After the Storm: Disaster Relief

The storms have passed and the damage has been done and your franchisees must be up and running as soon as possible.  How do you prepare for the next crisis and interruption to your royalty revenue stream?

Our webinar, After the Storm, addresses all these issues that are franchisors are facing today.

Franchising is vulnerable to catastrophic storms, earthquakes and other acts of nature.  Do your franchisees have the best insurance?  Do they know which lease clauses can help them now?  Will they need mold remediation or more?  All these questions were recently asked by a FranWise client and the answers were surprising. Most of the insurance they thought would protect their franchisees and them was not adequate.  Suddenly a rainstorm was a flood and a flood requires different insurances.  Business Interruption insurance does not cover floods!


Franchisors try to choose insurance requirements to protect themselves and their franchisees, but it is not always enough or the right coverage.  As times change and risks escalate, there are many policies that need to be revisited.  Don’t worry that the extra plans will raise the dollar amount in Item 7: You are planning on the long-term financial health of the entire system.  Get expert advice, and that is not usually from your attorney. Some people are leery of insurance professionals, thinking that all they want is a sale.   But a good insurance advisor tailor  insurance programs that best suits the company’s needs based on risks, locations and type of business.

Real Estate

If your insurance is not adequate right now, what else can you do to help your franchisees?  Start by reviewing their leases.  Franchisors should have in their compliance folders, a copy of every executed lease and at times such as these, it is easier for you to locate and study them than it is for the franchisees.  Two key clauses are, Force Majeure and Total or Partial Destruction.  Landlords may not understand that these clauses are in their standard leases and what they mean.  The landlord has a lot of the responsibility in these situations.  Get the franchisees talking to them, calmly.  If your units tend be located in sites managed by a handful of landlords, try to negotiate rent relief.  This is the time for all parties to work together as a team.

Restoration and Remediation

As soon as the responsibilities are determined, get to work!  It’s time for remediation.  Most restoration companies work for the landlord, but if the landlord is ill equipped to handle the situation and your franchisees need help – reach out to one of the fine franchised restoration companies and get help on the way.  If you are the landlord for your franchisees’ locations, negotiate a deal that gets you fast response at a good rate and get those franchises open fast.

Crisis Plans

Whether it is the weather, natural disaster such as an earthquake, slide or fire, act of violence or other catastrophe – quick and pointed response is the key to moving forward.  Don’t wait for the next event: Create your Crisis Response System today!

Listen to expert advice from Sean Falk of Hylant (insurance), Ty Brewster of Keyser (real estate) and Leslie Anderson of Paul Davis Restoration in this informative webinar.  These are real tips that can help you now and in the future.



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