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February 2023
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Prince’s Posthumous Lesson ‘Nothing Compares 2’ Having a Will
On Feb. 3, 1959, the history of music might have changed forever. An airplane carrying Buddy Holly, Ritchie Valens, and the Big Bopper crashed and killed everyone onboard. Buddy Holly, in particular, was a force to be reckoned with. He pioneered multiple studio techniques and influenced countless rock n’ roll acts of the ’60s. The impact was so strong that fans dubbed Feb. 3 “the day the music died.” Many people felt similarly after Prince’s shocking death on April 21, 2016. The legendary artist changed the face of music and seemed untouchable. Then, suddenly, he was gone.
Prince was also apparently not close with most of his siblings, and it’s fair to say that he would probably hate many directions his estate has taken. He was notoriously protective of his privacy, music, and image and had no desire to exploit his name for profitability. But soon his songs were on the streaming services he openly despised, and his home was opened to tours. Today, there’s a Prince store in the Minneapolis airport where you can buy T-shirts and mugs. As I said, I knew some of Prince’s lawyers. They’re very gifted attorneys, so of course, they told him numerous times that he needed an estate plan. But for whatever reason, he decided not to make one. He wasn’t alone; countless people decline to create a will because they don’t want to think of their mortality. But as Prince’s case demonstrated, the effects can be wide-reaching. I doubt anyone reading this newsletter is at risk of having a gift shop based on them. But while West Coast Franchise Law does not do estate planning, I encourage every client I serve to ensure they have at least a will in place. Entrepreneurs must protect the assets they’ve worked so hard to build and contend with the question of who will care for their loved ones. Further, estate planners can also help business owners shield assets from potential litigation — possibly saving
I feel like I always knew who Prince was — and I know several people who worked for him. That might sound impressive, but it’s not unusual for anyone who travels in professional circles in Minneapolis, near where I grew up and went to college. People in Minneapolis have such a high level of pride in their connection to Prince and the fact that he chose to stay in the area, and he did a lot for the local community over the years. Besides the tragic nature of his death, headlines after Prince’s passing quickly focused on the astonishing fact that he died without a will. He had a massive estate and worked for decades to control his image and career, only to leave the state of Minnesota
to sort through his assets. It got ugly fast. Prince was unmarried at the time of his death, and his only child passed away as an infant. His legal heirs were his half-siblings — of whom he had no fewer than six. The battle over Prince’s estate lasted years and only recently concluded in August 2022. Two of Prince’s heirs passed away in the years since his death, and three sold their stake in the estate to a music company. The litigation cost more than $10 million. And while the estate’s total value is $156 million, it’s ironic that the court distributed less than $6 million in cash.
them a great deal of money while alive.
Prince left multiple legacies behind, but I hope one of them will be a sober reminder that we only get one chance to control what happens after we die. Please don’t waste it. Getting your affairs in order may not be fun, but it’s much better than the alternative.
– Nate Riordan 1 206-903-0401
All Aboard! Know Your Cruise Etiquette Before Setting Sail After a slump in 2020 and 2021, cruises are back in a big way. If you’re planning your first onboard adventure — or it’s been a while since you last set sail — now is the time to brush up on your cruise ship etiquette. Every passenger should read their cruise line’s policies to ensure they know all the specifics before climbing aboard. In the meantime, we’ve listed some of the most essential do’s and don’ts for the savvy traveler. KNOW WHAT TO WEAR. Some cruise lines aim for a fancy atmosphere, while others prefer a casual approach. Ideally, review the dress policy before you book your trip. Bring at least one formal outfit in your luggage for dinner, which tends to have an upscale vibe. The rest of your cruise wear should be casual but tasteful, leaving you looking put together. Most importantly, don’t overpack — the stateroom is smaller than you think. DON’T BE A CHAIR HOG. Everyone wants a prime spot on the sundeck, but you’ve got to rise early in the morning to get one. That’s fine if you can manage it, but “saving” a seat by putting a towel on it and then wandering away
for breakfast or a mani-pedi is the best way to get on your fellow travelers’ bad side. Your cruise may also have a policy against it. Going to the bathroom is one thing; you’re only human. Otherwise, if you want the seat, stay in it. BE ON TIME. Treat your cruise ship like an airplane — if you’re not on time, it’s probably leaving without you. And if you are lucky enough to have the ocean liner wait, your fellow passengers won’t look at you kindly. Set your watch to ship time (not local time) and prepare to be back an hour before the deadline. That way, if you happen to be late, you’ll still be on time. You may miss out on an extra drink or souvenir shop, but nothing will ruin your cruise faster than being left behind at the dock.
Something Old, Something New
THE PROS AND CONS OF BUYING AN EXISTING FRANCHISE
Thousands of entrepreneurs have discovered over the years that buying a franchise can be an incredibly profitable venture, but there are countless details to review upfront. After determining the industry and brand they want to work with, each franchisee must face a new question: Should they start a new franchise business or buy an existing one? Both have perks and drawbacks, and it’s crucial to understand them before deciding. The benefits of buying an existing franchise are many. The time between purchasing the business and generating profits is usually shorter since the franchise is already up and running with fixtures, vendors, and employees. There may also be more flexibility regarding the purchase price. While franchise fees paid directly to the franchisor are usually inflexible, a motivated seller will negotiate.
With an existing franchise, much of your market research has already been done for you. The business’s past sales and financial records will provide a great deal of information regarding profitability. But unfortunately, past success doesn’t always translate into future solid sales. Before purchasing a franchise, one must understand why the previous franchisee is selling. Of course, they may not always be upfront about this information. So, research on sales trends, overhead costs, new local developments, and changing demographics is crucial. A business can look great on paper but be overrun with problems. Any potential buyer should also know that franchisors get a say in the process. Some have a right of first refusal to buy a business in their system, and franchisors can sometimes change their minds after you’ve
already invested time, effort, and money. Further, just as with a new franchise, the franchisor can decide they’d rather not work with you for any reason. Also remember the franchise agreement for a new owner may differ from the old one, and the franchisor will want to review your financing upfront. A plus is that you typically won’t need to pay a new franchise fee for an existing business, but the franchise likely will charge transfer and training fees. In other words, buying an existing franchise is no shortcut. While it can be a great move, it requires just as much due diligence as setting up a new franchise location. Before moving forward, ensure you understand the business’s financials, the reason for the sale, and any transfer requirements. Otherwise, your careful purchase could quickly become a bad investment.
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Before You Sign on the Dotted Line Understand Your Commercial Lease
You may own your franchise business, but there’s a good chance you don’t own the buildings where you operate. Most restaurants lease their space — and it’s far more complicated than renting an apartment. Anyone who doesn’t take the time to understand the differences between commercial and residential leases could be making a very costly mistake. Commercial leases aren’t subject to most consumer protection laws that govern residential rental agreements, and their terms are far less boilerplate. Each lease is a lengthy, complex document with unique quirks. The lease term is often several years, and breaking a commercial lease is much more costly than breaking a rental one. There are three broad categories of commercial leases: net leases, gross leases, and percentage leases. At its most basic, a net lease requires the business renting
the space to pay a flat rental rate along with maintenance, utilities, and other expenses. A gross lease, on the other hand, usually involves paying rent only. There are multiple types of gross and net leases with different costs and responsibilities that may benefit or disadvantage business owners to various degrees. Finally, a percentage lease involves paying a base rent and a portion of the business’s income. These leases are most popular in food service and retail. While a percentage lease sounds less than ideal, it can help the lessor and lessee form a stronger relationship that maximizes profits for all. One benefit of commercial leases is that they are much more negotiable than their residential counterparts. For example, you can request provisions that allow more prominent advertising around the building or prevent a competitor from
moving into the same complex. These details matter, and ignoring them upfront can lead to regret. Any commercial lease is a long-term, legally binding contract that will have repercussions for years. For that reason, anyone renting commercial space should seek the assistance of a lawyer familiar with real estate agreements. West Coast Franchise Law works with commercial leases daily, so we know the most important provisions to include and avoid, when to push back, and when to consider walking away. Since the lease you sign will determine rights and obligations that could make or break your business, never attempt to understand one by yourself. Hire a competent franchise attorney who will help you through every aspect of the agreement and secure a fairer deal.
CHOCOLATE POTS DE CREME
TAKE A BREAK
Impress your valentine with a chilly chocolate treat! This smooth custard is easy to make and the perfect dessert to end a romantic night at home.
Inspired by FoodNetwork.com
Ingredients: •
9 oz high-quality semisweet chocolate, chopped
•
5 tbsp granulated sugar (add an extra tbsp if using bitter chocolate)
• • •
1 1/2 cups whole milk
1 1/2 cups heavy cream, divided
• •
1/4 tsp salt
6 large egg yolks
1 tbsp powdered sugar
Directions: 1.
Place chopped chocolate into a blender. 2. In a heavy-bottomed medium saucepan, whisk the milk, 1 cup of cream, egg yolks, granulated sugar, and salt over medium heat. Cook, constantly stirring with a spatula until the mixture is almost boiling, 5–6 minutes. Immediately pour the milk mixture over the chocolate in the blender. 3. Cover and blend until smooth. 4. Divide the mixture among ramekins or small cups and refrigerate until set (about 2 hours). 5. Whip the remaining 1/2 cup cream and the powdered sugar with a mixer until soft peaks form. 6. Top chilled pots de creme with whipped cream and serve.
Solution:
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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
600 Stewart Street #1300 Seattle, WA 98101
westcoastfranchiselaw.com | 206-903-0401
IN THIS ISSUE 1 2 Prince’s Posthumous Lesson Brushing Up on Cruise Etiquette
Should You Buy an Existing Franchise?
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Understanding Your Commercial Lease
Chocolate Pots de Creme
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Ways to Disconnect From Technology
Take Time to Unplug! Return to Work Recharged
Though technology makes everyday tasks a bit easier, sometimes, the best thing a business owner can do is unplug and recharge! Running a business is a time- consuming and stressful effort. But by stepping back, you can reset and get a fresh perspective on your work. START SMALL. Create small habits if you can’t go an entire day without technology! Try starting your morning completely unplugged until you get into the office, or step away from your devices for an hour or two during the day. When you start small, you can build from there!
our entire day! If you want to cut down on screen time, schedule email checks. You can make a commitment to address them in the morning or maybe the late afternoon. But during after-hours, establish a hard cutoff time! Inform your employees and clients of your available time frame — set an expectation for more productivity and communication. CHOOSE A SECOND IN COMMAND. Suppose you’re dedicated to checking out now and then. In that case, it can be beneficial to have someone handle anything that may arise. Consider someone trustworthy and reliable, and give them an overview of day-to-day operations. You can explain what can and cannot be done and alert other employees that all questions and concerns be directed to this person.
MAKE TIME FOR YOURSELF. When you’re at work, your main priority is to focus on your business and clients. But when you pack up and head home, you must take time for yourself! Do activities you love, spend quality time with family and friends, and put away your laptop and phone. That email or call can wait until the next business day begins. Pulling the plug on technology can feel intimidating as a business owner, but give it a try! You may be surprised at how refreshed you feel returning to work.
SCHEDULE EMAIL TIME. We are all too familiar with an
overwhelming email stream. We wake up and fall asleep to it, and if we’re not careful, the constant interruptions can run
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