It takes immense discipline and fortitude to survive a franchisor’s bankruptcy. It’s a good idea to have a plan to minimize any potential losses in revenue and reputation, just in case such an unfortunate circumstance arises. When armed with a plan, you’re more likely to avoid disaster and consequently keep your business afloat.

The following are tips designed to help you get through franchisor bankruptcy:

- Heed warning signs: Hear a rumor? Investigate it. You do not want to find out the hard way - i.e., through a third party like a customer or the paper - that the franchisor is bankrupt, since doing so can compromise your rights and interests. If someone murmurs “bankruptcy,” be on the alert. The worst case scenario is that you determine that the rumor is no more than a rumor, and business resumes as usual. Some signs are very subtle, so pay attention. For example, if your franchisor is collecting advertising money from you but you don’t see any advertising happening, be on guard.

- Have a crisis communication plan: Make sure you have a public relations campaign that includes a crisis communication strategy - preferably, a strategy that includes several contingencies. For instance, if your franchisor goes bankrupt, the media and customers will be wondering if the business is in jeopardy. You want to be able to craft a quick response.

- Be sure to stay in touch with the local media: True, newspapers and media generally go straight to corporate headquarters for information - but don’t let that deter you from establishing your own relationships with writers, reporters, producers, and news directors. This way, you’ll be in a better position to field inquiries should disaster strike.

- Keep a list of alternative suppliers: Occasionally the initial problems occur with suppliers who may be nervous about getting paid. Moreover, if the franchisor can’t provide supplies, a franchise must look elsewhere. Develop a list of viable and trustworthy suppliers to prepare for a possible distributer catastrophe situation.

- Maintain a stash of supplies: Your franchisor declaring bankruptcy could very well leave you with an inadequate amount of supplies. By keeping a surplus of items you may need, you can avoid this scenario.

- Ensure that the community is aware that you’re independently owned: While you don’t necessarily need to regularly remind your customers that you’re independently owned, you do need to establish your business as a separate entity from all the other franchises. This can be accomplished by either letting fellow business owners know or becoming involved in the community. You want your business to feel as “local” as possible, because customers tend to favor locally owned businesses over nationally owned ones.

- Get the support of fellow franchisees: Moral support from your colleagues - even if they’re also your competitors - never hurts. In fact, helping out your fellow franchisees in times of need could ultimately mean the difference between success and failure. If the distance between you and other franchisees isn’t too great, you may be able to share supplies, which would help everyone.

- Consult a lawyer specializing in franchising: Consulting an attorney who has expertise in franchising could end up being invaluable in the case that your franchisor goes bankrupt. The time and money you put into hiring an expert is, simply stated, an investment in your future. A lawyer can educate you about your rights and help you concoct the right business plan for your business. You owe yourself this and more as a business owner.

Author Sebastien Page runs WorldFranchising.com.

The main advantage of buying a franchise is the reduced risk of failure. When thinking about starting a business, entrepreneurs always seems to compare buying a franchise to and independent start-up. That is a mistake.

Depending on which study is being quoted, and which time frame is being analyzed, the numbers are staggering in favor of Franchising. The numbers show more than a 90% survival rate after five years for Franchisees versus in the range of 20% for stand-alone start-ups.

As you can see, comparing franchising to and independent business is like comparing apples to oranges. Unless you are furiously independent and self-confident entrepreneur and have a unique idea which consumes your life or have an abundant expertise in a specific area, franchising is always a safer way to go.

The key to the success of the franchise model is the support and collaboration of the proven system. Business is always about building a system and franchising offers the most efficient way of delivering business systems to anyone who wants to be in business for him (her) self.

If a candidate talks to ten franchise companies they will hear a saying being repeated that in franchising “you are in business for yourself without being by yourself.” The saying, and franchising in general, provides a sort of comfort level not available to an independent entrepreneur.

Being independent may provide a great degree of freedom, but may also provide a share of confusion, second guessing, increased costs and a feeling of going alone against the world.

In the end, I would never discourage anyone form starting an independent business. At one point in time, I was faced with that decision myself and realize that each person has their own set of circumstances that come in play. However, I would discourage anyone from simply comparing franchising to starting an independent business. Comparing different franchises to each other is another story.

Author Andre Chernih runs SelectFranchiseList.com.

An independent contractor agreement is drawn up when a person or business is contracted to perform a service independently as an outsider of another person, business, firm or organization that contracts them.

Independent contractors enter into an agreement with a business or firm through a written contract that details the duties, pay, responsibilities, etc of each.

This independent contractor agreement is then executed independently of the business or organization by the independent contractor. In this way independent contractors differ from employees because they are not entitled to typical employee benefits such as health insurance, retirement benefits, social security, etc. They work at their own pace and on their own terms as long as they fulfill the conditions of the contract.

An independent contractor can be any individual or any business that performs services for another person or business under an agreement but is not subject to that person or business in the manner, means, or right to control their performance of those services. The person or business that hires an independent contractor is not themselves liable to others for any acts or omissions carried out by the independent contractor.

The independent contractor is clearly distinguished from an employee who would work on a regular basis for an employer. The independent contractor is responsible for their own income taxes and Social Security. They also do not benefit from an employer’s health plan or retirement benefits and are often not entitled to any workman’s compensation.

A number of factors should be considered when evaluating the position of an individual in relationship to a business in order to determine if they are actually an employee or an independent contractor.

First of all, the degree of control that the company or business exerts over the work of the individual is important. An employer has control of an employee in ways that they do not have control of an independent contractor. If the company has the right to direct and control the individual not only regarding the desired results but in their details, such as the ways and means by which those results need to be accomplished, then the company is exerting control over the individual. This right to control and supervise the details of the work being performed implies an employer to employee relationship. It is the lack of control and immediate supervision by a company that creates the independent contractor status. It is the simple right to this control which is the key factor is determining whether the individual is an independent contractor or employee.

In fact, independent contractors are a legal category of worker clearly defined by the IRS, or Internal Revenue Service. The definition relies on the fact that unlike an employee, an independent contractor can retain control over how exactly the work that they are hired to do is performed. They decide how the work gets done, while the individual or business that is paying them can only control the final product or service.

Of course, there are other factors to consider such as the connection between the individual and the business or company and how regularly they conduct business together.

Author Mark A Warner runs RealDealDocs.com.

Minority business owners have an outlet to market their products and services that many might not be aware of. Thanks to the Internet, marketing directly to the black community is becoming even easier. Black owned business directory services enable companies that are driven by black leadership to make their status known. This can, in turn, result in a boost in potential clients and customers.

The benefits of black owned business directory listings are many. While black owned business directory listings will not replace the need to market elsewhere, the option does open a lot of doors. Some of the reasons to consider getting a minority owned business listed in a black owned business directory include:

• Direct marketing. Black owned business directory listings are scoured by members of the black community that want to do business with a company that is run by a black owner. They are also used by people of other racial backgrounds that are seeking out the best of the best - regardless of race. This type of direct marketing can prove crucial to a company’s success.

• Greater online presence. Getting a business or firm name out on the Internet is a great way to draw in more potential customers and clients. The incoming links for online businesses, for example, can very much help company websites enjoy a greater amount of online traffic, which can relate directly to increased sales and revenue. The more buzz a business, professional or even informational site can generate about itself on the Internet, the better. For those who qualify, black owned business directory listings provide another means for generating buzz.

• Targeted traffic. Whether a black owned business directory listing is for a black lawyer in Peoria, Ill., or an international cosmetic products company, the traffic these listings can send toward a company or firm is generally very targeted. This means the potential customer stream is typically very interested in products or services and will have a greater percentage of people interested in buying. Targeted traffic is the most desirable on the Internet - especially for companies that want to succeed.
• Other business tools. Many black owned business directory listing sites are driven by black business organizations. By joining and getting a listing, black owned businesses also gain the resources of the organization to help their businesses thrive. For small or home-based companies in particular, the tools that go along with black owned business directory listings can prove invaluable.

• One prong in an overall campaign. When an overall marketing campaign is planned to boost sales, clients and revenue, black owned business directory listings make a great deal of sense. For those who are eligible, these listings provide another cost effective means for getting the word out about products or services. When drawing in new customers or clients is the plan, leaving stones unturned is not smart.

Black owned business directory listings won’t guarantee a minority owned business success. What they can do, however, is provide another effective means for marketing. When the power of a black owned business directory listing is harnessed along with other marketing strategies, the outcome for a business can be phenomenal.

Author Gordon Pettern runs AfroGoldPages.com.