Business and Tax Lawyer Blog

Despite the still lagging economy, a tiny Riverside bicycle shop in Jacksonville, Florida opened its doors in February of 2010 – and racked up 100 sales and 500 Facebook fans in its first month of operation. While the store, called ZenCog, considers itself a high-tech business, it sells a very old-school product: steel-framed, single speed, coaster-braked bicycles.

Co-owner Garfield Cooper of Avondale, Florida actually attributes the store's success to the poor economy. He says that people can't afford to spend lots of money on their cars, so bikes make a great alternative. And the old-school type of bikes that he sells are inexpensive to maintain since they don't have gears or brake cables.

Co-owner Clark Schaffer of Atlantic Beach, Florida believes that the store's more durable steel frame bikes are the perfect alternative to what he calls "disposable aluminum high-performance bicycles" that cost a lot more to purchase and maintain.

Shaffer and Cooper say they just want to see more people riding bikes; it is great exercise and doesn't pollute the atmosphere. The store has already attracted a fan base of local residents who come by the shop just to hang out.

This is an excellent example of a business finding a niche that can flourish in current economic downturns and recognizing how to "touch" its market segment. Even though their product may be old-school, their business model isn't. The store has embraced social media marketing, with an active website, blog and Facebook page. They use emailed receipts to cut down on paper waste. They also don't carry any new inventory. They use the internet to help customers customize bikes, which the store then assembles for them when the parts arrive. The only bikes they keep on site are consignment and refurbished.

Find out more about Jacksonville, Florida's newest bike shop at New Riverside bicycle shop cruising along despite economy.

Continue reading "New Jacksonville, Florida Small Business Racks Up Sales Offering Perfect Product for Down Economy" »

Discovery Plaza mall on the south side of Atlantic Boulevard in Jacksonville, Florida has added renewable energy sources to their power mix. The strip mall has installed two thirty foot high wind towers – called Windspires – and an array of solar collectors on the rooftops of two of the buildings. The alternative energy is used to power the common areas of the mall, like parking lot and security lights. Tenants still get their own electricity from traditional sources. While the Windspires are more noticeable, the ninety rooftop solar panels actually provide most of the energy to the mall.

In addition to providing clean energy, the Windspires have gotten the mall a lot of publicity, generating both attention and foot traffic for the mall's tenants. Some shoppers even believe that the Windspires were designed as a marketing ploy. Tenants at Discovery Plaza certainly don't mind the extra attention.

The towers were put up in late 2009 by Jacksonville, Florida based Erickson Energy, and cost about $15,000 each to build and install. Company president Frank Erickson said that the mall's main goal was to lower their energy bills. He estimated that the mall's investment would pay off in about four years.

Erickson is now benefitting from the buzz created by the Windspires. He will be opening a store in the mall to demonstrate alternative energy sources to homeowners and businesses in the area.

Read more about the alternative energy being used at Jacksonville's Discovery Plaza by visiting Wind towers, solar panels help power Jacksonville strip mall.

If you live in North Florida and have a business legal matter, please contact our Jacksonville, Florida law firm.

The battle for supermarket shoppers is highly competitive, and Winn-Dixie, a Jacksonville, Florida based grocery store chain is forging partnerships with other companies to stay a step ahead of the competition.

Winn-Dixie shoppers can now buy Blue Cross and Blue Shield insurance at the store along with pre-paid Visa cards. They can rent movies from redbox, and then take their Winn-Dixie rewards cards to Shell gas stations for a five cent per gallon discount for every fifty dollars they spend at the store. Some of the stores sell bus passes, and shoppers will soon be able to pay their JEA bills at the store as well. The store has also struck deals with the Jacksonville Jaguars and the New Orleans Saints to act as the official supermarket for the two NFL teams.

Of course, Winn-Dixie isn't the only grocery store to branch out this way, but they have been very active in pursuing partnerships over the last two years. The partnerships are mutually beneficial to the participating businesses as well as the consumers/customers; partners get access to Winn-Dixie shoppers, and Winn-Dixie gets a cut of their in-store sales, (along with the ability to attract more customers by offering enhanced services), and Winn-Dixie shoppers have a one-stop shopping opportunity.

Winn-Dixie's approach is to offer one stop shopping to their customers. The only drawback would be if a partner didn't do a good job – that could reflect poorly on them. Read more about Winn-Dixie partnerships at Cross-marketing can be 'win-win' for Winn-Dixie.

If you live in North Florida and have a business legal matter, please contact Wood, Atter & Wolf, P.A., Jacksonville, Florida attorneys.

A class-action lawsuit has been filed against T-Mobile, Microsoft and its subsidiary, Danger, after a server glitch In October 2009 disrupted T-Mobile "Sidekick" cell phone users' data service.

The lawsuit alleges that the companies were negligent and that they did not follow through on advertised promises that customers' data would be secure. At first, Microsoft informed customers that their personal data may have been lost forever, but two days after the suit was filed Microsoft announced that most of the data had been recovered. The recovery of the data could negate most of the damages the plaintiffs in the class action suits would be able to claim. However, some Plaintiffs have stated that neither their data nor the data of other class members had yet been restored.

With more personal information being transferred digitally than ever, it is critical for companies to protect that data with advanced security measures.

Find out more about this story at Sidekick outage lawsuits now up in air.

Continue reading "Server Outage Wipes Out Customers' Personal Call Phone Data, Triggering Class Action Lawsuits" »

As many as 100,000 homes across the country may have been built with defective Chinese Drywall. The drywall has been found to emit sulfide fumes, which can corrode pipes and wiring and cause health problems such as skin irritations and respiratory problems. At least two Florida home insurance providers have threatened to cancel or not renew policies of affected homeowners.

Citizens Property Assurance Corporation and Universal North America have stated that they are not required to cover the cost of removing and replacing the drywall and corroded wiring and piping, which could add up to as much as $100,000 for an average home. The companies have cited clauses in policies that exclude damage caused by "pollution" or "builder defect."

Citizens advised policyholders who have filed claims for damages that they must provide proof that they have replaced the drywall or their policies will not be renewed as the corrosive effects of the sulfur will likely cause further damage to the home. Universal North America, Florida's 12th largest home insurer, dealt with at least one claim by cancelling the homeowner's policy outright.

Policy holders have been put in a difficult position; if they report the defective drywall they may be required to replace it or risk losing their coverage. Builders who installed the defective drywall may be held liable for replacing it. Each may also have recourse with the distributor or manufacturer of the product.

Find out more about this story at Insurers Drop Drywall Victims.

Continue reading "Defective Chinese Drywall Leaves Some Florida Homeowners Without Insurance" »

A former employee, Darrol Olsen, of Lockheed Martin Corp, a major US defense contractor, has claimed in a federal whistleblower lawsuit that the F-22 Raptor stealth jets the company was building for the US defense department were knowingly finished with a defective stealth coating. President Barack Obama ended the production of the jets in 2009, following the advice of critics who said that it was ill-suited for the wars in Iraq and Afghanistan. Each jet cost the US $140 million.

Olsen was fired from the company in 1999. The false certification and concealment of negative testing results was alleged to have taken place between 1995 and 1999. Olsen also claims that he was told to mind his own business when complaining about his suspicions of false certifications to his superiors. In the lawsuit, Olsen claims that Lockheed added extra layers of coatings to the jets so that they would pass air force tests. Apparently the coating would rub off if it came in contact with oil, fuel or even water. The extremely thick coating added to cover up the problem allegedly affected the jets’ speed and maneuverability.

Olsen is suing Lockheed to pay $50 million to the US government for each jet included on the contract. Find out more about the F-22 Raptor Stealth Jet Ex-Lockheed engineer claims F-22 tech 'defective'.

A ten year anniversary news series was enough to finally convince a business owner to speak out about a fire at his warehouse that killed 6 firefighters in 1999. Tony Kwan said in a new interview that the Fire Department inspected the Worcester Cold Storage and Warehouse Co. building only a few days prior to the blaze, and found it safe and secure. He has provided a copy of their report to the local newspaper, the Worcester Telegram & Gazette, which is running the series.

He also said that he prays twice a day for the men who were killed, but he does not feel personally guilty because he met all the requirements for keeping the building safe. Even so, he took the settlement from the insurance company and split it among four widows of the deceased firemen to settle a civil suit they filed against him.

An investigation of the fire found that it was started by some homeless people who broke into the building and knocked over a candle they were using. The laws in Massachusetts for securing abandoned buildings have become much stricter since 1999, including requiring stronger barriers to keep out intruders. Mr. Kwan reports that he follows the new, stricter laws that are now in effect as well.

Mr. Kwan discusses the reasons for his ten year silence as well as the settlement in the civil lawsuit in greater detail at Owner prays for dead; says building was secured.

Building owners have a legal responsibility to make sure that any property they own is secure. If you need guidance in understanding Florida building codes, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Allied Veterans of the World is a non-profit organization that raises money for veterans. Part of their fundraising strategy in Florida has involved running Internet cafés that take advantage of a loophole in Florida sweepstakes legislation to offer online gambling. Their cafés have been raided and shut down by police in several Florida counties, including Seminole, Marion, Jackson and Pinellas.

They recently filed a lawsuit asking the state of Florida to declare that the cafés do not violate Florida state law. But the circuit court judge threw out the case, saying that local sheriffs are not arms of the state, meaning that Allied Veterans of the World will have to fight for the right to stay open in each of the individual counties where they are attempting to operate. They currently operate twenty five cafés across the state of Florida.

In related news, a lawsuit brought against Allied Veterans of America by Jacksonville Greyhound Racing Inc. will be allowed to proceed. The lawsuit alleges that Allied Veterans of the World is violating Florida's Deceptive and Unfair Trade Practices Act and Florida's Civil Remedies for Criminal Practices Act and that the establishments are a "common nuisance" under Florida Statutes.

Jacksonville Racing is seeking to have all of the cafés shut down and is asking for damages and legal costs. You can read more about the two lawsuits at Tallahassee judge tosses out suit over Internet cafes.

If you have a legal matter that is affecting your business, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Venture capitalists are flocking to green-technology companies to get a cut of the action. Approximately $1.59 billion dollars have been sunk into environmentally-friendly corporations worldwide in the third quarter of 2009. These businesses are developing clean systems ranging from solar panels to electric vehicles.

The government is also investing heavily in these firms through loans, grants, and subsidies. Hopefully, this will become a trend as opposed to a flash in the pan undertaking. Clean technology now takes up around 27% of venture investment.

I, for one, welcome anything that could help loosen big oil's stranglehold on the energy market! It clearly makes sense to find new sources of energy as the world's supply of fossil fuels is being depleted at an alarming rate. Especially here in Florida, we also need to look at the impact we're having on the environment, more specifically our waterways and the Everglades!

How do you feel about green technology? Please post your comments or contact me to discuss!

In 1999, total revenue in the US from sales and licensing of music was nearly fifteen billion dollars. By the end of 2000, that figure had dropped to just over six billion dollars. In fact, the Recording Industry Association of America (RIAA) has reported a decline in revenue for nine out of the last ten years, making the first decade of the twenty-first century the first decade that music sales were lower at the end of the decade than the beginning.

Of course, the last decade saw two separate recessions, which cannot have helped music sales. And sales during the 1990's were certainly helped a great deal by consumers re-purchasing all of their favorite taped and vinyl music on CDs.

An RIAA representative cited growing pains adjusting to digital music as the reason for the decline, saying that the music industry has been trying to adapt to rapid changes in how consumers buy and listen to music. He went on to admit that the music industry has had trouble monetizing evolving music delivery methods.

Thanks to Napster and other digital file sharing sites, customers now expect to download music from the internet for free or for very little money. So instead of purchasing a complete album of music for fifteen dollars, they can cherry pick songs for one dollar each on Apple's iTunes, or use an unauthorized file sharing site to get music.

According to Forrester Research, only sixty four percent of Americans believe that music is worth paying for. Another study showed that unauthorized file sharing sites still account for 90% of downloaded music. Find out more about the music industry's struggles at Music's lost decade: Sales cut in half.

These statistics reflect the current difficulties faced by artists trying to protect their interests due to constant advances in music delivery systems, however, as a starting point, musicians and songwriters must also take the first and most basic step of protection – filing a copyright on their "creation" at the outset.

If you live in the Jacksonville, Florida or Orlando, Florida area and need to have a copyright on your music or believe your copyright has been infringed, please contact our firm Wood, Atter & Wolf, P.A., for business legal counsel.

Florida horse and dog tracks have had a hard time competing with Seminole Indian casinos. Casinos are still the only place a Florida resident can play traditional blackjack, but the track owners have persuaded the state of Florida to allow them to offer electronic blackjack to their gamblers.

The virtual blackjack game does not feature a real dealer and a green felt table, but it does offer starting bets as low as $3; the Seminole casinos start at a $10 minimum. Another major difference between the two games is the fact that the cards dealt in electronic blackjack are generated completely at random, which convinced the state to consider the games equivalent to slot machines and allow them at racetracks.

The casinos have been criticized for continuing to offer real blackjack, ever since a 2007 pact with Florida Governor Charlie Christ that allowed them to offer blackjack was invalidated by the courts. Florida Attorney General Bill McCollum has gone so far as to request that federal authorities step in to prevent the casinos from offering any so-called "banked" games. The tribe points to the licensing of blackjack at the racetracks as a clear signal that they are allowed to offer blackjack as well. Federal regulators are still looking into the issue.

In the meantime, Florida blackjack players have their choice of the real thing or the electronic version. Find out more about this story at South Florida parimutuels bet on virtual blackjack machines.

In these difficult times even non-traditional businesses such as casinos, racetracks and others in the gaming industry have hurdles to overcome in attracting a dwindling share of the market. Businesses becoming increasingly creative in securing that market share should seek legal advice to ensure that those expanded activities are in compliance with the law.

If you live in the Jacksonville, Florida or Orlando, Florida area and have a business legal matter, please contact our firm, Wood, Atter & Wolf, P.A., for business legal counsel.

51 of your local Florida Winn-Dixie grocery stores have been remodeled not only on the inside, but the signs outside will be changing as well. The Jacksonville, Florida-based supermarket chain has announced that it is creating a new brand called Fresh Checked Every Day to accompany the renovations. Many of the revamped stores are located in Duval County.

Winn-Dixie currently has about a 13.3% share of the Florida grocery market, behind both Publix and Walmart. The new remodeling plan is a substantial investment, especially considering the fact that Winn-Dixie filed for bankruptcy in 2005. Some of the major changes include larger produce departments, custom sub shops, and greater selections of natural and organic foods.

While it is important to reach different demographics and appeal to a wide consumer base, a business should be careful not to cause brand dilution. For instance, Food Lion, a Mid-Atlantic grocery chain, recently spun off two new brands: Bottom Dollar and Bloom. As a result, customers now suffer some confusion as to Food Lion's identity.

Building a brand image is a long process that takes years and it shouldn't be tarnished by adding sub brands haphazardly! The key to bigger and better business is a strategic growth scheme. Consult a franchise attorney to find out where, when, and how you should expand!

Earlier this year, Cuppy's Coffee, a franchise founded in Florida but later moved to Alabama, simply disappeared into oblivion leaving nearly two hundred franchisees without a franchisor. A warrant for the CEO of Cuppy's, Robert Nabors, was issued in Okaloosa County, Florida, in March of 2009. Some of the investors now face bankruptcy as a result of investing hundreds of thousands of dollars in the franchise but never even getting to open their business. Cuppy's took the franchisees' money but, never built their stores. From the start, Cuppy's was a questionable franchisor; Cuppy's grew out of the failed franchise, Java Jo'z.

Cuppy's isn't the only franchisor to be hit with lawsuits in Florida; I recently posted a blog discussing The UPS Store franchisees suing UPS alleging it withheld information from franchise purchasers regarding profitability. Another franchisor sued by its franchisee is Cold Stone Creamery, which was sued by a Tallahassee, Florida, franchisee on claims of fraud related to the store's profitability.

I find the continuous stream of investors in franchises and other business opportunities who buy into risky and questionable businesses both startling and saddening at the same time. The most important thing a potential franchisee can do is research the company; that means researching other sources of information about the franchisor and not just relying on information provided by the franchisor itself. Potential franchisees can look to sources such as, franchise magazines, franchise blogs, franchisee associations, and talk to current franchise owners to find out things like what kind of support, feedback, and dispute resolution the franchisor provides. In addition before signing any Franchise Agreement a potential purchaser should seek counsel from an attorney experienced in franchise law.