By: Austin Bennett, CLCS  |  Risk Advisor  | abennett@tayloroswald.com

Being a franchise owner grants you a certain amount of peace. Depending on the franchise agreement, several high stakes business decisions are already made and don’t require that you spend a lot of time thinking about a solution. 

But…. 

While established relationships with corporate-preferred vendors appear convenient, they can also lead to inflated costs, stagnant service and lack of innovation that you need to proactively perform in your particular market. 

Taylor Oswald consulted with a franchise owner to save nearly $240,000 annually in health insurance premiums and create a compliant health insurance program that was attractive to recruits and employees. We can do the same for you. 

Taylor Oswald’s initial consult revealed two troubling items. 

Our collaboration started with a review of the franchisee’s existing health insurance program which was provided by the corporate-referred broker. This revealed two troubling items: 

1. Participation was low: Only 67 people out of nearly 400 employees were enrolled. Employees stated the package was too expensive. This was opposite of what the broker was advising; they stated the plan was affordable and well received. 
2. A critical element was missing: an affordable, high-deductible option. This oversight had serious implications. When a company surpasses 50 employees, benefits must meet affordability standards to avoid penalties and fines.1 The client had not been advised to meet compliance standards.

Add poor, untimely communications from the corporate-preferred to the situation, and the client was just ten days before the renewal of the health insurance program, when informed of a staggering 27% increase! This was a critical moment. They needed immediate action to avoid a significant financial burden. 

After securing the Broker of Record letter, Taylor Oswald was able to analyze the data, identify cost drivers, and leverage our carrier partnerships for an extremely expedited review of alternative quotes. 

Results: For this franchisee, we were able to secure an appealing health benefits program with less risk and a reduction in premiums for nearly $240,000 in annual savings.

What is valued even more by this client is having a partner in Taylor Oswald who understands their franchise business and their market, and who will proactively bring innovation and excellence on an ongoing basis. 

For this franchisee, it was well worth using Taylor Oswald as an independent consultant instead of a corporate-preferred vendor. 

No fire drills here: put time on your side.

It’s possible to achieve similar results without the added pressure of a renewal deadline. We recommend starting a health benefits program review with a Taylor Oswald insurance advisor months before your renewal to allow for a thorough review, data driven decisions and effective solutions. 

Key Takeaways for Franchise Owners:

• Review your franchise agreement
  Understand your obligations regarding preferred vendors.
• Prioritize compliance and affordability
  Ensure your benefits program meets regulatory standards.
• Don’t wait for a crisis
  Cultivate partnerships characterized by proactive communication, benefits program reviews, and a shared commitment to progress for long-term success.
• Focus on service
  Choose a broker who prioritizes your needs.

If you’re a franchise owner, or any business, who wants to ensure you’re getting the best value for your benefits program, let’s have a conversation. Learn how we can help you save money, avoid compliance issues, and maximize your employee benefits with exceptional service.

1 IRS Increases Safe Harbor Affordability Threshold for 2025