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Best Risk Management Practices to Protect Your Franchise Network
Speakers:Doug Imholte, Franchise Risk Management Practice Leader,
RJF AgenciesBrian Schnell, Partner, Faegre & Benson LLP
Today’s Objectives
Identify Primary Risk Management Techniques
Discuss Key Best Practices to Help Mitigate Risk Across Your Network
Understand How Risk Management Impacts Franchisor and Franchisee Bottom Lines
What is Risk Management
Protect the company’s assets through identification and analysis of exposures,
Control the exposures Finance of losses through
external and internal funds Implement and monitor the
risk management process
Risk Management is NOT…..
Purchasing Insurance
Writing an FDD
Hoping Bad Stuff Does Not Happen and if it Does, Then Deal With It
Risk Management Techniques
Avoid Reduce Prevent Transfer Separation/Duplication
Risk Management Checklist Risk Management Exposure
Checklist Know Your Risks
What are the moving parts in your system
Know Your Franchisees’ Risks What are their moving parts in their business
Their Risks Can Become Your Risks
Track Certificates of Insurance
The Franchise Development Process
Protect/Follow the FDD Collect Personal Data Bring in the RIGHT
candidates Inhouse/Outsource the Development
Function
Franchise Relations
Understand the Dynamic Nature of the Franchise Relationship
Focus on Communication and Alignment Protect the Balance Sheet/ E&O Insurance Anticipate What Might Go Wrong
The Warm Fuzzies are nice…
But Not Always Going To Be
One Big Happy Family
The Element of Control in Franchising Franchising is all about controls and
protecting the brand Good Controls vs. Bad Controls Vicarious Liability Concerns How Does a Franchisor Balance?
Employment Practices
Understand your exposures Turnover ratios Demographics of workforce Recruiting Strategy Track….
Take Advantage of Resources
Data Privacy
Understand the Risks Laptops Employee Information Credit cards
Vendors (Hold Harmless) Being Compliant is good start
PCI Find the Weakest Link
Social Media
Next Huge Exposure Facebook Generation Employee and Advertising
Risks Consistency,
Standardization and Documentation/ Adopt a Social Media Policy
Invest Upfront
Supply Chain
Approved Suppliers What Happens if…? Scenario Planning Assess the Moving Parts Contracts/Indemnification
Vendors, Real Estate, IT Franchisee Compliance
Understand Loss/Incident Trends Within Your System
Location & Incident Economic Impact on System Brand Impact Track Incident by Location Safety Committee
Closing Thoughts
SAVE THE DATE!!
July 7th at 2:00 p.m., EDT
Next Topic
Thank You For Attending!
Doug ImholteFranchise Risk Management Practice LeaderRJF Agencies7225 Northland Drive N, Suite 300Minneapolis, MN 55428Phone: 763-746-8221Fax: 763-746-8321Mobile: 612-396-9157Email: [email protected]
Brian SchnellPartnerFaegre & Benson LLP2200 Wells Fargo Center90 South Seventh StreetMinneapolis, MN 55402-3901Phone: 612-766-7472Mobile: 612-720-1086Fax: Email: [email protected]
