What kind of insurance does a franchisee need?
Property Insurance If a franchise owns or rents a property for its operations, it’s important to make sure policies are in place to pay for any damage to the property. Commercial property insurance can assure this coverage.
Why is public liability insurance important for a franchise?
If a franchise invites customers in or sends employees out to interact with clients, public liability insurance is important. 2. Worker’s Safety No matter the type of franchise, there’s a chance of injured and sick staff.
What does product liability insurance cover for franchises?
Product Liability Franchises that sell physical products must ensure they have protection from lawsuits caused by injury due to products. With product liability insurance, franchisors can assure their business has protection from these claims.
What are the benefits of owning a franchise?
One of the benefits of franchise ownership is that you have the backing of an established corporation to guide you in your journey. Although valuable, there are certain measures you must take on your own to protect yourself in case of certain events, such as inventory loss or customer injury on your property.
Can a franchisee shift employees to part time?
Is franchise health insurance federal law?
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Franchise Insurance: What Kind Do You Need?
Depending on whether you are a franchisor or a franchisee, there are different types of insurance to consider. The franchise insurance you need als...
What Should Franchisors Consider?
Firstly, franchisors should ensure they have franchise insurance policies in place. This will help protect the business in case of unforeseen circu...
What is a Franchise Insurance Plan?
A best practice for franchisors is to outline what coverage you need depending on your business activities in the franchise contracts. These contra...
Butler Benefits & Consulting
A deep evaluation of your existing health plan and employee benefits is invaluable to finding the right strategies and tactics to achieve organizational goals. Maybe you’re imagining a tedious “deep dive” into your health plan, and you know you do not have the resources for that. Or maybe you don’t know where to begin or even what you would evaluate.
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Can a franchisee shift employees to part time?
Some business owners and franchisees are even threatening to shift fulltime workers to part-time schedules or to keep employee rolls below the 50-employee threshold that would trigger required employee health insurance.
Is franchise health insurance federal law?
Regardless of whether you support Obamacare or oppose it, franchise owners must realize that this is now federal law and plan accordingly. The penalty for not providing employee health insurance will eventually become a reality.
What Types of Franchise Insurance Does a Franchisor Need?
Now that you understand what you need to look for in your insurance plan, we will define the required insurance for franchises.
What is a Franchise Insurance Plan?
The best franchisors insurance considerations are to outline what coverage you need depending on your business activities in the franchise contracts. These contracts are also known as Franchise Disclosure Documents (FDD).
Why do franchisors need insurance?
Franchisors need to make sure they have insurance policies in place to protect the business from unforeseen circumstances within each franchise location. Policies that protect franchisors include: Franchisors need to outline what insurance is necessary for franchises depending on their business activities in their Franchise Disclosure Document ...
Do franchises need commercial car insurance?
If vehicles are part of a franchise’s operations, commercial car insurance needs to be part of the policy.
What are the benefits of franchise ownership?
One of the benefits of franchise ownership is that you have the backing of an established corporation to guide you in your journey. Although valuable, there are certain measures you must take on your own to protect yourself in case of certain events, such as inventory loss or customer injury on your property . This requires that you insure your franchise.
What happens if you hire employees to work in a franchise?
If you hire any employees to work in your franchise, you needto protect yourself from any claims an employee might file. This can include claims such as wrongful dismissal or any type of harassment in the workplace.
Do you need public liability insurance for a restaurant?
If you’ll welcome customers or clients into a store or onto your premises, such as you would with most restaurant franchises, you must have public liability insurance. This coverage protects against slip and fall accidents, or any other event that could cause bodily injury or property damage.
Do delivery trucks need insurance?
If you have delivery trucks or use your vehicle for your business, it’s important to protect it while it’s on the road. You should have auto insurance coverage for all of the motor vehicles used to do business on a regular basis.
Are You Covered?
There are many factors that go into deciding which type of insurance you need when opening a franchise. Talk to your franchisors about the best insurances to get for your business model. Then, get those insurances before you break ground or open your doors, so you’re sure you’re protected from day one.
What is franchise investment?
All franchises come with some kind of investment, which usually comprises corporate fees, startup costs, real estate, staff, equipment and other expenses, too. Your investment will be contingent on several things, but the two most important are the mandatory expenses set by the parent company to get up and running as well as the regional expenses that dictate costs (in other words, some markets are more expensive than others).
Is Snap On a good franchise?
Any gearhead, DIY aficionado, mechanic, or professional contractor will tell you that few tool brands have as high a reputation for quality — and even a cult following — as Snap-On does. This high brand affinity makes Snap-On a great franchise to consider if there’s a strong opportunity in your determined area. The low investment threshold and net worth requirement also make Snap-On a promising option for would-be owners that aren’t flush with the kind of cash needed to sign on with other franchise businesses.
Is Ace Hardware a good franchise?
Ace Hardware is an excellent franchise prospect for providing an antidote to the big-box home improvement store experience, which is typically marked by unhelpful staff and overwhelming product choices. Instead, Ace Hardware locations pride themselves on hiring staff that put customer service at a premium and keeping product choices to a reasonable selection. Their franchises make it easier for local hardware stores to remain competitive against mega-stores by way of their cooperative structure and store-brand products.
Is McDonald's the most expensive franchise?
We’re pretty positive this is a name you know. McDonald’s is one of the more expensive franchises around, but has perhaps the best brand recognition in the world. If you’re able to open a McDonald’s franchise in a well-trafficked area without much competition, you may be able to quickly recoup the initial investment.
Is it hard to find a franchise?
Still, just knowing you’re interested in a franchise is only the beginning; in reality, finding the best franchise opportunities can be a challenge. There are more franchises out there than one can reasonably count and consider, making it tough to figure out which one is right for you.
Is Kiddie Academy a franchise?
There are franchise opportunities throughout 49 states (sorry, Montana) and plenty of room to grow.
Is Primrose a franchise?
Early childhood education is a prime market for franchise opportunities as parents look to give children every opportunity to learn — even within their early years of education. Primrose Schools are a solid franchise because they offer educational programs all year round, are licensed facilities for educational child care and give their teachers continuing education access to keep their skills sharp.
Can a franchisee shift employees to part time?
Some business owners and franchisees are even threatening to shift fulltime workers to part-time schedules or to keep employee rolls below the 50-employee threshold that would trigger required employee health insurance.
Is franchise health insurance federal law?
Regardless of whether you support Obamacare or oppose it, franchise owners must realize that this is now federal law and plan accordingly. The penalty for not providing employee health insurance will eventually become a reality.
Public Liability
- If you’ll welcome customers or clients into a store or onto your premises, such as you would with most restaurant franchises, you must have public liability insurance. This coverage protects against slip and fall accidents, or any other event that could cause bodily injury or property damage. You might also need public liability insurance if you me...
Workers Safety
- Your employees might not be covered under the public liability insurance. In this case, you will need separate insurance to protect your staff while they’re at work.
Product Liability
- If you have any type of inventory for your business, it’s a good idea to insure it against any loss or damage. This is especially true if damaged goods could cause you to close your doors until new inventory or equipment arrives.
Property Damage
- If you invest in a property for your franchise, you’ll need to ensure the building where your business is housed stays in proper working order. Property damage insurance protects you in case of flood, fire, smoke, vandalism, and more.
Employment Practices
- If you hire any employees to work in your franchise, you needto protect yourself from any claims an employee might file. This can include claims such as wrongful dismissal or any type of harassment in the workplace.
Auto Insurance
- If you have delivery trucks or use your vehicle for your business, it’s important to protect it while it’s on the road. You should have auto insurance coverage for all of the motor vehicles used to do business on a regular basis.
Business Interruption
- If your business has to shut down because of any type of accident, from vandalism to complete destruction of your property, you won’t just be out the money it takes to get back up and running; you’ll be out the revenue you would’ve earned if your doors had been open. Business interruption insurance helps you get a portion of those earnings back, so you don’t fall too far behind.
Are You Covered?
- There are many factors that go into deciding which type of insurance you need when opening a franchise. Talk to your franchisors about the best insurances to get for your business model. Then, get those insurances before you break ground or open your doors, so you’re sure you’re protected from day one. Susan Guillory is the President of Egg Marketing & Communications, a …