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California AB 257 Threatens the Franchise Business Model

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California AB 257 Threatens the Franchise Business Model

In 1988 my spouse Gary Gardner and I founded Franchise Update Media. This publishing company offers educational resources for franchisees and franchisors through two printed magazines and half a dozen newsletters online. We also provide business opportunities listings and host three annual gatherings for the community of franchisors. We’re both long-time residents of California and work in San Jose.

As a long-time participant and witness of franchising, I’m forced to voice my disapproval of AB 257 (the FAST Recovery Act) as it’s currently in its draft form and scheduled for a vote at the State Senate. I think its motives to assist employees are admirable; however, in my view, as well as that of franchisees and franchisors I meet with frequently, AB 257 will do more harm than positive. According to the old saying, it’s a fix in search of a problem and is likely to result in myriad new challenges. It appears to be a hazard with unintended consequences, none of which are good.

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You’ve probably heard the arguments about finances in the past, and I’m not going to repeat the same arguments here. Instead, I’ll explain what franchising is and the people I’ve come to meet over nearly 35 years of business. The damage this bill will cause entrepreneurs who are successful in small businesses (franchisees).

Through my time heavily involved in franchising, I’ve met several people who work in the field. They are overwhelmingly good people who provide jobs, donate to their local communities and national charities, and provide on-the-job training and career paths for those they hire, many of whom are just starting on their initial “real” job.

Before I present my arguments to oppose AB 257, I’ll state that I support fast-food workers being treated fairly, honestly, legally, and receiving a fair salary for their work. This is also true for 99% of franchisees and franchisors. It’s not a secret that there are hostile franchising actors in every organization or sector. However, in franchising, they’re rare and few.

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A whole business industry for the conduct of a tiny minority is foolish. Find and punish those who are violating and honor and encourage the vast majority of decent actors who provide employment that allows their employees to pay their rent or purchase a home and feed the families of their employees, as well as give to the poor in the towns and cities in which they conduct business.

What exactly is franchising? I’m asking because, in my interactions with those outside the franchising industry (politicians and others, with respect), they do not understand how franchising operates. Initially, I was a bit confused, but I was accustomed to the corporate model like many. The franchising concept is to distribute products and services, from poke bowls and pizza to car and home care repair, massages, and gyms to haircuts and repair.

As part of the franchise model, Franchisees are small-business owners not employed by their franchise company. In addition, they are entrepreneurs who own their own business and pay franchise fees in the thousands of dollars to get the privilege of using a brand’s trademarks, operating system, logos, products, etc. While they receive some initial training from their franchisor about how to run the business, they employ and train, supervise, and pay their employees directly from their pockets.

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One of the main arguments I have against AB 257 as it is written currently is that it will deprive those who worked so long and hard to run their own business, making them look more than middle managers who work for a company which is the total contrary of the reasons they started franchises in the first in the first

There’s a saying in franchising: “Making it on your own doesn’t mean making it by yourself.” That means that while franchisees are independent business owners/entrepreneurs, they also know their franchisor has their back if they need advice or other guidance (but not direct control over their business). Franchisees have to adhere to the rules they signed in their franchising agreements. However, they signed it with a willingness and were as well-informed about the law as they could be, as their due diligence might help them.

I am not a fan of Sec. 2, which is what the bill appears to employ as the foundation for everything that follows, the claim (or more precisely, a presumption) that:

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“For years, the fast food sector has been rife with abuse, low pay, few benefits, and minimal job security, with California workers subject to high rates of employment violations, including wage theft, sexual harassment, and discrimination, as well as heightened health and safety risks.”

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It is the Franchise Rule of the FTC, originally adopted in 1978. Franchise Rule, initially approved in 1978, amended in 2007, and currently in the process of being reviewed, is a requirement for franchisors to offer potential franchisees information of the document (the FDD) that includes 23 specific information regarding the franchise provided as well as its officers and other franchisees that are part of the system. The objective is complete disclosure of the business so that potential buyers of franchises can sign an agreement with their eyes open. This is the main reason Gary and I founded our firm. In 1988, reliable and reliable information on franchising was challenging to come by. Since then, franchising has become mainstream, and numerous companies and publications provide this information.

Franchisees are independent business owners. To continue The Great American Dream, franchisees put their money into an established business model. It is sometimes referred to as”a “business in a box” It’s as simple as adding 70 hours of work and nights of sleeping in the night. Franchising provides an ideal opportunity for entrepreneurial-minded immigrants to start as a fry cook, for instance, move into management, and eventually become franchisees, providing the same opportunities to others that they prospered from.

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In reality, our company offers our customers an American Dream Award each year to a franchisee who has come from the USA and established a successful franchise. We regularly profile them within our publications. If you’d like more information about how the “good actors” nurture their employees, fundraise for flood victims, donate to charities, hospitals, sports teams, hospitals, and many more, learn more about them at our site. Their stories might be a source of inspiration and help you understand that there is another angle to the assumptions in Sec. 2 of the legislation. A huge alternative.

With the rising tendency of workers in fast-food restaurants wanting to join unions to defend their rights and fight for more excellent pay and benefits across the board, including Starbucks from Chipotle, Amazon to Apple, is this legislation genuinely essential? Are these new levels of supervision beneficial or a hindrance to the growth of businesses within the state and the tax revenue lost when franchisors leave California with increasing frequency and a trend already in progress?

Another aspect of the bill I’m afraid I disagree with concerns its “joint and several liabilities” accountability of franchisees in the acts of franchisees. The following is from the Legislative Counsel’s Digest on the state’s website, where AB 257 is published:

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“The bill would require that a fast food restaurant franchisor be jointly and severally liable for violations of its franchisee, as specified, and would provide that specified laws may be enforced against a fast food restaurant franchisor to the same extent that they may be enforced against a franchisee.”

If passed, this could cause a hole in the foundation of the franchise model. Businesses would close, thousands of people would lose their jobs, commercial real estate would suffer, and an important training facility for America’s youth would be lost. This is among other negatives that this legislation could bring about.

It is essential to understand that the “arm’s-length” relationship between franchisees and franchisors is significant in selecting employees. An extreme example: What happens when a teen throws up in a taco, is caught on camera, and the franchisor and the franchisee are jointly responsible? Massive settlements for lawsuits would erode the capacity of a franchisor to help its entire group of small-business owners. They could result in hundreds of businesses closing due to an angry teenager’s unacceptable behavior. I’m afraid that’s not right.

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If you take a moment to consider this, you will realize that the franchising model is one of the nation’s most effective training opportunities for new employees. What number of people are you familiar with or have heard of who started their career in a fast food establishment and who went on to succeed in life and business as a parent and become a part of their local community?

With fast food franchises, youngsters can earn a part-time job as they learn how to cook, operate a register, and develop other abilities they will need later. Perhaps most importantly, the franchisee or their manager will train them to master their “soft” skills of customer service and working together as an entire team.

They are transferable skills. Because of “flipping burgers,” many youngsters rise through the ranks, becoming managers. Some even are franchisees, continuing the cycle of goodwill they profited from. Many take the knowledge they gained while working and eventually become corporate employees. Others begin their own company, armed with a solid understanding of the best ways to make it successful based on the lessons they gained from working in fast food restaurants.

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In closing, we ask you to consider rethinking this bill. Learn more from those most directly affected by AB 257 becoming law. Discover other, less harmful ways to safeguard employees at fast food restaurants. The saying goes that it’s not just one method to get rid of a cat or assist fast food workers towards a better future.

 

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Things To Consider When Hiring A Towing Company In Edmonton

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Things To Consider When Hiring A Towing Company In Edmonton

Things To Consider When Hiring A Towing Company In Edmonton Being involved in a car accident can be the most nerve-racking experience for many people. However, you can make your life easier if you know how to handle the situation effectively and ease the tension. If nobody is hurt in the collision, you should first try to get your vehicle off the road.

Depending on the accident’s severity, you might need your car to be towed to a nearby auto workshop. Some people do have roadside insurance, which covers towing expenses. If you don’t have yourself protected against roadside emergencies, you might need to call a towing company in Edmonton. It’s not wise to contact just any service provider. There are some dos and don’ts of hiring a towing company.

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To ensure your car safely reaches the auto repair shop, it’s essential to have industry-specific knowledge. While finding a reliable service during roadside emergencies can be challenging, you can do some research in advance.

Things To Consider When Hiring A Towing Company In Edmonton

Provide detailed information to your service provider

If you have a roadside emergency and need professionals to recover your car and transport it before you call any companies, make sure you’re aware of your vehicle type, location, and condition. If your car is stuck in a ditch, you should say to your service provider so they bring in the right equipment and tow truck.

The towing company should have the right truck for the job.

There are many types of tow trucks, and they are used for varying jobs. For example, a flatbed tow truck is an excellent option for transporting sports or antique cars. Tilt deck, wheel-lift, and hook-and-chain tow trucks are also used to move damaged vehicles. It is helpful to have some understanding of how these trucks work. You don’t have to be worried about anything if you find a trusted tow truck company where operators understand what kind of truck or equipment will suit your situation.

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Experienced companies often have a variety of tow trucks to carry out easy and complex towing operations. Action Towing is one of the best towing companies in Edmonton, where we provide a comprehensive range of services, including roadside assistance. The safety of your vehicle is our top priority.

Don’t hire inexperienced companies that charge unreasonably high rates

Simple companies operate in almost every industry. Don’t let a fraudulent or unprofessional company handle your precious car, as this will only add to your worries. Don’t forget to ask about the estimated cost and payment methods they offer. Getting all the necessary information beforehand will save you trouble, time, and money.

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As an efficient, experienced, and affordable towing company in Edmonton, we provide prompt services in both standard and emergencies. Don’t forget to call Action Towing to recover or transport your vehicle in Edmonton. We also offer long-distance towing services. For more details, don’t hesitate to get in touch with us!

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These Are the Most Common Tax Filing Errors Made by small business owners (and the best way to avoid them)

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These Are the Most Common Tax Filing Errors Made by small business owners (and the best way to avoid them)

Making sure you avoid these tax filing Errors could help your company save time and cash in the long run.

A tax filing error that is not made correctly could result in an IRS review, which can be quite a hassle for small-business owners. Along with the loss of time and effort, trying to satisfy the requirements of the IRS and other errors can impact your company’s bottom line.

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While these mistakes in tax filing may appear to be entirely out of character for your employees or you, The tax filing process becomes more complex as your company grows.

Many common errors companies make regarding their tax returns can be prevented if you and your employees are aware of the regulations and ensure that you’re up-to-date with any IRS adjustments.

These Are the Most Common Tax Filing Errors Made by small business owners (and the best way to avoid them)

1. Inaccurate reporting

No matter if your mistake in reporting is unintentional or deliberate, knowingly or not reporting your earnings in the eyes of the IRS (both personal and in the capacity of an owner of a business) will result in being scrutinized. Virtual currency should be reported, as must any income from investments and non-employee wages.

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The IRS utilizes its computer systems and forms 1099 to reconcile the information reported to them and the information provided to the business owner. Therefore it is crucial to take the correct information. It is possible to note income to you in information returns, like the 1099-MISC form indicating the compensation of employees if you’re an independent contractor or the 1099-K form showing credit card information and some other transaction, regardless of the company’s type if you’ve had several dealings.

Suppose the tax forms are incorrect, and you cannot get the sender to rectify the errors. In that case, you must report the wrong amount by making the appropriate adjustment and attach a reason to your tax return to ensure you’re only taxed for the proper amount.

2. Meal expense deductions

It’s nothing major, and claiming all meal expenses while working with clients can be an issue. Client entertainment allowances have been changed, and hiding this could result in IRS involvement. Only 50 per cent of the meals you eat for business can be deducted. While treating your client to dinner to impress them or to pay for meals yourself on the road for business is an acceptable business expense, you can only deduct half the payment.

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3. Procrastination with tax preparation

One method for tax planning to be more straightforward is to ensure your documents are properly maintained. Making sure you record deductions and expenses is a must. You need to keep your records in order. It is essential to be active! You should use a digital accounting program to assist you and your employees keep track. The software should be able to fill in expenses using uploaded photos and save information in the cloud can prove extremely useful.

If you have access to an accountant, You shouldn’t just wait until tax time to decide what you need to do with the filing process and keeping records. If you work on tax planning using expert guidance and ensuring that your documents are kept and paperwork completed throughout the year, you can prevent some minor mistakes that can result in an audit. This can help you avoid an unexpectedly high tax bill you’re unprepared for. If you fail to meet the deadline for filing tax returns, the business will be penalized by the IRS monthly penalty of 5%, which will continue to grow until the tax return is submitted.

4. Disregarding the mileage records

The tax law permits entrepreneurs who claim mileage they use personal vehicles to conduct business. But, the deduction must be substantiated by reliable documents.

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Keeping an electronic log of your mileage or keeping a notebook in your vehicle to note the date and the mileage can be a way to prove any mileage-related claims. Mileage deductions are a widespread subject of confusion. Be sure you know the mileage rate you are allowed to deduct and any other exemptions apply to this rate. Knowing the maximum permitted mileage deduction you can claim for all vehicles is essential, so you don’t overdo the amount. This number could vary from year to the following year.

5. Estimated tax rates for low-balling

Many business owners put off or fear the quarterly payment in large cheques to IRS. The extensive checks eat away at a company’s cash flow and cannot be scheduled at the beginning of making budgets. However, underestimating estimated taxes could cause penalties (20 percent) if your tax bill is lower than you owe or pay late. It is best to be able to assess your tax estimates for the entire year and pay each quarter in time.

All the taxes your business must pay, such as self-employment tax and Medicare tax, must be meticulously and precisely totalized. If there is a mistake and the IRS believes this is false and you are liable to be penalized for fraud or face tax fraud charges.

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6. Don’t use the wrong retirement plan

Small-scale business owners can benefit from the retirement plan’s contributions to cut down on tax obligations. But, selecting the wrong technique can restrict the deductions you can make or force you to pay for donations from employees your business can’t pay for.

Assistance from a professional with your small business’s development and tax preparation will assist you in avoiding some costly errors. It would be best if you talked to an accountant to learn more about the other tax issues that can be costly for your company.

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Dragonfly Hyperscooter Relaunches After Beating Business, Covid Obstacles

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Dragonfly Hyperscooter Relaunches After Beating Business, Covid Obstacles

The Dragonfly Hyperscooter might well have been named The Phoenix. The first time it was introduced in 2019 by the London-based D-Fly Group, a host of issues, most notably the Covid-19 pandemic, slowed the launch. Today, the four-wheeled electric personal mobility vehicle powered by batteries is back, albeit smaller and more affordable, yet capable of navigating more challenging terrain.

Dragonfly Hyperscooter Relaunches After Beating Business, Covid Obstacles

Jez Williman, founder and CEO of D-Fly Group.D-FLY GROUP

“One aspect of Covid that I was struck by was the extent to which people from lower income brackets became dependent on shared scooters, and as their popularity grew and the bike industry exploded,” D-Fly founder and CEO Jez Williman told Forbes.com. “We would like to create Dragonfly, the top mass-market product, but not only for those with large pockets. We want to make it accessible to everyone.”

What is it that makes the Dragonfly the definition of a “hyperscooter?” A key characteristic is a design based on Formula 1, dubbed “Full-Tilt Technology”, with the three-dimensional tilt and twist controls mounted on the central pillar that engages all four wheels simultaneously in sync with the movement of the user.

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It is equipped with what they claim to be the first dual wishbone suspension. It’s fully adjustable hydraulic dampened suspension with sprung across all 4 wheels. a flexible deck suspension, and complete axle articulation.

The Dragonfly’s four-wheel, comprehensive carbon fiber platform has been made to provide safety and stability.

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Two 500-watt motors power it. They provide approximately 37 miles of range based on the weight of the rider and wind conditions, with an average speed of 25 miles/hour. It even has a reverse gear, which is unusual for the scooter.

Dragonfly Hyperscooter Relaunches After Beating Business, Covid Obstacles

There are two models available: the DF for smooth and smooth streets and the DFX to go off-road or in other challenging conditions. It has wider fenders as well as hand guards.

Prices range from $1,850 to $2,200, depending upon the type of model.

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This is a significant discount from the price range of $4,999 to $6,999 for the first Dragonfly launched in the year.

The delay of three years and the resulting design and price reduction all happened as the Covid-19 pandemic swept the world, as per Williman, who was hospitalized for the disease.

“Everyone took a break and went home. We weren’t able to access our supplier base to any extent. It’s clear that the bicycle industry moved to Mars regarding needs and many vendors shut their doors to every opportunity that came along,” he explained.

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In addition, Williman said the multi-billion dollar company D-Fly was relying on to be its primary manufacturing partner when it suddenly pulled out of the deal.

“They had a conversation one day and said, hey, it’s going to stop doing mobility anymore. But thank you. I told them, “Are you guys? what’s the matter?” Williman recalled.

D-Fly eventually found a new manufacturer, set up a new design team in North America and developed a global team. However, the challenges of launching the Dragonfly were not over.

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The most important is the more expensive tools to construct the initial concept, which led the firm to “make certain design concessions to bring the cost of go-to-market and the cost to go to market lower,” said Williman.

As time passed, the company realized that the market for electric scooters was shifting, which led to an even more thorough re-thinking of the Dragonfly.

“We were looking for a compact and lightweight vehicle. Then we realized that one of the elements, or the main pillars we were looking to incorporate, was the ability to go on-road and off-road too and add a sporting element in the automobile,” Williman explained.

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The result was to change the wheel’s size to more enormous 10-inches than the original six inches to provide the Dragonfly off-road ability. Doing so, however, meant additional design changes.

“By expanding the wheel size, we needed to increase the wheel’s basic structure, and the drive train also had to expand in some way,” Williman explained.

Certain products, such as integrated screens and speakers, were reduced but not slashed in price. Williman refers to the five-inch screen, which he says is as powerful as the one you would see on an expensive Japanese motorbike.

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There are other options, including cameras on board for recording trips.

Orders for the new Dragonfly version are now available. Dragonflies can be placed through Indiegogo. Indiegogo platform.

People who made orders in the year 2019 were refunded in full, according to Williman. Any customer who asked for a refund received one; however, he said that most customers plan to buy the latest version. At some point, the elements part of Dragonfly will be made available as upgrades.

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The company plans to ramp into sales of 60,000 to 100,000 units in 3 years, Williman said.

It’s quite a comeback to D-Fly and its creator, having survived Covid and its aftermath.

Williman is thankful for the opportunity to bring Dragonfly up and running again, but this time with an affordable yet enjoyable, efficient, and environmentally friendly method for people to get around by declaring, “We’re always concerned about protecting the earth. We’re committed to reducing the use of fossil fuels. We’re working to do this with a sense of purpose.”

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