Benefits: How Small Franchise Locations Gain Large-Company Purchasing Power

Franchising is an attractive way of doing business, there’s no doubt about it. Rather than relying on a new brand or concept to “take off,” franchisees utilize corporate image and power as a tool to expand their market share more rapidly and less expensively.

With a brand that’s already recognized, franchise owners reap many benefits when it comes to hiring and marketing services and sometimes even an overall business model and/or growth plan. It’s already been established, and that certainly beats starting from scratch!

However, franchisees could face some challenges when it comes to: employee benefits. While you may be part of a very large “corporate image,” you may not be part of a corporate policy for vendor services such as health insurance. Large companies tend to get more attractive (and cost-effective) health insurance options because there are hundreds, sometimes thousands, of employees on their policy. You may only be a small employer but realize the importance of offering health insurance benefits to attract and retain quality employees.

So, where does this leave you? A great solution is a Professional Employer Organization (PEO). PEOs present purchasing power for health insurance due to the overall population size of their employee base. They pool employees from numerous client companies on to a single company policy (the PEO’s policy) through the co-employment relationship.

Employer Solutions Plus has established partnerships with many national PEOs who understand the unique needs of a franchise owner. With a PEO, clients gain better service, better pricing, and more options – beyond health insurance and into payroll processing, employee administration and more!

If you are with corporate… Providing health insurance options (such as master group health) to new franchisees makes your business model and franchising set-up much more attractive. You help new locations get off to the right start by keeping their vendor expenses as low as possible. Suddenly, “corporate benefits” is added alongside the value of a franchisee’s corporate image … further ensuring their success!

If you are an individual franchisee… If corporate doesn’t currently offer PEO or health insurance options, give Employer Solutions Plus a call to discuss your employee benefits. We work with many PEOs interested in providing you with economical options for health insurance!

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