B. Legal Considerations

1. General Compliance Statement. McColla Enterprises, Ltd., subscribes strongly to the proposition that the legalities and legal consequences of all business activities must be considered by all business enterprises before  actions are undertaken. Street Corner franchisees must strictly adhere to all laws, codes, ordinances, rules and regulations imposed upon them by any governmental authority with jurisdiction over their business operations. These governing policies may vary from one area to another. Franchisees are expected to know and comply with all applicable laws. Many business and legal resources are available to assist you in learning about and implementing such laws.  

2. Nondiscrimination. In the United States, there are strict nondiscrimination/equal opportunity laws in place at the Federal, State and local levels of government. McColla Enterprises, Ltd., steers a strict course in adhering to such nondiscriminatory/equal opportunity policies. Franchisees are expected to adhere to, and promote, such policies also.  

3. Tobacco, Alcohol, and e-Cigarette Use and Sale. Tobacco, alcohol, and e-cigarette use and sales, as well as tobacco-related products and vape refills, are common targets of stringent government regulation. You need a license or permit to sell such items and sales are regulated and age-restricted. Alcohol laws for privately-owned establishments vary significantly from state to state, if permitted at all, and Street Corner works closely with franchisees who wish to include alcoholic beverages in their product assortment to meet and understand local regulations. Franchisees can find up-to-date regulations on e-cigarette sales by state on the Center for Disease Control website. Please note:

a. Penalties for non-compliance can cost the unaware business owner his/her license to sell alcohol, tobacco or vaping products, loss of money through the imposition of fines, or even a criminal record. 

b. Employees involved in such illegal sales can also be criminally charged and penalized.

5. Lottery Sales. Lottery sales are offered in many states where Street Corner outlets are in business. Since convenience stores and urban markets have evolved into natural sites for lottery sales, Street Corner locations can often seek and obtain lottery concessions.  

You also need a license to sell lottery products and there are many government regulations that govern the lottery agent’s operation. Such regulations include restrictions on lottery sales to minors. Since business operation licenses are at stake, franchisees must be meticulous about compliance with all lottery regulations.  

6. Health Regulations. Since our operations include beverage sales by fountain and food preparation, Street Corner locations are almost always subject to various Health Department regulations as are usually applied to food service businesses. Consequently, franchisees must adhere to all applicable local Health Department regulations. 

7. Labor Regulations. Be aware of all applicable labor regulations. Compliance with myriad State and Federal requirements is absolutely mandatory. Harsh consequences, including fines and imprisonment, can the pernalty for those who do not adhere to governmental labor regulations. 

Age Requirement. Child labor laws exist at both the State and Federal levels. Extreme care should be exercised when employing minors, including the following:

Employees under the age of eighteen are subject to numerous restrictions, including limitations on the number of hours they can work, the types of work they can perform, and the types of equipment they can operate. In addition, many states require additional criteria for minors

Employees under the age of sixteen are subject to even more restrictions and additional care and, in many cases, are restricted from employment entirely. To check the age restriction guidelines in your state of operation please consult the Department of Labor’s Hour and Wage Division.

Minimum Wage. Minimum wages are established by the Federal Government as well as certain states. This amount is always subject to change. Keep advised of new developments concerning increases in the minimum wage by consulting the Labor Department serving your area. It’s important to note that there are several states that have their own minimum wage mandate, many of which are higher than the Federal minimum wage. The highest minimum wage requirement, which in many cases is the State’s requirement, is the wage franchisees must honor by law. To check your state of operation’s minimum wage requirement, please consult the State Minimum Wage Laws page on the Department of Labor website.

Overtime. Federal law dictates that all hourly employees must be paid one and one-half (1-1/2) times their normal wage for all hours worked beyond forty (40) hours per week. Some states have additional overtime requirements, requiring up to twice (2) their normal wage. Franchisees should do their due diligence, such as researching organizations like www.minimum-wage.org, for the state in which their stores reside. We recommend scheduling hourly employees 40 hours or less to avoid mandatory overtime wages. Salaried employees (those paid without regard to the  number of hours worked) are typically not subject to overtime requirements.  

8. OSHA (Occupational Safety and Hazard Administration). OSHA is the premier Federal regulatory agency that deals with workplace safety issues. OSHA regulations are all-inclusive and compliance is not negotiable. Questions regarding compliance should be cleared up as soon as possible. Consult a professional source for advice.  

9. Chemical Safety Sheet. Some deliveries of chemical products (including cleaning supplies) must be accompanied by Material Safety Data Sheets available through the product manufacturer. Keep these sheets available in your store: 

a. Material Safety Data Sheets outline the basic properties of individual chemical compounds as well as provide detailed safety information.  

b. These sheets must be made available for review by all employees who may be exposed to, or work with, these chemical substances.    

10. Age-Restricted Products. Many products sold by the typical Street Corner store are subject to government-imposed restrictions concerning the acceptable age of potential purchasers. These items may not be sold to persons under a set age.  

Be aware of those items subject to age restrictions. Store policy should include a requirement that employees verify (by checking a passport, driver’s license, military I.D., etc.), a customer’s age before completing the sale of an age-restricted product. A partial list of age restricted items include:  

a. Lottery

b. Alcohol

c. Tobacco, e-cigarettes, and vape refills

d. Adult Magazines

e. Lighters (restricted in some areas, Check local laws).

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