3 Things You Should Know About Small Business: Feb. 3
NEW YORK (MainStreet) -- What's happening in small business today?
1. What happens when a franchise contract ends? Even before the first hamburger is sold or the first elderly patient cared for, franchise owners should already be thinking -- and prepared for what happens if and when their contract ends. Franchise and trademark lawyer Jeff Fabian shares some of the biggest concerns from the result of a contract termination.
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Franchisors spend a lot of money to develop and protect their brands, so if the contract ends there is no question they will make sure no one is using their brand illegally. "Most franchise agreements require immediate de-branding following termination of the franchise contract," including removing signage, changing paint colors and ceasing social media activity as a representative of the company, Fabian writes.
The parent company will likely come after phone numbers and client lists and enact noncompete provisions. Franchisees should be sure to negotiate upfront reasonable post-termination rights, Fabian says.
2. 3 NFL start-ups.We've already seen how franchise ownership appeals to current and former NFL players, but Entrepreneur shares three more stories of successful start-ups : a former Philadelphia Eagles player who started an online ad marketplace; two former Tampa Bay Buccaneers players who created a mobile app that lets listeners hear short audio clips from their favorite NFL players; and a former New England Patriots and an ex-New York Jets player who started a quick-serve crepes franchise.
And don't forget to view our story on an ex-Carolina Panther shaking up the doggy day care world.
3. Small firms want more from Obama's manufacturing initiative. President Barack Obama's renewed push to strengthen U.S. manufacturing is meeting some resistance in the small-business sector.
Some small-business owners are reluctant to bring their manufacturing to U.S. soil.
One business owners tells CNNMoney that the U.S. does not have the manufacturing infrastructure to support his company's needs. Rather it's Taiwan that can provide a source for mass-produced parts at a reasonable cost for his company SawStop, which makes safety mechanisms for saws.
"The only option we had as a small business with limited resources was to go overseas where there was an existing vendor base to do that," owner Stephen Gass says.
-- Written by Laurie Kulikowski in New York.
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