Business Continuity Planning

Business continuity planning involves the identification of areas of risk and putting in place strategies to minimise the impact of these risks if they eventuate. In the current environment, a significant risk faced by most franchise networks is the prospect of a key supplier or a franchisee (or number of franchisees) ceasing to trade due to insolvency.

All businesses should have a formal and comprehensive business continuity plan in place as part of their risk management processes. The plan should be a simple document that is tailored to the business and provides practical strategies to follow in a crisis. The plan needs to address all the major risks to the business (including fires, floods, storms, explosions and key suppliers or customers ceasing to trade) and have strategies in place to guard against or mitigate these risks.