WTSDA Hall of Fame Nominations Wanted!

For all members of the WTSDA Board of Directors, this is a call for nominations.  You may nominate one (1) person (or dojang in the case of Dojang of the Year) for each category.  Please be sure to provide as much detail about the nominee as possible – the more information provided, the better other Directors will be able to assess the nominee’s worthiness!

You may submit one category at a time, or all at once (but if you nominate more than once in a category, only your first nominee will be counted).  Nominations are due no later than December 15, 2017.  The LAC will send reminders, but we are accepting nominations, beginning now!  Directors should check their email for further information.  For reference, former winners of each category are listed below.

Nominations may be submitted by clicking here.

Former Winners:

Year Master of the Year Instructor of the Year Student of the Year Family of the Year
1983 Chuck Vaughn
1985 Y. H. Kwon Larry Dercole
1987 Darryl Khalid Mujahid Khan
1988 Larry Dercole Karen Phillips The Sachs
1989 G. Morgan Becker Ronald Ravers
1990 Michael Hicks Louis Marvil Irma Tudara The Youngers
1992 Larry Wick Bob Mitchell The Greens
1994 William Strong Alejandro Pisoni Nancy Clark The Keiffers
1996 Vance Britt Adriaan Blignaut Stephanie Uttech The Gebhardts
1998 Jerry Whitten Brian Olden Vince Melchiorre The Valentins
2000 Mujahid Khan John Costa Jim Mars The Ewings
2002 Allen Sharpe Joseph Scota Mary Clements The Prescotts
2004 Jeff Haney Joe Centrone Hisako Ito The Newmans
2006 Jeff Green Becky Rupp Shyla Sickels The Thomases
Master of the Year Instructor of the Year Student of the Year Family of the Year Community Service Humanitarian Studio of the Year
2008 Larry Wick Jared Arteca Susan Strohm The Fausnachts Doug Smith Chuck Vaughn
2010 John Godwin Giselle Sharpe Jarrett

Manzi

The

Bono Family

Frank Altiere Sandy Lipstein Valley Tang Soo Do Academy
2012 Jim Mars Kristen Winsko Jeanette Arteca The Miller Family Mary Jansa Not awarded Karate Masters
2014 Frank Fattori Dan Farrelly Karin Roumanis Insohita Family Katrina Fausnacht C. Donald Weinberg Vaughn’s Dojang
2016 Larry Wick Montana Cole Paul Helsdon Sharpe Family C. Donald Weinberg Jeff Wheeler Lorenzo Tang Soo Do
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WTSDA Hall of Fame Voting Now Open

For all members of the WTSDA and WTSDF Board of Directors, the voting for the 2016 Hall of Fame is now open.  Please be sure to vote (once only 🙂 ).  If you are a member of the Board, you should have received and email from Mrs. Winsko (wtsda.counsel@gmail.com) with a link to the voting.  If you did not, you can use the link below.  Any problems voting, please let Mrs. Winsko know.

Voting will CLOSE at 10 pm (Eastern) on Monday, March 21 – in time to get information on the winners from the appropriate Regional Directors at the USA Master’s Clinic.

Click here to vote!

Region 8 Background Check Info Now Available!

For those located in Region 8, you may or may not be aware of the newest Child Welfare Law that potentially impacts both the WTSDA and your individual school(s). For purposes of general education here’s what it boils down to:  in Pennsylvania, those adults who are charged with care of children (e.g., our overnight Youth Dan Camps), or regular contact such with children (e.g., during classes on a weekly basis) are required by law to have a background check conducted every five (5) years.  There are also requirements around the mandatory reporting of suspected child abuse.  You should check with your attorney and/or insurance company for details.

How is the WTSDA impacted?  Well, for a number of years, Region 8 has required those counselors attending the Youth Dan Camps to provide copies of completed background checks.  Region 8 did this because it believes this is a best practice for an organization like ours.  Now, it will be mandatory (reminder, the camps are currently held in Pennsylvania so all counselors, regardless of which state they reside in, are impacted by this).  And the check must be renewed every five (5) years.

If you are in Region 8 and you need to have the check performed, please visit the page with the information on where to go to get your background checks completed.  It may be found here.

Some other helpful resources:

Some FREE general information about the requirements and the applicable law (from the University of Pittsburgh Child Welfare Resource Center):  http://www.pacwrc.pitt.edu/

Some FREE on-line training regarding the reporting of child abuse: https://www.reportabusepa.pitt.edu/webapps/portal/execute/tabs/tabAction?tab_tab_group_id=_2_1

More FREE information on child welfare and training programs to benefit children (includes information on bullying and a broad array of other topics): http://www.yftipa.org/pages/pa-child-welfare-resource-center

Lease considerations for that new dojang space

There are a number of different models for obtaining space to hold classes: own the space, lease the space, find a host location to hold classes (think YMCA or gym that you neither rent nor own).  The WTSDA has many affiliated schools in each of those categories.  But, commercial locations seem to lease space more often than the other two options.  I say this because looking at a lease is one of the things that I get asked to do most often.  Many prospective school owners believe they have no (or at least very little) choice in the terms of the lease presented to them by the future landlord.  However, that is not always the case.  While it is true that it is very unlikely you can get everything you ask for, sometimes it just takes a little bit of time to discuss and negotiate.  After all, most of the time, it doesn’t hurt to just ask.  What should you be asking for then?  Here are a few of the things you should be thinking about when reading that lease you were just handed.

1.  The lease will (virtually always) significantly favor the landlord.  The landlord wrote it after all – or their lawyers did.  So, they are obviously looking out for the interests of the landlord.  You need to keep that in mind.  If you read something and think that it doesn’t seem fair for you to be required to do something, it might not be and it might be intended to be that way.  Make a note and see if you can change the item.  If you read something and you aren’t crystal clear on an item, you also need to ask.  While there is a theory in contract law called “contra proferentem”that is latin for “against the offeror” where an ambiguity will be interpreted against the person who drafted the document – do you really want it to come to that?

2.  The term and termination.  Often, a commercial lease will automatically renew unless you provide affirmative notice (at least a certain amount of time ahead) that you don’t want it to renew.  And, renewal for a length of time equal to the original term is common.  But what if you are ok with a first term of 5-years but are planning for growth and then don’t want to be stuck for an additional 5-year term?  If you want additional terms to be one or two years, you should ask.  This is where people often have leverage.  Although it may come at a price.  I will talk more about rent increases, but keep in mind that it is common to have the landlord have the right to increase rent with every renewal term.  A shorter second (or subsequent) term might be easy to negotiate if you are willing to discuss the impact on price increases.  Termination is often only upon certain events and many times requires the payment of a fee based on the reminder of the term, even if a replacement tenant is found.  You can ask to reduce the payments by the amount of rent paid by any future tenant.

You should also consider options for expansion.  If you are lucky enough to need a bigger space, can the landlord accommodate?  And if they can, what is the impact on the lease?  Sometimes you can work a clause into the lease that permits you to move to another property the landlord owns that can accommodate your needs, without penalty on the existing lease.

3. Price.  What’s included?  Insurance, property taxes, maintenance?  Are utilities included? Price may or may not be listed in one section of the lease. Typically, it is easy to find “rent”.  But often, things like your pass -through share of property taxes is listed in another section of the lease.  In order to have an understanding of the total cost, you need to look carefully for other fees that may or may not pass-through to you, including “CAMs”.  That’s a term that you may not be familiar with – Common area maintenance charges.  These are typical in a “triple net lease”.

A triple net lease is one where the landlord passes through all expenses to the tenants on a pro-rata basis. CAMs charges are included in that.  They typically are added to the “base rent” as “additional rent”.    It is not uncommon for CAMs to include administrative fees, maintenance fees, costs for repair and replacement of roofs, lighting, plumbing, electrical wiring, HVAC, snow removal (think walkway and parking lots – they need to have the snow cleared and you typically pay for it as part of CAMs) etc., for the common areas.

You can try to negotiate a cap on some or all of the CAMs.  Sometimes you can get a fixed fee (although for folks in snowy climates, snow removal is often excepted out of any fixed cost) and you can attempt negotiate exclusions to items that are passed through to you (for example, exclude costs due to the landlord’s or another tenant’s negligence).  You should also ask for the right to obtain an accounting of the charges and the right to audit the landlord’s books to ensure that these amounts are properly calculated.

It is also important to understand how space is calculated and allocated so that you can ensure the CAMs charges are correctly apportioned to each tenant.

Increases are typical, at a minimum, at the beginning of each new term.  Sometimes they are for set amounts and other times they are tied to inflation (CPI, etc.).  It is often a good idea to set out any potential increases right in the lease.  Especially if the increases occur during the initial term.  Don’t be afraid to include a chart in the document (or as an exhibit) which makes it crystal clear what the rent is during any given month.  If the increases aren’t set amounts, one thing to look for is if the amount is capped.  If the increase is tied to something that is a moving target, like the CPI, I would ask for something like “the lesser of $X or the CPI”.  If the landlord has the right to merely notify you of an increase prior to renewal, make sure you get that notice 15/30/60 days before the notice period for termination.  You don’t want to not notify that you will terminate and then get told rent will double and have it be too late to do anything about it!

Landlords often also “give away” a free month (or more) at the start of a brand new lease.  Make sure this is properly reflected.

5. Improvements (and repairs – wear and tear, force majeure).  This one can be tricky.  Some improvements, to be fair, should probably be your responsibility.  But, if you make improvements in many jurisdictions those improvements become fixtures and you can not “unimprove” or remove before moving out.  What state is the premises in at move in?  Do you need to ensure it is in the same or better when you leave (almost 100% of the time or it will cost you)?  If your use of the facility causes damage, you should probably be responsible.  But, if the water heater that was there when you moved in is 20 years old, should you have to be the one to replace it?  If a tree falls down and breaks the front window, who is responsible – you, your insurance, the landlord, the landlord’s insurance?  If there is a flood or major storm and you can no longer occupy the premises, what are your options?  How fast does the landlord need to repair the premises?  Or, can you merely terminate without penalty?

6. Sub-leasing and assignment.  Many commercial leases prohibit the assignment or sub-letting of the space.  So, it is important that you understand what this means.  You can ask to sub-let or assign, with permission (such permission not to be unreasonably conditioned, withheld or delayed).

7. Signage.  Can you display a sign?  Is there a marquee and can you be listed on it?  Are neon lights prohibited?  Are there local ordinances that apply (e.g., some towns require permits and approval of signs before they are placed).  The landlord will not want to be responsible for your compliance with the law, but they are the ones with the property and you can ask if they are aware of any requirements before putting any signs up.  You should also ask about your remedy in the event any required approval (be it by the landlord or the local government) is not granted.

8. Permitted Usage (martial arts activities; marketing to fellow tenants of shopping center; birthday parties; after school programs; parking of a school vehicle overnight).

9 . Use.  It is crucial that you ensure your planned use is permitted.  You also need to make sure that the use provision is broad enough to cover any of the activities that you have planned for the future.  Think hard about the future and what you want from your dojang – you need to make sure that all potential uses will be permitted (and if there are requirements around any particular uses).

10.  Exclusivity.  I have seen a few commercial leases where there is an exclusivity clause – that it, it states that no other tenant can engage in the same business and sometimes (just sometimes) you can also get the landlord to cover a geographic area covering all properties they own.  For example, I saw a commercial lease where the landlord agreed to not rent any property to a business classified as a competitor of the tenant within a 10 mile radius of another tenant.  Here is where it does not hurt to ask!    But if you ask, be careful how the competitor is defined – the exact wording can make a difference (is an MMA studio a competitor?  Definitions are important here).

11. Personal Guarantee.  These are becoming more and more common.  This is a tricky item – you should consider it carefully.  There are options, however.  Consider:  (1) a time limit for the guarantee; (2) a letter of credit in lieu of the guarantee; (3) guarantee the rent for a set time frame after early termination; (4) offer a larger security deposit; (5) build in waivers for certain events (e.g., sale of the business); or (6) cap or limit the amount of the guarantee.   There may be other options as well – if you are using a broker you should discuss this with them.

12.  Remedy.  Now we are starting to talk about items which are more “legal” and less “business”.  Suing the landlord for damages is the first thing most people think of when considering remedies.  And this is a good option – what that means is that I would not want to give up my right to sue the landlord (if I had to, it would be in very specific and limited cases; I would try to avoid arbitration or mediation; I would not agree to a waiver and hold harmless that is a blanket exculpatory clause).  Remedies are something that your lawyer should review carefully and work with to negotiate specific terms.  In some cases, you might want the right to terminate the lease, abandon the premises – without penalty.  You should have provisions for temporary loss or use of the premises (see #5 above for examples of when).

13. Default.  Any breach should require certain notice and an opportunity to cure.  Termination or forfeiture of a commercial lease is legally justified in certain situations (breach of a material covenant or condition or a violation of applicable law) and there are two categories of grounds for termination (monetary and non-monetary).   Knowing that, any tenant should want all the details and options for curing a breach or terminating the contract as a result of a breach (timing, penalty, etc.) to be clear so that the tenant can understand their rights an options.

14.   Warranty disclaimers and indemnities (and other rights).  These are going to be in the lease and may very well be IN ALL CAPS (AND SOMETIMES BOLDED TOO). They are written this way to draw your attention to them (some jurisdictions require the emphasis in certain circumstances) so that you can’t claim you weren’t aware of what rights you are giving up.   However, the exact rights you have, and the rights you may be giving up, are jurisdiction specific.  In some places, courts have recognized an implied warranty of fitness or suitability, so you do not want to let the landlord explicitly disclaim these.  In other jurisdictions, you must have language in the lease addressing such issues so that you can sue for breach.   You should also be careful what you agree to indemnify the landlord for.  Typically, commercial lease indemnities are included to cover third-party suits.  But, any indemnity provided should not alleviate the landlord from its responsibility in the event of the landlord’s gross negligence, willful misconduct, reckless disregard or fraud.  You also may be asked to limit the time frame for raising an issue with the landlord, whether the limit relates to an informal notice for a small repair or to file a suit against the landlord.

15.  Relocation, demolition, insolvency.  Those three words are a mouthful.  And they are frightening situations because they are things that are outside of your control (I am assuming this is landlord insolvency).  Relocation provisions are designed to permit the landlord to relocate you.  Believe it or not, sometimes you are expected to pay the cost if the landlord wants to move you.  And if they move you, unless you have the right language requiring the landlord relocate you to comparable space (and the definition of comparable can be key) you may loose all your foot traffic and walk-in business.  Not to mention the disruption to your class schedule.  Although relocation may be minor compared to the demolition clause – if that kicks in and the landlord has the right to demolish the space, what then?  You need to understand the landlord’s rights, and your rights in these cases.   If the landlord files for bankruptcy, you should also know your rights.  A purchaser may assume the obligations under the lease or they may look to make changes.  If you negotiate these clauses well, you may have rights (e.g., termination) if these situations arise.

This list isn’t all inclusive, if you can believe that.  These are just some of the issues you should be thinking about when you get the lease, and you should be prepared to discuss with your attorney before executing a lease.

Some helpful terms that are often used by landlords:

  • build outs – improvements and/or modifications when new space is being finished to a tenant’s specifications
  • CAMs – common area maintenance charges
  • estoppel certificate – an “instrument” which prevents the signor from asserting facts different than what is contained in the document.  This is often required and it will contain certain facts relating to the lease
  • common areas  – places such as hallways, rest rooms, and elevators
  • demised area – the walled off and secured area of a leased space
  • gross lease – when the rent a tenant pays includes things such as insurance, property taxes, and maintenance costs
  • holdover – how much the landlord can charge if you overstay the termination of the lease
  • length of lease – this is the term; options for renewal and extensions included
  • net lease – when the rent a tenant pays does not include things such as insurance, property taxes, and maintenance costs and the tenant gets charged for such items separately
    • double net lease – taxes and insurance are included
    • triple net lease – taxes, insurance and maintenance costs are included
  • rent, including allowable increases or escalations – the amount you will pay
  • rentable square footage – combines usable square footage plus a portion of the common area
  • turn-key – space that is ready to occupy
  • usable square footage – the square footage rented and used exclusively by the tenant

Pitfalls of Social Media

We all know that social media can be a powerful tool.  It’s no accident that successful companies and nonprofits alike all have Twitter accounts, Facebook pages and Instagram what-ever-you-call-thems.  However, there are pitfalls to social media as well.  How many times have you read about a celebrity or a company that posted something or tweeted something and then removed it later?  Companies have been sued over posts that were tweeted (Duane Reed, a pharmacy in NY had a lawsuit filed against it, asking for $6 million in damages, for posting a picture of an actress without her permission).  Demands to do things, or not do things, are rampant and all over the web – and they are related to things people tweeted or posted.  Bad publicity seems much easier to get than good publicity when you have social media accounts.  Why is this?  Because social media is a virtual minefield.  Regardless of the American “free speech” arguments, people’s opinions seem to flow freer on the web, the audience is unlimited on the web, and people take the impersonal comments very personally.  So, what to do?

There are a few important things to remember about using social media.  And, as a studio owner affiliated with the WTSDA, there are certain legal requirements that you should keep in mind before flinging a sheep at someone on facebook or tweeting about your favorite Far Side cartoon depicting a clever martial arts theme.

1.  Copyright and trademark infringement.  Social Media, specifically the act of “sharing” has made the idea of copyright or trademark infringement almost inconceivable to most people.  But yes, when you post that cartoon you love showing a clever play on breaking, that video with the excellent sword demonstration, that photo someone else took of a celebrity executing an excellent side kick or you taped your class doing a hyung with Rocky music blaring in the background, you may have just violated someone’s intellectual property rights.  Merely noting the source doesn’t get you out of hot water either.  There is something called the “fair use doctrine” but one factor is whether the use is of a commercial nature and if you own a for-profit school, you probably can’t claim that the use wasn’t for commercial reasons.  (For more on the Fair Use Doctrine, click here.)  Please, please take this one seriously.  The WTSDA has, in the past, received “cease-and desist” notices for content that was on WTSDA schools’ websites.  The WTSDA didn’t approve of the post, or make the post, but because the WTSDA logo is on the page, the WTSDA got the notice.  If you don’t have the right to use the item(s), don’t post them!!!  If you are unsure whether you have the right, you probably don’t.  

2. Fundraising.  If you are soliciting money for various causes, even non-profit ones, you may trigger the need for the charity you are fundraising on behalf of to register in your state or report on your activities.

3. Foreign jurisdiction (state) qualification to do business.  If you are considered “doing business in” a particular jurisdiction, you may need to register in that jurisdiction as a foreign corporation.  Each state has it’s own definition of doing business.  You should check with the secretary of state (or equivalent) in any jurisdiction you hold events or target clients.

4.  Volunteers, independent contractors, employees, etc. – statements they make (including stupid posts or pictures) can, and are often, attributed to you if they are done on our pages/accounts.  You can be responsible and liable for those statements.  Only those with the requisite authority and sound business judgment should be posting for your school.  Likewise, please, please, please do not claim to be posting something on behalf of the WTSDA or WTSDF.  All WTSDA and WTSDF items are to be handled only through approved and sanctioned OFFICIAL accounts and pages.  If you are not sure whether your page/account is official (and may make statements on behalf of the WTSDA and/or WTSDF), it probably isn’t and you should talk to HQ.

5.  Confidentiality.  There are privacy laws in many jurisdictions.  You should not use social media to divulge private or confidential information.  Once something is posted on the internet, it NEVER truly goes away.  You can delete a post, but others may have records and it may be sitting in someone’s cache some where. Safe rule of thumb:  ask yourself, do you care if the whole entire world sees what you are about to post?  Will you care in 10 years if someone pulls it out and says, “do you remember when you posted…?”  If the answer to either is yes, don’t post it!

6.  Other laws.  You need to be aware of a number of different types of laws to ensure you are violating any of them.  There are rules regarding lobbying and political activities for agents of nonprofits.  WTSDA affiliates should not be performing lobbying or political activities that may look like they are tied to the WTSDA/WTSDF.

7.  Ownership of the social medial accounts.  If you represent a region (that is, if you are a Regional Director) or the committee chair, please remember that those internal groups are not legal entities in and of themselves.  Each region is merely a way for the internal operations of the WTSDA to organize and break management into manageable groups.  If you establish a Regional Facebook page, that facebook account “belongs” to the WTSDA, not you as regional director and not “the region”.  The same may be said for regional webpages, instagram accounts, linkedin profiles, etc.  As a result, before posting or commenting (whatever) you should think about the impact the information you are posting could have not only to the region but on the WTSDA as a whole.  If, when you ask “is this information appropriate for the WTSDA to be stating/sharing (etc.)?”  you aren’t getting a resounding yes, don’t do it!

8.  Tax Implications.  The WTSDA and WTSDF both are tax-exempt entities and there are actions and activities that could impact that status.  Form the IRS website:  “To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.”  Certain activities may jeopardize the status.  If there are any questions about this – please contact the LAC or WTSDA Treasurer.

Bottom line:  Think before you post.  Remember, once it’s on the internet, you can’t “take it back” and it can’t be “unsaid”.

Forms, Forms, Forms!

No, I don’t mean Hyung.  I have posted a few forms that the LAC often gets asked to provide.  Some are WTSDA forms (such as the incident report that ALL regions should be using and submitting to WTSDA HQ, in accordance with the instructions) while others are samples that the LAC often gets asked to provide.

Please keep in mind, the samples are not jurisdiction specific and there may be things that are necessary (or not permitted) in the jurisdiction where your dojang is located that are in the samples.  You should have a local attorney review and provide you with changes prior to use.  You should also read and customize for your dojang!

The forms may be found here.

If you have suggestions for other forms that you would like to see included, please fill out the request form below!

What does the LAC do?

A question I often get.  Along with “can you help me with…?” and “when do I need you to see something?”  In an effort to answer those questions (and since Volume V notes that legal assistance is available to all studio owners through the LAC, it is important to know what the LAC is for, what it can do, how it can help, and how it can’t) here is some general information (also found on the “About” page”).

As the World Tang Soo Do Association (“WTSDA”) and the World Tang Soo Do Foundation (“WTSDF”) have grown over the years, the need for access to information and resources related to the Legal Affairs Committee (“LAC”) has grown.  The LAC, and its staff, is charged with the administration of all legal activities of the WTSDA and WTSDF.

What does that mean, exactly?

Well, the LAC is the “legal department” for the WTSDA and WTSDF.  If there is an issue, contract, dispute or other matter which has legal implications, the LAC should be informed and/or involved.  For example, the LAC should receive for review all contracts that bind either company (all Regional Directors should be submitting contracts for sanctioned events in their region to the LAC prior to execution for review and comment).  The LAC should be informed if, at a sanctioned event, there is a serious injury.  The LAC should receive copies of complaints directed at the WTSDA (or where a student/student’s parent is looking to the WTSDA for assistance with a dispute with an instructor or studio owner).  The LAC should receive copies of any and all legal pleadings or documents which reference the WTSDA or WTSDF.  If there is an intellectual property question, such as “can I use the WTSDA logo on a t-shirt”, “can I print the WTSDA logo on a book I am publishing”, “I saw someone not affiliated with the WTSDA using the WTSDA logo, what do I do about it” or similar, the LAC should be contacted.

The LAC will also provide studio owners with information related to the affiliation with the WTSDA and the standards and legal rules associated with such affiliation.

Finally, the LAC may be able to provide you with contact information in your state where you can get jurisdiction specific legal advice for matters related to your individual school.

When in doubt, please contact the LAC.  We are here to help!

 

PLEASE NOTE:  the LAC is not a law firm and it represents the WTSDA and WTSDF, not any particular member, instructor, studio owner or Master.  The information provided herein is for informational purposes only and is not intended to be tax or legal advice.  Please see the Conditions of Use Page found here for more information.