The franchise industry is facing challenges like never before. The competition is tougher. Thousands of franchise brands operate across the country and around the globe, while the battle for capital and consumers is waged daily. Most franchise systems help franchise owners get up and running. They provide the model and the franchisee operates the business. However, many franchised business models can’t operate without employees, and many owners have never recruited, trained or managed a workforce before. Fortunately, small business owners can turn to HR outsourcing companies, called professional employer organizations, which can pick-up where the franchise system leaves off. Professional Employer Organizations (PEO) and staff-leasing firms offer a comprehensive HR outsourcing model that assumes many of the employment responsibilities that franchise owners must contend with. Their unique co-employment model transfers most of the franchisees employment compliance risk to the PEO.
The majority of new franchise operators are unaware of the myriad of Federal and State laws imposed on small businesses today. Failure to comply with labor and wage and hour rules, submitting timely payroll reports and tax payments can result in severe penalties and fines. Defending your firm against a wrongful termination, independent contractor dispute, or sexual harassment can lead to expensive litigation, and have a catastrophic effect on your bottom line. All too often, a business owner hires a ‘bad apple’ whose behavior causes accidents, costly claims, and disrupts your ability to maintain an engaged and productive workforce.
Many franchise owners and operators have concerns about the future once Health Care Reform is fully implemented. Most of America’s CEO’s and CFO’s agree that obtaining affordable health insurance continues to be a complex and time consuming responsibility that directly touches each one of their employees. The quality of an employer’s benefits program is key to a company’s ability to attract and retain a happy, healthy, loyal and productive workforce. As one of the nation’s leading employee management consultants, we help franchise business owners solve many of their most challenging employee benefit and compliance issues.