However, no franchised business can exist without compliance; it actually protects your clients and your whole business. If you’re investing in a franchise, don’t be deterred by heavily regulated sectors, such as care. Some businesses, such as those in financial services, are regulated even more than care. Chances are, you have had experience working in a regulated business environment at some point.
Here’s the fun bit. Regulation can actually provide you with a marketing tool. For example, all care providers are inspected by the regulators and the results of their inspections are published – see, for instance, the reviews section of Homecare.co.uk. Potential customers use those results to guide their decisions – The better your rating, the more likely you are to pick up clients.
Walfinch is home care business, and so, we have lots of regulatory requirements and an industry inspector/regulator called the CQC. To help our franchisees ensure all obligations are met I am always thinking of creative ways to teach them about compliance to keep them engaged with this challenging topic. We do regular online meetings and walking meetings to keep things fresh.
To get an indication of a franchise’s attention to detail within compliance, keep an eye out for:
- Public Data and Regulatory Reports
- Online Portals and Presence
- Signs of Systemisation
Regulatory reports and public data
For the health and social care sector in the UK, the CQC (Care Quality Commission) oversees the industry. For finance in the UK, it’s the FCA (Financial Conduct Authority). For education, it’s Ofsted (Office for Standards in Education, Children’s Services and Skills). These regulators publicise their reports conducted on businesses – and are available to view in the public domain.
If a business has been consistently scored poorly by these regulators, this is an indication that they are non-compliant – and may not support you properly in this complex area. If you notice a business perhaps started poorly but has steadily improved over the years – then this could be a more positive investment as the right effort is being put in place to support franchisees.
Online portals
By searching the business on engines like Glassdoor and Indeed, you can get an indication of employee satisfaction, too. This, in isolation, does not directly signify a well-led, compliant business – but if employees identify an employer as poor, its likely they are not practicing adult safeguarding or there are issues with support. To confirm this, consider other indicators such as regulatory reports or financial history.
Signs of systemisation
If there are signs of systemisation, there are signs of life! Systemisation is the process of organising something into a system or following a repeatable process to complete tasks. Regular audits or using an online program to support organisation are examples of this. A franchise that has made the leap to digitise their data and put all the relevant systems in place, is a franchise you want to invest in. Here, you can ensure the business is being monitored and support provided to keep franchisees on the right track.
Regulations are there for a reason, regardless of franchise type
If approached professionally, consistently and correctly, rules and regulations can guide your business’ growth. In this way, compliance is neither boring or something to be afraid of, it feeds into your marketing efforts, your company culture, and your business’ overall value.
