It’s no secret that the reputation of your franchise can be significantly impacted by the actions of its franchisees and employees. From headline-grabbing incidents to internal misconduct, the fallout can cause lasting damage to both the individual location and the broader brand. So, the question arises: “Why didn’t we protect our brand proactively?” While it might seem tempting to skip background checks due to initial costs and the complexity of compliance with state, federal, and local requirements, the consequences of not screening could be far more costly. Recent statistics underscore the importance of proactive vetting:
-In 2022, workplace assaults led to 525 deaths, and 458 in 2023 (National Safety Council Injury Facts®). Additionally, there were 57,610 nonfatal workplace injuries caused by intentional harm.
-Employee theft costs businesses $50 billion annually (CNBC), including direct theft and more subtle forms like time theft.
-The EEOC receives about 7,500 workplace sexual harassment charges every year, with physical assault included in this data.
Given these figures, it’s clear that conducting thorough background checks on your franchisees and employees – as well as franchisees screening their own employees – is an essential step in safeguarding your brand’s reputation. Here are five key tips to ensure your brand stays protected:
1) Implement Comprehensive Background Checks
A thorough background check goes beyond a simple criminal record search. There is no single, all-encompassing database, so it’s crucial to choose a screening package that covers criminal history, financial records, and other risk factors specific to your business needs. Work with a background screening firm that can tailor the checks to include the various criminal and financial components that matter most to your franchise.
2) Partner with a Trusted, Franchise-Focused Background Screening Firm
Not all background screening firms are created equal. To truly protect your brand, it’s vital to partner with a reliable background screening company that understands the specific needs of franchises. Choose a screening provider with a strong track record of compliance, accuracy, and experience working with franchises. Research their reputation by checking for any litigation history on search engines, asking for customer reviews, reviewing employee Glassdoor.com reviews, and research if they have any strikes on the consumer financial protection bureau’s complaint database by typing in their company name in quotes.
3) Work with Legal Advisors to Establish a Standardized Process
Your background screening firm will guide you in setting up the right searches and compliance measures, but it’s essential that your legal team has the final say. They can help ensure the process adheres to legal standards while aligning with your specific organizational needs. Always consult with legal professionals to establish a standardized background screening protocol for franchisees and employees.
4) Prioritize Ease of Use and Candidate-Focused Solutions
A user-friendly background check process not only improves the experience for candidates but also ensures compliance. Choose a screening partner that offers mobile-friendly applications where candidates can easily input their information, while automatically generating necessary state and federal disclosures. The more streamlined and candidate-driven the process, the more effective it will be and the more time you have back for your team.
5) Stay Compliant and Informed
Compliance isn’t a one-time task—it’s an ongoing responsibility. Work with a background screening firm that keeps you informed with regular updates on changes in consumer reporting laws and provides educational resources to help you stay ahead of the curve. This proactive approach will help you avoid costly legal issues and class-action lawsuits.
By implementing a robust and compliant background screening program, you’ll not only reduce the risk of reputational damage but also foster a safer environment for both employees and customers. In turn, this builds trust and ensures that your franchise upholds the high standards your brand promises.
Posted by: Rudy Troisi, L.P.I., President and CEO, Reliable Background Screening and Alan Lasky, SVP Client Success & Partnerships.
This content is for informational purposes only and not legal advice or binding case law. Consult qualified legal counsel for assistance.
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