West Coast Franchise Law - February 2023

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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