How EZ CERT’s Unique Position as Insurance and Franchising Experts Helps Sport Clips Franchisees Stay in Compliance with Updated FDD Requirements

There’s a lot that goes into a franchise company’s Franchise Disclosure Document, or FDD. From financial performance indicators to comprehensive break downs of possible initial investment costs, brands have a lot to keep track of when they’re launching or updating their business ownership opportunity. But one of the most important aspects of every FDD involves insurance. That’s where EZ CERT comes in.

The brand works with franchisors and franchisees across the country to ensure that their insurance coverage is in compliance with what’s listed in a FDD. EZ CERT takes an active approach to compliance—the brand tracks and measures insurance certificates to prevent franchisees’ small problems from becoming large issues for franchisors. When franchisees don’t have the right insurance, it ultimately opens up the door to the risk of litigation. That’s why EZ CERT goes above and beyond to monitor insurance certificates on the franchisee level.

“We understand the ins and outs of the franchising business model, including the relationship between the franchisee and the franchisor. And by having our team members work on the franchisee side of the business, we’re able to write a policy that’s compliant with a brand’s standards. We make it a top priority to know the franchises that we work with—and their requirements—in order to offer our clients the best possible service,” said Doug Groves, Principal at EZ CERT. “Through our ability to aggregate customers on the insurance side, we’re ultimately able to offer franchisees superior insurance coverage for a lower cost.”

One brand that has a long history of capitalizing on that capability is Sport Clips*. EZ CERT’s oldest client recently approached the company after realizing that they wanted to add Employment Practices Liability Insurance (EPLI) to their FDD. Not only is that coverage extremely important for franchisees to have, suits related to EPLI are becoming more prevalent. And that means that brands need to make sure that their franchisees are covered.

EZ CERT didn’t waste any time getting to work—the company worked with Sport Clips’ large network of franchisees to help them get in compliance with the FDD’s new requirement. Between EZ CERT’s expertise in the insurance industry and strong relationship with the franchising community, the company was able to adapt to Sport Clips’ FDD change quickly.

“We consider this a personal success story for EZ CERT. As the company responsible for tracking the brand’s certificates, we were able to make a big push to get Sport Clips’ franchisees compliant with this new requirement in a short period of time. That goes to show how comprehensive our insurance capabilities are,” said Andrea Denton, brand manager for EZ CERT.

Sport Clips is far from the only brand capitalizing on EZ CERT’s unique position in both the franchising and insurance industries. Business concepts across the country are utilizing the brand’s top tier services to ensure that their franchisees are staying up to date with their insurance policies.

“Our top priority is making sure that franchisors and franchisees have the insurance coverage that they need. By watching for potential errors and staying ahead of the curve to ensure that franchisees are renewing their insurance plans on time, we’re helping franchise concepts avoid problems that would otherwise require a lot of stress, time and money to solve,” Groves said.