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5 Advantages of Insuring Your Restaurant Franchise
Considered one of the most popular franchising opportunities available, restaurant franchising is a great way for experienced food industry professionals to earn a comfortable living. When the corporate owner of a restaurant – the franchisor – forms a contractual agreement with a specific restaurant operator – the franchisee – a restaurant franchise deal is born. The relationship that follows between both the franchisor and franchisee is an important one, as franchising a restaurant is a lot of hard work. For those who have recently signed on to operate a franchise, here are the top five benefits of getting restaurant franchise insurance:
Better Leverage with Insurance Agencies
While it’s always advised to purchase restaurant insurance from a trusted and respectable full-service restaurant insurance agency, restaurant franchisors are able to handle such business relationships and insurance deals in a more efficient way. Because restaurant franchises have the credibility, proven success rates and a larger source of income, restaurant insurance agencies are able to work with franchisors in a way that is beneficial to them, and their financial situations. Better pricing and coverage are two perks that can be expected for those who own a franchise, and purchase accommodating franchise coverage from an agency.
Undeniable Peace of Mind
You can’t put a price tag on peace of mind, and the restaurant industry is absolutely no exception. As anyone who has worked as a franchisee knows, the day-to-day challenges that operating a franchised restaurant present are nothing short of exhausting. As great as the reward ultimately may be, it’s virtually impossible for a franchisee to know and understand every single risk that comes with operating the restaurant, or what they are responsible for knowing. When restaurant franchise insurance is purchased, there is more wiggle room to freely run the franchise. Then less time can be spent worrying about whether a person is putting the business at risk.
Firm Insurance Policies for Franchisees
As mentioned, an inexperienced or brand-new franchisee may not know what is expected of him or her. Between the many tasks they must delegate to lower-level employees and the management of daily revenue and maintaining the respected image of a franchise, it can be all too easy to misread the fine print when it comes down to the crux of a restaurant franchise business deal. Those franchisees who’ve just signed on with a franchisor should always ask questions. They also should be provided with a full set of insurance coverage elements for which they will be made responsible. Purchasing franchise insurance coverage makes this easy, as their responsibilities will be clearly stated.
Financial Protection for Franchisors
Similarly, franchisors must be equally protected in such a business deal. Since these are the owners of the restaurant, the brand reputation and overall image weighs heavily on a franchisor’s shoulders. Ultimately, they are primarily at fault if something goes wrong. Franchise insurance is a great way to avoid lawsuits and other financial casualties from unexpected events and situations that occur at one of their restaurant locations.
Customizable and All-Inclusive Coverage
Unlike other types of insurance policies, restaurant franchise insurance is specific to franchises only. That means there will be guaranteed, all-inclusive coverages that franchisors and franchisees can expect. A solid restaurant franchise insurance policy includes property insurance, general liability insurance and a professional liability and omissions insurance policy. If a franchise needs even more specific coverage, a restaurant insurance agent can work with the franchisor to establish an even more detailed plan. For example, additional BYOB liquor liability insurance can be added to a plan for those who serve alcohol at their franchise.
Request a Quote for Restaurant Franchise Insurance Coverage at RPA
Both franchisors and franchisees are invited to request a quote for excellent and affordable franchise insurance with Restaurant Programs of America. Our insurance agency has been servicing multiple types of restaurant franchises for over 40 years, and we are dedicated to providing franchisors and franchisees with the best coverage available. Please contact us at 866-577-7007 for more information.