As a franchise owner, there are many things to think about when it comes to keeping your business running: from the day-to-day cash flow, payroll and profit, to the protection of your employees and investment.
As a franchise owner, there are many things to think about when it comes to keeping your business running: from the day-to-day cash flow, payroll and profit, to the protection of your employees and investment. There’s a lot to consider when you operate a franchise, and sometimes the need to protect your franchise brand gets overlooked. But forgetting about the importance of brand protection can be costly. When you consider the investments you’ve made to buy your franchise, a big part of that goes toward the brand you purchased. Protecting it protects your investment.
Threats to the Brand
Every franchise benefits from a consistent brand experience. It’s the most valuable asset to a franchise and keeping it intact is vital to the life of a business. There are several ways a brand can be threatened, and it’s up to you to help mitigate these threats. Through consistent operating standards, good service and product quality, fair pricing, as well as maintaining the overall look and feel of your location, a franchise must prevent reputational damage or compliance issues. But perhaps the most dangerous threat to a franchise brand is something that’s often overlooked – the lack of, or gaps in, insurance coverage. This oversight alone can bring down an individual franchise, as well as be detrimental to the whole system with just one customer complaint or lawsuit.
How to Protect the Brand
The first step to protecting your brand from unforeseen insurance-related threats is to fill in the gaps in your coverage. Take a look at all the potential legal risks your company faces and choose the insurance coverage that will best address those risks. This coverage should be comprehensive based on your operation and meet your FDD requirements. If you properly manage your risk through the right insurance coverage, you minimize unknown threats to your brand and the value it provides.
Next Steps for Franchise Owners
If you own a franchise or are considering owning a franchise business in the future, insurance may not be the first thing on your mind. You’ve invested yourself and your life savings into your business and you’re most focused on ensuring the business succeeds and remains sustainable. You want to do the things that you’re passionate about and – most importantly – do them with peace of mind knowing that your business is protected from these hidden dangers.
Having the right insurance coverage is a non-negotiable aspect of owning a franchise. For most franchisees, it makes sense to work with an insurance broker who specializes in franchised businesses. Such a broker will understand the complexities of your franchise agreement and business operations and make sure you’re properly covered. While traditional consumer insurance companies may be able to quote your small-business insurance, they may not have the franchising expertise to make the best recommendations, leaving you and your life savings vulnerable to unknown threats.
Designed with you in mind, Gallagher Franchise Solutions is committed to supplying you with solutions that make it easier for you to protect your business, care for your people and grow your profit. As the preferred franchise insurance provider, Gallagher’s proprietary 3P promise – Protect, People, Profit – encompasses business insurance solutions designed to meet your industry’s needs and your franchise’s exposures. Through our insurance program, Gallagher guarantees that each participant’s insurance coverage meets the minimum requirements of your franchise agreement. We also track all certificates of insurance for both you and your franchisees, allowing you to focus on your work at hand. Visit franinsurance.com to learn more.