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Divorcing a franchisee is the act of removing a franchisee from, or asking the franchisee to leave, the franchise system. It can be messy and difficult, just like divorcing a spouse. But sometimes it's the only solution.

There are three ways in which you can accomplish the split:

1. The most desirable option would be to transfer the franchise to another qualified franchise prospect. This can be done while the original franchisee is still occupying the location in order to facilitate a smoother transition. If this is not possible, you can send in a management team to manage the location until a new franchisee is found to take over the location.
2. A less desirable option is to close the location down through court action against the franchisee.
3. The third option would be to allow the franchisee to continue operating independently from the location using a different brand not associated with the franchise system. This is not recommended, for reasons which are outlined below.

1. Transfer of the Franchise

This is the best method of removing a non-system franchisee from the franchise system, because YOU are in control of the process.

• The franchisee pays for advertising that the franchise business is for sale.
• The calls from the ads and any other leads are taken by the franchisor or its agent.
• The franchisor processes the candidates as it would any candidate for an unopened location, using the same recruitment criteria.

Pricing: A key problem that franchisors face is the pricing of the franchise business. If left to the franchisees, they tend to overvalue their business. For this reason, it is best to enlist the services of an outside third party that specializes in evaluating companies, to determine the fair market value of the business.

Recruitment: Ideally recruitment of a new franchisee can be done while the existing franchisee is still managing the business, however there will be times when the relationship has deteriorated to the point where the franchisee's presence will be a deterrent to both the transfer of the franchise and to the system as a whole. When this occurs, the franchisor is faced with two possible actions:

1. Place a manager in the location to manage the business until a suitable transfer candidate is found. In this case, the costs of the manager would be paid for from the gross sales of the location. Any losses would come out of the price paid by the transferee for the business. Any profits would go to the franchisee.
   
   
2. Close the location. This option would undoubtedly result in legal action being taken by the franchisee. Before considering this option, BE SURE that your documentation is strong enough to support taking such drastic action.

2. Closing the Location

There may be occasions when the continued operation of the location by the franchisee is so detrimental to the franchise system that you are forced to take immediate injunctive action to force the closure of the location. Be prepared for the following:

• Thorough disclosure of all documentation justifying the need to close the location. It will be helpful if you can prove that the franchisee is negatively affecting the reputation of the brand and that your other franchisees are suffering financially as a result.
• A legal challenge by the franchisee to prevent the closure. This will add to your legal bills. However, if you have properly documented the problems you will probably get the injunction. It has to be black and white, however, with no grey areas, otherwise you stand little chance of success.

As part of the injunction you will also file a suit for damages which may include:

• Loss of royalty revenue due to the location being closed.
• Payment of royalty revenue in arrears, as by this time the franchisee will undoubtedly have stopped paying royalties.
• Your costs for the legal action.

It is NOT TRUE that the courts take the side of the franchisee because of the David & Goliath syndrome. The courts always look at fair dealings. So if the franchisor has been fair in all of its dealings with the franchisee, and the franchisee has not been equally fair in its dealings with the franchisor, then the courts will find in favour of the franchisor.

3. Allowing the Franchisee to Operate as an Independent

This is never recommended. If the franchisor allows this to happen, it will mean the destruction of your franchise system. At no time should this be considered as a viable option.

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Contrary to the belief of many franchisors, legal issues are not usually the result of inconsiderate, selfish franchisees, although there are isolated instances of these. Most legal issues arise due to one of three actions or omissions on the part of the franchisor:

1. Failure to provide complete disclosure of material facts to potential franchisees.
2. Failure to recruit the right type of franchisees.
3. Failure to provide ongoing support, communication and training.

1. Disclosure Failures

Most jurisdictions have full disclosure legislation which demands that franchisors provide franchisees with full, true and clear disclosure of all material facts related to:

• the franchisor,
• the franchisor's owners, directors and officers, if they are critical to the success of the franchise and/or the franchisee's location,
• the franchisor's financial health,
• the franchisor's ability to manage the business as indicated by:
  • length of time operating the franchise business,
  • length of time operating within the industry,
  • whether the franchisor or any of its key people have been insolvent or involved in a legal action against them relative to the awarding of franchises, and
• the Franchise Agreement and the key clauses which govern the franchisor-franchisee relationship.

Failure to comply with the provisions of this legislation can result in severe penalties including:

• the return of the initial franchise fee,
• any losses incurred by the franchisee up to the point of dispute,
• all costs associated with construction of the franchise location,
• all inventory costs,
• all legal costs.

A 2000 ruling in Alberta Court of Queen's Bench (Marshall v. Little Mac Enterprises Incorporated and the Security Company of Excellence Incorporated Action #0903-00468) illustrates the importance of disclosure. This case is significant for three reasons:

1. It clearly analyzes the elements of what may or may not constitute a franchise and therefore be subject to the Franchises Act (Alberta).
2. The broad interpretation given to the Act by the Court.
3. The awarding of damages to the franchisee in the amounts envisioned by the drafters of the Franchises Act. In this case, the franchisee launched an action before large amounts were expensed by the franchisee. What is significant is that the Court awarded the franchisee costs incurred, which were the initial franchise fee and the interest associated with financing the franchise fee.

Even if disclosure is not required in your jurisdiction, it is important to provide full disclosure to all franchise candidates regardless of their geographical location. Full disclosure sets a positive tone to the relationship between the parties.

2. Recruitment Failures

Recruitment tragedies are the major reason for deterioration of the Franchisor/Franchisee relationship. Rushing the recruitment process, or recruiting individuals who do not fit the profile, will result in a mismatched franchisee who will not follow the operating system and will result in an inordinate amount of work for the franchisor in developing the necessary documentation for termination.

You will usually know within the first six months if you have made a bad recruitment decision. When this happens, it is important to first focus on assisting the Franchisee in developing the business from their location. Document all your efforts! That includes all visits to the franchise location, all telephone calls, emails and communications with the franchisee, all support provided by outside services (e.g. advertising agencies), and all requests for assistance or other services made by the franchisee and your response to these requests.

Document Everything!

Documentation will enable you to provide evidence of your efforts to assist the franchisee in establishing and growing their business. It is good business practice to document all communications, support and assistance with all of your franchisees from the very beginning of the relationship.

Apart from your efforts to assist the franchisee in developing the business from their location, you will also be documenting and giving written notice to the franchisee of any and all breaches of the Franchise Agreement by the franchisee. Your notice should set out the following:

1. Each breach and the section of the Franchise Agreement that the breach relates to.
2. The length of time that the franchisee has to rectify the breach.
3. The consequences of not rectifying the breach within the given time.

Your documentation should include the franchisee's response and efforts made to cure the breach, and what actions you took if the franchisee failed to remedy the situation. If you want to ensure compliance, the prescribed penalty must be assessed if the franchisee does not cure the breach. DO NOT indicate a consequence which you do not intend to follow through on. If you are unsure of the actions that you can take, consult your legal advisors.

Be prepared to take the ultimate action – divorce – if the franchisee continues to breach the provisions of the Franchise Agreement. Providing for the final termination of the Franchise Agreement can be traumatic for both parties. This is the case even if the franchisee has become a problem and a liability.

If you have followed all the proper steps as noted above, termination will not be a huge expense. There will be costs associated with the removal of a non-system franchisee, but you can reduce these costs by proper documentation and proper support throughout the relationship.

3. Support and Training Failures

Failure to provide proper support and training can present a serious problem for you as a franchisor, since a franchisee's breach can be a result of that failure. Obviously the thing to do is to ensure that you manage the franchise system so that all members of the system benefit.

If, however, you find yourself in the opposite situation and the Franchisee is in breach as a retaliatory action, then focus on doing the following:

1. Immediately meet with the franchisee and work out a plan for them to rectify the breach so you can resume providing the necessary services. Make this a workable plan for both parties and STICK TO IT. Make sure that it isn't one-sided.
2. Document both the breach and the actions that both parties will take to resolve the breach and strengthen the relationship. Both parties should sign off on the document to indicate their intent to carry through.
3. Develop and implement an internal plan of action to assist the franchisee in building and growing the business.
4. Be constant and consistent in the support provided until all breaches have been resolved. Give the process at least six months, during which time you should document all of your efforts to assist the franchisee.
5. If after six months the relationship and breaches have not improved, it's probably time to end the relationship.

Conclusion

Make sure your franchise system is prepared and has a procedure in place for divorce from a franchisee. By demonstrating a sincere attempt to resolve the differences and assist the franchisee in business building, you will be able to minimize the financial consequences of divorce. And remember - the best way to prevent legal issues is by managing your system to avoid the failures outlined above.

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Have you considered moving your business online, but are not really sure what that will entail? You're not alone. Businesses large and small have expanded their reach by adding an online presence to their brick-and-mortar environment.

The internet offers a great opportunity for all small businesses, and along with that power comes unique challenges. Sure, every business owner faces issues daily, however, online entrepreneurs have some especially challenging queries which require specific, no-nonsense answers. These answers are often hard to find in the highly technical or overly promotional web sources.

As a small business consultant and online business owner myself, here are the answers that I share with my clients. Be armed with knowledge to successfully face these instances with educated confidence and go forth and prosper in your online business.

Q. Do I have to collect sales tax on online sales?

A. Whether or not to collect taxes is one of the most confusing aspects of running an online store. Knowing how much to charge and what laws and regulations apply to your location is complex.

Currently, internet sales taxes are governed and collected by individual state governments. Because of the non-physical nature of internet businesses and the varying state laws, there is a movement to pass a federal law regarding internet taxes called the Marketplace Fairness Act.

Sales tax is due on all internet purchases in 45 states, and you are required to collect sales tax on your online transactions. Learn about your state's specific laws in this internet sales tax guide.

Q. How will Europe's new privacy law affect my website?

A. On May 25, 2018, the EU enacted the General Data Protection Regulation (GDPR), which requires all businesses and organizations to inform consumers of how their personal information is being collected and used online. If your website collects any private data from a resident of the European Union, you must provide your site users with details as to how that information will be collected and used and give site visitors an opportunity to agree to the use, collection and storage of such information.

In order to make sure your site is compliant, you will need to adjust your privacy policy, get users' consent to use cookies, and limit the data you collect via your signup and other forms.

Q. What is an appropriate budget for online advertising?

A. Many business owners wonder how much they should set aside for online advertising because the model is very different from the print ads that they are accustomed to purchasing. And there are so many different online ad platforms, such as Google Adwords, Google Shopping, Meta/Facebook Ads, Instagram and LinkedIn, among others, that it can quickly become overwhelming.

Based on industry standards here is a good formula you can use as a starting point for your online advertising budget:

• Spend 3% of your annual revenue on online paid search (Google, Bing, Yelp, etc.) and digital marketing activities, and
• Spend 1% on social media advertising and marketing (Facebook, Instagram, LinkedIn, etc.)

This is calculated using the standard rule of 10% of annual revenue as advertising budget and then proportioning an amount to online ads.

Q. What kinds of tasks should I outsource?

A. Small businesses, and especially startups, can greatly benefit from today's gig-based, internet-fueled economy. Digital workers are ready and able to provide expert work at affordable prices.

The easiest and most beneficial items to outsource are bookkeeping, payroll, scheduling and logo branding design, which I did recently with good results.

Only use reputable services to ensure good quality and follow-through. Look for firms that have developed good workflow processes, excellent online workspaces and that have full customer support teams. Research potential service providers by looking for customer reviews on Google+, Facebook, Twitter and other social media streams. Check with the Better Business Bureau to see if there are any complaints filed against them.

Q. Is there an affordable way to improve my search engine rankings?

A. Many SEO (search engine optimization) tactics - those site changes that get you listed higher on Google's search results pages, are easier to implement yourself than you might think.

Especially vital for local businesses is to make sure your NAP (name, address and phone number) are correct and consistent across the web, because if Google gets confused it will downgrade your site and you will lose visibility and a corresponding drop in traffic.

Another way to improve your rankings is to focus each page of your site on a specific keyword phrase so that the search engines will be clear of your page content.

Q. Are there other cost-effective ways to promote my company online successfully?

A. The internet is a great, and often free, place to promote every business type.

Microsoft founder Bill Gates once said that "Content is king". This statement in a 1996 essay he wrote about the future of the internet means that supplying information - whether to inform or entertain - is the best way to promote your brand, products and company online.

Get started right away by creating a company blog and posting top quality content which is of interest to your target customer. Post new articles to your blog on a regular basis. In addition to increasing your site traffic, it signals your authority to search engines which will then reward you with higher page rankings over time.

Once your blog is published you can distribute and promote this material across the web and on free social media sites such as Google+, Facebook, Pinterest, Twitter and other sites.

_{Image by Mediamodifier from Pixabay}

About the Author:

Marsha Kelly sold her first business for more than a million dollars. She has shared hard-won experiences as a successful serial entrepreneur on ZenBusiness.com, where she also regularly posts business tips, ideas, and suggestions as well as product reviews for business readers. As a serial entrepreneur who has done “time” in corporate America, Marsha has learned what products and services work well in business today. You can learn from her experiences to build your business.

As a small business owner, you know how important it is to have enough funds on hand to keep your business running. These available funds are known as working capital, and they are needed to run a healthy business.

Inadequate working capital levels are cited by the SBA Small Business Administration as one of the top reasons for small business failure. As such, learning about and securing proper levels for your company is crucial.

What is Working Capital?

Simply put, working capital is the difference between your current assets and current liabilities. Current assets are those that can be converted to cash within a year, while current liabilities are debts and obligations due within a year. Without enough working capital, you may not be able to pay creditors or meet your operating needs. But how do you know how much you have, and how much you need?

How to Calculate Working Capital

To determine how much working capital your business has, you can use this calculator. It calculates working capital by using four inputs – annual growth, current target ratio, total assets, and total liabilities. Annual growth refers to your expected annual growth for the next year, while the current target ratio is current assets divided by current liabilities. For most businesses, a ratio of around 2.0 is optimal.

There are a number of factors that influence how much working capital a business needs. For instance, seasonal businesses need more working capital to keep them afloat in the off-season and to meet the higher expenses that often occur during preparation for the peak season. When deciding how much working capital your business needs, consider your industry, growth rate, and fixed costs.

Working Capital Loans

So, now you know how much working capital you have, and how much you need. But where do you get it? Small businesses often need additional working capital to get through difficult periods. A working capital loan can help fill temporary funding holes and keep your business up and running. Working capital loans are designed specifically for small business owners who need short-term capital. These loans are often available through online lenders, and offer real advantages over traditional bank loans.

Working capital loans are generally easier to get approved, faster to get funded and more convenient to use, providing fast capital when you need it. Repayment periods tend to be shorter, months rather than years, as the loan is intended to get the business through a short-term cash flow problem.

Applying for a Working Capital Loan

When you apply for a working capital loan, lenders will consider several factors to determine if you qualify. Some banks will ask for your financial statements and a balance sheet, then they will check your business and personal credit scores, the length of time your company has been in business, and annual revenue.

Alternative lenders will not wholly rely on your credit reports instead they will review your actual business metrics and transactions in your accounts such as; bank, accounting software and credit card payment processors. You'll need to provide financial statements and a balance sheet.

Lenders vary in what businesses they prefer to lend to. Some will provide loans to businesses with credit scores below 500, as long as they are generating sufficient revenue or have been in business at least a year, while others require higher credit scores, greater revenue, and more years in operation.

Utilizing Working Capital

Now that you know how much working capital you have, you can think about the best way to use it to benefit your business. In addition to fixed costs, you can use working capital to build and improve your business. These monies can be used to pay for expensive equipment that often requires large upfront payments.

You can also fund your businesses expansion with new or remodeled office space, a second location, and other improvements are common. Also, you can expand your staff, hiring new staff and paying for their training. Every industry has its own best uses of working capital. Hair salons often invest in advertising campaigns while auto repair shops buy car accessories to sell and install in customer's vehicles.

Finally, working capital can provide a sense of security. With a generous cushion, you are prepared for any setback or unforeseen circumstance that may arise – which affect all small businesses. With sufficient capital on hand, you can rest easy, knowing that your business expenses can be met.

Image by jacqueline macou from Pixabay

About the Author:

Marsha Kelly sold her first business for more than a million dollars. She has shared hard-won experiences as a successful serial entrepreneur on ZenBusiness.com, where she also regularly posts business tips, ideas, and suggestions as well as product reviews for business readers. As a serial entrepreneur who has done “time” in corporate America, Marsha has learned what products and services work well in business today. You can learn from her experiences to build your business.

Whether you have a great new startup idea or a long-running business, you’ve probably come to one inevitable fork in the road: FINANCING.

It’s the extra capital you need to take your company to the next level, be it for funding resources, creating a new marketing budget, or securing a deal with an overseas manufacturer. Entrepreneurs in Connecticut know full well the challenges faced as its highly-competitive markets cater to some of the wealthiest income brackets in the country.

Small business owners face particularly unique challenges when it comes to financing—and trust me, I know all about these. I’m a serial entrepreneur who’s been through the wringer having started one of my companies from scratch, growing it, and eventually selling for $1,000,000.

One key financing lesson I’ve learned is that there are many options for entrepreneurs to choose from, each with their own advantages and disadvantages.

So let’s go over some of these finance choices—ranging from 401k rollovers to invoice financing and beyond—to discuss which one is right for you.

Financing Strategies for Startups

Small business startups are already enduring enough challenges—getting new customers, establishing a good reputation, and the list goes on.

Thankfully, there are a number of great ways to fund your business during its earliest stages.

SBA Bank Loans: One of the simplest and common routes to take is a bank loan, specifically through the Small Business Administration (SBA). The government has vested interests in ensuring a vibrant economy and, thus, has allocated a certain number of funds to help out startups. Just remember, you’ll still need a great credit score and significant security (like your home) to qualify.

Grants: Aside from this, there are also grants. Every year, countless private and public organizations offer grants to help innovative or helpful new technologies and services. By visiting www.grants.gov, you can browse many thousands of potential funding sources to give your startup that extra boost.

Crowdfunding: A somewhat unconventional yet burgeoning new option is crowdfunding. Thanks to the internet and websites like Indiegogo and Kickstarter, you can now receive hundreds, thousands, or even millions of dollars through the generous donations of thousands of people from around the world. Even better, since 2016, the JOBS Act loosened regulations so small businesses can promote their stocks for financing on these crowdfunding sites.

Seed Financing: Seed financing, either through startup incubators or some venture capital firms, provide another option. While firms specializing in venture capital generally do not invest in startups, there are exceptions, such as with Accel Partners. Similarly, startup incubators and accelerators are organizations that facilitate the needs of small businesses and can provide financing.

Friends and Family Investments: Sometimes, though, you can avoid the “official” routes and consider investments from family or friends. It may seem unconventional but it’s a totally viable option that could mutually benefit you and the partner. Indeed, securing funding from someone you know personally can actually boost your odds of being invested in from “official” investors, since it indicates your credibility and trustworthiness.

ROBS / 401(k): There's also ROBS, an often overlooked treasure trove in the form of your 401(k) retirement account, which you might have thought was strictly for use after 65 – but think again. I used my 401k to fund my startup business. Here's how I did it.

ROBS—Rollover for Business Startups—allows you to transfer the money from your 401(k) and use it to finance your business’ startup. In order to do this, you must follow these steps:

1. Create a C Corporation: turn your business into a C Corporation (others, such as LLCs or S-Corps, do not qualify).

2. Estabalish a 401(k) Within the Business: the company must have the capacity in place for these retirement securities.

3. Roll It Over: shift your current 401(k) into the new startup.

4. Regard Your Startup as an Asset: the rolled over 401(k) funds can be invested into assets.

5. Investment Becomes Capital: the newly-invested money into the C Corporation is now available as capital for financing.

The ROBS financing option for small businesses is a great one to consider when you need that extra lump sum of cash.

Although like all investments this approach could ultimately fail if your business fails, there are some upsides compared to traditional investment options. Specifically, the 401(k) funds are before-tax and no implications exist towards your credit history.

Financing For Established Businesses

If your company is already established, there are a number of specific financing options that could work for you.

These include invoice factoring and invoice financing (also known as accounts receivable financing). Although there are many similarities between these and their overall functions, specific differences exist that make them uniquely suited in certain scenarios.

Invoice Factoring

Invoice factoring basically allows you to sell outstanding invoices for cash. The invoices are essentially sold to a third-party entity, entering them into an exchange.

In general, you can enjoy roughly 80% of the advance immediately. Plus, you’ll no longer have to waste so much time hounding your clients for unfulfilled checks.

Invoice Financing

Invoice financing (also known as accounts receivable financing) works by selling your accounts receivable. In turn, those pending payments become cash that can be used for all types of business-related expenses.

Effectively, you are selling an asset, which is much different compared to purchasing a loan. Although some of the mechanics are similar, the key difference is that it doesn’t come with the baggage of “going into debt.”

Your customers and their reliable credit history essentially become an asset you can capitalize.

Companies like Fundbox, for example, offer invoice financing services . The process involves connecting with your business’ accounting software and then divvying up funds to you within your overall credit limit. Funds are generally transferred to you within 1 business day.

One of the key differences between invoice factoring and invoice financing is that in the latter, your company retains more control and privacy – something I know from personal experience. In contrast, the factoring route usually involves a more invasive third-party company that often contacts your clients about payments.

Other Alternatives

The internet has brought an unprecedented level of innovation and connectivity to the world. With this has come a broad new set of services, including within the realm of financing, referred to as Fintech.

Many reputable services online that offer reliable lines of credit to help fund your business needs. One of the great conveniences with these lines of credit is that they often come with exceptional terms such as to pay back loans within 6 or 12 months after drawing funds from your account. In other words, your full credit available amount remains in your account, but you are only required to pay it off after a period of time starting once the money is taken out.

Additionally, instead of paying interest on the credit, you only have to pay low monthly fees, ranging from 1% to 4%. Applications can be filled online and approvals can be done simply by connecting to your business’ accounting software, such as QuickBooks.

Aside from lines of credit, there is also working capital. As obvious a source of funding as this may seem, it is often overlooked amid the hectic day-to-day operations of a business. Working capital is based on a ratio of currents assets and current liabilities.

Within these variables exist the potential for short-term funding options that may not be immediately apparent yet could go a long way for sustaining your needs.

Conclusion

Financing is necessary for both startups and established businesses. The aforementioned options come with their own unique offerings that could be a perfect fit for your needs.

The 401(k) rollover plan is one of many startup funding options available to aspiring entrepreneurs. Alternatively, invoice financing or factoring can help find wealth within unpaid invoices. With lines of credit and working capital, you can discover even more nuanced business financing options.

As competitive as the business world can be, there are plenty of helpful financing solutions that can bolster your company when you need it most.

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About the Author:

Marsha Kelly sold her first business for more than a million dollars. She has shared hard-won experiences as a successful serial entrepreneur on ZenBusiness.com, where she also regularly posts business tips, ideas, and suggestions as well as product reviews for business readers. As a serial entrepreneur who has done “time” in corporate America, Marsha has learned what products and services work well in business today. You can learn from her experiences to build your business.

Listening is often more effective than talking for establishing rapport with employees.

A good manager must also be a good listener. When an employer listens to employees and demonstrates that they have heard and understood an employee's concerns, the employee feels more at ease and less anxious about the interview.

Developing good listening skills can be a major challenge, but there are some guidelines you can follow to hone your skills and learn to really hear what your staff are saying.

Learning the art of listening

The "art of listening" can be broken down into three main skill types, all of which are equally important:

• Selective Listening, which means hearing everything that is said but screening out all but the key points that are pertinent to the issue at hand, and reacting to them.

• Responsive Listening, which involves verbal and non-verbal acknowledgment (such as nodding) that what is being transmitted is, in fact, being received by the listener in non-judgmental fashion.

• Empathetic Listening, which involves communicating that you have internalized what has been said and that the message transmitted by the speaker is one now shared with the listener.

Your level of involvement in the conversation will greatly influence what the speaker chooses to say and to what extent they decide to open up to you. The more they feel they are being heard, the more likely they are to tell you what it is they really want to say.

There are several rules to follow if you want to learn to listen effectively:

1. Envision your mind as a clean slate.
2. Listen sincerely and earnestly.
3. Listen "naively", without prejudice.
4. Listen empathetically.
5. Keep your ego in check.

17 techniques to improve your listening skills

1. Shut up and listen. It is impossible to talk and listen simultaneously. Let the speaker have the floor.

2. Show genuine interest. While listening, you should convey a lively curiosity and concern to the speaker. This listening style will encourage the employee to speak freely. The open dialogue that follows should allow you to learn about their career aspirations, fears and doubts.

3. Focus on the speaker. Concentrate on what the employee is saying. Filter out background noise and distractions. Ensure that the meeting spot is relatively soundproof and that other people in the workplace cannot overhear what is being said.

4. Empathize with the employee. Each employee has their own problems, needs and concerns that they consider vital and personal. Put yourself in their shoes and try to see the workplace environment the same way they see it.

5. Make sure you understand. If you feel you don't fully understand something or feel you may have missed a point that the speaker was making, ask for clarification now before it catches you up later.

6. Hold your fire. Plan your response only after you are certain you have a complete picture of the employee's point of view. Don't jump to conclusions. A pause by the speaker – even a long pause – doesn't always mean that they have finished. Rather, it can signify a regrouping of thoughts in the person's mind before they carry on.

7. Watch the speaker's body language. Be attentive to the person's physical motions and gestures. Actions can impart as much information as words, and often are a better indicator of the speaker's frame of mind.

8. Listen for concepts, not just for words. Take a mental step back and try to visualize the larger picture instead of just picking up on isolated words and phrases in the person's dialogue.

9. Interject on occasion. An occasional "Yes, I see," or "I wasn't aware of that" shows the employee that you're tuned into their message. But don't overdo it, or you could come off sounding patronizing.

10. Block out your own concerns. Personal fears, worries, and problems of the listener can make focusing on the speaker's message difficult. It's not easy, but it is essential to check your personal concerns at the door.

11. Prepare in advance. Remarks and questions prepared in advance will free your mind to listen. Before the interview, write up a checklist of items you would like to discuss with the employee.

12. React to ideas, not to the person. Don't allow personal quirks and mannerisms of the speaker distract you from the content of their conversation. Focus on the issues at hand and try to overcome any emotional attitudes or prejudices you have.This can be difficult if the person is someone who often makes complaints about co-workers, is habitually absent from work or displays other characteristics that may make them difficult to work with. Those traits may be a symptom of work-related fears which your discussion may help to uncover and alleviate.

13. Don't anticipate the outcome. Avoid mentally jumping ahead of the speaker, anticipating where the conversation is going. Instead, sit back and let the speaker steer the discussion.

14. Take notes. Make notes of the important points of the conversation so you can refer back to them later.

15. Ask questions. Monitor your own attentiveness by asking questions to confirm that you have understood the employee's points. Asking questions will help you to distinguish valid concerns from internal fears and anxieties.

16. Listen to others as you would like to be listened to.

17. Ask others to rate your listening skills. Practice on a spouse, partner, family member, or work associate.

_{Image by Gerd Altmann from Pixabay}

Bill C-45 has passed the Senate. Once enacted, the Cannabis Act will make it legal to smoke pot in Canada, and to grow a limited quantity of personal marijuana (up to 4 plants) on your property.

And while pot growers, distributors and smokers are very happy about the legalization of marijuana, condo boards and landlords across the country are scrambling to deal with issues which will impact all residents in every multi-unit dwelling in Canada.

Potential risks and grounds for complaints

In most provinces and territories, condo boards and landlords have the legal authority to impose restrictions on smoking of any kind in common areas and exclusive use areas such as balconies or decks. They can also ban growing marijuana in individual units for health and safety reasons.

Regardless of whether a certain behaviour is legal, there are common interest factors at play, i.e. the risks that such behaviour may pose to the building and to other residents of the building. In the case of smoking and/or growing pot, these include:

• increased risk of fire and a resulting increase in insurance costs which affects all occupants;
• dangers of second-hand smoke;
• noxious smells;
• damage to the unit from moisture, which could result in mould and water damage to floors, walls and windows;
• increased costs for electricity and water in buildings where these are not separately metered.

Any one of these factors can create friction between residents, particularly in a condo or strata development where the residents are typically the property owners who are simply interested in protecting their own properties from hazard and damage. Regardless of whether you have the right to smoke within your unit or not, the smoke and the smell will travel through air vents and around doors and will inevitably end up invading other people's air space.

The steps condo boards can take

Condominiums that do not already have smoking restrictions in place can enact rules that ban smoking pot in areas that are commonly owned and from growing pot in their units. Many condominiums are opting to go completely smoke-free, although existing owners would be grandfathered.

Tenants in a condo unit are required to abide by the condo bylaws and the building rules, and the unit owners are obligated to make sure their tenants do so. 

However, the legal obligations of landlord and tenant are not so easy to interpret when it comes to rental buildings.

Are landlords left in the lurch?

There is a patchwork of provincial regulations across Canada when it comes to giving landlords the legal authority they need to establish smoke-free and grow-free rules for rental units. The table below outlines the current (as of June 2018) laws and proposed amendments to specifically address smoking and/or cultivation of recreational marijuana.

Accommodating the needs of medical marijuana users

The main stumbling block to enforcing compliance of the rules and bylaws put in place by landlords, property managers and condo boards will be whether or not they will apply to medical marijuana use and whether such restrictions might be a violation of a user's Charter rights.

In R. v. Smith (2015), the Supreme Court of Canada found while smoking medical marijuana exposes its users to carcinogenic chemicals and higher risks of bronchial disorders, it also provides quicker access to the medical benefits of cannabis. In light of that finding, any restriction against smoking must take into account the smoking of marijuana indoors by disabled individuals who are using cannabis for medical purposes and who find it difficult or impossible to go outside to smoke it. A medical marijuana user who cannot go outdoors to smoke without significant difficulty may need to be accommodated by the condominium corporation or the landlord, as the case may be.

Image by Ekaterina from Pixabay

Franchisees often look to their franchisor as a "parent figure" - a pillar of strength to lean upon and a chief source of advice, knowledge and creative inspiration. If you as a franchisor fail to live up to this larger-than-life image and do not provide sufficient advice and direction to your franchisees, they will feel they are being shortchanged on the basic services that they are paying for.

Encourage communication from franchisees through multiple channels.

As a franchisor, you can offer needed guidance to your franchisees through a structured communications program that is carefully coordinated and administered. Franchisees' questions and problems can be submitted through various channels to the program coordinator, who is charged with (i) routing them to the proper party for handling and (ii) following through on each request to ensure a satisfactory conclusion.

Ongoing communication is essential for this system to function. Communications methods can include:

1. Phone calls - a good place to start, as personal contact is the basis of effective communication.
2. Video conferencing.
3. Email and text messaging.
4. Snail mail - not as effective these days due to its inherent inability to meet expectations of speed and instant gratification.
5. In-person meetings.
6. Ongoing collaboration with and among franchisees.
7. Regional meetings and conventions.
8. Franchisee advisory councils.
9. Social networking.

Phone calls and video conferencing

A phone call is still one of the most effective tools for motivating, instructing, and guiding franchisees. It is your key resource for keeping in personal contact with them, through:

• pre-arranged phone meetings,
• cold calls (which can elicit a more honest, less rehearsed conversation),
• conference calls with several franchisees who have expressed similar concerns,
• video calls which provide a more personal face-to-face environment.

Email and snail mail

If you don't make regular written contact with your franchisees by email and regular mail, they may begin to feel stranded and isolated. They may experience lower morale, which could lead to a drop in performance and corresponding downturn in sales. Therefore it is important that a regular policy for mail and email contact be established which can include:

• regular newsletters with monthly or quarterly reports, Q&As, business tips, and items of interest;
• flash bulletins with important and timely news;
• personalized letters which reduce the distance and establish rapport between franchisor and franchisee;
• report forms to be completed and submitted by franchisees on a semi-regular basis.

In-person meetings

It is vital to establish one-on-one personal contact to further the franchisor-franchisee relationship. In-person meetings can help you achieve the following purposes:

• Troubleshooting issues that the franchisee is having with the system, with business goals, with marketing, etc.
• Sales support to help the franchisee achieve targets and grow the business.
• Service support to help ensure that the franchisee is providing the highest level of quality to customers.
• Training of staff and management.
• Overall guidance and direction.

Ongoing collaboration among franchisees

Inter-franchisee cooperation is an invaluable tool for strengthening the franchise system. If pre-existing behaviors or attitudes are hampering lines of communication between you and a franchisee, it can be difficult to achieve your desired results. That is when you want to enlist the aid of one or more successful franchisees to help out their peers who are struggling.

The "weaker" franchisee may be more willing to accept business coaching and assistance from a fellow franchisee with a proven track record. Cooperative pairings of this sort can be accomplished by setting up a "buddy system" where franchisees can seek advice from each other on specific topics, or can mentor each other to achieve certain goals.

Regional meetings and conventions

Conventions and regional meetings offer an exciting forum for communication between a franchisor and its franchisees. For franchisees, they offer an opportunity for discussing issues, problems and methods of operation. For the franchisor, conventions and regional meetings provide the means to present sales promotion programs, advertising campaigns, future developments and other important plans to a large number of franchisees at one time.

The motivational appeal of conventions is unmatched. It is therefore imperative that these types of meetings be properly planned and carefully executed to ensure that they fulfill their potential and meet the expectations of the participants.

Franchisee advisory councils

A franchisee advisory council gives franchisees a means of providing valuable feedback to the franchisor on how they believe the franchise system can be improved. The council asks franchisees for input which is then evaluated in terms of its applicability to the franchisee community as a whole. Suggestions for changes and improvements which will benefit all franchisees are then presented to the franchisor.

The franchisee advisory council gives all franchisees a change to not only make their concerns heard, but also to be a part of the decision-making process.

Social networking

Set up social media accounts to keep in touch with your franchisees and keep them up to date with the information, guidance, and resources that are important to their business. Social networks establish instant and ongoing communication with franchisees, area representatives and other members of your franchise team.

_{Image by Tumisu from Pixabay}

In a previous post, we discussed how developing a good questioning strategy can help franchise support representatives to solve franchisees' business problems. This article covers the next step - implementing a solution.

1. Determine the timeframe for implementing the agreed-upon solution.

Often franchisees will have predetermined expectations about how, and when, their support representative will help them implement a solution to a problem. These expectations are sometimes not realistic. It is therefore important to clearly define and understand the franchisee's timeline expectations by asking questions such as:

• "What is your anticipated time frame for implementation?"
• "Are there any other deadlines to take into account?"
• "Can the solution be implemented in stages?"
• "Have you ever undertaken anything like this before?"
• "If so, how long did it take?"
• "What process did you go through?"
• "How much preparation do you expect your employees will need in order to implement?"

2. Establish the criteria for determining if the solution has solved the problem.

Once the problem has been defined and a solution has been settled upon, the franchisee will probably be eager to develop a set of criteria for assessing the success of the proposed solution. Your role as a Franchise Support Representative is to assist in developing a set of reasonable criteria for evaluating the solution.

Some potential questions to ask when guiding franchisees are:

• "What do YOU think the criteria should be for assessing whether this solution is working?"
• "What indicators should we be looking at?"
• "Which of these criteria is MOST important to you?"
• "Is there general agreement on these criteria?"
• "How much of an improvement or increase are you looking for?"
• "How will you measure that improvement?"
• "What is the minimum benefit you realistically expect?"

3. Gauge the level of the franchisee's resistance to change.

In many cases, the solution envisioned by the franchise support representative and that envisioned by the franchisee can be quite different. You need to get a sense of what the franchisee expects and also of his/her adaptability to change. You can take the measure of the franchisee's flexibility to alternative solutions through questions such as:

• "What kind of options would you be willing to consider?"
• "If we come up with a different solution, how would you feel about that?"
• "How locked in are you / your employees to this type of solution?"
• "Is there any reason why you might not want to try that approach?"
• "How much of a change are you / your employees willing to accept?"

4. Know who the franchisee's decision makers are.

To gain a complete understanding of a given problem and of the process proposed to solve it, it's crucial to know who is responsible for making key decisions for the franchisee. You can determine this by asking questions such as:

• "Which people will have the most impact on this decision?"
• "How do they get along?"
• "Do you see any potential for conflict in this situation?"
• "Who needs to be kept informed of our progress?"

5. Determine internal and external conditions which could affect the success of the solution.

Decisions for change are often affected by internal and external conditions not directly related to the problem but which nevertheless have tremendous bearing on it. To find out what those conditions are, you could ask:

• "Are there any other changes going on in your franchise at the present time?" (or that have recently transpired)
• "Is the money for this program contingent on anything?"
• "Do you foresee any change in personnel in your organization that might affect your decision?"

6. Formulate an implementation plan.

After gathering all of your information and settling on a solution to the problem, the next step is to formulate a clear plan to implement it. Make sure that each player knows his/her role and is committed to it.

Every good plan entails three basic elements: goals, strategy, and schedule. Make sure your plan includes:

1. A clear statement of the goals to be reached,
2. A statement of the proposed methodology to reach those goals, including who has "ownership" of the various elements, as appropriate, and
3. A time frame for achieving the stated goals.

If you fail to develop a thorough implementation plan, there is little chance that your solution will be implemented.

Image by Pete Linforth from Pixabay

The end of a lawsuit – or any crisis, for that matter – can necessitate the question of how best to move on.

How to rebuild or manage your reputation going forward after a public embarrassment can be a significant challenge, and not just for major public figures like Martha Stewart or the heads of large companies like United Airlines.

While celebrities or other wealthy individuals can afford teams of professionals to help them navigate the obstacles of managing their image, the rest of us often need to find our own way – perhaps with the help of a trusted friend or family member. Here are five critical steps you can take to help you find your way through these troubled waters.

1. Avoid speaking publicly on the cause of the crisis.

Revisiting or rehashing the past is almost never beneficial. If you need a reason to help avoid the conversation, you might suggest that your preference for staying quiet is based on advice from legal counsel. Whenever the subject of your lawsuit or crisis does arise, be careful with what you say. You want to avoid appearing at all confrontational, or like you are trying to explain away or defend yourself or your actions. This may give the impression that you are making excuses, which will only reinforce any negative perceptions that people have about the incident.

2. Stay away from further sources of trouble or controversy.

This should go without saying, but moving forward you need to avoid any behavior that could get you into more (possibly worse) trouble. You will also want to avoid associating with anyone who might get themselves into trouble of their own and tarnish your reputation in the process.

Make sure to pay your bills in full and on time. The key here is to avoid any new crisis – financial, legal, or moral – that will remind people of your previous problems.

3. Get back to work as soon as possible.

Being productive is not only good for your psyche, but also for public perception. Work to regain your confidence, but be sure to avoid anything that could create a perception of being cocky. This can mean scaling back your ambitions – or public discussion of those ambitions at a minimum – and going quietly about your business. You should try to create or reinforce the perception of yourself as reliable, honest, hardworking and trustworthy.

4. Strive for an easy-going demeanor.

They say that the meek are destined to inherit the Earth. To effectively manage your reputation after a lawsuit, you want to avoid being too loud, overzealous, confrontational, or generally rambunctious. However, that does not mean you should strive to look like a push-over. Instead, let an air of quiet confidence and cautious optimism govern your behavior. Keep a level head, and avoid putting on airs.

5. Indulge in some philanthropy.

After a time, you may want to consider some small-scale philanthropic activities. Try to avoid undertaking anything that might call unwanted or excessive attention to yourself or your legal trouble. Be understated but helpful in your efforts. You may want to align yourself with a philanthropy that is somehow related to the subject of your litigation – if the role is a good fit. However, make sure that your involvement puts you on the right side of the issue, and be very careful not to look like you are only getting involved to help polish your image. The negative perception that might be generated by being seen to use a charity for personal gain will be greater than the positive impact of the philanthropy on your image.

Conclusion

No lawsuit or crisis is ever pleasant. Even though they may get our adrenaline running or force us to focus on efficiency, they are still extremely stressful and counterproductive. Even if we win or ultimately find ourselves vindicated, lawsuits still adversely affect public perceptions of us and our reputations. While there is some novelty found in our brief celebrity, it is quickly outlived and requires us to be far more cautious and purposeful in rehabilitating or shepherding our reputation. 

For those who represent substantial interests or find themselves in the public spotlight for the wrong reasons, it can be helpful to surround themselves with professional teams to help manage their reputation after a lawsuit or other crisis. However, whether efforts are being coordinated by paid professionals or just with the help of a friend or family member, the points listed above should serve as guideposts to help rekindle a tarnished reputation or otherwise return to productivity and put the past behind us.

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About the Author:

A Suffolk native, Sara Waterson has been writing for Net Lawman after graduating at the top of her class at the University of Nottingham. She is passionate about law and seeks to educate her readers to the best of her ability. In her spare time, Sara loves to spend time walking in the local countryside with her partner and two dogs.