Texas Health Spa Act Security Exemptions

By | Business Contracts, Business Lawyer | No Comments

texas health spa act security exemptionsMany gym owners in the Lone Star State have to post security with the Secretary of State because of the state’s Health Spa Act. It’s common to post a $20K to $50K surety bond to meet this security requirement. However, there are two Texas Health Spa Act security exemptions that could save you money.

1. Short-Term Contract & Small Payment Exemption

You may be eligible for this exemption if…

A. Your gym contracts are 31 days or less in length;
B. Members don’t sign a note or retail installment agreement;
C. Members don’t authorize you to repeatedly draw membership fees from their bank accounts;
D. You don’t require members to pay initiation fees; and
E. Members prepay for 31 days or less.

This exemption is rare because most Texas gym business models do not fit these criteria.

2. Financially Stable Gym Exemption

You may be eligible for this exemption if…

A. Your gym has $50,000 or more in assets;
B. Your gym has been in business for at least five years without changing ownership/management; and
C. A member hasn’t filed a complaint with the state government that alleges you closed a gym or failed to open a gym.

This exemption is common for Texas gyms that have been in business for five years or more.

Do You Qualify For Texas Health Spa Act Security Exemptions?

If you need help obtaining a security exemption or other compliance with the Texas Health Spa Act, set up a phone consultation with Texas Business Lawyer Mike Young.

Need A Texas Lawyer For A Business Startup?

By | Business Contracts, Business Lawyer | No Comments

lawyer for a business startupWhen you’re planning to set up a new venture in Texas, one of the first tasks is selecting the right lawyer for a business startup.

This begs the question: how do you choose the right business lawyer for your new company?

Eliminate Unqualified Lawyers

It’s fairly easy to get winnow the field of potential attorneys by eliminating from consideration any that practice areas of law unrelated to your venture.

For example, criminal defense attorneys and personal injury lawyers are not particularly suited for representing clients in business transactions.

Even worse is the attorney who claims to practice a half dozen unrelated areas of law because that “professional” is a jack of all trades and a master of none. At best, you’ll get mediocre representation.

You may also want to exclude novice attorneys. While a recent law school graduate may seem eager to help you, you’ll be paying for the lack of real-world knowledge and experience — in time, money, and the quality of advice you receive.

Additional Factors To Consider When Retaining Business Legal Counsel

Once you’ve eliminated the above prospects from consideration, it’s time to narrow the field further.

When looking at business attorneys, consider what type of commercial law they practice. For example, if you plan to spend a lot of time in lawsuits – as either a plaintiff or defendant – then a business litigator should be considered. Trial lawyers who understand business law will be invaluable in protecting your interests if your startup is in court frequently.

However, most Texas new ventures need an experienced transactional lawyer…an attorney who will set up the right type of entity to protect your interests, give you legal advice as-needed, and prepare the contracts you’ll need to conduct business with suppliers, customers, etc.

Related Article – 7 Keys To Picking The Right Internet Lawyer For Your Business

Of course, because of the importance of e-commerce, you should consider the attorney’s experience in representing companies both offline and online. A new attorney may be tech savvy but lack the legal knowledge. On the other hand, a business lawyer who has been practicing 50 years has a wealth of experience but probably knows very little about e-commerce law.

What’s The Next Step In Finding A Texas Lawyer For A Business Startup?

Take a look at Texas Business Lawyer Mike Young’s bio. Then, if you want to see if he’s a good fit for representing your company, click here to use our online booking system or call 214-546-4247 today to set up a phone consultation with him.

Software Development Protection: What You Need To Know

By | Software Agreements, Software Lawyer | No Comments

software development protectionWhether you’re a developer or a business that hires/contracts with developers, you’re concerned about software development protection from a legal standpoint. You want to make sure the project goes right, i.e. you get what you bargained for out of the deal.

If you’re a developer, you primarily want to get paid. If you’re the customer, you want the software to be delivered on time, and perform as promised.

Of course, both developer and client are concerned about their respective intellectual property rights (copyrights, licensing, etc.).

Software Development Protection Resources

Here are 11 articles covering various aspects of software development legal issues you’ll want to check out before entering into software agreements.

  1. 4 Keys To Successful Software Development Agreements
  2. Common Belief About Software Development Is Actually A Total Myth
  3. How To Modify A Software Development Agreement
  4. Mobile App Development Contract: Why It’s Important To Have One
  5. Software Developer Nondisclosure Agreement: 5 Issues to Cover
  6. Software Development Agreement – Who Really Owns The Intellectual Property?
  7. Software Development Master Services Agreement: When To Use One
  8. Software Development: Who Really Owns A New App?
  9. Software Development Work Orders: What You Need To Know
  10. Software Development Agreement Template: Save Time, Money & Protect Yourself
  11. The Ugly Truth About Software Development

Where To Get Help With Software Development Legal Protection

If you need legal help with software development agreements or other software contracts, you’ll want to schedule a phone consultation with Software Lawyer Mike Young today.

How To License An App: 17 Software Application Licensing Resources

By | Software Agreements, Software Lawyer | No Comments

how to license an app - software licensingDo you want to learn how to license an app? Did you know that there are different types of software licenses?

Because there isn’t a one-size-fits-all license for all software applications or intended uses for the apps.

For example, a software-as-a-service (SaaS) license will be different than a mobile app license. Similarly, a software beta testing license will contain different terms and conditions than an end user license agreement (EULA) for a released application.

17 Resources To Help You Learn How To License An App

  1. What Is A Software Agreement?
  2. Software Contract: How To Pick The Right One
  3. 4 Things You Should Know About SaaS Agreements
  4. Can Your Software Licensor Compete Against You?
  5. Do You Make This Software Beta Testing Mistake?
  6. EULA: 7 Key Parts Of A Software End User License Agreement
  7. How To Protect Yourself With A Mobile App License Agreement
  8. How To Use A Software Evaluation Agreement
  9. Is Your Software Evaluation License Giving Away The Farm?
  10. SaaS License Agreement Is Not The Same As A Downloadable App’s EULA
  11. SaaS License Agreement: Software As A Service FAQs
  12. Software Licensing Agreements
  13. Software Licensing Agreement Legal Issues Involving Dishonesty
  14. Software Resale License Agreement: What You Need To Know
  15. 10 Keys To A Successful International Software Distribution Agreement
  16. What to Include in a Software Beta Testing Agreement
  17. Licensing Your Software On Your Own Terms Through A Click-Wrap Software License Agreement

Do You Need Help With Software Licensing?

If you want an app license or other software agreements, set up a phone consultation with Software Lawyer Mike Young today. He’s the author of “Software Licensing Agreements – What You Need To Know About Software Licenses.”

7 Keys To Buying An Online Business

By | Website Lawyer, Website Legal Documents | No Comments

couple buying an online businessAre you interested in buying an online business? Before making the final decision to purchase an Internet venture, knowing as much as possible about the company to be acquired can help set you up for success after the papers are signed.

Here are seven important factors to consider as part of your pre-acquisition due diligence…

1. Internet Businesses Are Not Just About The Website

Buying an online business means looking deeply into the metrics and data provided by the seller to tell you more about how the company operates and its current sources of revenue.

As the prospective purchaser, the seller must be prepared to ask your difficult questions regarding sources of site traffic, revenues, expenses, vendor relationships, labor relations (employees and independent contractors), etc.

2. The Importance Of Non-Competition Agreements

Although the seller of a business often wants to move on to retirement or an unrelated venture, don’t assume this is the case.

Instead, you’ll want to use non-competition agreements to ensure the seller(s) and key employees don’t walk away and use their insider knowledge to directly or indirectly compete against the company you’re buying.

3. Verify Guarantees And Potential Liabilities

Products and services offered in the past by the seller should be carefully reviewed when thinking about buying an online business. As part of this due diligence, check out old versions of the company’s website(s) from the owner (e.g. Wayback Machine).

Why is this important? Because the seller may have made commitments that you could be on the hook for if you buy the company.

For example, the seller might have offered lifetime guarantees on a product or service. Customer claims could come back to haunt you as the new owner. There are ways that an experienced Internet business attorney can eliminate or limit your potential liability exposure for such hidden liabilities.

4. Beware Of Access Issues

Although you’ll want to make certain every password is changed when you’re buying an online business, there’s more than that involved for internal security and website legal protection.

For example, you’ll want to limit internal access to essential personnel. And if there’s been custom coding, you’ll want to make sure that the developers didn’t leave any hidden back doors to access the company’s site(s) post-purchase.

5. Check Out Merchant Bank Requirements

If you already have a business (online or offline), you may already have a merchant bank that processes credit cards. You should see what additional requirements (if any) need to be met to use the same processor for the acquired venture. However, if you’re planning to use the same merchant bank as the seller, you should see what you’ll need to do to make that happen. Will the bank require personal guarantees? What about transaction fees? These costs can be important, particularly when profit margins on products/services are small.

6. Decide If You Need A Business Valuation Expert

For many acquisitions of Internet ventures, a business valuation expert isn’t retained. There are common methods of valuing such a company without paying for an expert to do it. You can discuss these with your Internet attorney and/or CPA. And, let’s face it, the market value at time of purchase is what a buyer is willing to pay.

However, it may make sense in some instances to hire a business valuation expert, particularly if you’re paying seven or eight figures for the company. The data supplied by the expert can be used for negotiating a better deal.

7. Check Out The Seller’s Email Marketing

If email marketing is integral to the online business, you will want to know how and when the seller acquired the names and email addresses on the company’s lists. This will help you avoid legal liability for unsolicited commercial email (spam) and determine monetary value of such lists based on a variety of factors (e.g. prospect v. customer, freshness, open rates, etc.).

In addition, you’ll need to determine the portability of the lists to you as the purchaser. For example, in some asset purchases, a third party autoresponder service will not transfer the lists to a new owner. On the other hand, if the selling entity’s equity is acquired (instead of the business assets), then the autoresponder service will likely let you continue to market to the lists because the entity purchased still owns the lists.

Do You Need Legal Help Buying An Online Business?

If you are serious about purchasing an Internet venture, it’s probably time to speak with an experienced online business attorney. You can schedule a phone consultation with Internet Lawyer Mike Young using our online booking system or by calling 214-546-4247.