Making It Legal:

A worldy-wise business guru once wrote:

A business partnership is about two things: partnership and business. Women entrepreneurs look to partnerships for the relationship benefits, not the monetary benefits. As a result, they don’t focus sufficiently on the business (money) considerations.

Smart or just cynical?
(A clue: I wrote it–see my blogpost featured on The Huffington Post).

Franchises can be an attractive way to start a business. There’s already a system in place; you know (if you’ve done your due diligence) it’s a proven, profitable model; and the franchisor provides you with ready resources.

But “fools rush in where angels fear to tread,” said English poet Alexander Pope. And franchises can be a particularly thorny business model if you don’t investigate them carefully. They are subject to a lot of regulations, and the fine print (you know, that microscopic text filled with legalese) will hurt you if you are not aware of its provisions. As Iowa business attorney Rush Nigut points out in his post on franchises, “Four Things That Make You Go Hmmm . . . ,” there are some red flags that should make you not only think twice about investing in a particular franchise, but stop in your tracks, turn 180 degrees, and walk the other way. Read on to find out that they are!

A few years ago, there was a short-lived TV show called “Kids Say the Darndest Things�.  Well, in a similar vein, people bring lawsuits for the darndest reasons . . . which is why entrepreneurs are well-advised to protect themselves legally.   

But rather than get on my soapbox about protection, for today, let’s have a giggle about the stupid reasons that people sue other companies.  As reported in the Southeast Texas Record, here are a few gems making their way through court systems around the world:

• A judge sues a dry cleaner establishment for $54 million for misplacing a pair of pants 
• A woman sues a candy company for making a chewy candy . . . chewy
• A man sues to raise the speed limit after getting too many traffic tickets 
• In the Netherlands, a woman sued for emotional trauma from having lost the lottery. 

Read on for more . . .  !

Threats to our business can take many forms:  natural disasters, like tropical storms, earthquakes, tornadoes, fire, or flood.  There are outside threats, like terrorism . . . or a sagging economy.  They are difficult enough to weather.  More insidious are the threats that we invite into our business with open, and unsuspecting, arms. 

Employees, visitors, vendors, clients – we welcome all of them into our premises.  If we’re not careful, they can cause some of the greatest damage to our network.  Check out this article, 20 Ways to Avoid Risk (part 3 of the series), from Computer Freedom to learn easy steps to protect your network and ensure you continue to get a good night’s sleep!

As a lawyer, I love what I do.  I’m proud of how I do it.   

And sometimes, I hear about members of my profession who just make me want to spit.  On them. 

From the Annals of the Preposterous, here’s a story which, if true (I have not personally verified the pleadings) is an appalling addition to the “lawyers are [expletive]� files.  I can’t imagine what would possess a judge to bring such a lawsuit against a dry cleaner.  Nor can I explain why, after two years, this wasn’t laughed out of court long ago.  Nor can I possibly fathom how a pair of pants (and the ensuing distress at losing them) could be worth $65 million, consumer protection laws notwithstanding.  (That must be some tailor!).   

So this is a plea.  As Grace Kanoy reported, The American Association for Justice has taken action on this case.  But remember:  you hear these stories precisely because they happen relatively seldom.  That’s why it’s called “news�.  This is one meshugge apple among hundreds of thousands of decent, hard-working, caring people involved in the legal and justice systems.  And on behalf of the legal profession, I’m sorry. 

. . . it probably is.   Don’t you remember your mother telling you, “Don’t buy a pig in a poke?� when you wanted to plunk down large sums of money for a major purchase without perusing Consumer Reports®?  She wanted you to be sure that that stereo (or car or refrigerator) was good quality, long-lasting, solidly-built, and from a reputable company.  It’s sound advice. 

Unfortunately, we often ignore that advice when we spot a mouth-watering business opportunity that promises phenomenal cash flow.  Whether we have our own businesses or are looking to invest in another’s, the potential for big bucks often acts like a “Greedy Switch,� turning off the light of Common Sense.  Images of big piles of money dance in our heads, as does all that the money can do for us:  amply provide for our families, secure our retirement, support important causes to better the world, help others in need.  We forget to check the Consumer Reports® and do the due diligence we should on the business and the partners involved.  And sometimes, at enormous personal cost to ourselves and our own companies. 

Here, as a cautionary tale, is the story of Marilyn Miglin, a Chicago-based cosmetics maven.  As the Chicago Tribune reported, Ms. Miglin invested $2.5 million to market a newly-invested needle that treated spider veins.  You would think that, having built up such a substantial enterprise that she could freely part with $2.5 million, she’d have done a little more checking into the background of her business partner, reputed con artist James Joseph Mellon.  But perhaps the deal seemed solid.  After all, Miglin was in the beauty industry.  And, presumably, she had tried out this product.  The details of the story are sketchy as to why she was facing a $16.8 million judgment against her.  But the end result is that after all her years of hard work and entrepreneurship, she was forced to declare personal bankruptcy at age 68.   

“I believed so strongly in the promise of this needle to help both women and men, I followed my heart instead of the advice of my family and my advisors,” said Miglin. “That was my mistake.”