Franchised companies often require what some believe to be excessive insurance requirements. This is because so often if a franchise is sued for any reason that the Lawyers go after the big money of the franchisors and name them in the lawsuit. It is amazing that a lawyer can write garbage in a lawsuit and file it in court and if you do not hire another lawyer to fight them, you could lose your entire life's work and company. But our legal system as most entrepreneurs agree is a complete joke and more closely represents the extortion tactics of the mob than any legitimate sense of fairness or truth. This is why franchisors must require huge limits of liability insurance and additional insured certificates as part of the franchise agreement.
It behooves a franchisor to set aside a place in the Official and Confidential Operations Manual to explain to franchisees why these requirements are in place. Franchisees are put at a disadvantage to other businesses in the market place due to the high costs of liability insurance required. But due to the lawsuits and lawyers it is imperative that these insurance policies are in place. When writing a chapter on required insurance for franchisees of a franchise system you will need to cover many sub topics. Below is an outline of our Insurance Requirements Chapter for our Franchise Company; CarWashGuys.com , feel free to print this article and outline and then modify it somewhat to fit your business model. Once this is done put a few paragraphs to each number and lettered item and then review it. Type it up double-spaced and have an attorney look it over and share it with your insurance agent and have their underwriters look it over for accuracy. Then once completed add it to your Confidential Operations Manual to prevent discontent from your franchisees. Think on this.
INSURANCE
I. REASONS
A. Liability Exposure
B. Marketing
C. Franchisor Help
D. Peace Of Mind
II. WHO REQUIRES IT
A. Industrial Customers
B. Property Management
C. Large Corporations
D. Franchisor
E. Government Accounts
III. LIMITATIONS
A. What It Doesn't Cover
B. Reasons
IV. LIABILITY COVERAGE AMOUNTS
A. Liability Completed Operations
B. Vehicle
C. Worker's Compensation
D. Theft, Etc.
V. OTHER
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
Last week we talked about a few of the ways... Read More
Creativity is one of the greatest tools for success in... Read More
There is a story, about a business owner who wasn't... Read More
I am surprised how few sales professionals, independent consultants, and... Read More
People often ask "What makes a good business plan? Or,... Read More
If you own a mobile car wash business or auto... Read More
Conventional wisdom has it that there are only three ways... Read More
Why do so many companies languish and watch as their... Read More
If you are in the parking business and own or... Read More
Most companies that are worthy of raising venture capital have... Read More
Too much goal setting and strategic planning can leave you... Read More
Would you like to jumpstart your online or offline business... Read More
As fast as you can say business disaster, your business... Read More
Some analysts credit [Larry] Ellison with anticipating the consolidation in... Read More
Here's a really simple way to make sure your plans... Read More
As a franchisor it is imperative that you seek, find... Read More
Much of what we heard in the mass media about... Read More
If you are a successful franchise of a large franchise... Read More
Imagine an office without a desk, or lights, a computer,... Read More
As a business owner, you've likely created a hurricane plan... Read More
I recently took an organizational behavior class where my professor... Read More
I am not a big fisherman, but I do enjoy... Read More
With a heightened awareness of opportunity, ideas can often be... Read More
Strategic planning is vital while starting a new business or... Read More
So you've decided to write your own business plan because... Read More
Is there a 'magical' way to exponentially grow your business?It's... Read More
Business seems to drop, slow or even stop during the... Read More
One of the quintessential parts to any business is your... Read More
Q: A key investor in my business has suggested that... Read More
Diversify - to make diverse, give variety, to balance, to... Read More
The first step in starting a restaurant is proper planning.... Read More
With the help of balanced scorecard strategy map, it is... Read More
The goal of almost every business owner is to generate... Read More
When in doubt, cut that out! Yeah, yea, doubting Thomas... Read More
Franchised companies often require what some believe to be excessive... Read More
As fast as you can say business disaster, your business... Read More
If ever there were an industry where we want zero... Read More
How important is a vision statement to your company or... Read More
I am surprised how few sales professionals, independent consultants, and... Read More
"Most great plans aren't. They are just nice, high-level ideas."That's... Read More
Diversify - to make diverse, give variety, to balance, to... Read More
A well known, national chain of restaurants discovered that certain... Read More
Imagine an office without a desk, or lights, a computer,... Read More
Writing a business plan is not an easy endeavor, nor... Read More
Is your business growing as fast and effectively as it... Read More
The trick is to determine what uniquely identifies your best... Read More
The format of a Business Plan is something that has... Read More
1. Largest Selection -One way that you can make your... Read More
Please take a moment before you read any further and... Read More
How are you feeling today? Good, not so good, great?... Read More
"Bozo" ? A clown with a forlorn look, always finding... Read More
Here's a really simple way to make sure your plans... Read More
Where would your business be without a proper plan? A... Read More
A strategic alliance is when two or more businesses join... Read More
A survey released by the American Institute of Certified Public... Read More
Writing a business plan to help you direct and manage... Read More
While writing an article recently on effective ways to bridge... Read More
"Rubbish!" shouted the large, aggressive man in the red-striped shirt... Read More
One of the most powerful driving forces in human nature... Read More
If you own the mid-size business and actively work in... Read More
Creativity is one of the greatest tools for success in... Read More
Business planning is widely acknowledged as one of the keys... Read More
ACTION PLANNING: Action Planning is a process to develop strategies... Read More
Can you imagine going on a road trip without knowing... Read More
This week I coached a wonderfully lovely woman I'll call... Read More
It is always said "If you Fail to Plan, you... Read More
Strategic Planning |