Could an employee blunder by one of your franchisees damage your brand? How to add value to your franchise model and protect your brand

When Jackie Lang was dismissed for sharing a cup of coke with a friend, sales of Subway sandwiches fell as customers boycotted the brand. Further, Subway Restaurants were no longer an employer of choice. Union Representative Bill Clark said he was dismayed at the lack of any knowledge of employment law shown by the Dunedin Subway franchise owner despite it supposedly being part of a global chain.

The Subway brand had been damaged causing the franchisor to go into damage control: the brand needed to be repaired and distance needed to be put between the brand and the decision of the individual franchise owner. Could your brand be damaged in the same way?

The damage was felt nationwide

News of the dismissal reached as far afield as Germany. Within New Zealand the damage caused by one rash decision was felt by all franchisees. That's because customers do not distinguish between a business run on a franchise model and one run on a corporate model. As far as customers are concerned, the brand is responsible for any blunders, despite any attempts of the franchisor to distance its brand from the actions of its franchisees.

The damage wasn't only to customer confidence

If a franchised brand is damaged, the effect is not only on customer sales: the franchise itself also becomes less attractive to potential new franchisees which leads to a potential downturn in revenue for the franchisor. To repair the brand and restore the status quo, money and time has to be invested in positive PR and advertising. That could easily run into thousands of dollars.

Introducing the Franchisee Legal Hotline: a simple way to keep your franchisees out of employee trouble

The Franchisee Legal Hotline is exactly that: a hotline between your franchisees and a practising employment law barrister who your franchisees can call before making any decisions on dismissing staff (or indeed, anything else that may get them into employee trouble). If the query can be handled by phone or it takes no longer than 30 minutes to deal with, then it is covered by the Hotline membership.

Since many franchisees are small businesses, they run on a tight budget. Spending money on legal fees will be a low priority. Even the simplest advice from a lawyer could cost a lot of money and that discourages franchisees from getting proactive advice to protect their interests. It is without that advice when things go wrong and your brand is exposed.

The Franchisee Legal Hotline prevents things going wrong and protects your brand

The philosophy behind the franchisee legal hotline is proactive advice to prevent these blunders happening before they occur. It's proactive because as well as getting access to an employment law barrister, all franchisees automatically get acces to the Approachable Lawyer newsletter and free access to the reports and checklists on this website (otherwise only available for sale). It is the proactive nature of this advice which is the secret to keeping your franchisees out of trouble. That's what Esquires Coffee Houses found:

"As one of New Zealand's fastest growing franchises, the potential for employment disputes is huge. Prior to using the Approachable Lawyer Franchisee Hotline, we had already been taken to mediation by one employee and advised to pay compensation because of the slip-up in process. I learnt my lesson from that case and 2 years ago retained Michael and Approachable Lawyer to advise us and our franchisees. Since then we have only had one employment dispute, which was withdrawn by the employee before reaching trial. The biggest benefit of the Hotline is that our franchisees are able to call Michael to get advice before they have a problem. As a result, we rarely have employment issues. For that reason alone the Hotline is invaluable, but it also enables me to offer added value to any person considering buying an Esquires franchise. I would recommend the Hotline to any business owner, and in particular to any franchisor wishing to add value to its franchise model." Stuart Deaks, Managing Director, Esquires Coffee Houses NZ

Plus, keep your documentation up to date

Employment law is forever changing. Since 2000 there has been numerous changes to labour legislation and contracts have needed to be updated no less than 3 times. With the Franchisee Legal Hotline, that's all taken care of. As soon as you sign up, a complete audit is undertaken of your employment documentation to ensure it is fully compliant and works to protect both your and your franchisees' interests. If the law changes, so does your employment documentation.

That includes your Franchisee Manual

The audit will also include an audit of the human resource section of your franchisee manual. This involves incorporating the material contained in The Small Business Dismissal Manual: A Step by Step Guide to Dismissing Staff and Not Getting Sued. This means that from the moment your franchisee purchases a franchise, they get access to training which pinpoints where they need to be careful. Those resources also include precedent dismissal letters and meeting agendas for their guidance.

For those franchisees that don't read the manual...

Inevitably you will get franchisees who will not read the franchisee manual. That's why, with the Premium version of the Franchisee Legal Hotline, your franchisees also get access to on-line training videos, which teach them the fundamentals of hiring, managing and dismissing staff. Live workshops can also be arranged as part of the package (subject to reimbursement of travel expenses).

And then if it does go wrong...

In the unlikely event that one of your franchisees does need further help in the form of consultancy advice, whether it be attending mediation with the Department of Labour or fighting a personal grievance before the Employment Relations Authority, then they are able to use me at significantly discounted hourly rates. From your perspective, you have the reassurance that such a case is being handled properly with the benefit of specialist advice.

What does it cost?

Whether you sign up for the Basic or Premium Franchisee Legal Hotline there is a sign-up fee, plus a monthly fee, calculated based upon the number of franchise businesses in your chain. The table below shows how it works:

Basic		Premium
Legal Hotline: 24 / 7 access to an employment lawyer		Legal Hotline: 24 / 7 access to an employment lawyer
Audit of employment documentation		Audit of employment documentation
Employment documentation kept up to date		Employment documentation kept up to date
Reduced consultancy rate of $250 + GST p.h.		Reduced consultancy rate of $200 + GST p.h.
Franchisee access to Approachable Lawyer newsletter and advice		Franchisee access to Approachable Lawyer newsletter and advice
Online Training Videos		Online Training Videos
Offline Training Seminars		Offline Training Seminars

Sign up fee: $2,500 + GST		Sign up fee: $2,500 + GST
Monthly fee: $45 + GST per franchisee		Monthly fee: $50 + GST per franchisee

It's tried and tested

The Franchisee Legal Hotline has been working successfully in the Esquires Coffee Houses franchise for 3 years. During that time no franchisee has been taken to the Employment Relations Authority and it remains the 2nd fastest growing New Zealand franchise and winner of the Westpac Food & Beverage 'Best Franchise System' in 2005 and 2006.

The Franchisee Legal Hotline represents a cost effective and reliable way to prevent damage to your franchise brand. To enquire about setting up the Franchisee Legal Hotline for your franchise system either:

Call me on 09 358 2725 or 021 320 171
Email me at michael@approachablelawyer.com
Complete the online form below

Regards,

Michael Smyth LLb. (Hons.), Dip, Cert
The Approachable Lawyer

Ps. When purchasing a franchise many potential franchisees are worried about "employee biased" employment legislation. The Hotline takes that worry away and makes purchasing a franchise an easier decision. As the frachisor you can build the cost into your monthly royalty payments.

To enquire about the Franchisee Legal Hotline click here

"I was far less stressed because of the constant support"
I didn't think I'd need a lawyer just because I was hiring an employee. Then things went wrong. Quite wrong, I must add. And boy, was I glad I had a water-tight employment agreement. What also helped was that I was able to let go of the employee at 2 days notice, simply because of the constant advice, and the solid paperwork I had in place. And it was all thanks to the Approachable Lawyer. I did have to spend a few anxious days while dismissing my employee, but I was far less stressed, because of the constant support and the fact that I could get in touch with Mike at a moment's notice and have my worries resolved. I'd say any business owner would be foolish to not have access to a hotline such as this. Sean D'Souza, Psychotactics.com

"The Legal hotline is cost effective and provides value for money"
The whole area of employment law is disconcerting at the best of times for a novice and engaging someone in this area is generally a costly exercise. However, I have found the Legal Hotline to be very cost effective service providing good value for money. The service is confidential and backed up with timely and accurate advice. Refreshingly, Michael uses non jargonistic language which demystifies otherwise difficult to understand legal terms. Most recently we had a redundancy situation and by using Michael I am confident that we followed an informed process and got the right result for all concerned. Overall, we get a speedy service and I would, and frequently do, recommend the Approachable Lawyer to other businesses we deal with. Lynlee Wilson, The People Group

"I figured I couldn't really lose out...I don't feel nervous about getting a massive invoice for a 2 minute conversation"
The Hotline seemed like a good plan to me because I figured I couldn’t really lose out. Because I had used Michael previously I knew it was going to be a reputable service and not someone after a quick buck. The great thing about the Hotline is that I can call or email anytime. I don’t feel nervous about getting a massive invoice for a two minute conversation but I still get good legal advice. The response times are quick and the service efficient. I would have no hesitation recommending the service to other business owners who can rely on the approachable nature of Michael and the Hotline. Gary Richards, Jag Design, Auckland

'I have some questions on this already.."
Even though I have only one employee, I think this will be very useful to me as I already have some issues to sort out with him. I am also looking at employing a part time person, so I have some questions on this already. I will most certainly refer your services to my clients as well. Johan Grobler, Tetra Electronics, Auckland

"As a member of the Legal Hotline, if the law changes so does my agreement..."
My old agreement was not only out of date but also hard to understand. When I chose Michael to update it for me it was mainly because I have 100% faith in his ability to tailor an agreement for my business without me having to think too much about it. When the agreement arrived in my inbox I found it was very simple to understand. The only bits I needed to fill in were on the front page and most of that had already been completed for me. The addition of my logo on the bottom also gave it that "made to measure" feel which is exactly what I was looking for. I now don't have to worry about my agreement going out of date since, as a member of his Legal Hotline, if the law changes so does my agreement. Gail Godfrey, J T Jamieson Financiers Limited

"I would definitely recommend you and the Hotline to other businesses because of your expertise and because you are approachable"
I knew from the outset that you were professional and that I could rely upon you. That's why I signed up for the Legal Hotline. When I started using the Hotline my perception didn’t change. I like the way I can talk to you personally, the fact that you are a specialist in your field, and that your documentation is easy to read. I would definitely recommend you and the Hotline to other businesses because of your expertise and because you are approachable. Bryan Berry, Bryan Berry Panel Beaters

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Contact Michael Smyth
PO Box 91053 AMSC
Auckland 1030
New Zealand
P: +64 9 358 2725
F: +64 9 358 2715
M: +64 21 320 171
E: michael@approachablelawyer.com

In the UK:
P: +44 709 204 5664
F: +44 709 204 5664