Pennsylvania is where a woman sued a McDonald's franchise after it allegedly tried to pay her in a fee-laden prepaid debit card.
]]> The woman is suing on behalf of herself and other workers at the franchise because they had no option to be paid by traditional paper check or by direct deposit, meaning they had no choice but to see some of their wages siphoned off by the debit card's fees for things like getting cash from an ATM, paying bills online and checking the balance of the card.The woman's argument is that this practice violates Pennsylvania payroll laws. The woman refused to activate the debit card because she objected to the fees, so she never received the wages for the time she worked at the franchise.
Interestingly enough, it's not quite clear whether it's legal to pay employees only with prepaid cards and no other means. Prepaid cards are legally allowed as a means to distribute wages in Pennsylvania, but it isn't clear if that remains true when workers have no option and are forced to receive their pay that way.
A spokeswoman for the owners of the franchise said they had not actually been served with the lawsuit yet and so would not be commenting on it.
As we see it, there are many legal issues here that could be sorted out. Both credit card companies and banking giants have invested heavily in prepaid debit card programs, so it's unlikely they will give up the push to get them into wider use any time soon.
Source: Orlando Sentinel, "McDonald's sued for paying Pa. employees with fee-carrying debit cards," Bob Kallinowski, June 16, 2013
]]>Whether the Florida commercial real estate business has bounced back greatly depends on whom you ask and where you look. If you consider Park Avenue in Winter Park, then you'd certainly think things have taken a turn for the better.
]]> Retail space along the city's prominent shopping street is 100 percent leased, according to brokers and managment companies in the area. It's the first time in 25 years that has happened, according to Winter Park Land Co.So, what does that mean? Well, no one is quite sure.
Even during boom times, there were always one or two retail spaces that were not leased outm according to a real estate broker who works in the area. However, the fact that all the spaces are rented out now does not mean as much as one might think.
"Maybe it's a leading indicator or an anomaly. We just don't seem to know," the real estate broker said.
The reason this story piqued our interest is that we often work with clients in the commercial real estate field, so industry-wide trends and developments are of interest to us. We strive to stay well-informed and up-to-date so that we can be responsive to the needs of our clients.
Source: The Orlando Sentinel, "Sign of recovery? Park Avenue retail space 100% leased," David Breen, June 11, 2013
]]>Just about everyone within picture-taking distance of Cinderella's castle is on vacation, so he or she has money to spend, and since people tend to stay at the park all day, they're essentially a captive audience.
]]> Recently, Starbucks locations began appearing in various locations around Disneyland. They're the result of a partnership the Seattle-based coffee chain struck with Disney about a year ago.At the moment, Main Street Bakery is serving Starbucks coffee, but there aren't any standalone Starbucks coffee shops in the Magic Kingdom.
That might change soon.
The April 2012 agreement specifies that Starbucks will open locations in all of Disney's six U.S. theme parks. Each location will be specially designed and built so that it fits in with its surroundings -- surroundings the famously attentive-to-detail Disney has carefully engineered to be pleasant and appealing, of course.
Starbucks and Disney have already worked together on the company's overseas parks, like Disneyland Paris.
Although this contract is probably beneficial for both parties -- after all, people like Starbuck and people like Disney, so what's not to like about Starbucks at Disney? -- we have very little doubt that negotiations weren't fastidiously detailed and pored over.
Both Disney and Starbucks achieved the success they now enjoy in part because they both have a strong vision of their corporate identity, and we doubt either was willing to compromise its strong brand, even for an otherwise good deal.
We encourage our clients to be very thorough, attentive and focused when pursuing contract negotiations. To be flippant or distracted during these important times is to court unwanted consequences.
Source: Orlando Sentinel, "Starbucks about to start service at Disney," Sara K. Clarke, June 2, 2013
]]>The soccer stadium has long been a key piece of Orlando Mayor Buddy Dyer's plan to rejuvenate the commercial real estate of downtown Orlando by creating a sports, entertainment and nightlife neighborhood near Amway Arena, but until now, Jacobs has publicly been rather cool toward the concept.
]]> While Dyer has struck a go-go-go attitude, Jacobs has been more reluctant, indicating she'd like to commit fewer resources to the stadium and wants studies done to better assess whether a soccer stadium (and an MLS expansion team) would be economically beneficial for Orange County.Now, however, it seems she is much more receptive to public assistance for the stadium. It is not immediately clear what's behind her change in attitude, or if the letter is as indicative of a change in perspective as it seems to be.
Because a soccer stadium has the potential to so greatly affect the real estate of downtown Orlando, this is an issue we have been watching unfold with great interest. A popular soccer team and a brand-new stadium could revitalize property values, but things do not always work out as planned -- what if the team is a bust or the public scorns the stadium?
If there are any relevant updates in the near future, we will be sure to keep you posted.
Source: The Orlando Sentinel, "Mayor Jacobs offers 'fast track' for soccer stadium," Mark Schlueb and David Damron, May 30, 2013
]]>It might if you have ever spent a significant amount of time in Philadelphia, where Rita's Water Ice is a household name.
]]> Recently, Rita's Water Ice sued a company that made "water ice" using the Rita's name, but without actually using Rita's recipes or mixes -- or having a franchise agreement in place.Evidently, Rita's Water Ice and the three entrepreneurs it has now sued did enter into a 10-year franchise agreement. However, after Rita's Water Ice learned that the three were selling counterfeit items and were otherwise violating the terms of their agreement, they terminated the franchise.
It is not clear how long ago the franchise agreement was terminated.
If Rita's is to be believed, the three businesspeople continued to sell products under the Rita's name, even though they were not genuine Rita's products and they had no right to do so.
The three people whom Rita's has sued have not commented publicly on the lawsuit.
Without taking either side, we would like to point out that franchise agreements are not always the clearest or easiest documents to understand. It has happened more than once than both sides think they understand the agreement and later find out that they each had entirely different concepts of what they agreed to.
If you are considering entering into a franchise agreement, make sure that you understand what you are agreeing to from the outset. That will reduce the likelihood of further problems down the line.
Source: Pennyslvania Record, "Rita's Water Ice says franchisee selling unauthorized sweet treats," Kelly Holleran, April 24, 2013
]]>The two Orlando entrpereneurs, Rick Strube and Donald Strube Jr., launched a new paint-making company last year.
]]> Called SunColor, it specializes in formulating paints that can withstand Florida's intense sun, salt spray and high temperatures. The paints are sold directly to contractors.SunColor now has six stores -- two in Orlando and one each in St. Cloud, Oviedo, Wildwood and Winter Garden -- and plans to open its seventh in Jacksonville later this year. It has about 40 employees.
Color Wheel was once Florida's largest paintmaker. At one time, it had revenues in excess of $100 million. It was sold in 2006 to a subsidiary of Mexican paint giant Consorcio Comex S.A. de C.V. That company, it turn, was later purchased by Sherwin Williams.
The two brother had to wait until a noncompete agreement ran its course before they could get back into the paint industry. Both said they missed being entrepreneurs and look forward to having an avenue for their knowlege of how to blend and produce paint.
We commend these brothers for once again starting from the ground up. We work with entrepreneurs often enough to know just how difficult it is to get your business off the ground.
Many people who are interesting in starting their own companies or have young businesses find it very worth their while to hire business attorneys to advise them. Having counsel that you can count on and feel confident with can really help one feel secure at a time when such feelings can seem hard to come by.
Source: Orlando Sentinel, "SunColor is Orlando family's second act in paint business," Sandra Pedicini, May 13, 2013
]]>The Fort Lauderdale-based fitness chain has said it plans to open five Orlando-area locations in the near future. The new sites are part of a 25-franchise expansion plan. One location will be in Winter Park and the other in downtown Orlando; exact locations for the other three studios are still being worked out.
]]> Orangetheory’s fitness model is based on 60-minute workouts, which are divided between strength training and cardiovascular work. In March, it reached its 100th franchise with the opening of a studio in California.As we mentioned earlier, some fitness trends do not have staying power (remember “stripper-roebics” and pole-dancing classes?) while others, like bikram yoga, have seemed to catch on and stay on.
With its expansion plan and new franchises, Orangetheory is banking on the hope that its approach to physical fitness will generate enough devotees that it becomes an accepted form of exercise, like spin classes or kettlebells, and not just a passing fancy for fitness enthusiasts.
It is probably safe to presume that Orangetheory is being very contemplative and intentional with regard to its new franchise locations. By that, we mean it is thinking very carefully about where each location goes and, if the space is leased, what the lease looks like.
In business, careful planning like this can go a long way toward ensuring longevity. It may take more work on the front end, but thoughtful preparation almost always has positive benefits.
Source: The Orlando Sentinel, “Fitness chain targets five local locations,” Mary Shanklin, May 5, 2013
]]>The report also recognizes Florida as one of the states that fell the furthest in the recession of 2008, but also made among the most significant climbs back. Although the report did not mention Orlando specifically, it did say Miami was one of the best-performing cities in terms of residents founding new businesses.
]]> The Kauffman Index of Entrepreneurial Activity, as it is called, was released earlier this month. It is a very extensive study, but to sum it up, it could be said that during and after the recession of 2008, most of those who put their plans to start a business on hold were white men.Women, minorities and recent immigrants did so less frequently, and they have founded businesses at a greater rate since the worst days of the recession.
Florida has been recognized as a leader in supporting women who found businesses, and we have high populations of recent immigrants and minority entrepreneurs. These are among the reasons Florida has remained a business engine of the southeast U.S., if not the entire country, even at the same time it faced significant economic turmoil.
In our office, we regularly work with entrepreneurs and the owners of young businesses, so we are proud to see that our state has fared so well in this study.
Source: The Kaufman Foundation, "The Kauffman Index of Entrepreneurial Activity," Robert W. Fairlie, April 2013
In a news release issued April 15, the restaurant chain said it was looking to develop locations in Celebration, Lake Mary, Altamonte Springs, Winter Garden and Winter Park
]]> Burger 21already has six restaurants in Florida. Two of those locations are in the Orlando area, one at the University of Central Florida and the other at the Shoppes at Millennia. It has 18 other franchised locations in states along the eastern seaboard.Franchises, such as Burger 21 restaurants, can present lucrative business opportunities. However, they can also be expensive minefields for businesspeople who hastily agree to run franchise locations without really understanding what they are committing to.
As is the case with any business opportunity, it is vitally important that you look before you leap. What we mean when we say that is, you must fully review any documents you sign and make sure that you have an understanding of what they mean. If you go forward without a clear understanding of what you are getting into, you are setting yourself up for trouble.
One way to reduce the likelihood of a negative outcome is to enlist the assistance of an attorney who has experience working with franchisees. This lawyer may be able to offer you guidance and clarity, which no one every regretted having. Furthermore, you might obtain some peace of mind, which can be a rare asset in business.
Sources:
Franchisees or would-be franchisees may find the Franchise section of our website to be useful.
]]>Well, so does business.
On April 7, Truffles Grill in Winter Park Village closed as part of its parent company Ruby Tuesday Inc.'s strategy to streamline its business operation and focus on its core restaurant brand. (The only other Truffles location, in Atlanta, closed recently as well.)
]]> But the 3,400 square-foot commercial real estate slot once occupied by Truffles is not likely to stay vacant for too long, it seems.The developers that own the space are said to be thinking of something that may be a little bit better fit for Winter Park Village than Truffles' "Southern Indulgencies" concept. According to some sources, that might mean a higher-end burger chain, like Red Robin or Burger 21. Currently, Winter Park Village does not have such a concept.
Regardless of what sort of restaurant opens, there will be several legal issues that need to be addressed.
For instance, if the new restaurant is a franchise, there will be franchise agreements between the owner and the parent company that have to be completed, and the owners of Winter Park Village will have to make sure that the parent company's policies and template documents are acceptable. Regardless of whether it is a franchise or an independent venture, the owner of that venture will have to negotiate a lease with Winter Park Village. There may also need to be some communication with existing restaurants, who have some concern that a new venture will compete with them.
Source: The Orlando Business Journal, "Truffles Grill closure offers opportunity for new restaurant in Winter Park Village," Anjali Fluker, April 8, 2013
That comes on top of the $138 million the county has already committed to the project.
All told, the performing arts center has a price tag of $500 million.
]]> When the first phase is finished in 2014, the downtown Orlando performing arts center will be home to the Orlando Ballet, the Orlando Philharmonic Orchestra, a 300-seat community theater, a banquet room and the 2,700-seat Disney Theater.Jacobs said the $25 million in additional funding should not imperil plans to build a soccer stadium not far from the center. She told reporters that right now, the stadium proposal does not include enough money from the team itself. Even so, if the stadium were to become a reality, the performing arts center should not interfere.
Jacobs also said she hopes the additional funding spurs donors to take out their checkbooks and contribute to what she believes is a key piece of the effort to revitalize downtown Orlando.
This is an interesting public issue. Orange County has already donated a staggering amount of money to the performing arts center, so some question whether it deserves more. Publicly funded developments can help revitalize neighborhoods, making them more attractive to shoppers and hence to businesses, but it is hard to determine just how much public money ought to be spent this way.
What do you think? Is this additional $25 million a good use of public resources?
Sources:
You could visit our Commercial Real Estate page if you are looking to collect more information.
]]>Anytime an H&M opens, for example, the local paper will usually run a picture of young women lined up outside, ready to snap up bargain-priced fashions. Lululemon, a maker of high-end yoga apparel, and ice cream chain Cold Stone Creamery are often greeted with similar levels of enthusiasm.
]]> Wawa tends to be one of those "rock star" franchises. Its quirky identity and out-of-the-ordinary deli have earned it a fan base that's far more passionate than one would expect for a gas station.On March 20, the Pennsylvania-based convenience store chain opened its ninth Orlando-area location, in the 2200 block of North Semoran Boulevard in Winter Park.
Wawa is on a tear of expanding locally. The North Semoran Boulevard location is the third store to open in or around Orlando this year and six more are planned before we hit 2014. In the past, Wawa executives have said Florida features prominently in the chain's nationwide expansion plan.
It will be interesting to see how Wawa fares with all of these new stores. When it comes to franchises, popularity does not always translate to economic success.
Dunkin' Donuts, for example, is generally regarded as a model for judicious expansion; it opens new stores at a pace that satisfies its devoted fan base without wearing it out. On the other hand you have Krispy Kreme, which opened far too many stores far too quickly and oversaturated the market.
Source: The Orlando Business Journal, "Wawa opened ninth store this week, more in the works," Anjali Fluker, March 22, 2013
But with the sudden passing of Jim Hearn, the company must not only deal with the incredible sadness of his loss but continue moving forward with Hearn's dream of expanding the company.
]]> "His office was a pizzeria and his board of directors was his customers," explains Barry Devine, the director of Marketing for Hungry Howie's. What started as a concept idea brought with Hearn when he moved to Florida in 1982 quickly turned into a franchise business and by 1986, Hearn had opened his own food distribution company to keep up with the demand for his signature flavored pizza crust.Despite the sudden loss of a man who offered so much inspiration to his company and its workers, Hungry Howie's announced that it will move forward with its plans to attend the 2013 MultiUnit Franchising Conference later this month. According to the development director for Hungry Howie's, it will be important for the company to attend because it will give people the opportunity to get information about possibly starting a franchise of their own one day. And as some who knew him best would say, it's exactly what Hearn would have wanted.
Source: pizzamarketplace.com, "Hungry Howie's Pizza found dies," March 22, 2013
]]>But with the Huffington Post estimating approximately $160 billion lost every year due to lost productivity as a result of illness, it begs the question of whether companies should be forced to give workers paid time off or not.
]]> When performing business planning measures, heads of companies must carefully consider what it will cost the company to do business from year to year. Factoring in paid sick leave may or may not even register on their radar. But like we mentioned above, not planning for workers falling ill could cost a company in the end.Some sources estimate that workers who are not offered paid time off are 1.5 times more likely to go into work while sick, possibly spreading the illness to the entire office in return. Sick workers are generally less productive than healthy workers, the resulting lack of productivity is considered to be worse than having the person absent from their job.
But in states where paid-time-off laws are already being enforced, many companies are saying that the requirement for sick days is costing them more than they had previously budgeted. As a result, some companies have been forced to raise costs and cut wages and labor to offset the financial strain.
So could Florida be next to pass laws requiring paid time off? At this point only time will tell; but by giving businesses a heads up now, they might have a chance at avoiding the financial strain if the laws change.
Source: The Wall Street Journal, "Legislators Step Up Push for Paid Sick Leave," Melanie Trottman, Feb. 22, 2013
]]>That's partly because if the Orlando Soccer Club were to get the $110 million stadium it wants, it has said it would want it to be in Parramore, right near the Amway Center, where the Orlando Magic plays.
Furthermore, the city has been coy as to why it purchased the land; the fact that it has not given a good reason has left open room for plenty of conjecture and guesswork.
]]> Now, we have learned that the Feb. 25 $4 million purchase of four parcels doesn't represent the full extent of the city's recent real estate purchasing spree.Over the past few months, Orlando Mayor Buddy Dyer's administration has purchased some $4.3 million worth of property in addition to that it purchased on Feb. 25. Those purchases did not need city council approval, because each individual parcel had a selling price low enough that such approval was not necessary, so the mayor's office has been able to quiet cover until now.
As you can imagine, news that the city has purchased even more land sent the rumor mill into overdrive. Dyer's office insisted once again, though, that the land acquisition is a "strategic purpose" and is not directly linked to the possibility of a soccer stadium or team.
As you can imagine, the city's economic activity in Parramore is quite a hot topic in Orlando right now. We're interested in seeing what develops here.
Source: The Orlando Sentinel, "Orlando quietly buys up even more Parramore land," Mark Schlueb, March 5, 2013
If you are interested in learning more about commercial real estate, we invite you to stop by our Commercial Real Estate page.
]]>