How to Write More Franchise Business Insurance for Your Client and Put More Money in Your Pocket!

Jul 16, 2019

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One of my favorite parts of being a wholesaler, marketer, and entrepreneur is visiting agencies.  While I can’t get everywhere, and need to spend time at the office too, I do a lot of “dashboard duty” and get to see all sorts of businesses springing up everywhere.   I’m noticing more and more franchised businesses, whether it be in the restaurant, car care, hairstyling, locksmith, housekeeping, contractors, motels, delivery trucks and many other kinds of businesses.

Who do you think insures these businesses? The “Big Boys?” Probably so! But, now it’s your turn.

Who do you think owns these businesses? Big multi-national corporations.     Not necessarily!    You see, the people who own these businesses are often small business owners, just like you and me.   You see them at church, in the grocery store, and your kids’ soccer games; maybe they’re even the volunteer firefighter who saves lives and helps protect other properties you insure!   My point is they are very often entrepreneurs, like us, who have a contract with the franchisor to operate a business under license of that entity, using standards set forth by the “mothership.”   The people running the local businesses are called franchisees, and very often have multiple locations.     

What makes them different, and attractive,  to Insurance companies, is the consistency that comes from those standards,  Just like a Big Mac should taste the same whether you’re in Duluth or Denver (assuming the cook in Denver hasn’t been to the dispensary before work, which is whole different can of worms),  underwriters know that businesses who have written standard operating procedures, professional risk management advice at the corporate level, and a track record of success driven by corporate supervision, are likely to be much more profitable risks than Joe’s Greasy Spoon down on Route 9.       

I wouldn’t start out by trying to get the CEO of Midas Muffler or Jersey Mikes on the phone tomorrow morning, nor would I walk into the corporate office of Haircutters USA with a stack of business cards.  You should probably rule out dressing up like Colonel Sanders and parading around food court at the mall too!

Since the local franchisees are small business people,  again, like us, sit down and talk with them about insurance and see if you can get ahold of the insurance requirements for that franchise; chances are the requirements will be the same across your state, and possibly the country.   Once you know the requirements, check with your markets, (or preferably mine!), to see which carriers can meet those requirements.   The requirements will usually include the strength and size of the insurance carrier, the types of coverage and endorsements necessary, COI information, etc.

Personally, I would NOT try to sell this guy insurance during this meeting:  you want those requirements more than you want his check at this point because he’s about to arm  you with some of the knowledge you’ll need to build your niche of franchisees involved with his brand.   (Definitely try to write quote him very soon, and if he becomes a satisfied client, and hopefully raving fan, get a written testimonial on his letterhead and a video testimonial in front of his business, talking about all the benefits of doing business with you).  Notice I didn’t start out by talking about how much money he saved?   Include that too, but learn what PAIN those franchisees might have is, and ask him to focus on how you helped with that).

Knowing your markets and appetites is important; for example there’s one chain that must have been started by five guys who make fantastic hamburgers and Chenango Brokers can write their franchisees as a deli with cooking with one of its carriers!  (Yeah, send those burger joints to quotes@chenangobrokers.com or better yet, use our online rater for real time quotes and online apps!)      

Want to talk about franchises?   Call our New Business Team at 1-800-403-3738 or you can email me at jmason@chenangobrokers.com and I’ll quickly set up a time to talk with you.

Need a quote today?  Take us for a test drive by sending a complete submission to quotes@chenangobrokers.com

Depending on the number of locations, and size of the account, we can often quote these risks with same day turnaround (or faster).  We’ll gladly quote for you prior to signing a brokerage agreement but will need one in order to bind coverage.    

While we offer coverage for various types of franchisees in most of our 20 states, Chenango Brokers can also offer you online rating and applications from one our admitted AM Best A-rated carriers in NY NJ CT MA MD VA and OH for franchised and non-franchised businesses alike.

Sign up today at www.chenangobrokers.com

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To learn more about the author and owner of Chenango Brokers, John Mason grab a copy of his latest book on Amazon: “Follow The Money: How to Go From Insurance Agent to Wealthy Entrepreneur and Live the Lifestyle of Your Dreams”

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