For Bally Total Fitness, Timing Is Everything in Franchising Decision
August 31, 2006
Bally Total Fitness is one of the most recognized brands in the U.S. fitness industry and the largest purchaser of fitness equipment in the country. The company spends $55 million annually on marketing and media support, and it offers the power of more than 40 years of business success and 20,000 employees that make the company strong ' all key components to a successful and highly sought-after franchising program. So why hasn't Bally implemented a national franchising program?
Vietnam's New Franchise Law: Momentum for Country Experiencing Strong Consumer Demand Growth
August 31, 2006
Franchising is a relatively new but rapidly developing strategy in Vietnam. Although there are currently few business franchise systems based on the traditional Western model currently operating in Vietnam, there is an increasing presence of established international franchise systems currently operating through company-owned and-managed outlets and increasing numbers of local systems, albeit at an early 'product distribution' evolutionary stage. The commercial environment for franchising is increasingly favorable: Vietnam is the fastest-growing Asian economy after China and India, and it is experiencing strong GDP growth and annual retail growth of more than 20%. There is a steady rise in disposable income, an emerging new consumer class, and increasing brand consciousness.
Legal Technology Training Needs New Approach
August 31, 2006
Software trainers find the need for computer training never-ending. In many firms, including law firms that advise e-commerce counsel, training programs abound, but users don't seem to be gaining ground fast enough to master the array of desktop applications.
The Stock Option Grant Issue
August 31, 2006
Just as everyone involved with executive compensation matters was settling in to address the impact of the new accounting rules under FAS 123R, the requirements of the stock exchanges, the deferred compensation rules under Internal Revenue Code (IRC) section 409A, the new Securities Exchange Commission's (SEC) proxy rules and the proper balance between adequate executive compensation and good governance, a new jolt came into play in the executive compensation arena.
Law Firms Look At Closing Pay Systems
August 31, 2006
Unlike the vast majority of businesses in the United States, law firms generally operate under open systems that disclose the compensation of individual attorneys. The closed systems at Jones Day and Greenberg Traurig are major exceptions. But some observers say that law firms are moving toward closed systems as they function more like businesses and less like true partnerships.
The Prudent Investor Rule
August 31, 2006
The Prudent Investor Rule sets forth the basic rules governing the conduct of fiduciaries in the management of trust assets. While the legal standards for investment fiduciaries can be traced as far back as an 1830 Massachusetts court case creating the redecessor 'Prudent Man' standard, the Prudent Investor Rule is of much more recent origin.
Focus Groups
August 31, 2006
You have a big trial looming; let's say an infant death or quadriplegia case. You think the medicine is sound, your experts are comfortable with their positions and the client wants to go forward. At the same time, the injuries to the plaintiff are substantial. Do you 'roll the dice' with a jury, or do you settle for a 'reasonable amount'? This is the dilemma faced by medical malpractice lawyers every day, and the decisions required here are not easily made.
Product Liability Insurance: Can You Not Have It?
August 31, 2006
Today's economy depends heavily on the enormous range of products that are sold daily to consumers. Indeed, consumer demand for both the necessities and conveniences of life ' everything from lawn mowers and ovens to trampolines and espresso makers ' drives many manufacturers constantly to develop new products to sell. In today's litigious society, however, virtually every product sold represents at least the potential for product liability exposure. Jury awards and settlements frequently make headlines ' everyday household appliances, such as coffee makers, fryers, and blenders, have yielded damage awards or settlements as high as $2.25 million. Injuries from lawn mowers have generated awards or settlements as high as $2.6 million. Even furniture has the potential to yield awards or settlements in excess of a million dollars. Moreover, product liability exposure has ruined certain industries, <i>eg</i>, asbestos, and small companies without adequate insurance protection could face bankruptcy from a single product recall.
Liability Without Harm: Is There a New Source of Catastrophic Liability Lurking Within Your State's Consumer Protection Statute?
August 31, 2006
The $10.1 billion judgment entered against Philip Morris in an Illinois state court in 2003 received national attention, as did the reversal of that judgment in December 2005. <i>Price v. Philip Morris Inc.</i>, No. 00-L-112 (Ill. Cir. Ct. March 21, 2003), <i>rev'd</i>, No. 96236 (Ill. Sup. Ct. Dec. 15, 2005). Less well known, however, is the theory under which the plaintiffs won their judgment at trial. Unlike the plaintiffs in some other large tobacco verdicts, the plaintiffs in Price did not claim personal injury or wrongful death. Instead, the plaintiffs alleged that Philip Morris deceived them into believing that 'light' cigarettes were safe and caused an entire class of people to pay more for the cigarettes than they should have.
Opportunities for Landlord Abound When Tenant Exercises Renewal Option
August 30, 2006
When a tenant exercises an option to renew its lease, the landlord's usual inclination is to save time and effort by treating the tenant's notice letter as sufficient to accomplish the renewal. This inclination should be strongly resisted ' not only because such a notice may be inadequate, but also because the landlord may be missing out on an opportunity to update the original lease and often improve upon the existing documentation. This is especially true where the renewal is at 'market,' which offers the landlord the possibility to argue that certain changes are necessary to conform to market conditions.
