1851

Sure, franchising can be a safer bet than starting a business from scratch, but that doesn’t mean it's foolproof.&nbsp;<a href="https://1851franchise.com/two-big-brand-multi-unit-qsr-franchisees-declare-bankruptcy-on-the-same-day-2726574">Shit happens</a>, as they say. And in the world of franchising, a franchisor isn’t just responsible for itself; it’s also for all of the franchisees that operate underneath its brand. That is why effective disaster response and legal liability management are so crucial to ensure business continuity and protect all stakeholders involved.&nbsp;1851 Franchise spoke with some expert franchise lawyers to create a comprehensive guide on best practices for franchisors.<h2>Creating a Disaster Response Plan</h2>To start, a detailed disaster response plan is the foundation of effective disaster management.&nbsp; “Franchisors need to have a full plan for how to handle disasters,” said&nbsp;<a href="https://www.linkedin.com/in/markhirschesq/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">Mark Hirsch</a>, co-founder of&nbsp;<a href="https://templerhirsch.com/attorney-profiles/attorney-mark-hirsch/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">Templer &amp; Hirsch</a>. “This plan should have clear instructions on what to do in an emergency, how to communicate and how to help partners. Making sure everyone knows their jobs and responsibilities in case of a crisis through regular training sessions is the first step to a good plan. For example, after Hurricane Katrina, our firm helped a number of businesses understand their legal responsibilities and deal with their insurance claims, which showed how important it is to be ready.”A well-structured plan should include protocols for various types of disasters such as natural disasters, pandemics and cyber-attacks.&nbsp; “Franchisors can transform disaster response into a strong point by having a thoughtful plan,” said&nbsp;<a href="https://www.linkedin.com/in/jamie-e-wright-6a5108129?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">Jamie E. Wright</a>, founder/CEO of the&nbsp;<a href="https://jamiewrightesq.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">Wright Law Firm</a>. “Start with a comprehensive disaster strategy that includes clear emergency protocols and up-to-date contact information. Ensure franchise agreements clearly outline each party's responsibilities during a disaster, reducing confusion and disputes.”<h2>Establishing Clear Communication Channels</h2>Timely and accurate information flow is also critical during a disaster in order to establish clear communication channels and protocols among franchisors and franchisees. “This includes designating a point of contact for disaster-related communications,” said&nbsp;<a href="https://sg.linkedin.com/in/nicolastang?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">Nicolas Tang</a>, founder and managing director of&nbsp;<a href="https://fl.sg/our-team/nicolas-tang/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">Farallon Law Corporation</a>.Hirsch underscores the importance of maintaining up-to-date contact information for all franchisees so they can receive real-time updates in case of an emergency. “Current technology, like mass notification systems, can speed up responses and ensure that messages are always sent the same way,” he said. “Communication at the right time was very important for many companies during the COVID-19 pandemic, for example. It reduced uncertainty and improved coordination.”<h2>Regular Training and Mock Drills</h2>Once plans are in place, regular training sessions for both franchisor and franchisee employees are essential to ensure everyone knows their roles and responsibilities during a disaster, Tang says. “Organize mock drills to simulate disaster scenarios and test the effectiveness of the disaster response plan,” he said. “This helps identify any gaps or areas for improvement.”Wright also suggests engaging workshops and interactive online modules to keep everyone informed and ready. “Regular training for franchisees on disaster preparedness is essential,” she said. This proactive approach ensures that all parties are well-prepared and can respond effectively when a disaster strikes.<h2>Legal Documentation and Insurance Coverage</h2>Robust&nbsp;<a href="https://1851franchise.com/important-legal-considerations-in-franchise-agreements-and-contracts-2725774">legal documentation</a> is also a vital component of disaster preparedness. Ensuring that all changes to operations, policies and procedures during a disaster are well-documented can help address legal concerns and protect the franchisor from potential liability. “Writing down everything you do to respond to a disaster is essential,” said Hirsch. “This paperwork can show that the franchisor did what they could to protect their partners, which is very important in court cases. After the 2011 tornado outbreak, having very good records helped some of our clients show they were proactive, limiting their liability.”Similarly, Hirsch highlights the importance of having strong&nbsp;<a href="https://1851franchise.com/can-insurance-coverage-reduce-or-eliminate-joint-employer-risks-in-franchising-3528">insurance plans</a> that cover a wide range of disasters. “Franchisors should ensure they have comprehensive insurance coverage, including general liability, property insurance, business interruption insurance and cyber insurance,” he said. “Reviewing these rules regularly with a lawyer can help find any possible holes. Also, clear franchise agreements that spell out who is responsible for what can stop disagreements and lower the risk of liability.”<h2>Proactive Legal and Mental Health Support</h2>Proactive legal support and a&nbsp;<a href="https://1851franchise.com/employee-mental-health-investing-2726110">focus on mental health</a> can enhance disaster response and recovery as well. “Franchisors should encourage a mindset of strength and support,” said Hirsch. “Giving franchisees tools like mental health support, financial help and recovery planning can help them get back on their feet faster.”Lastly, Wright stresses the importance of&nbsp;<a href="https://1851franchise.com/what-is-a-franchise-lawyer-and-why-would-i-need-one-2725334">partnering with legal experts</a> to stay ahead of the latest regulations. “By being proactive and prepared,” she said, “franchisors can navigate crises effectively, protect their brand and support their franchisees.”Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=disaster-response-and-legal-liability-for-franchisors-2726809" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Disaster Response and Legal Liability Management for Franchisors | 1851 Franchise

1851 Franchise

In the ever-evolving business landscape, franchises must be prepared for unexpected disasters that can disrupt operations and impact both franchisors and franchisees. 

Disaster Response and Legal Liability for Franchisors

disaster-response-and-legal-liability-for-franchisors

TWO MEN AND A TRUCK

TWO MEN AND A TRUCK Celebrates 40 Years With Growth, New Franchise Signings and Charitable Milestones in 2025

two-men-and-a-truck-celebrates-40-years-with-growth-new-franchise-signings-and-charitable-milestones-in-2025

Express Employment Professionals

Express Employment Professionals Offers 50% Off Its Franchising Fee in Select Markets

express-employment-professionals-offers-50-off-its-franchising-fee-in-select-markets

Woodhouse Spas

image of woodhouse spa building franchise spa treatment

Woodhouse Spas’ Culture of Excellence, Support Further Elevates Top-Performing Franchise Opportunity

woodhouse-spas-supportive-franchise-culture

Sola Salons

Image of sola salons franchise spa industry interior of a franchise building

Sola Salons 2025 FDD Savings: How Data-Driven Adaptation Has Cut Costs for Franchisees

sola-salons-2025-fdd-savings

Right at Home

Right at Home Expanding In-Home Care Services in Jacksonville

right-at-home-expanding-in-home-care-services-in-jacksonville

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

McDonald’s Is the Latest Franchise To Bet Big on Beverages with 500-Store Premium Drink Test

mcdonalds-is-the-latest-franchise-to-bet-big-on-beverages-with-500-store-premium-drink-test

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Subway - John Fitzpatrick Named CEO - Breaking News - 1851 Franchise

Subway Names Jonathan Fitzpatrick as New CEO, Effective July 28

jonathan-fitzpatrick-subway-ceo-leadership-change

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

Mega Franchisee Sizzling Platter Acquired by Bain Capital

mega-franchisee-sizzling-platter-acquired-by-bain-capital

Home Halo Franchise Costs, Fees, Profit and Data for 2025

home-halo-franchise-costs-fees-profit-and-data-for-2025

How Food Franchises Are Innovating To Win Over Health-Conscious Consumers

food-franchises-winning-over-health-conscious-consumers

Jollibee -Launch-Story-Brand-Page-Deep-Dive-2025

Jollibee Franchise Costs, Fees, Profit and Data for 2025

jollibee-franchise-costs-fees-profit-and-data-for-2025

Massage Envy Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-massage-envy-franchise-costs-fees-profit-and-data

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Navy Veteran and Professional Artist Couple Open Caring Transitions in Texas

Navy Veteran and Professional Artist Couple Set Out to Build a Purpose-Driven Business With Caring Transitions in Texas

navy-veteran-and-professional-artist-couple-set-out-to-build-a-purpose-driven-business-with-caring-transitions-in-texas

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Why This Real Estate Broker Decided To Bring Caring Transitions to Central Texas

Disaster Response and Legal Liability for Franchisors

MORE STORIES LIKE THIS