For businesses operating as a franchise for more that two years with sound risk management procedures and are Members of the Franchisors Council of Australia (FCA).

We cover:

· Breach of professional duty
· Directors and Officers Liability
· Company Liability
· Crisis Consultancy
· Employment Practices Liability
· Superannuation Trustees Liability
· Fines and Penalties
· Breach of Franchise Agreement – optional

There are over 960 franchise systems today contributing nearly 14% to Australia’s Gross Domestic Product. Big numbers, across a wide variety of business categories. Our helpdesk is there to talk you through all the issues that may face a broker when placing these specialist categories.

Contact our franchisor specialist Cindy Lau on 02 8274 8118 or email here.

News items worth a read:

Blow to push for good faith clause, 12-Jun-08

Ketchell franchise decision faces High Court test, 10-Jun-08

Franchisors Take Note

Major Franchise Brands Accused

More on Franchisor Insurance with Brooklyn Underwriting:

The Brooklyn Franchisor Insurance Policy is a combined policy specifically tailored to meet the needs of franchisors. The policy is unique in that it provides Professional Indemnity and Management Liabilility under the one policy to ensure maximum protection and limits the possibility of demarcation suits when two different insurers hold the insured’s Professional Indemnity and Management Liability insurance policies.
One of the major exposures for any franchisor relates to a potential breach of contract (Franchise Disclosure Agreement) between franchisor and franchisee. This is a very real and high exposure and can result in potential class action from franchisees. The types of contract breaches covered under the Brooklyn policy are:

a) All marketing activities undertaken by the Insured in connection with the sale of franchises.

b) The sale of franchises including the preparation, change, renewal or registration of:
i. a Franchise Agreement; and/or
ii. a franchise disclosure document as required by the Franchise Code of Conduct or similar instrument.

c) Compliance with Federal and State law in relation to the Franchise Agreement

d) The development and monitoring of compliance standards, specifications and operating procedures for franchises

e) The service, training, advertising and assistance required to be provided by the company to a franchisee under the terms of a franchise agreement or as required by the Franchising Code of Conduct of as represented in any disclosure document provided in relation to the franchise.

f) The sale, transfer or termination of a franchise or the assets of a franchise.

g) The negotiation or approval of a lease for the location of a franchise.

h) The selection or approval of a operational site for a franchise.

Cover of this complexity has not readily been available in the Australian Insurance market for many years and many franchisors are either not insured for these exposures or not adequately insured.

Combined with our Management Liability product, this franchisors package is powerful and should not be overlooked.

For more information about our Management Liability policy, please visit our Management Liability product page http://www.brooklynunderwriting.com.au/insurance-products/management-liability