Security is so important that it has to be addressed from the very first day you start planning your new franchise business. Over the years the franchise industry has developed security safeguards and operations that are highly effective and most franchisors now have as a matter of course well developed, tried and tested security procedures. There is now a very active Security Industry, which has grown up around this need for protection, and ranges from local, to large national and multi-national companies.
The most common security issue you will face every day can be the most soul destroying of all, and that is; Internal Theft by Your Employees. Your franchise employees are 15 times more likely to steal from you than are your customers, so you need to thoroughly investigate the background of prospective employees for you franchise business. Check personal and credit references and most of all check with former employers, teachers, all referees and if possible the local police.
It is a challenge but, Promote a Theft-Free Culture while maintaining a friendly fun working environment. Your written company policies should cover ethical behaviour, internal theft policy, what constitutes "internal theft" and provide this information in writing to each new employee of your franchise. Tell employees what will happen if anyone is caught stealing . . . not what can happen, but what will happen. These policies should be signed by all the franchiseses employees indicating that they understand and agree to abide by them. Never be complacent because in my experience the sad fact is that dishonest employees account for two-thirds or more of theft.
On the administration side of your franchise business you also need to be vigilant.
* Examine all invoices or supporting data before signing checks. You should have the bookkeeper attach to the check, all related invoices.
* Dual signature of checks should be required unless signed by you.
* Don’t pre-sign checks and do inspect all pre-numbered check books to ensure that the checks are being used in sequence.
* Check that your accountant or book-keeper, reconciles the bank account and credit card accounts monthly.
* All cash should be kept in a safe that is either on a time lock or is opened with dual keys one of which is kept off premises.
Robbery is one of the most horrific and frightening of all the franchise security situations it is also one of the crimes that can cause long term physiological damage to employees.
Robbery is classified as being any situation in which violence, or the threat of violence, is used to extort or take by force property or money.
As a franchise owner it is your responsibility to have a protection program, with adequate safeguards in place to ensure, as far as humanly possible, the safety of your customers, your employees and yourself.
Your franchisor should have recommended practices and training programs available and these should be given prominence in your own franchise training program. If for some reason the franchisor does not provide this then you can talk to your local law enforcement officers or use the services of professional security advisors.
Here are some of the precautions you can take to minimize the risk.
* Be suspicious of anyone loitering outside especially if they seem determined to avoid other patrons or people in the vicinity.
* Maintain minimum cash register limits by skimming the cash and depositing in a secure drop safe. This procedure should be publicised.
* Never leave the cash drawer unattended and lock it when away.
* Leave the cash drawer open at the end of the day to show it is empty.
* Be aware of what’s going on outside as well as inside the franchise premises.
If your business operates at night.
* All outside lights should be turned on at dusk. It is a good idea to have the lights switched on automatically and the manager should check them at least daily.
* Adequate lighting both inside and outside is a must. If there are any spots that are in shadows take immediate steps to light them.
* Eliminate possible hiding places outside. Take special notice of vehicles that have been parked for an unusual length of time in proximity to the franchise premises.
* At the close of business all the franchise's employees should leave the store together, including the manager.
You are most vulnerable to a robbery when you take your deposit to the bank.
* You should make daily deposits but most importantly don’t have a specific routine day after day – vary your travel routes and times.
* Don’t make deposits after dark and on weekends if your banks night-safe is in a deserted area. Use a Security Company Pick-up Service instead.
* When delivering the bank wallet to the bank or night safe, carry it in a plain bag and don’t display it.
* If you go alone you are an easy target, so don’t do it.
* If the deposits are for a considerable amount using a Security Company Pick-up Service is essential.
Once a robbery is in progress you should understand that not only could your own life be in danger but those of innocent bystanders as well, so don't try to be a hero.
Security Professionals will tell you to follow these guidelines.
* If the person is armed assume they will use the weapon.
* Be cooperative, do what is requested.
* Don’t argue with the robber.
* Don’t make any quick movements be deliberate in everything you do.
* Remain calm.
* Make a mental note of; height, weight, type of speech accent or impediment, complexion, color of eyes, length and color of hair, any distinguishing marks, clothing, footwear, right or left handed, any jewellery.
* Take note of any accomplices.
When the thief departs make a note of:
* The direction of escape.
* If the thief used a car or motorcycle in the getaway try and note the make, model, color or license number or any other descriptive markings.
* The number and description of any accomplices.
While waiting for the police to arrive write down everything you can remember while it is fresh in your memory. Have any witnesses do the same.
Since 9/11 many things have changed and we are now faced with the real possibility that a Terrorist Act could be perpetuated against anyone of us or our business. You might say, "This will never happen to me" or "What has terrorism got to do with me"? And you may be right, but you need to be aware of the possibility, including the responsibility of Companies and Management.You could now be vulnerable to huge liability claims thanks to little-known government guidelines.
Guidelines for franchise businesses:*
* Anticipate worst-case scenarios and set up response plans.
* Find weak links in your franchise security and take steps to overcome them.
* Set up response teams to coordinate recovery operations.
* Develop and regularly test warning and communications systems.
* Train all franchise staff in response procedures.
*This data is taken from the National Fire Protection Ass. Homeland Security Department.
We suggest you visit the Homeland Security Department’s web site where you will find many suggestions on how to protect your business.
Copyright 2006© - Walter Raleigh
Walter Raleigh has been associated with Franchising and International Business for over 44 years including being a multiple franchise owner in the McDonald’s System. He is a well known Business Consultant and Mentor as well as a Company Director on the Boards of a diversified range of companies. His e-Book “A Franchise Journey To Success” is an informative, while entertaining, look at the progress from applying for a franchise to actually opening for business.
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