Smart Synergies

Despite all of the attention recently focused on income taxes, it is the property tax that is the biggest expense in most businesses - and the most difficult to manage. According to the Council on State Taxation, a Washington, DC, think tank, American businesses shell out more on property taxes than for any other type of state or local taxes.

We all know to expect death and taxes, but tenants can add one more thing to that list: lease renewals.

Technology companies have always searched for a way to integrate functions in various devices or programs. The advantages to a provider are obvious: more functions mean more charges that can be made, or greater customer loyalty.

California has long been a key market for franchising, and its consumer-oriented culture has also made it one of the most active venues for regulatory and legal issues. Legal developments of the past year affecting the franchise community include the cascade of "Bounty Hunter law" actions, a franchisee's escape from arbitration requirements deemed 'substantively unconscionable', and a lesser-known ruling narrowing the interpretation of franchise fees.

On Wall Street, smart investors will tell you that diversification is a critical part of any portfolio. It's an approach that can shelter investors from significant losses by spreading the risk. It's also a good way to ensure consistent dividends. And diversification is a strategy that is being adopted and becoming more and more popular among multi-unit franchise operators.

Conventional wisdom has it that young franchises are jumping on the area developer bandwagon to grow quickly and establish their presence in the most efficient way.