Joel Libava
Running a franchise gives you plenty of power with a proven brand and built-in support, but even when you have a strong model in place, your franchise still needs some protection. That means you’re responsible for a workforce of people, processes, and property that you control.
Whether you are just starting out or you are already managing multiple locations, protecting your business should always be something that is considered a top priority.
As years of experience in franchising have shown me, a secure franchise isn’t just safer; it is more profitable, stronger, and better prepared for growth.
Here are some tips on how you can protect what you’ve built and give your franchise the foundation it needs to thrive.
Franchise Protection Tips: Understand Your Franchise Agreement Inside and Out
The franchise agreement is more than just a contract; under that piece of paper is the rule book for how your business runs. So, before you sign anything, or if you are already operating, make sure you go back and review it very carefully.
Additionally, make sure that you understand your full responsibilities and what support the franchisor is going to provide you. And, you also need to understand what happens if you fall short on certain standards.
All things considered, the clearer you are with your obligations, the easier it is for you to avoid any misunderstandings or legal issues further down the road.
Follow the Brand Standards Consistently
Brand consistency protects both you and your reputation, as well as the value of the franchise network. Customers expect to have a similar experience across all of the franchise locations. That includes areas such as service, cleanliness, product quality, and even the tone of the marketing materials you are using.
On top of that, if you stray from these expectations, it can turn your relationship with your franchisor into a bad one, which can put your franchise at risk. More importantly, it can hurt customer trust.
It’s essential that you stay aligned with brand guidelines. If you’re unsure about anything, make sure you ask before you make any permanent changes.
Bottom line?
Protecting your franchise means protecting the brand that is supporting it.
Train and Retrain the Right People
Your team is your first line of defense. This means you need to ensure you have a well-trained team, as this can help to reduce risk, improve customer service, and also maintain consistency.
Another thing is to make sure you have a good onboarding process that is strong, and teach new employees how to handle common situations, report concerns that they may have, and follow both company policies and legal requirements.
As if that’s not enough, you need to make sure that you’re continuously investing in your staff. Having a well-supported team is a team that is much more likely to stay loyal and perform at their best.
Suffice to say, the fewer turnover issues you have, the stronger your business is going to be, and the better your team is going to be.
Put Strong Financial Controls in Place
Even a profitable franchise can run into issues if they don’t have good financial habits in place.
That means you need to track your revenue and expenses carefully and make sure that you are using efficient accounting tools so that you are able to review your numbers regularly, reconcile daily sales reports easily, and double-check any deposits that are made.
In addition, you should separate the duties so that not only one person is controlling it; ideally, it should be one person controlling cash and one person controlling the records to stop any fraudulent activities.
Finally, strong financial controls reduce the chances of errors, theft, or surprises during any audits. It’ll also mean that it is much easier to see where you are able to improve on your margins or increase your profitability.
More Franchise Protection Tips: Secure Your Physical and Digital Spaces
Every franchise location faces physical and cyber risks. There is vandalism, break-ins, theft, and data breaches that can happen to any type of business.
That said, you need to install alarms and access controls, and make sure that you are making use of locks and safes for sensitive areas.
With that in mind, the most important thing you can do is install video surveillance cameras to deter crime. They also help with any investigations that need to be done, and they protect your employees and your customers.
If you’re looking for a professional solution, consider working with a trusted video surveillance company to set up your video surveillance systems. Suffice to say, they’ll give you high-quality video monitoring.
Plus, today’s video security companies provide cloud-based video surveillance. Systems like this can help you to monitor multiple franchise locations in real-time, no matter where you are.
Furthermore, you can’t afford to ignore digital risks either. Ensure you’re using secure passwords, updating software regularly, and providing training to your staff on basic cybersecurity practices. It only takes one weak spot to cause a major problem in this area.
Note: if you own a medium to large size dog, maybe your landlord will allow you bring it with you to your business. Because having a dog on premises can be a great deterrent!
Stay Compliant with Local and Federal Laws
Franchise businesses must follow local, state, and national regulations. That includes tax laws, health codes, safety rules, and labor laws.
Stay updated as laws change frequently. Your responsibilities as an employer or business owner might change if new legislation is put in place.
Always make sure you have detailed records kept, and you provide documented training, complete inspections, and you’re fully compliant.
That way, if regulators ever visit your business, you need to make sure that you are fully prepared and aren’t finding yourself scrambling around.
Protect Customer Data
Your customers put their trust in you with their personal details and payment information. That trust can disappear very quickly if you don’t protect it.
Ensure that any payment systems that you have in place are secure, and never store credit card data unless your system is fully compliant with PCI standards. You should also make sure that you are limiting employee access to customer records.
Another thing you need to do is train your team to spot any suspicious activities, and if a customer ever reports identity theft that is linked to your business, you need to make sure that you have a high response level and are prepared to deal with how you’re going to recover from it.
In reality, data security is a part of your brand, so you need to make sure you treat it like a core part of your operations. Because it is.
Get the Right Insurance Protection
You’re going to need to make sure your franchise business has insurance. The type that covers every risk.
For example, you may need to have general liability, property insurance, and also workers’ compensation, product liability, cyber liability, and maybe more. And, your franchisor may require certain minimum coverages as part of your agreement for you to be able to be in business.
With that in mind, work with an insurance provider who understands franchise businesses. Review your coverage every year. As your business grows or changes, your risk profile is going to change too. So, make sure that you’re always updating them with any changes that have been processed.
Build a Crisis Plan Before You Need It
No one wants to think about any disasters; however, you need to make sure that you are always ready. Floods, fires, public health issues, and cyber attacks can all force businesses to shut down their operations if they are unprepared.
In addition, you need to ensure that your franchise has a clear emergency plan in place. This includes clear steps for communication, evacuation, data recovery, and ways for you to reopen. Make sure that your staff knows exactly what to do and where they can find the plan.
Know this:
An ideal crisis plan doesn’t just look after your business; it also helps to build confidence. Employees work better when they know that you have thought ahead of time and when they know what to do during a situation like this. Customers also trust businesses that stay calm and reliable during a crisis..
Focus on Relationships, Not Just Rules
Protecting your franchise isn’t just about the processes you have in place; it’s also about making sure you’re focusing on the people. Build strong relationships with your employees, your franchisor, your customers, as well as the local community.
In any event, ensure you’re checking in regularly with your team and stay active in franchise owner forums or meetings. You should also make sure that you’re talking with your franchisor if you ever feel as though you need some support.
Because relationships are often your best protection against any misunderstandings, setbacks, or mistakes..
Summary of These Franchise Protection Tips
Protecting your franchise means doing the right things every day. This includes training your team to a high level, monitoring your finances, securing all of your assets with security features, and ensuring compliance.
And, it’s not about playing the defense game; it’s all about making sure you’re creating a strong foundation so your franchise business is able to grow.
In any event, when you’re looking at security seriously, whether it’s digital, physical, legal, or financial, you’re able to show your employees, customers, and franchisor that you are running a business that is going to last.
So, start by making some small actions that add up. You should review your systems, schedule audits and training, and look into video surveillance with some trusted providers.
Finally, strong protection isn’t necessarily expensive; it’s about making a smart investment. It could be what helps your franchise stand out and be successful.
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