NBPure. When she acquired NBPure in the early 2000s, it was on the verge of bankruptcy, but Pratte knew the wellness industry was about to take off and, through hard work, brought the company back from the brink. When she started, they had trouble making a name for themselves. So, in revamping the company, which was operating on razor-thin margins, Pratte set out to use only pure ingredients, making her an innovator. By doing this, Pratte slowly brought the company back. Now, this formerly unknown company is a multimillion-dollar juggernaut and one of the largest female-run companies in the health and wellness industry. Thanks to her success and hard work, Pratte has learned some valuable lessons, which she has distilled into three pieces of advice to help anyone on their journey toward success: No. 1: Always value yourself and your health. You need to be at your best to do your best. As the adage goes, if you don't have your health, you don't have anything. How Danna Pratte Became a Leader in Health and Wellness From Bankruptcy to Global Recognition

No. 2: Make your work ethic a priority. This helps you persevere when things are difficult.

No. 3: Ensure you invest your time and energy in yourself and those who believe in you. Having the right team members and cheerleaders makes all the difference. This is especially true on difficult days. Like Pratte, you can transform your passion, personal experiences, and failures into a vibrant and viable business. Don't let failure hold you back. Keep trying, and you may one day be a leader in your respective industries.

“When it comes time to get something done, there's no posturing or BS, just a focus

on getting to a realistic solution quickly. WCFL

helps us complete deals by working collaboratively with everyone in the transaction and finding solutions.” employees. The chain expanded internationally into Europe and the Middle East, peaking at 42 locations. But the rise of better-financed rivals including Domino’s and Pizza Hut, coupled with leasing problems at some mall locations, undermined the chain, and a missed tax payment forced the company into bankruptcy in 1998. Although Pizza Haven retained the loyalty of fans in the Pacific Northwest, its only remaining restaurant, located in Seattle, finally closed in 2012. Weak Ownership. Lum’s restaurants became famous in part for a unique menu item — hot dogs steamed in beer. Founded in 1957 in Miami Beach, the chain expanded to more than 400 locations in the U.S. and Europe. Lum’s was purchased in 1971 by a group led by John Y. Brown, chairman of Kentucky Fried Chicken. But as restaurant competition increased and Brown’s costly efforts to launch a hit menu item called the Ollieburger flopped, Lum’s steadily shrank.

The nation’s love affair with fast food has lasted nearly 70 years, since Ray Kroc bought McDonald’s. Not surprisingly, the quick- service landscape is littered with fallen brands. Their stories bear some lessons for restaurant operators today. Here’s a look at the fatal flaws that took down three of the industry’s most storied brands. Brand abandonment. Founded in 1957, Burger Chef patented flame-broiling technology and popularized the quarter-pound Super Shef and double-burger Big Shef meals. In 1971, Burger Chef came within 100 restaurants of overtaking McDonald’s as the nation’s largest chain. The No. 2 chain also dared to lock horns in court with McDonald’s, claiming that its rival stole the idea for its 1979 launch of the Happy Meal from Burger Chef’s 1973 invention, the Funmeal. (Burger Chef lost.) Burger Chef was purchased in 1968 by General Foods, which took heavy losses on a failed Australian expansion and eventually sold the brand to a Canadian company in 1982. The new owner converted many locations to Hardee’s restaurants or other brands. By 1996, Burger Chef had vanished, a victim of poor parent-company support. Weak financing. Pizza Haven was founded in Seattle in 1958 and blazed new trails in pizza delivery, offering the first “dial-a-pizza” service. Roving drivers carried stacks of pizzas in warming ovens and made home deliveries in response to calls from restaurant Fallen Brands The Demise of 3 Iconic Fast- Food Chains

The chain’s 273 remaining restaurants were sold eight years later to a Swiss company, Wienerwald Holdings A.G. Wienerwald filed bankruptcy in 1982 and dragged Lum’s along with it. Although a Lum’s restaurant had a cameo appearance in Martin Scorcese’s 2019 film “The Irishman,” it was too late to save the chain. The last Lum’s restaurant, in Bellevue, Neb., closed in 2017.

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600 Stewart Street #1300 Seattle, WA 98101 westcoastfranchiselaw.com (206) 724-0846

In This Issue 1 Why AI Won’t Take My Job Anytime Soon

2

A Business Leader Who Persevered

Safeguard Against Slip-and-Fall Accidents

3 4

Lessons in Management Missteps

Marketing Secrets to Stay Ahead of the Curve

7 Marketing Secrets Every Business Should Know

Do More Businesses often get discouraged

when they start social media marketing to attract new leads without success. However, they can try posting multiple times every day, making a daily video, or using SEO more effectively. Developing a following takes time and perseverance. ‘Rule of Seven’ Customers generally have an issue to solve or a pain point to alleviate by coming to your business. They will typically require seven touchpoints before making a purchase. So, optimize every moment of the customer journey. Sell Benefits The most successful marketing typically explains why potential customers need something, not what it is. It targets customers’ emotions because they compel action.

Successful marketing campaigns require an understanding of the human condition and effective strategies. These seven marketing secrets will aid you on your journey to build brand awareness and make impactful conversions. Target Audience Market to the audience most likely to buy your products and return. But if your target audience is “everyone,” reconsider. When you try to market to “everyone,” you dilute your message. Narrowing it down allows you to focus. Ideal Customer Avatar (ICA) An ICA is the person to whom you’re going to sell. Generally, you should know the following information about them:

Psychographic: What are their values, political beliefs, and lifestyle?

After determining how best to market to your ICA, put ads on their favorite blogs, social media sites, and media outlets. Be the Solution Research customer challenges and develop a message emphasizing how buying your product will solve their problems. Provide evidence and explanations whenever possible to show you understand and relate to their issues. ‘Mere Exposure Effect’ People tend to trust familiarity. If they keep coming back to their internet haunts and notice your brand repeatedly, they’re more likely to trust you and convert. Keep pushing those ads; you’ll build a loyal clientele over time.

Marketing is always challenging. However, you can always accomplish your marketing

Demographics: What’s their age, gender, and job title? Location: Is your customer base in town, in-state, or international?

goals through a carefully structured approach leveraging these secrets.

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