Insurance for Franchising

As the world of franchising builds, more and more people question if what they're getting out of their insurance policy is really right for them. There are many problems that new franchisors face when launching a brand. The last problem you want on your hands is having to sort out business insurance cover. Even if you put your faith in your local broker, if they don't deal specifically with insurance for franchising, chances are your insurance won't be tailored to meet your needs, or if you're a new franchisor, you may not even know to the full extent what it is your needs are and if you haven't got an executive that is experienced with dealing with insurance for franchising, you may find yourself in a bit of a sticky situation.

As a Franchisor, you also have the situation of your franchisees insurance. These arrangements may be low on your list of priorities and you can opt for one of two choices. First, there is the easiest option whereby you do nothing and leave the franchisee to arrange their own insurance. Or on the other hand as the franchisor you can arrange the insurance on their behalf. Although the first option may seem the easy way out, when you think about what this entails, you begin to see problems arising. For instance, unless the franchisee understands insurance they could get it wrong (experience has shown this can often be the case) and the incorrect cover could lead to your management fees suffering.

As a franchisee, being responsible for sourcing your own insurance can be rather daunting and if you don't fully understand what cover's it is that you need you may fall into a pitfall of stress and ultimately an incorrect policy. Problems such as whether you need specialist protection, who is to take charge of the business if you can't work, what commitments you have left, what's protected and so and so on can arise seemingly from out of nowhere.

Most people know so little about franchising because we do so little to promote it, even the franchise community is guilty of being narrow minded to its approach to franchising. However even in the period of recession the franchise community is getting stronger. The success of the British & International franchise exhibition and the Scottish franchise showcase earlier this year was just one of the ways we could see a continuous flow of investors in franchising. Therefore surely it makes sense for someone that understands franchising to help ensure you get the correct insurance policy for your specific needs.

Although many franchisors and franchisees may not be aware of it, there are insurance policies out there that are designed specifically for franchising. These have been designed by people who, through experience with the franchise industry and the insurance problems franchises have had to face, have recognized what specific cover needs to be put in place and that a tailored policy is the best option for franchise businesses to get the right cover at the right price to suit them.

Fransure is an insurance policy that is specifically designed for franchising and that already deals with some of the UK's largest franchises including a number from fast food outlets to telecommunications and is also a member of the BFA. An insurance policy, such as Fransure, that is designed specifically for franchising could seriously help eliminate all the problems encountered when taking out business insurance in the franchise industry. Someone like Fransure would work closely with franchisees providing them with a bespoke and innovative business insurance solution and also ensuring they have the correct cover put in place. This takes the pressure off the franchisee of the possibility of getting the incorrect insurance as well as helping out the franchisor, as by understanding the business in question, correct cover such as business protection, franchisor protection and management fee protections can be put in place, so there's no need to worry any longer.