#you may apply for a veterans discount if you remember i used to write on here
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my goal for the year is to write, draw, and read more đ
#and hopefully post some writing#you may apply for a veterans discount if you remember i used to write on here#i would like to draw others ships as gifts#i think thatâs so nice seeing other mutuals do it#and seeing how happy ppl get#but i donât want to just keep saying im going to do something#and i want to execute the idea#i have so many mutuals references saved#i should make a folder#risuâs rambles â
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A Code of Conduct for a Smuggler Ship
This is a world-building piece I'm using in my own fan fic. Â Our smugglers, pirates, rogues, and other non-aligned/independent ships do have rules and codes of conduct. Â They wouldn't live by Imperial/Republic/Federation/Klingon/Fleet rules. Â Whether in space or on the sea, they still have to co-exist with their crewmates and captain. Â This is mostly compiled from historical pirate codes, Gibbs from NCIS (it works), and other real-life incidents.
This is crossposted to AO3.Â
Code of Conduct for Virtueâs Thief, under the command of
Captain Eva Corolastor
1.      The Captainâs responsibility is to the ship.  The ship is the crew, and the crew is the ship.  The Captain is to save the ship at any cost, including her own.
2.     The Captain is the first and final authority on Virtueâs Thief.
3.     Never screw over your Captain or your crewmates.
4.     All profit is disbursed evenly after the ship receives its share for maintenance. Private gambling, inheritance, and profits do not apply here.
5.     If someone is permanently injured, maimed or disabled in the service of Virtueâs Thief or her captain, they are to be pensioned off for the duration of their lives.
6.     The crew is entitled to a discount for services at the Captainâs discretion.
7.     Police your brass and cover your ass. Â
8.     Just because youâre paranoid doesnât mean youâre wrong.
9.     Always announce your entrance into the cockpit or the Captainâs quarters; she is armed.
10. Always carry a knife.
11. Never drink the last of anything.
12. No pets.
13. No children.
14. Nobody talks about VATs [Very Awful Thing(s)].
15. Blood stays in the cargo bay; do not track it around the ship.  Remove your boots as needed.
16. No fighting on the ship; settle your differences planetside.
17. No sleeping naked.
18. No shagging in the ship (exceptions to be granted by the Captain).
19. All crew members will carry spare clean underwear in a waterproof bag at all times.
20. Birthdays are to be celebrated.  Get over it.
 1. This rule is included since my captain is a Good Gal. She's a Chaotic Neutral Leaning Good. If your Captain is not so inclined, you may wish to alter this to better suit how your Captain sees his or her crew and ship: are the crewmen and crew-women expendable? Is the ship itself a tool to be used and broken, or is it the Captain's beloved home?
2. Many pirate codes have votes and other democratic devices so each man had their say, especially if their Captain sees them as tools or as useful rather than friends and family.  Because my captain is GG in Rule #1, Rule #2 is not democratic, but rather, an assertion of authority because of GG status; your Captain has to be a leader, not a doormat. If your Captain is more ruthless, then you may want to counter-balance with a rule that gives the crew some veto power.
 3. This is self-explanatory.  Ships have limited quarters, and it's in everyone's best interest not to hate each other. Gibbs' Rule.
 4. This is a pragmatic rule, as the ship does have to be maintained as the home for everyone, even if she is own by the Captain. This could also go toward the upkeep of ship's droids, if you're operating in the Star Wars universe. This is based in actual rules from historical pirate codes.
 5. Another historical pirate code rule. This one is very generous (Good Gal Captain). Often, there would be a limit set or a delineation of what body parts are worth how much -- arms, eyes, and legs all have different value, and how much of you lost also matters. In the modern world, we have this when claiming disability benefits, particularly for veterans. This is an opportunity for you to discuss how your characters are valued by the Captain/ship.
 6. Depending on how you set up your ship and crew rules and who decides what jobs to take, this rule can be very relevant or not relevant. I use it as an opportunity to prove Captain's benevolence, but this can be used to build tension -- is this job worth it? Are you actually going to pay us for this gig?
 7.  Gibbs' Rule(s), but highly pertinent. Most non-aligned ships are non-aligned for a reason -- shady activities? troubled past? "Police your brass" is a term for cleaning up one's spent casings so that you don't leave a trace or evidence you were there. Covering your ass is a catch-all for making sure there are no loose ends. This is the "don't bring trouble home" rule -- don't bring unwanted attention to the ship.Â
 8. Gibbs' Rule. Even if you follow #7 to the hilt, this is still possible -- stay alert.Â
 9. The Captain often has the most to lose. This is typically their ship, and all troubles land on their desk. They're the ones trying to lead people of questionable character -- there's a reason they're out on their own. Depending on what the job is, they may be carrying strangers on their ship or there may be concerns of a boarding party. This can be used to depict Captain's trust, but also Captain competence -- do you want someone who trusts everyone responsible for your safety?
10. Gibbs' Rule, but interesting to utilize in space settings. In modern/historical settings and military settings, you always carry a personal sidearm or two as a hold-out; knife and a single-shot pistol (especially 3-D printed) are useful. In space, there's all this fancy tech, like blasters, lasers, phasers, vibroknives, and so on. A knife can cut air supply hoses, slice electronics, puncture life support suits, and all sorts of chaotic things that a "highly evolved society" wouldn't think of.
11. My own creation -- I have a hard-drinking crew, and if you want to break Rule #3 in the worst way possible, this is it. One thing I have headcanonned is that there were originally just 10 rules on the Thief. The second 10 come as a result of people breaking the first 10 -- more specific rules for more idiotic behavior that the writer didn't anticipate. In the words of my captain, "Can I preface that by saying the rules exist for reasons?  As in, someone screwed up, and after we all didnât die, I made the rule?â
12. and 13. These are flexible, but you have to consider what type of operation your ship is running. Is it derring-do and swashbuckling and a business venture? Or is something else more akin to a family group? Within the SWTOR universe, I've seen people keep their ships very businesslike, but the same crews in another fan fic are raising kids and have pets. Totally fine.
14.  VATs are a sideline business that my Captain operates alongside her two female crewmates; the boys find what they do so distasteful, they try to ignore it as best they can. In my universe, VATs are wetwork, assassinations, torture, extortion, espionage, information-brokering, and other morally questionable items that don't fall under the main purview of business on the ship. Does your ship have anyone with a sideline? It doesn't have to be as violent or dark as this. Is it officially recognized? To what extent? Is it a secret? Is there a rule against doing this sort of thing?Â
15. Generally cleanliness reminder, but if you have this sort of a rule, you better show off why it's necessary.
16. Historical pirate rule -- if you have beef, go settle on the shore. Some codes get the quartermaster directly involved in fairly outfitting both parties and determining whether the matter is settled or if someone should get left behind at port for the good of the ship.
17. This is for red alerts and making sure nobody wastes too much time trying to throw clothes on while trying to deal with a disaster. It also ties into #18.
18. Historically, pirates were not supposed to bring wenches on the ship. First, there was a risk of someone being accidentally kidnapped if the ship left before critical personnel woke up after a night on the tiles. Secondly, rape was a serious crime to pirates; the penalty was death. I've seen in multiple pirate codes that boys and ladies were not to be brought aboard. Some do allow for a guardian for these people so that they can remain on board until the next port, but those were special conditions in special circumstances. Since I have a smuggler ship, it's egalitarian -- no sexy times for anyone onboard the ship. Also, if you're busy getting busy, if there's an attack, well, it takes more time to untangle yourself than if you're by yourself.Â
19a.  This is a personal rule (IRL and in fan fic). As I've been writing, I find that people's clothes getting trashed or messed up is a pretty regular thing. However, it's made exponentially more tolerable by having a spare set of something dry. If you plan on having characters get messy and want to move the plot along without dealing with the "uh oh, naked" thing (especially if there's a romantic/sexual tension), this isn't a bad rule to have around. Granted, if you're writing PWP, make sure nobody has any spare anything. Also, spare clean undies aren't just useful for the obvious; think of bandages, messages that could be sent while everyone else is "hurr durr"ing over panties, underwires that can be used for other purposes. Basically, this is where you can put in your MacGuyver plot device -- make people carry some seemingly useless item around and then it's the Most Critical Thing to making some ad hoc plan work. Â
b. Caveat: Chekhov's Gun. This the literary principle that you shouldn't put anything into your story unless it adds to the bigger plot: don't put a gun on stage unless it's going to fire. So you can have a lot of funny business with your #19 (or any of these rules) but don't spend too much time on them. Some of it might remain headcanon forever, which is fine. Remember that codes/rules are meant to help your ship function, not to bog it down unnecessarily.Â
20. Personal rule. See 19b. Feel free to use these rules or variants thereof; just give me a mention @sullustangin or via AO3 (top of the page).
#fan fiction#original fiction#worldbuilding#swtor fanfiction#star wars fan fiction#star trek fanfiction#pirate fiction#rules#gibbs' rules#pirate code#historical pirate codes#reblog#don't repost
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Stay Safe.
(Fun fact: I had no idea I was queer when I wrote this. How I didnât know is beyond me, but whatever.)
So, youâre heading out?Â
The bubbly scrawl appears along my left arm. A small smile works its way onto my face as I read the white script. I am not supposed to communicate with anyone outside of my command at this time, but screw it; freedom of speech and expression still apply, yeah?
âHey, could I borrow a pen?â I turn to my friend Jonah, who gives me a âreally?â look. âYes, really. Now may I borrow a pen or is that a no?â I ask.Â
âYeah, yeah. Here you go,â he sighs as he reaches into his pack to pull out a black pen. âI need this one back, L.â Â
âYes sir,â I say with a lilt in my voice as I snatch the pen from his grasp. âThanks.â
Yeah, planned patrol. Shouldnât be too bad.
âPen away, Liz,â Commander Zolt orders gruffly. âWeâll be out of this stinking truck in five minutes, youâll live.â
âYes sir,â I say as I yank my sleeve down over my olive skin and hand the pen back over to Jonah. âThanks again,â I say. Wordlessly, he takes the pen back and puts into his pack and pulls out some jerky to snack on.
âSo, whatâd you tell âer this time?â he asks while peeling the wrapping open. He wiggles his eyebrows and I just roll my eyes at him.
âItâs not like we had a ton of time to chat and it was just about our day; nothing âjuicy,â you idiot.â I say.
âRats.â
âShut up.â I smile and lean back into my seat. In the back of the truck are three people besides me and Jonah. Commander Zolt, who has never seemed to like me, along with the siblings Colt and Bel. who mostly chat with each other, but they are good people to hang with otherwise.
As the ride to Quintar continues to draw out, my mind thinks to the writing on my arm. I find myself focusing on the faint pin-pointed pressure of Tianaâs response. Despite how tempted I am to look, I can almost feel Commander Zolt watching and waiting for me to slip up, which keeps me from doing anything of the sort.Â
Iâll read it later, when I get the chance. Tiana and I have been chatting for almost fourteen years now. She reached out to me first.Â
Does this work?Â
The pale blue color had bloomed on my arm. I remember running to my mom immediately after. âMom! Mom! Look!â Iâd said. Seeing the messy scrawl for the first time had been a happy surprise. âLook! They wrote. What do I say back?â Iâd asked her mother.Â
âWell say hi to them at least. Talk to them,â she said.
The feeling of the truck suddenly slamming on the brakes snaps me back into focus as our bodies jerk towards the front of the truck. âAlright, buzz-cuts and ponies, time to move!â the commander orders us as we begin to pick up all of our items. I pack up any material I took out of my pack and grab my gun from behind my seat as I stand.Â
âThree years. Weâve been doing this job for three years. Last run for you, L,â Jonah says as we get ready to go. âYou lucky shit.â Â
âWhat can I say? I donât want to be away from home any longer than I have to be.â I laugh and punch his upper arm, âPlus, once Iâm back, I plan to finally meet Tiana in person, rather than over a video chat,â I say as I glance towards my left arm. âBut weâll have to meet up once youâre out. You are out soon too, yeah?â
Before he responds, we are pushed out of the truck into the dry, dusty heat of Quintar. The truck takes off to make room for the next truck as Jonah speaks. âThree more months. Better no forget about me in that time, L.â he says, securing some of gear to his belt.Â
âYeah, yeah.â
We are all corralled into a group once the rest of the command gets out of the other trucks. We split into groups of six and spread out along the surrounding area. Major Beth leads our group based off of her muttâs nose.Â
We arrive to a mostly deserted part of the town as we keep watch outside of each building while the mutt tries to sniff out any bombs, drugs, weapons, and other dangerous material.Â
âClear!â Major Beth yells out as the mutt sniffs out another crumbling building. As we transition to the next building and continue our check, I lag behind a few paces and pull my sleeve back to see what Tiana wrote.Â
Stay Safe.Â
The clumsy handwriting makes me smile, as it always has since she accepted my position.
Why the HELL are you doing that!?
I could practically hear her screaming at me through the bold marks on my skin. She knew that I had been thinking about doing this, and had voiced her concern many times prior, but when I told her that it was going to happen, I could feel her anger radiating from the lines on my skin.Â
Iâm calling.
Moments later my phone rings loudly. I take a breath, before deciding to answer. I deserve any anger she has. âHey.â
On the other end of the line I hear her strained voice as she asks. âDammit, Liz. Youâre going to get yourself killed out there,â her normally soft and happy voice sounds like itâs on the verge of breaking. âOf all times to go into service why-â she pauses for a moment, swallows and continues, âwhy now? Why not community service, policing, fire fighting even. Why would you go work in a war zone?âÂ
I understand her concern. âNo one else will by choice. Iâm not going to be away long. Iâll be back before you are out of college, and when I come back Iâll have the money to meet you so you donât have to leave your studies. Iâll be fine. Plus, when I get back Iâll be able to get veterans discounts,â I say, half honest, half joking. Tiana lets out a breathy scoff.Â
âFine. Stay safe.â
âLiz! We need you to check this out,âMajor Beth calls out.
âYes Maâam!â I jog inside the building Major Beth and her dog are in. âWhat is it?â
Major Beth gestures towards three cabinets, two of which were opened. âWe found a variety of weapons which were modified.â Major Beth opens the third cabinet and turns to look at me. âYouâre the weapons specialists, what do we have here?â
I take that as a cue to begin pulling out the weapons and inspecting them. The first cabinet and much of the second are full of semi-automatic rifles with additions which were added with basic supplies, mostly duct tape. Most of the guns had added on knives and various blades to make basic bayonets. Other guns, though appearing ordinary on the surface, were modified to shoot ammunition other than bullets. Pistols are limited to small rocks and pebbles, but larger guns were altered to use things such as stones and incendiary cartridges depending on each gun.
âBesides the obvious attempt at recreating bayonets, the guns were modified to use more mundane things as projectiles, so they wouldnât run out of ammunition,â I say, sparing her the details as she comes over to inspect the weapons. I walk over to the third cabinet to find it full of explosives. I hesitate in picking up anything from the third cabinet before walking back towards her. âItâs full of bombs and the bottom has a layering of of gunpowder. I recommend that we use any spare water we have and douse the powder,â I say.Â
She nods and I begin to walk towards the door to get a jug of water, but I am interrupted when a loud banging sound ruptures throughout the area. Pulling my gun out, I quickly turn around to try to locate the sound. But I see nothing. The sound was of a gun going off, but I canât tell from where.Â
Another banging sound goes off, and suddenly the cabinet full of explosives is set off. The gunpowder lights on fire and then there is an explosion.Â
My body is pushed back into the opposite wall, and my vision blurs to black.Â
*
Clunk Click.
The sound of a door rouses me from sleep. My bleary eyes open and I have to blink a few times to see clearly. I turn my head to the right to see a nurse changing what my IV is connected to.Â
âYour awake. How do you feel?â he asks.
âWhat?â I ask before comprehending what he said. âOh, I- uhh- good? Where am I?â I can feel parts of my body secured by bandages and the air smells too clean,Â
âYou are in a hospital in Ann Arbor, Michigan,â he says. âYou were injured while in Quintar, and since it was so close to your release date, it was decided that once you were stable you would be sent here,â he explains upon seeing my confusion. He walks to the door and just before he leaves he adds, âThere will be a doctor here to check up on you in a few minutes. Until then, you have a visitor.â He walks out the door, and I can see his silhouette pause to say something to someone just outside the door through the hazy glass.Â
A moment later the door opens, and a girl walks into my room. Her hair is an auburn color and her skin is fair. She has many freckles spattered across her nose and cheeks, and her green eyes light up when she sees me awake.Â
âYou never listen? Do you?â she says as she walks over and sits down in the chair next to my bed.Â
âSelective hearing.â I smile up at her. âYou were able to convince people to send me here, Iâm impressed.âÂ
She shrugs. âWhat can I say? Iâm majoring in English, I make the best arguments, and I wouldnât stand for any more delays. By the way,â she stands and slightly leans over the side of the bed to hold out a hand, âitâs a pleasure to finally meet you in person, Liz.âÂ
I smile and take her hand, âI wish this were under better circumstances. I am happy to meet you in person as well, Tiana.â
#Hint: its gay#I didn't realize before#but#its gay#lgbtlove#Lesbian story#lgbtq+ literature#LGBT literature#Lesbian Short story#science fiction#Lesbian Fiction#Mentions of war#Mentions of violence#Lesbians in the military#Oh no#What will the government ever do?#Short story
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What is a Franchise Fee and How Much Will I Owe?
A franchise fee is what a prospective franchisee owes to the franchisor for the rights to use the franchise brand and franchise system. Typically the franchise fee refers to a one-time payment paid in the beginning of the relationship. But there are also ongoing franchise fees.
When you buy into a franchise opportunity, you gain valuable rights by contract. But you also have legal responsibilities. You must run the business according to the operations manual and the franchise agreement. You must also pay all required fees to the franchisor. Therefore, itâs very important to understand all fees.
What is a Franchise Fee?
In a broad sense, a franchise fee means any money that the franchisee pays to the franchisor in exchange for the right to operate a franchise business.
However, usually the term âfranchise feeâ usually refers to the initial fee. The Federal Trade Commission governs franchising legal requirements in the United States. Under the FTC Franchise Rule, this is called the âinitial feeâ.
Other typical fees are royalties and marketing / advertising fees. Hereâs the breakdown of the three most common types of franchise fees:
an initial franchise fee;
ongoing royalties â fees paid monthly or at other regular intervals; and
a periodic advertising and marketing fee.
Some franchisors charge additional fees including technology fees, audit fees, insurance, and training fees. Each franchisor sets its own fee structure.
How do Franchise Fees Work?
Letâs explore these three main fee types to see how they work.
Initial Franchise Fee
The franchise fee is a one-time fee charged to prospective franchisees at the beginning of the business relationship.
Under the FTC Franchise Rule, the initial franchise fee is for goods and services received from the franchisor before the franchiseeâs business opens. This fee covers intellectual property licenses including trademark and service marks. It will include the right to use the franchisorâs brand name, logo, products and systems. Typically, it is non-refundable.
The amount can be paid in one lump sum or spread out in installments. Example: $5,000 due upon application, $5,000 upon signing the agreement and $20,000 within 30 days of opening the business.
Initial franchising fees average $25,000 to $50,000. However, fees vary. Here are selected examples:
Cruise Planners (an American Express Travel Agency) requires a $10,995 franchise fee.
Another low-cost example is Subway, at $15,000.
Panera comes in at $35,000 and McDonaldâs at $45,000.
Interim Healthcare charges $50,000.
Mr. Handyman costs $59,900.
If youâre a military veteran you may get a special break. Hundreds of franchisors provide discounts off of the initial franchise fee to veterans, their spouses and even active military who are about to transition out of the military into business.
In most franchises, the initial fees are not a profit source. Rather, they are a way to cover costs to market the franchise, recruit new franchisees and compensate salespeople.
Royalty Fee
Royalties are ongoing fees. Royalties are designed to pay for ongoing support from the franchisor. A royalty fee has been likened to a membership charge to remain in good standing with the franchise.
Typically, royalties are a percentage of gross sales. This means, as gross sales go up the amount you pay will increase.
According to FranData, royalties have remained steady in recent years at around 6% overall.
However, that 6% average hides wide variations by industry. The lowest average royalties are 4.9% for the Photographic Products and Services industry. The highest royalties are for Business Related franchises, at 10%. Industry averages are just that â averages. For example, Liberty Tax Service charges a high 14% royalty! Make sure to compare costs in the same industry.
Also, itâs important to understand how the franchisor calculates royalties:
Sometimes royalty percentages are based on volume. As your sales volume goes up, the royalty percentage may go down.
Occasionally a royalty can be a fixed sum instead of a percentage. Franchisors like Fantastic Sams, a hair salon franchise, charge a flat royalty amount of roughly $360 per week. This can be a positive, because as revenues increase your fees do not increase. It can be a negative if sales go down.
Marketing Fees
Franchisees usually must contribute to the franchisorâs national advertising and marketing fund. The marketing fee helps advertise the brand you operate under. It may support specific types of marketing, too, such as online marketing.
The typical marketing fee ranges from 1% to 2% of gross revenue. Usually this amount is payable monthly.
Remember, national brand recognition is one of the advantages you get with franchise ownership. That brand advantage should make it easier for you to attract patrons into your local outlet. That is why most franchisors require franchisees to share responsibility for advertising and marketing costs.
How Do You Find the Fee Amounts?
The Federal Trade Commissionâs Franchise Rule imposes a strict requirement to disclose all fees, in something called the Franchise Disclosure Document or FDD. The franchise company is required to give each prospective franchisee a copy of the FDD, and have him or her sign for it.
Some franchisors may also provide a bit of information on their websites or in brochures about fees, costs and requirements in general. However, such information does not replace the required FDD disclosures.
Franchise Fee vs Initial Investment â the Same?
The initial investment is broader than the franchise fee, and gives a more detailed look at the entire investment a prospective franchisee would need to make.
According to the FTC Franchise Rule, franchisors must lay out in an itemized tabular format the entire estimated initial investment. This number includes all the expenses a franchisee needed to start the business. This includes the opening inventory, rent, security deposit, signage, initial training and other costs.
Can You Negotiate Franchise Fees?
For first-time prospective franchisees, the answer is usually no. The franchise system is based on uniformity for all. You must fit into the franchise system â not the other way around.
The typical franchise agreement is a boilerplate contract. Lawyers refer to them as contracts of adhesion. This means that terms are standard and not typically negotiated. If you are an existing experienced franchisee it may be different â you might be able to negotiate a special franchise fee. But donât expect negotiations for your first foray into franchise ownership.
Do Fees Vary?
There is no such thing as a âstandardâ franchising fee that all franchisors adopt. Each company sets its own fees.
Sometimes you will see fees expressed in a variable formula, such as X dollars per number of consumers in a territory.
There are other situations where fees may vary, including for:
multi-unit development;
master franchises;
renewal fees charged when the franchisee renews the agreementâ these may be lower or subject to negotiation; or
applicants who are veterans, minorities or the first X number to apply when itâs a new franchise.
What if You Donât Pay?
Nonpayment of franchise fees has serious consequences. You could lose your franchise business or be subject to other legal action.
Sometimes franchisees become unhappy, feeling they are not getting sufficient support and assistance. As a franchisee, you may want to withhold royalty fees to express displeasure or try to force changes.
According to the law firm of Garner, Ginsburg and Johansen, P.A., withholding payment is usually not the best option. The lawyers write on their website: âWe almost always advise franchisees to continue paying royalties to avoid giving the franchisor significant leverage.â
Make sure to consult with your own lawyer for help.
Summary
Franchise fees are any amounts the franchisee must pay to the franchisor in order to operate a franchise. These are usually a combination of once-only and ongoing payments. Most franchise fees are not negotiable.
This article, âWhat is a Franchise Fee and How Much Will I Owe?â was first published on Small Business Trends
https://smallbiztrends.com/
The post What is a Franchise Fee and How Much Will I Owe? appeared first on Unix Commerce.
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Your Fans Are Warning You! Are You Listening?
For the past several years, we have seen the world of sports business overwhelmed with a bunch of business practices that are detrimental to the long term health of sports as a business and act decisively to destroy the brand equity that has been created over the years.
Some of the worst business practices that seem to have become âbestâ practices throughout the sports industry, but which have been discarded by many other industries include:
Using cold calling in place of almost all other marketing and selling tactics and strategies.
Discounting aggressively and constantly, even when that flies in the face of trying to promote higher value products and services through the inside sales efforts.
Trying to price according to unscientific data and unscientific data points as a means to âdefeatâ the secondary market, even when the actual data flies in the face of actual results.
An almost total disregard for digital best practices like email list building, digital selling, and other digital distribution best practices.
I could list several more business practices that have outlived their usefulness, but this is a short primer. Which led me to an interesting discover at the end of last week, a Facebook group that was founded by unhappy San Jose Sharks Season Ticket Holders that are unhappy with the team and have specifically turned their anger towards the teamâs Chief Marketing Officer as the point of focus for their anger and their vitriol.
While the Sharks have made a big deal about how they have been restructuring their pricing and their benefits to their Season Ticket Holders, this has rubbed a lot of people the wrong way and led local media to call the timing âill-timed at best.â
Businesses in all industries have to make these types of decisions at their own time and in their own way, but in the case of the Sharks, I think that their decisions and the backlash from the media and fans is illustrative of some of the areas of concern that any of us that work in or with sports should be feeling and where some of the sports business âbestâ practices fall short and need to be improved before its too late.
Need To Refocus On Long Term Customer Value, Branding, And Community
One of the big issues in sports business is the fact that most decisions are made on a yearly basis.
While a teamâs GM and team side may have a 3 or 5 year plan for returning to prominence, in most of the teamsâ business efforts, the cycle is year to year.
There are several reasons for this:
First, in too many cases, executives, managers, and team members have very short shelf lives with a team or a market. My colleague, Kathy Burrows, wrote about this challenge recently with a post about the revolving door of sports business professionals.
Why is there a constant flux of executives, managers, and professionals?
I think there are a lot of reasons that this occurs and not many of them are good for the industry.
For one, as an industry, weâve sold people on the fact that it is an honor to work in sports and that you should take under fair market value to follow your pursuit of sports business.
While it is trumpeted as all about making sure that the really âcompetitiveâ people get the jobs, what is actually does is acts as an incentive for some of the best and brightest to take their talents into other industries.
While there are many very talented individuals in the sports industry, the question becomes âwith these multi-billion dollar assets, can we afford to hire on the cheap?â
Second, weâve done a pretty terrible job of building long-term fan loyalty. Or, I should say that weâve allowed brand loyalty to deteriorate to a great extent.
Iâm sure if we were to poll a lot of the veterans of sports or a lot of long term sports fans, we could ask them some variation of the question: âWhat drew you to your team or sport?â
Likely the answer would be some version of, âI grew up a die-hard Metsâ fan because of my dad.â Or, something similar.
Team loyalty used to be something that was passed down from generation to generation, but not any longer.
In too many cases, the loyalty is transferred from player to player or there isnât much strong connection to the team at all.
This does two things, it means you are constantly having to ratchet up your efforts to educate and grow your customer base, but you donât have as strong of a base from which to start. This has the effect of making everything feel like a hard sell.
Finally, over the last several years we have seen a building boom in sports and more and more seats have become âpremium.â
Trust me, I love the premium experience. My whole career is like one long love song to the premium experience, but this obsession with different levels of âpremiumâ experience has come at a cost.
One, we have lost the sense of community that creates magic in our buildings.
This magic is what todayâs consumers demand from their entertainment dollars. Because if you arenât building a great experience, the in-home experience has gotten so tremendous that it is tough to tear people away from their homes.
Second, in the rush to make things more âfancy,â we have actually commoditized the premium experience to the point where it is pretty meaningless.
As an industry it feels like we have lost touch with what real premium experiences are and have instead confused that with luxury amenities or low value features.
The thing about a true luxury experience is that it isnât driven by free Bud Light or a buffet. It is driven by connections and experiential aspects that canât be gained anywhere else.
All of these issues have led to an environment where even the most rabid, long-term fans feel like transactional participants.
One of the big gripes in the Unhappy Sharks group is that fans that have been with the team for 26 years feel neglected or unimportant. Thatâs a big challenge on so many levels because for one, the first rule of business is that your only job is to build and keep customers. But if someone has committed to spending money with you and being loyal to you for 26 years, they deserve some respect.
This is a pretty dire situation, but it can be turned aroundâŚwith the right commitments and the right ideas.
First, think about your customers from the POV of their full lifetime value.
I talk consistently about this with my own clients. Getting new customers is expensive and time consuming. So you want to minimize the time and cost of customer acquisition. The best place to start is with the people that are already on your side.
If you take the step back and look at your customers from their full life cycle, you are going to make many different decisions.
Because looking at the long term value is going to change the approach.
The current approach to pricing for tickets and concessions is the kind of spreadsheet, algorithmic mumbo jumbo that is great in an MBA course, but which when applied to the real world makes fans feel like they are being gouged and turns them off to your product and experience.
In other words, just because you have a formula that says you can charge a fan $14 for a 16 ounce Bud Light that doesnât mean you should do it.
A much wiser way is to ask, âwhat can I deliver for my buyers so that they are happy and I can capture the most valuable?â
Second, put some effort into the branding of your team.
The strength of sports brands is strong in some places, not strong in others. But one universal is that in too many areas, the brandâs strength or weakness rises or falls with winning or losing.
Thatâs pretty much a formula for a boom or bust cycle.
Think objectively for a moment and ask yourself how many teams have a tremendous and consistent brand that has been built over the long term?
How many brands if mentioned immediately bring to mind a specific image? A specific sense of place? A specific sense of purpose?
If Iâm being honest with myself, not nearly as many as used to be the case.
I can think of 3-5, but the rest are just some jumble of more of the same advertising, uniforms, and brand personalities.
The thing about this, and it holds true for any business, is that if you donât stand for something, you stand for nothing.
If you donât stand for something specific and unique, you are just a jumble in your customers and prospects minds and you can easily just be discarded for whatever is new and shiny.
So as an organization, it makes sense to come up with a mission and a brand that is unique and relevant to your organization.
For me, I think that the Raiders of old created a tremendous brand identity around their mission to âJust Win Babyâ and their logo and uniforms and their fans and experience.
The thing is, with effort, that is available to all of us.
It isnât easy work but it does have a tremendous payoff.
Third, get back into the community building business.
The joy of attending a live event, concert, or game is that its communal. Bob Lefsetz writes fairly often about the way that a great concert can transport you and take you away. In too many of our venues, the experience has been watered down, sanitized, and sterilized to the point that there is no sense of there there.
I remember specifically being a 24 year old, young professional that bought Seattle Supersonics season tickets in the 5th row of the upper deck at the Key Arena, behind the Sonicsâ bench.
During the next two years that I lived in Seattle and attended Sonicsâ games, the Sonics worked hard to create community both in our seats and for all STH holders by having a membership rewards program that rewarded fans for going to games, special STH holder events, pick up games on the practice floor with team members and STH holders, chances to network and meet your other people from the neighborhood.
The list goes on and on, but the thing was that the Sonics and Howard Schultz put a great emphasis on community and the team and the business was stronger for it.
We have to get back into the community building business, so that are teams and venues are gathering places that draw people in. I donât think it was a coincidence that Howard Schultz was the owner at the time that the Sonics were focusing on community building around the team since Starbucks is so famous for its âthird placeâ philosophy.
What would it take to make our stadiums and arenas a third place?
Start Treating Fans In A Manner That You Would Like To Be Treated
Another pretty compelling set of posts in the Sharks group is the number of times that the team acts in a manner inconsistent with holding their STHâs as some of their most important customers.
There are the 50-75% increases in certain seatsâŚespecially when the team is playing to a lot of empty seats. There is the sever discounts that make it cheaper for fans to buy single game tickets in better locations that STHs are getting for their full seasons. These are two examples that popped up several times in the Sharks group, but combine it with some of the other prominent practices that have been tried, and it adds up to an environment where we could be accused of treating our fans and customers in ways that we wouldnât accept if the shoe was on the other foot.
There are simple reasons that are spelled out in consumer psychology not to do some of these things. Discounts destroy brands and when you open up the door to deep discounts, thatâs a door that canât be shut for 7 years. Martin Lindstrom did one of the most expensive consumer psychology studies ever and detailed it in his book, Buy-ology. The point of which is that psychologically and deeply in our brain, discounts make us feel like something is lesser.
By radically changing your pricing and/or benefit structure, you should explain that in a way that makes it clear to your buyers what the rationale is for the decision making process.
You might think that you donât really owe anyone an explanation, but as we see with the Sharksâ group, word of mouth is the most powerful form of marketing. If you lose the battle for word of mouth, you lose the argument period.
Thatâs why even when you raise prices or cut them, make the explanation clear and sensical.
Donât couch your explanation in a bunch of buzz word and marketing speak. Talk to your people like people.
This kind of thinking needs to jump into every decision and idea that we offer up because we have to start treating our guests the way that we would want to be treated if we were on the other side of the transaction.
Start at the first contact we make, which is usually before a fan ever enters the building.
What do we want our marketing and advertising to say about us?
If you go back to the point above, you know we need to work on making our branding about creating a specific feeling and environment around our team, our fans, and our building.
Does our marketing and advertising really say that?
How about the buying process?
I know that Iâve been frustrated by the buying process going through a primary point of purchase on any number of occasions.
Iâm in the industry and know what I am doing.
How do you think that fans that have no clue must feel?
How about the pricing of food and beverage?
I know that a big deal is being made about the Falconsâ decision to make their prices âfan friendly.â
But the thing is, shouldnât we all be making our prices fan friendly?
If you look around at so many of our buildings, the empty seats are glaring. Which means that some of the following things arenât happening:
We arenât doing a good job of selling the value of our experience. Our pricing is out of line with the value in our buyersâ heads. We arenât creating a good enough experience or a good enough community to compel people to turn off the TV and come to our venue. Some of the pricing decisions we make make me think that some version of all 3 are at play.
This goes not just for food and beverage, but for tickets and merchandise as well.
Like I said above, you may have a spreadsheet that says you can charge your fans $14 for a Bud Light, but does that mean you should?
The thing about it is that creativity can open up tremendous paths to new revenue and an enhanced experience for your fans.
FC Barcelona makes over $100M a year from merchandise alone because they realize that they can offer up their fans many variations of the standard jersey, t-shirt, etc and their fans will be happy to have it and happy to pay for it.
Compare that to the standard team that maybe has one or two alternative jerseys or has pretty much kept the same jersey design year after year.
Granted, part of the variance and ability to generate 9 figures in merchandise sales comes from having a wider global audience, but see the points aboveâŚbranding is a big freakinâ deal.
Finally, letâs get to the idea of pricing our tickets and inventory.
It sometimes feels like not a day goes by where donât hear of another team implementing a 20%+ price increase on some seats. Usually this increase is framed as âfair-marketâ or some other nonsense term that just means, âweâve seen our tickets listed on the secondary marketâ at that price and we want to get into that game.
The problem with this way of trying to price is that no one outside of the brokers that hold the inventory and are buying and selling the tickets knows exactly what the sale price for the tickets is.
Trust me, Darren Rovell and a lot of these other sports business âreportersâ are touting some bogus statistic from StubHub or TicketsNow, but the average listed price is a pretty meaningless statistic and tells you only which way the market is moving on the sites.
What this has done is created an environment where teams and executives feel justified to raise tickets to astronomical levels. The rationale being to âbeatâ the secondary market.
But what has happened is evident in so many panning shots of arenas and stadiums around the country, empty seats.
This idea of pricing correctly relies on several pieces of thought:
First, you can either price for the revenue or to maximize attendance.
If you are just driving revenue, go ahead and price the things at the point where you are going to have lots of empty seats, but someone will pay at some point.
You may have a few sell outs over the season, but they arenât going to be consistent.
If you are pricing to maximize attendance, thatâs going to mean you are going to likely leave a little money on the table for brokers. And, that should be okay because if you are smarter about your experience and merchandising strategies, you can make up much of that revenue in these areas.
But also if you are driving attendance, over time the experience will improve and that will enable you to push up the prices because attending is a much more valuable proposition.
Second, the secondary market provides a valuable service to teams and leagues because brokers actually have different markets and customers than the team might have. Or, they open the door for teams and leagues to reach markets that they arenât currently communicating with effectively.
The other thing that the secondary does that canât be understated, they invest in your product in a substantial manner that mitigates some of the risk that a team faces in the form of not being able to sell all of their tickets.
Finally, you have to price better because its a marketing drain to have sky high ticket prices that you have to deeply discount. This is true for a number of reasons.
Discounts destroy your brand. By poorly pricing at the start, your first impression on your market may not be what you want it to be.
Changing someoneâs mind after they have had a bad first impression can be expensive, time consuming, and fruitless. You donât give fans an incentive to buy early, causing your risk level to increase. Again, these arenât insurmountable challenges.
They do require thought and consistent focused action.
Start by designing the entire experience from pregame to postgame and beyond in a way that shows you care.
With all of the digital technologies available, it is and should be much easier to communicate with your ticket buyers before, during, and after a game. This kind of high touch experience is what is demanded of most of our modern customers, but it is also a tremendous opportunity for our teams to wow our customers and turn them into long term fans, which should be our ultimate objective anyway.
Next, instead of being myopic in the our business models, we should think more strategically and globally about our pricing, selling, merchandise, customer service, and F&B strategies.
I like to frame this as: âWhat does success look like for us?â
If we are following along with business 101 ideas, we want long term customers. We also want to create experiences that people will talk about and we want to build strong brands that travel the globe for us.
That means that we have every incentive to do some of the following things:
Communicate with buyers and prospects in a manner that they want to be communicated with. Providing a great customer experience from the moment they get to our parking lots or our metro stops until they get home and beyond. Give our fans the tools and opportunities to make their experience shareable. Work with other partners and vendors that have already gained our fans trust to help piggyback off that trust in a manner that will allow us to get some of the halo effect of our and their efforts. Finally, donât look at the customer experience and customer path as transactional.
Again, I tie this into the idea that we need to be focused on long term customer value.
You donât get to long term value by accident. It is deliberate and it is consistent.
Donât Get Trapped By Old Business Models
Right now TV money is blowing up the world of sports.
What that means is that probably too much of the thinking and best efforts of teams, leagues, and people is spent on making sure that the TV money keeps flowing, even to the point that people arenât spending enough time focusing on whatâs next.
This means that the declining ratings are the alarm bell that has driven everyone to action, but the clearest indicator that something wasnât right with some of the aspects of sports business was that real attendance was down.
Iâm thinking of the conversation that Roger Goodell had with the Steelers about ways to bring their fans into the stadium because the empty seats were a bad look on TV.
The empty seats and the declining ratings are symptoms of a larger issue. Which Iâd define as not enough emphasis on long term fan development.
Its tough to convert fans to your sports and games if they havenât been introduced to the games, arenas, and experiences earlier in life.
The idea that people are just going to move into loving your sport later in life is sort of like a Hail Mary.
In Chuck Klostermanâs recent book, What If We Are Wrong?, he talks about the decline of participation in team sports, which is a pretty strong feeder system for long term sports viewership.
What is driving that change in participation?
Probably a lot of things like costs, changes in society, and competition for attention from other activities.
The cause is irrelevant.
The bigger issue is that by not investing in early childhood exposure to sports and teams, the teams and leagues are in danger of not having a customer base later on. Which will mean that the costs of marketing and selling will increase tremendously and the effectiveness will go down.
This is an issue of needing to revisit the business models from time to time.
Feeding fans into the games is one area.
Having so much revenue generating specifically from one area like TV, thatâs another.
Relying on the old ways of selling and marketing the sport, thatâs another.
Only revisiting the customer experience and experiential nature of the in-game experience around stadium remodels and rebuilds is another.
Not finding ways to enhance the community aspect of the games because fans only care about winning is another.
The key here is that thriving industries and businesses are constantly disrupted and if they are doing a good job, they disrupt themselves consistently so that they arenât caught off guard by some upstart or startup.
A few of the easier ways to get started on this path include:
Asking how you can expose more new people to the games or experiences? Are there leagues that you can support? Programs that you can offer in schools? Looking at trends and try to map out a several year strategy for fan development, customer development, and marketing strategy that is focused on the idea of expanding your reach in your community. Revisiting your revenue models. In any business if too much of your money comes from one source, thatâs problematic. While any revenue structure might have an imbalance, it is possible to act to secure and strengthen revenue from other sources so that you have some security and balance to your revenue generation. Figure out how you can more readily adapt some of the new tools and technologies that will be meaningful to your customers and potential customers. The big point here is that you have to always be looking a few steps down the road. If you donât, you can end up in a similar position to the Sharks. Where your credibility is being questioned by the media, fans, and customers. Where you have business side executives being ridiculed in the open on social media and where you struggle to fill your venues.
The challenge is that even if you do everything right, that doesnât mean you are guaranteed anything.
The opportunity is that if you do take action on some of these ideas is that you are less likely to be in a position where you have an open revolt among your customer base.
What say you?
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Your Fans Are Warning You! Are You Listening? was originally published on Wakeman Consulting Group
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What is a Franchise Fee and How Much Will I Owe?
A franchise fee is what a prospective franchisee owes to the franchisor for the rights to use the franchise brand and franchise system. Typically the franchise fee refers to a one-time payment paid in the beginning of the relationship. But there are also ongoing franchise fees.
When you buy into a franchise opportunity, you gain valuable rights by contract. But you also have legal responsibilities. You must run the business according to the operations manual and the franchise agreement. You must also pay all required fees to the franchisor. Therefore, itâs very important to understand all fees.
What is a Franchise Fee?
In a broad sense, a franchise fee means any money that the franchisee pays to the franchisor in exchange for the right to operate a franchise business.
However, usually the term âfranchise feeâ usually refers to the initial fee. The Federal Trade Commission governs franchising legal requirements in the United States. Under the FTC Franchise Rule, this is called the âinitial feeâ.
Other typical fees are royalties and marketing / advertising fees. Hereâs the breakdown of the three most common types of franchise fees:
an initial franchise fee;
ongoing royalties â fees paid monthly or at other regular intervals; and
a periodic advertising and marketing fee.
Some franchisors charge additional fees including technology fees, audit fees, insurance, and training fees. Each franchisor sets its own fee structure.
How do Franchise Fees Work?
Letâs explore these three main fee types to see how they work.
Initial Franchise Fee
The franchise fee is a one-time fee charged to prospective franchisees at the beginning of the business relationship.
Under the FTC Franchise Rule, the initial franchise fee is for goods and services received from the franchisor before the franchiseeâs business opens. This fee covers intellectual property licenses including trademark and service marks. It will include the right to use the franchisorâs brand name, logo, products and systems. Typically, it is non-refundable.
The amount can be paid in one lump sum or spread out in installments. Example: $5,000 due upon application, $5,000 upon signing the agreement and $20,000 within 30 days of opening the business.
Initial franchising fees average $25,000 to $50,000. However, fees vary. Here are selected examples:
Cruise Planners (an American Express Travel Agency) requires a $10,995 franchise fee.
Another low-cost example is Subway, at $15,000.
Panera comes in at $35,000 and McDonaldâs at $45,000.
Interim Healthcare charges $50,000.
Mr. Handyman costs $59,900.
If youâre a military veteran you may get a special break. Hundreds of franchisors provide discounts off of the initial franchise fee to veterans, their spouses and even active military who are about to transition out of the military into business.
In most franchises, the initial fees are not a profit source. Rather, they are a way to cover costs to market the franchise, recruit new franchisees and compensate salespeople.
Royalty Fee
Royalties are ongoing fees. Royalties are designed to pay for ongoing support from the franchisor. A royalty fee has been likened to a membership charge to remain in good standing with the franchise.
Typically, royalties are a percentage of gross sales. This means, as gross sales go up the amount you pay will increase.
According to FranData, royalties have remained steady in recent years at around 6% overall.
However, that 6% average hides wide variations by industry. The lowest average royalties are 4.9% for the Photographic Products and Services industry. The highest royalties are for Business Related franchises, at 10%. Industry averages are just that â averages. For example, Liberty Tax Service charges a high 14% royalty! Make sure to compare costs in the same industry.
Also, itâs important to understand how the franchisor calculates royalties:
Sometimes royalty percentages are based on volume. As your sales volume goes up, the royalty percentage may go down.
Occasionally a royalty can be a fixed sum instead of a percentage. Franchisors like Fantastic Sams, a hair salon franchise, charge a flat royalty amount of roughly $360 per week. This can be a positive, because as revenues increase your fees do not increase. It can be a negative if sales go down.
Marketing Fees
Franchisees usually must contribute to the franchisorâs national advertising and marketing fund. The marketing fee helps advertise the brand you operate under. It may support specific types of marketing, too, such as online marketing.
The typical marketing fee ranges from 1% to 2% of gross revenue. Usually this amount is payable monthly.
Remember, national brand recognition is one of the advantages you get with franchise ownership. That brand advantage should make it easier for you to attract patrons into your local outlet. That is why most franchisors require franchisees to share responsibility for advertising and marketing costs.
How Do You Find the Fee Amounts?
The Federal Trade Commissionâs Franchise Rule imposes a strict requirement to disclose all fees, in something called the Franchise Disclosure Document or FDD. The franchise company is required to give each prospective franchisee a copy of the FDD, and have him or her sign for it.
Some franchisors may also provide a bit of information on their websites or in brochures about fees, costs and requirements in general. However, such information does not replace the required FDD disclosures.
Franchise Fee vs Initial Investment â the Same?
The initial investment is broader than the franchise fee, and gives a more detailed look at the entire investment a prospective franchisee would need to make.
According to the FTC Franchise Rule, franchisors must lay out in an itemized tabular format the entire estimated initial investment. This number includes all the expenses a franchisee needed to start the business. This includes the opening inventory, rent, security deposit, signage, initial training and other costs.
Can You Negotiate Franchise Fees?
For first-time prospective franchisees, the answer is usually no. The franchise system is based on uniformity for all. You must fit into the franchise system â not the other way around.
The typical franchise agreement is a boilerplate contract. Lawyers refer to them as contracts of adhesion. This means that terms are standard and not typically negotiated. If you are an existing experienced franchisee it may be different â you might be able to negotiate a special franchise fee. But donât expect negotiations for your first foray into franchise ownership.
Do Fees Vary?
There is no such thing as a âstandardâ franchising fee that all franchisors adopt. Each company sets its own fees.
Sometimes you will see fees expressed in a variable formula, such as X dollars per number of consumers in a territory.
There are other situations where fees may vary, including for:
multi-unit development;
master franchises;
renewal fees charged when the franchisee renews the agreementâ these may be lower or subject to negotiation; or
applicants who are veterans, minorities or the first X number to apply when itâs a new franchise.
What if You Donât Pay?
Nonpayment of franchise fees has serious consequences. You could lose your franchise business or be subject to other legal action.
Sometimes franchisees become unhappy, feeling they are not getting sufficient support and assistance. As a franchisee, you may want to withhold royalty fees to express displeasure or try to force changes.
According to the law firm of Garner, Ginsburg and Johansen, P.A., withholding payment is usually not the best option. The lawyers write on their website: âWe almost always advise franchisees to continue paying royalties to avoid giving the franchisor significant leverage.â
Make sure to consult with your own lawyer for help.
Summary
Franchise fees are any amounts the franchisee must pay to the franchisor in order to operate a franchise. These are usually a combination of once-only and ongoing payments. Most franchise fees are not negotiable.
This article, âWhat is a Franchise Fee and How Much Will I Owe?â was first published on Small Business Trends
https://smallbiztrends.com/
The post What is a Franchise Fee and How Much Will I Owe? appeared first on Unix Commerce.
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