The 825,000 franchise businesses in the U.S. represent attractive targets for insurance producers—easily identifiable prospects, many with multiple units, who are generally required to purchase insurance by their franchise and loan agreements.
However, each system has its own particular requirements and many larger systems have national preferred vendor programs in place. For the independent producer, tackling the franchise sector requires understanding the system. Learn requirements and special risks before approaching the prospect with a clear case for the advantages of a local insurance relationship.
By combining knowledge of the system with the franchisee’s particular needs, a producer can develop an offering that meets the system requirements and protects the client. Some tips to approaching a franchisee prospect include:
Guarantee insurance allows producers to help franchisees address the twin issues of credit availability and the risk they take on in signing a personal guarantee. Producers also can work with franchisors to make guarantee insurance available for business owners in their network.