Tuesday, January 22, 2013

All Chains Are not Alike/ Workers Compensation Claims Cost

Last week I sent out an email on chains and how much they recirculate money back to the community versus how much independents recirculate.

I received this email from John Withers of Great Clips basically saying not all chains are the same.

Please see his comments.

Well, I agree that we are "different". Franchisees are sort of a hybird.

To answer his questions, we don't control the logos or the store design. We pay a 6% royalty which is pretty standard and it well worth it for what we get in return. We control our prices and we donate to the Redwood Empire Food bank, Children's Miracle Network, numerous high school programs such as Art Quest (for music drama etc) and we support at least a half dozen little league teams around the north bay.

The reason I am sensitive to the subject is that I have seen protectionism against "chains" in several towns around here. I've seen letters to the editor saying "chains drive out the mom and pops" All I want people to know is that you can be part of a chain and still be a "mom and pop" retailer.

Thanks for passing my comments along to those folks.

John Withers. Great Clips

Do you have an experience modification on your workers compensation policy. If so and if you have claims do you know the cost to you on those claims.

My company CAL Insurance has just purchased a program that evaluates the cost of claims. You would be amazed. In our evaluation of one of our clients had $2857 in claims and it cost the client $12987 over three years.

There are so many reasons to have a culture of safety in your business but certainly one is that claims are expensive. It is why you should thoroughly understand first aid claims and pay for these claims yourself. The caveat is that you need to make sure you do this properly.

Another suggestion for all of you with an experience modification is to make sure you get your experience modification worksheet from your broker

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116



1 comment:

Ronald said...

Maintaining workplace safety can save small businesses a lot of money and aggravation when it comes to workers comp claims. Also, losing one key employee can make a big difference in your business' productivity.