Read my post on IowaBiz for More on Twitter in the Workplace. Twitter is a micro-blogging application that is quickly becoming the new "thing" for business networking and marketing. Chances are you may already have an employee in your business on Twitter. Don't get left in the dark.
Don't believe it's a big deal? Then why are people like @ChuckGrassley and @LanceArmstrong using Twitter?
My partner Pat Burk weighs in with a blog post on the new Iowa LLC law and real estate transfers. It's a great blog post because LLCs have long been the entity of choice for real estate ownership. The post includes a discussion on statements of authority and title examination.
Pat distinguishes nicely my previous comments concerning due diligence in dealing with LLC members to make sure they have appropriate authority to act for the LLC and the need to have title examiners assume proper authority. Again, it will be interesting to see how courts treat these issues (and others) under the new Iowa LLC law.
The Des Moines Register has an interesting article on the fitness business market in Des Moines. Included in the article is a discussion on the growing number of 24/7 franchises in Des Moines. So, it begs the question, "Is buying a fitness franchise a solid investment in this market?"
I have represented a number of franchisees in the fitness industry. Based upon this experience, I would say the competition is fierce and a prospective franchisee needs to carefully consider whether to purchase a fitness franchise gym given the current market conditions in Des Moines. Specifically, I would look very carefully at the trends of the franchisee concerning the number of outlets. You should closely review the information regarding outlets. Carefully study the number of transfers and not just the number of closures. A high number of transfers may be an indication that franchisees in the system are struggling, but unprofitable gyms have not been shut down. Of course if there is a significant number of closures in the system that is definitely a bad sign. The reality is that profitability in this market with a fitness franchise gym is often a tough task to achieve.
Be sure to visit with current franchises and franchisees that have left the system. Ask the franchisor whether its records are updated so you can talk to as many franchisees (and former franchisees) as possible. Consider what will differentiate your facility from other gyms in the area.
I am not saying that profitability cannot be achieved in this industry but I encourage any prospective fitness gym franchisee to conduct thorough research (and maybe think twice) before making the investment.
FYI: Coming soon I have developed a new niche site related solely to franchise issues called RushonFranchise. It will include programs on how to research and buy a franchise for franchisees and how to develop a franchise program if you are a franchisor. I will interview experts in the industry and will have in-depth materials on franchising. For those of you that are regular readers, this is the ever-evolving Interactive Learning Environment I referenced previously on this blog.
The State of Iowa recently announced that it intends to step up efforts to enforce independent contractor misclassification. It is anticipated these enforcement efforts could bring in millions to the state coffers.
For more information on this topic please see my recent post on IowaBiz and another post from August of 2007 warning about independent contractor misclassification.
See also this article on how to avoid misclassification of independent contractors.
It is more important than ever for businesses in Iowa to understand the differences between employees and independent contractors.
With the recent economic downturn, layoffs have begun to occur. A potential option for many former corporate employees is franchise ownership. While franchising does offer many advantages it is critical to approach a franchise opportunity just as you should any other business opportunity - with caution.
It is a misnomer that franchises are more likely to succeed than other businesses. In fact, the International Franchising Association has discouraged all franchisors from making such claims. The truth is that franchises fail at a rate that is similar to non-franchised business. So careful due diligence is important when considering a franchise opportunity. One of the best things you can do is talk to as many existing (and former) franchisees as possible. Also, consider several key disclosure issues including:
And finally, be willing to walk away. This is the paradox of successful negotiation. Those that are willing to walk away usually find they get more in negotiation.
For more on franchise due diligence be sure to visit the Federal Trade Commission's Consumer Guide for Buying a Franchise.
It is easy to form your new Iowa business entity. For details see my Small Business Package. To get started just fill out the Startup Form and we'll contact you to confirm the information.
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