Is your franchise properly covered?
When expanding to a franchise, restaurant owners face a new world of threats to their financial livelihood. A well-executed and commonly understood risk management and transfer contract for franchiser and all franchisees is of utmost importance due to threats such as vicarious, or secondary, liability. Until now, you probably haven’t had much experience with transferring risk.
The good news is you can completely remove this challenge by hiring a franchise specialty attorney and a franchise specialty insurance adviser. The two professionals will communicate to make sure the franchisers' risk is properly transferred to the franchisee and exposures
that still exist for the franchiser (such as errors and omissions liability, directors and officers liability, vicarious liability and joint employer liability) are protected, even though they can't be transferred off to the franchisee. You need to accomplish all of this while still making sure your primary restaurant remains functioning on all cylinders, and keeping all of your basic insurance coverage's in place.
When launching a franchise restaurant, it becomes even more imperative that a business owner has detailed and thorough insurance coverage in place. Now is not the time to skimp on coverage because there are so many different aspects of insurance that can haunt a franchiser as they expand their restaurant locations. Not only do you need to focus on hiring the right team, training franchisees and vetting and picking top notch operators for your franchisees, you now also need to understand lines of insurance coverage that you have probably never needed before (like E&O). No worries, POWERS Insurance & Risk Management is here to help.
How to Get Franchise Coverage
Either way, we'll make the process easy!