VITAL SHIPS ITSELF OUT FRANCHISE OFFICES MOVING TO N. CAROLINA.Byline: Carol Rock Staff Writer VALENCIA - Skyrocketing workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and the cost of doing business in California are driving shipping company Vital Express to relocate its franchise operations to North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . Owner Dan Boaz, who once dreamed out loud of having 500 franchises in five years, said that reality is forcing the company to look elsewhere for a place to grow. ``We've been offered incentives, tax breaks mainly, in Mooresville,'' he said of the southern city. ``There has always been this local office, this is the one Lisa and I started. But the franchise model has hurt us, costing us at least $1 million to try and duplicate what made us successful. We had to bring in outside players for management.'' Boaz said local agencies offered no incentives to keep the company in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Dan will run the Mooresville office while Lisa runs the shipping operations that will remain in Santa Clarita Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, . The couple will maintain dual residences. Mooresville, a town of 26,823, has been christened ``Race City USA,'' a fit with the Boazes passion for auto racing. In better financial times Vital Express sponsored NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. driver Tony Stewart's team, but have severed that sponsorship along with their $2 million pledge for the College of the Canyons College of the Canyons is one of the fastest-growing community colleges in the state. According to the National Junior College Research Association, College of the Canyons consistently ranks in the top 50 community colleges in the nation. Performing Arts Center A performing arts center, often abbreviated PAC, is a multi-use performance space that can be adapted for use by various types of the performing arts, including dance, music and theatre. because of recent setbacks in the economy. The arts center had carried the company's name since October 2004, though the company didn't start paying on its pledge until 10 months later. So far, Vital Express donated $75,000 of the $2 million and has promised a total of $100,000. ``We're not doing any sponsorships anymore,'' Boaz said. ``We've cut everything, marketing, advertising, everything's been cut.'' Boaz said that Vital Express, which also goes by the name of Vital Logistics, has franchise operations in Seattle, City of Industry, Houston, Indianapolis, Chicago, Milwaukee, Charlotte, N.C., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Phoenix with three more scheduled to open soon in Ontario, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. and Orlando, Fla. ``I know I said we wanted 500 in five years, but that was too high,'' Dan Boaz said. ``The magic number now is getting to 100. It just cost more than we anticipated.'' The relocation will not affect Vital's operation in Santa Clarita. Boaz said key executives with the franchise side had already relocated from other cities to work here. The cost of fuel also has had a negative impact. ``With daily consumer use of fuel, you see the price go up and down, but if you watch the diesel index, the cost of air and jet fuel have gone up and never come down. We're an air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f company,'' Dan Boaz said. ``In the state of California, the cost of insurance is outrageous. Workers' comp, general liability, truck insurance costs have been going up for the last couple of years. Here, workers' comp costs $27 per 100 employees; in Indiana, it's $2 per 100, and in North Carolina, it's $6 per 100.'' The cost of housing also factored into the Boazes decision to move the growing franchise operation. Dan cited difficulty in recruiting key people for management who can afford a nice home in Chicago or North Carolina and can't afford to buy a home in Santa Clarita. ``It's difficult to get them to come live here when they can't get anything for less than a million,'' he said. ``I've lived in this community for 20 years and it's a big change in my life (to relocate). I will miss the people and community and my friends, but I have to do what's right for our business.'' Carol Rock, (661) 257-5252 carol.rock(at)dailynews.com CAPTION(S): photo Photo: (color -- ran in SAC edition only) Freight firm Vital Express is pulling its sponsorship of the College of the Canyons art center, shown here. David Crane/Staff Photographer |
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