Specialty Franchise
Franchise Risk Advisory
Franchising offers entrepreneurs the freedom to own and manage their own businesses while benefiting from established brands and proven systems. However, with this opportunity come unique risks that standard business insurance often fails to address.
At Chadwicks, we understand the specific challenges franchise owners face and have developed bespoke insurance solutions to protect your investment.
Understanding Franchising
Franchising is a proven business model enabling entrepreneurs to operate under an established company’s brand and guidance. The term “franchise” comes from French, meaning privilege or freedom, aptly describing how franchisees can own and direct their businesses while receiving support from the franchisor.
This business model traces back to the mid-19th century when Isaac Singer developed a franchise system for distributing and repairing sewing machines. However, franchising truly flourished in the mid-20th century with the rise of companies like McDonald’s and Marriott. Today, franchising spans numerous sectors including retail, healthcare and many more.
The franchising relationship typically works through a Franchise Agreement where the Franchisor grants rights to the Franchisee to operate using their brand name, systems and support. In exchange, the Franchisee pays an initial fee and ongoing royalties. This arrangement allows Franchisors to expand their reach without directly managing every location, while Franchisees benefit from running their own businesses with reduced risk.
Bespoke Franchise Insurance
Tried and tested business processes bundled with an established brand make franchises attractive business opportunities. However, insurance is often excluded from this “business-in-a-box” model, leaving franchisees to bear this risk alone.
Without proper risk and insurance guidance on what can be a complex undertaking, franchise owners risk missing crucial cover that could make or break their business.
Specific Franchise Risks
As a franchise owner, you face distinct challenges that differ from traditional businesses:
- Ongoing royalty obligations that continue even during business interruptions
- Brand reputation requirements that create additional liability concerns
- Specialized equipment and inventory that may require specific coverage
- Industry specific vulnerabilities based on your franchise sector
Furthermore, different franchise sectors face varying risk profiles:
Food Franchises
Higher risks related to stock deterioration, equipment failure and product/public liability
Retail Franchises
Increased exposure to theft, property damage and product/public liability claims
Vehicle or Automotive Franchises
Greater motor related risks and specialized equipment concerns
Service based Franchises
Professional Liability, complex IT-Cyber Risks and reputational risks
What is included in Franchise Insurance packages?
Our franchise insurance packages generally include but are not limited to:
Comprehensive Public Liability Insurance
Cover against claims from customers, visitors and third parties in general
Product Liability Insurance
Cover for claims related to products sold or supplied
Property Insurance
Protection for your physical assets and premises based on covered insured events like Fire, Storm Theft, Accidental Damage etc.
Business Interruption Insurance
Generally protects the Gross Profit of the business following an insured Property Insurance loss
Specialized Franchise Cover
What sets our franchise insurance apart are the specialized covers addressing franchise specific concerns:
Loss of Income with Royalty Coverage
Extends to cover franchise royalties during business interruptions, preventing breach of franchise agreements
Deterioration of Stock
Automatically included in our franchising product
Customized Risk Assessment and Product
Our Riks Advisors make it their business to understand your franchise, resulting in a tailored bespoke insurance product specific to your franchise and industry (see Comprehensive Risk Assessment below for more detail)
Comprehensive Franchise Cover
Our franchise insurance packages generally include but are not limited to:
Comprehensive Public Liability Insurance
Cover against claims from customers, visitors and third parties in general
Product Liability Insurance
Cover for claims related to products sold or supplied
Property Insurance
Protection for your physical assets and premises based on covered insured events like Fire, Storm Theft, Accidental Damage etc.
Business Interruption Insurance
Generally protects the Gross Profit of the business following an insured Property Insurance loss
Specialized Franchise Cover
What sets our franchise insurance apart are the specialized covers addressing franchise specific concerns:
Loss of Income with Royalty Coverage
Extends to cover franchise royalties during business interruptions, preventing breach of franchise agreements
Deterioration of Stock
Automatically included in our franchising product
Customized Risk Assessment and Product
Our Riks Advisors make it their business to understand your franchise, resulting in a tailored bespoke insurance product specific to your franchise and industry (see Comprehensive Risk Assessment below for more detail)
Choose Chadwicks for Your Franchise Insurance
Specialized Risk & Insurance Expertise
We design special franchise packages specifically for the franchise industry that include key benefits a normal commercial policy would not cover
Competitive Pricing
Our focus on this niche market allows us to offer specialized cover at competitive rates based on groupings or critical mass
Comprehensive Protection
Our all encompassing approach aims to identify, treat or eliminate risk gaps in your cover
Industry Understanding
We recognize the unique relationship between franchisors and franchisees
The Chadwicks Franchise Insurance Advantage
Our robust and bespoke insurance franchise packages are tailored specifically for the insurable risks of franchise owners.
Supported by all the expertise of our Risk Advisors, we offer professional, seamless cover that leaves nothing to chance.
Don’t leave your franchise investment vulnerable to risks that standard insurance doesn’t cover.
We will work with you to develop a bespoke insurance solution that protects not only your physical assets, gross profit and legal liabilities to third parties but also the ongoing viability of your franchise business.
