What's in it for you? 

Every brand relies on its supplier network to rapidly grow at scale. In many respects, the supplier network is protected by insider knowledge and can serve as a sign of the strength of the brand-owning experience. When the leadership provides a quality and reliable supplier network, the franchisees can relax and focus on growing their own business.

Insurance challenges can disrupt a business, unlike any other supplier. Insurance woes can hurt, harm, or even discontinue operations. Franchisees can seriously harm the business if they are not insured. If the franchise business is not insured correctly the owner is personally liable. That means suits are paid for out of pocket. Most businesses could not write a check for the average worker's compensation claim and would be forced to close their doors. This is not referring to the location, but the whole brand.

If the DOO is successful in creating a culture of “Risk Management” the brand gains are very positive. There is more caution, more coverage, more protected Entities, and a greater sense of professionalism and care to ensure the brand is safe from lawsuits.

The cost of hunting for COIs 24/7 for a large brand can be anywhere between 1-2 FTEs. Rikor aims at systems and processes to automate this program. This can lead to long-run 5-year savings that are material. Rikor also sees its system as an improvement in transparency, speed, and accessibility.  DOOs want to see their franchisee’s coverage, and for insights to be readily available. DOOs want to see franchisees quickly (2 weeks) get the quotes they need. DOOs want to access that data from a centralized software  (rms™).

Rikor has a very clear mission and vision that is engineered to align with all stakeholders.

Takeaways:

• Brands rely on suppliers to scale quickly
• Partnering with the right suppliers makes your job easier and allows the franchisee to focus on growing their business
• Insurance can disrupt a business
• Uninsured franchisees can lose their business
• Uninsured franchisees can damage the franchise
• Creating a culture of “Risk Management” creates caution, protection, and professionalism that protects the brand from uninsured lawsuits 
• Hunting down COIs for a large platform can cost 1-2 full-time employees
• Quick access to insurance data in a centralized software (rms™)

The primary benefit of using Rikor is to alleviate insurance challenges. Creating a culture of “Risk Management” will only be successful if participation is frictionless and flexible. The five benefits of partnering with rikor are listed below:

Ease of insuring New Zees: Rikor uses a reliable method of establishing carrier markets for a brand. This means that a carrier is familiar with the brand, and is ready to insure the franchisees. We work closely with the Directors of Underwriting to maintain their interest and approve new policies. This, in turn, means quicker quotes, underwriting, and issuing policies. Bear in mind that when we say quick, we’re talking about 2 weeks to quote (on average). This is extremely quick in the world of insurance.
 

Ease of insuring Existing Zees: Rikor is painfully aware that the established locations may be jaded regarding insurance.  Other failed attempts to resolve insurance challenges with other large firms may have ended poorly. Due to this probably rocky past, some Franchise owners will be cynical or stand-offish. Rikor is successful with existing franchisees. Rikor encourages existing franchises to upload their COI. This allows Rikor consultants to analyze the coverage and check for issues. If a major issue arises, the franchisees tend to be grateful for the help. Otherwise, they tend to be open and willing to receive a quote at the time of renewal. This approach has worked well for us thus far.
 

Ease of reporting compliance: Rikor automation delivers DOOs a monthly report. This report includes high-level visibility. It’s meant to inform and assess progress. This email report records the number of franchisees in the following categories; Total Franchisees, Total Rikor Customers, Total Not-Verified Franchisees, Total Non-Compliant Franchisees, and Total Lapse in Coverage. These reports can, at times, be used to call attention to urgent matters. If a franchisee is showing a Lapse in Coverage, they may have a policy but have not yet uploaded their COI to the rms™. In any case, Rikor is usually very active in supporting insurance compliance for a brand. These reports are designed to show our work and progress. In a way, they hold ourselves accountable for results.
 

Ease of policy support (Endorsements and Certificates): To properly insure a business, year-long policy support is critical. Businesses are constantly growing and changing. Those changes can lead an owner to be uninsured, underinsured, or open to unintentional exclusions. Owners who ignore their insurance consultant’s emails all year long can find themselves in tricky situations. At best, the yearly audit from the carrier will likely find the franchise owner owing money. This can deeply frustrate the Franchise Owner and create a difficult confrontation.
 

Ease of data access, review, and monitoring in the rms™:  Rikor deeply believes in showing our work and being transparent. All the insurance data that rikor collects is viewable in the rms™. All Directors of Operations have logins and are assumed to view this data quarterly. The monthly reports can provide briefs that keep the DOO informed. The rms™ is designed to inform stakeholders in detail. The rms™ has the following data; Average Compliance Score, Average Compliance Score per Entity, Compliance Score per policy/coverage,  account information, and COI summaries. DOOs can also help with data maintenance by reviewing the rms™ for inactive locations. This helps keep the scores more accurate and relevant. 

Step 5: Initiating Franchisee Insurance Compliance