West Coast Franchise Law - August 2022

West Coast Franchise Law - August 2022

August 2022

600 Stewart Street #1300, Seattle, WA 98101 | westcoastfranchiselaw.com | 206-903-0401

My Favorite Mistake Remembering a $77,000 Error

We all make mistakes, but some of them are bigger than others. It’s easy for people to forgive each other for minor errors, but offering forgiveness for the big ones requires compassion, perspective, and humility. On International Forgiveness Day (Aug. 1), I’m reminded of the time someone graced me not only with forgiveness but also with a second chance. Early in my career I had a client who was in the middle of building a new restaurant when he was sued. The bank had stopped lending him money, and he was struggling to pay the general contractor. The general contractor was putting an enormous amount of pressure on my client and had hired very aggressive lawyers.

to take another call with the general contractor’s attorney. It was late; I was tired. As we talked, I did some math in my head, and we came to a verbal agreement. After we hung up, it dawned on me that I’d made an error to the tune of $77,000 in the general contractor’s favor. As soon as I realized what I’d done, I called the other attorney back. But they refused to change the number. In fact, they told me that if I so much as asked about it again, they’d consider me in breach of contract. They wouldn’t budge, and I had no choice but to take them seriously. I couldn’t believe what I’d done. Worse, I had to call my client and tell him about it. I’d done some work for this client before. In fact, I’d helped him save his business. But I still didn’t know him very well, and I could only imagine the phone call would be ugly. I thought he’d order me to pay him the $77,000. My business was new, and I didn’t have that kind of money.

Finally, I picked up the phone and told my client the truth. His response surprised me. It was something like this: “You know, in the big scheme of this project, $77,000 isn’t going to make or break us. I know you’re doing your best, and everyone makes mistakes. Let’s just move on and keep going.”

I couldn’t believe it. I felt like I’d received a stay of execution.

We did keep going. And one year later, on a completely unrelated matter, I negotiated a $1,000,000 discount for the client. What no one could hardly believe (not even me) was that my client actually had the $1,000,000 to pay if we had not received the discount. Once the agreement providing the $1,000,000 discount was signed by everyone, I called him. “When I screwed up,” I said, “You let me keep working with you. I’m grateful you did that, and I’m glad I could get you this money.” “Well,” he responded. “I figured my instincts were right. I thought it would all work out somehow in the end.” Everyone makes mistakes. Now, when someone else makes an error that affects me, I think back to this story. It’s easy to write people off — but I know firsthand that failing to forgive can cost you.

We were down to the wire. We had a hearing date, but the contractor’s lawyers

wanted an agreement before then. They made it extremely clear that they’d tank the project if we didn’t have

one. Worse, they’d also ruin my client’s entire reputation and ability to get future projects off the ground.

I got out of the car and started pacing and looking at the sky. I began to bargain with myself.

With the hearing looming in the morning, calls were going back and forth between the other lawyers and me well past business hours. It was 11 at night when I pulled my car off to the side of the road

“What if I just don’t call him?” I thought. Of course, that was never a real option, but it made me

feel a little better to consider it. I wracked my brain for a way to get out of this mess, but there was nothing I could do.

– Nate Riordan 1 206-903-0401

3 Most Beautiful Restaurants in America Where the View Is Part of the Menu … When you go to a nice restaurant, you’re not just paying for food — you’re also paying for an experience. Decor might be the last thing on a guest’s mind, but with the right design, some restaurants are absolutely breathtaking. Here are a few of our favorites. Pink Cadillac Diner — Natural Bridge, Virginia Taking a step into this restaurant feels like stepping straight into the 1950s … in all the best ways possible. The diner’s bold, beautiful shades of bubblegum pink — including a vintage pink Cadillac parked in front — prompt nostalgia and delight. Accompanied with a classic burger and ice cream diner menu, this East Coast gem is a destination you won’t want to miss. Cecconi’s Dumbo — New York City There are plenty of gorgeous restaurants in the Big Apple, but you’ll always hear Cecconi’s Dumbo mentioned among the best. Located in Brooklyn Bridge Park, your table might have dramatic views of the bridge or a waterfront view of the Manhattan skyline. It’s the best possible pairing with their classic Italian menu, complete with handmade pasta and high-end ingredients from Italy.

The French Laundry — Yountville, California If there’s a contest for the best food and views offered by a restaurant in America, this three-star Michelin restaurant just might place first. Run by Thomas Keller, its rustic, cottage-like setting in Napa Valley always turns heads with its surprisingly sophisticated design (as well as its exclusive tasting menus!). The restaurant’s gardens are beautifully lit and dotted with Japanese maple trees — a sight that will blow you away. Most people can have a good meal at home, so if you have the time and money, why not pay a little extra for a nice view? Go ahead and indulge. We won’t judge — we’ll even be a little jealous!

The Childcare Shortage

AND HOW IT’S AFFECTING YOUR BUSINESS

The labor shortage continues, and employers across the nation are desperately seeking solutions. The deficit of workers across low-wage industries hasn’t only affected restaurants and retail. It has also deeply impacted childcare — which, in turn, has made it more difficult for many parents to re-enter the workforce. In March 2022, economists reported that roughly 460,000 families were without reliable childcare due to worker shortages. And when families can’t find anyone to care for their children, one parent is more likely to stay home full-time. There’s no point in even looking for a job if there’s no one to watch your kids. Meanwhile, Fortune reported at the beginning of the year that childcare costs had risen 41% since the pandemic began. Many families have therefore been priced out of the childcare market — especially those who work for low wages. If childcare

costs as much or more than the parent earns working, they might as well stay home. Further, parents who find affordable childcare face increasingly informal and precarious arrangements. The situation can cause abrupt cancellations, inflexible hours, and missed work. Many advocates have asked the federal government to take action. But in the meantime, employers still have some control over how childcare impacts their hiring and retention strategies. For example, businesses that provide childcare benefits are proving increasingly attractive to potential workers. If subsidizing your employees’ childcare is not an option, more creative solutions might show some promise. Changing schedules to suit employee needs, allowing flexible hours, and

providing work schedules far in advance will cause your workers to face less trouble with childcare. It may not be perfect, but it’s better than the alternative. More franchisees are also reconsidering children in the workplace. While safety and logistics mean this solution won’t work in every situation, it’s worth determining whether such an arrangement is feasible. Just remember, allowing a 10-year-old to do their homework in the back office is very different from letting a toddler run around the dining room.

Solutions will differ for every business, but we’ll all need to find a way to adapt to this new reality. Begin

determining what will work best for your business model and employees. Otherwise, you’ll likely keep losing current employees

and losing out on new ones.

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Preparing for the Worst Is Your Business Recession-Proof?

Runaway inflation remains a top concern among Americans, and the federal government has taken steps to try to rein it in. In June, the Federal Reserve (Fed) raised interest rates by .75% — the largest increase since 1994. There are also signs that additional interest rate bumps may follow. As a result, many economists argue a recession is increasingly likely, if not yet inevitable. So, now is the time to start preparing your business for the worst. One of the biggest lessons the Great Recession of 2008 has taught us is the importance of securing capital early. In 2008, loans became scarce, and many businesses couldn’t receive the financing they needed to survive. Business owners who anticipate cash flow problems in the event of a recession should strongly consider seeking financing now while it’s still available. Otherwise, they might come up short in a time of crisis. You’ll want to know where you stand before a downturn, so now is the time to conduct a financial audit. Experts recommend having six months’ worth of operating expenses in savings to keep your business afloat. If that’s impossible, it’s time to give financing another look. Business owners should also evaluate their costs and determine what is unnecessary. Can that upgrade wait? Are customers noticing the little perks you think are critical? Don’t compromise quality, but be frank while assessing your business’ spending.

If a recession does happen, it’s not all doom and gloom. Employers would likely see an increase in job seekers applying for work, improving the talent pool available for hire. Still, layoffs negatively affect both the dismissed workers and those

who are left behind. Morale can suffer, and so can your image. So, it’s important to avoid unnecessary layoffs whenever possible. Be careful in your hiring decisions now to avoid potential pain later. Further, remember that this is a stressful time for your employees, too. They’re concerned about whether they’ll lose their jobs and be out of a paycheck. Don’t make

any promises you can’t keep, but keep lines of communication open with your workers. If you don’t, speculation and rumors might run amok.

None of us knows what the future will hold, but it pays to be prepared. No one wants to see a recession occur

— but that doesn’t mean you shouldn’t have a plan in place.

CREAMY AVOCADO GAZPACHO

TAKE A BREAK

This refreshing and healthy gazpacho is sure to help you beat the heat!

Ingredients: •

2 cups fresh peas, shelled 2 medium-large ripe avocados 2 tbsp extra virgin olive oil 1 serrano pepper, stem removed and sliced in half 1 medium shallot, peeled and chopped in half 1 medium English cucumber, roughly chopped

Inspired by RainbowPlantLife.com

• • •

• • •

1 cup fresh cilantro

3 tbsp freshly squeezed lime juice 1 1/2 cups water, plus more for boiling 1/2 cup full-fat coconut milk Kosher salt and black pepper, to taste

•

• •

•

Directions: 1.

In a large bowl, prepare an ice bath. 2. In a saucepan, boil water and add peas. Once water returns to boil, cook for 90 seconds. 3. Transfer peas to ice bath. Drain once cooled. 4. In a blender, combine peas, avocado, olive oil, serrano pepper, shallot, cucumber, cilantro, lime juice, 1 1/2 cups water, and coconut milk. Blend until completely smooth and creamy. 5. Season to taste with salt and pepper. 6. Serve immediately at room temperature, or transfer to the fridge to serve chilled.

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

Nate Reflects on Forgiveness Siri, What’s the Prettiest U.S. Restaurant? The Childcare Shortage is Costing You Employees Recession-Proofing Your Business Creamy Avocado Gazpacho This Marketing Strategy Helps Build Stronger Relationships

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What Is Social Selling Marketing? How Can You Implement This in Your Business?

Today, more and more people search for products online and use social media to find new trends and products. Now is the time to meet your customers where they are — with social selling marketing. What is social selling marketing? Social selling is the art of forming relationships with current and future customers to generate sales. Building these relationships makes people more likely to use your products. Instead of telling them to buy right now, you’re ingraining in their minds that you’re always there. This method can help boost sales, give you a competitive edge, strengthen your brand’s reputation, and is more effective than cold-calling. How do you sell socially? First, you must know your audience. What do they need, and what do they want? Next, find out which social media platforms they are most likely to use. Do they use Facebook, Twitter, Instagram, or TikTok? This will allow you to reach your audience easier if you use the platforms they are most frequently on. If you’re trying to find prospects, research people who are interacting with products that are similar to yours. Find people who bought from your competitors but didn’t have a great experience. This gives you a

chance to offer them a better alternative.

One of the most effective ways to sell your brand in social marketing is by answering questions and responding to users. For example, if someone were to complain on Twitter about

an item from a company, that business could create a team that checks social media for these types of issues. Then, the business can respond to the user and help resolve the problem. This shows customers that you care about them and their experience, which will influence them to continue to buy from you. Excellent customer service and problem-solving skills can do wonders for your brand. Sales have always been about building relationships and establishing credibility. Social selling is just like that, except you’re using the power of social media as leverage. So take advantage of it! Meet your customers and potential customers where they are, and watch your relationships and profits soar.

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