Advice finance

Support your franchisees in the complex world ofemployment law and, health and safety,
with NatWest Mentor

For small business owners, being part of a successful franchise can be an excellent way to have instant brand awareness and credibility within the marketplace.

However, despite the support and guidance available with a franchise, there are certain issues franchisees must face alone, but a franchisor needs to be sure that they ‘go it alone’ correctly.

As a franchisor, you will be aware that franchisees should always be following procedures when employing and managing staff, and providing a safe working environment. Failing to do so can lead to an employment tribunal, and with an annual increase of 43 per cent in claims accepted by the Employment Tribunals Service in the year to March 2008, this is a real possibility. Legally it is the franchisee that is liable, although it will be the franchisor’s brand name that is ultimately damaged.

“A big risk for any franchisor is the damage its brand can receive by the actions of a single franchisee,” explains Graeme Jones, head of franchising for NatWest business and commercial banking. “It takes a long time to get a reputable brand, so you don’t want negative issues arising that will put the brand at risk. While legally a franchisee is fully responsible for any problems, if there is ever a particular issue with health and safety or a breach of employment law, it’s not just the franchisee that could be left to pick up the pieces.”

Like any small business owner, franchisees have to take full responsibility for health and safety, and employment law regulations, says Graeme. Without the right support, it can be a complex and time-consuming process. While some franchisors do provide specific employment law and, health and safety support to its franchisees the level and quality varies. That’s where NatWest Mentor can help. Graeme explains: “It’s within the franchisor’s interest to provide access to top quality support, which is where NatWest Mentor comes in. We provide support in employment law and health and safety to a number of leading franchise brands, such as O2, Venture and Subway.

“We support the franchisee with their responsibilities towards staff and customers, freeing up time to help them concentrate on running their business. If they have the right documentation in place, they can put all of their energy into implementing efficiencies to maximise business success. This top quality support also ensures that the franchisor is mitigating any risk to them.”

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