Youth awards

THE Soroptimist Club of North and West Vancouver sponsors a Youth Citizenship Awards program. Left to right (rear) at Cheers

‘Restaurant are

‘Arlene Wright,

president of the ; North Shore chap-

ter, and Women’s

Opportunity Award

winners Keily

Mullin, Virginia

Cardon and 1. Jennifer Upper.

“1 Front left to right are citizenship award recipients Zaman Valii-

-| Hashan, Soraya --

‘Jamal and Miles ,

Walker. :

NEWS photo Paul McGrath

great way to Start business

Janice Mucalov, LL.B. Contributing Columnist

MCDONALD’S; Midas Muffler; Boston Pizza; Japan Camera: over 60,090 fast food eateries, fitness facili- ties, auto shops, conve- sience stores and other franchised outlets com- pete for our attention in Canada.

Half of ali our retail and service dollars are spent at franchises.

Franchising is a booming phenomenon. Ifyou start a new business as a franchise, you have an 80% chance of success, but an 80% chance of failure within five years if you start a business on your own, Should you jump on the franchise bandwagon too?

Franchising is simply a way to distribute products and services.

Typically, the franchisee pays a fee and ongoing royal- ties to the franchisor who. sclis a complete package for starting and running the business.

The package might include the business name {McDonaid’s), business man- uals, trademarks and logos (*McDanald’s Arch Deluxe” hamburgers}, employee uni- forms, trade secrets, tech- niques and procedures (how many slices of tomato to put in your bun), accounting sys- tems, etc.

Running a business as a franchised outlet appeals Most to More conservative business entrepreneurs.

If you're the creative or innovative type, you might find a franchise imposes too

. many restrictions on the way

you must conduct business.

For example, the fran- chisor of a “Schnitzel Baron restaurant in Matsqui got a court order preventing the franchisee, who was trying to improve profitabi from selling “Deep Fried ‘crogies with Sourcream & Union,” “Octobertest Sausage on a Buttered Pun” and other menu items that weren’t authorized by the franchisor.

Still, the benefits may outweigh the disadvantages, for both parties.

‘The franchisee gets the

"

Operating systems.

The franchisor gets to. rapidly expand his business without investing too much . capital. His downside is that : he can’t fire the franchisee as ° readily as he can an employ: ce, because the franchisee is an independent business per-~: son, °

If you're the franchisee, check carefully the expected profitability of the proposed

ler. Speak with any exis franchisees or. visit their

Is there real goodwill or recognition associated with the franchise name? A hit product in Ontario may be unknown in B.C.

The franchise agreement is the legal contract that details your. rights and oblig- ations.

Usually, it covers the: length of time the franchise will continue, the franchise territory (c.g., all of Vancouver or just tive blocks on Robson Street), any train- ing the franchisor is to pro- vide, the hours and days of operation of the business, : the product or service, pay- ment of advertising fees and_ other such matters. :

Your fawyer will review with you the commitments you have to make. Do you have to buy all your burger buns from ‘the franchisor?

If so, you may nor get the” best deal in town. Standard franchise agreements are generally very one-sided and favor the franchisor. :

Rut your lawyer may be able to negotiate specific. . changes that suit you better.

A franchise can be a great”

way fo start a business. But: ~

it’s critical you know exactly - what you're getting before you start slinging those burgers.

— This column is written ..;

with the assistance of the

North Vancouver law firm of Ratcliff & Company, Suite + 500, 221 West Esplanade, 988-5201. The column pro-

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