License Your Business System For Extra Income

By | Business Contracts, Business Lawyer | No Comments

When you’ve got a proven system for running a profitable company, it often makes sense to license that business system to others.

One of the most popular methods of doing this is to license geographically to third parties who won’t directly compete with you. Depending upon the size of your customer market, that can mean a different city, county, state/province, or even another country.

From a financial standpoint, this can be structured a variety of ways. For example, it could be a single flat fee up front, an annual license fee, a percentage of the licensee’s revenues, or a hybrid combination.

It’s important to note that licensing your business system the same thing as franchising. Chances are your licensee with be operating under a different business name and have a lot more flexibility on how to run a similar business.

With franchising, on the other hand, the franchisee is using the same business name and you as the franchisor have a lot of control over how the franchisee runs the business. And there are alot more laws and regulations you have to comply with when franchising.

If you need legal help licensing your business system, set up a phone consultation with Business Attorney Mike Young.

Texas Gym Month-To-Month Memberships

By | Business Lawyer | No Comments

Should your Texas gym only offer month-to-month memberships? Or should you include longer terms (e.g., one-year gym memberships)?

As a practical matter, this is more of a business judgment decision than a legal issue. However, it’s probably one of the most important ones you’ll make.

Here’s why…

When the COVID-19 coronavirus lockdowns hit, per Texas Governor Greg Abbott’s executive orders, many of the gyms that only had month-to-month members closed permanently. Because few of their members returned after the restrictions were lifted.

In many cases, less then 10% returned. And you can’t pay the rent, let alone make a profit, with so few gym members showing up.

Although month-to-month members can play an important source of recurring income to your gym, as a practical matter, those who initially commit to a longer-term membership agreement show greater loyalty. Even if their contracts convert to monthly after an annual term, they’re likely to stick around.

There are many reasons for this, including friendships built with the gym owner, staff, and other members…plus a sense of community.

Of course, you have legal issues that also have to be handled. For example, compliance with the Texas Health Spa Act and the state’s biometrics law. That’s in addition to reducing liability exposure for personal injuries.

If you need help with your Texas gym membership contracts, liability waivers, and other gym legal docs (e.g., trainer agreements), it’s time to schedule a phone consultation with Business Lawyer Mike Young.

Do You Need To Replace Your Customer Testimonials?

By | Internet Lawyer, Website Lawyer | No Comments

Just because you received a great customer testimonial doesn’t mean you should be using it forever to promote your business.

Sometimes a testimonial becomes stale because circumstances have changed.

For example, the claims the customer made in the testimonial are no longer true.

Or the product/service you sold the customer is no longer effective because of new technology or some other intervening factor.

Now if a testimonial becomes stale, it could become a fraudulent or deceptive marketing practice to continue using it.

So, what’s the solution?

Review your customer testimonials at least once a year to see if they’re still fresh or have gotten stale.

If there is something wrong, the first thing to decide is whether the testimonial can be salvaged by updating it.

Of course, if this is the case, contact the customer and ask them to modify the testimonial so that it’s accurate today.

Naturally, if you can’t salvage the testimonial, you’ll want to get rid of it. If feasible, request that the customer provide a new testimonial and explain why it’s necessary to replace the old one.

Customer testimonials is just one of many issues analyzed by Internet Business Lawyer Mike Young when he performs a website legal compliance review to help protect clients from civil lawsuits and government investigations.

When Should Your Texas Gym Get A Waiver & Release Of Liability Signed?

By | Business Contracts, Business Lawyer | No Comments

Many Texas gym owners mistakenly believe that it’s unimportant when a Waiver & Release of Liability form is signed as long as eventually it gets done.

However, that’s simply not the case if you want to prevent expensive and time-consuming lawsuits.

Before a guest or member uses your facilities, he should sign a waiver and release.

What if the guest or member is under the age of 18? You’ll want a parent or legal guardian to sign the waiver and release on behalf of the child.

Don’t jeopardize your Texas gym by procrastinating on this issue. Because you don’t want to get financially destroyed in a personal injury or wrongful death lawsuit by someone who didn’t assume the risks of working out in your gym.

Of course, there are other things you should do to reduce your liability exposure. This includes complying with the state’s health spa act and biometrics law.

To learn more about protecting your Texas gym, click here.

Where Should Software Development Disputes Be Resolved?

By | Software Agreements, Software Lawyer | No Comments

Whether you’re a software developer or the client who’s paying for an app to be created, it’s important to put into place a dispute resolution plan that protects you if things go wrong.

Now if the issue is intellectual property (IP) infringment, you’ll want the right to head to court and get injunctive relief to minimize the damage caused by the infringement.

However most disputes between developer and client are about performance issues instead of IP infringement. For these issues, ideally, you’ll want to have an alternative dispute resolution (ADR) plan in place before work begins.

If you’re based in the United States, an ADR plan might include:

1. Informal resolution between the parties;

2. Mediation (online or in person); and

3. Binding arbitration using the American Arbitration Association or JAMS.

Of course, choice of law and the location ADR takes place are important factors too, particularly if the developer and client are based in different cities, states, or countries.

Naturally, dispute resolution and other important legal issues can be properly addressed by an experienced software lawyer who prepares your software development agreement.