Creating a culture of health and care

The franchising industry is at a critical juncture. Franchisors and franchisees alike are struggling to balance rising healthcare costs with the need to maintain operational efficiency and employee satisfaction to deliver an exceptional customer experience. Rising health care costs driven by double-digit increases in insurance premiums, a lack of fully insured carriers willing to provide coverage when most full-time employees do not have the financial ability to choose health insurance, barriers to access to primary health care, and the spread of mental health and drug costs are exacerbated by shortages staff and the challenges of maintaining consistent coverage across multiple locations.

As the costs of high-deductible health insurance plans rise, many employees become “functionally uninsured (Forbes article)” resulting in absenteeism, presenteeism, decreased productivity, lack of engagement, and increased employee turnover—factors that undermine profitability and threaten the sustainability of franchise operations.

The Harsh Reality of Health Insurance

The challenges of providing health insurance are especially pressing for multifamily franchisees. High-deductible health insurance plans, often the only option available, leave many employees “functionally uninsured,” avoiding needed care due to prohibitive out-of-pocket costs. Avoidance of care leads to worsening health problems, increased absenteeism, and decreased overall productivity. Regulatory pressures are exacerbating these financial difficulties; Under the Affordable Care Act, franchisees must provide health care services or face significant penalties, potentially up to $2,000 per full-time employee per year. For a multifamily operator with 60 employees, this fine alone could be as high as $120,000 per year. Moreover, inadequate benefits contribute to higher employee turnover, with recruiting and training costs rising between 16 and 20 percent of an employee’s annual salary.

Turnover price: silent threat

Employee turnover and attrition are widespread problems in the franchising industry, especially in the fast food franchising industry. Typical hourly team member turnover is 225 percent, and in some locations it reaches 500 percent annually, resulting in serious financial and operational consequences. Every time an employee leaves, franchisees face costs equal to approximately 33 percent of the employee’s annual salary due to recruiting, hiring, onboarding, training and lost productivity until the new employee is properly trained. This cycle not only drains financial resources, but also reduces productivity and customer experience, which ultimately impacts the franchise’s bottom line. High employee turnover also demoralizes the remaining workforce, further exacerbating the problem. Addressing these issues is critical to maintaining stable and efficient operations and preventing employees from leaving for competitors who offer better compensation and benefits.

Integrating a culture of health and care

In response to these challenges, leading companies are adopting a “Culture of Health and Caring” as part of their corporate strategy. This involves creating an environment where employee well-being is prioritized through comprehensive wellness programs, mental health support and flexible work arrangements. Companies that have adopted these cultures report significant benefits, including lower healthcare costs, reduced absenteeism and increased employee engagement. In the franchising industry, where turnover is high and profits are thin, developing a culture that cares about employee health can be a game-changer. Employees in such an environment feel more valued, which leads to greater employee loyalty, productivity and retention—key factors for business success.

Revive: an innovative solution for the franchising industry

The need for a new healthcare model

Traditional health insurance models are no longer sufficient. Franchisees face increasing administrative burdens, complex regulatory requirements and the ongoing challenge of maintaining a healthy and productive workforce. It is clear that the franchising industry needs a new model that will reduce costs, simplify administration and improve employee well-being.

Introducing health insurance

Revive is leading the way with its Virtual-First Whole-Person Care model. As a pioneer of a new category called Health Insurance, Revive is changing the way franchisee operators (like Krispy Kreme) improve employee well-being, reduce employee turnover and lower healthcare costs—all of which lead to stronger financial performance. and employee well-being.

Key benefits include:

• Fighting healthcare cost inflation: Revive’s membership model offers on-demand access to high-quality primary care, urgent care, mental health services and pharmacy care with free home delivery of more than 1,000 generic medications. By keeping employees healthy and reducing avoidance, employers can reduce overall health care costs and reduce employee turnover.
• Support for functionally uninsured employees: With many employees saddled with high-deductible plans, Revive fills that gap by providing first-dollar coverage with no fees, deductibles, copays or coinsurance. This ensures that employees can access the care they need without financial barriers.
• Improving access to health care: Record waiting times for doctors and GPs mean refusal of care is rampant. Revive’s nationwide network of board-certified providers and behavioral therapists offers on-demand virtual consultations, ensuring timely access to care and reducing the need for employees to take time off from work.
• Simplify your healthcare navigation: The complexity of healthcare can be overwhelming for both employees and employers. Revive streamlines the process by providing a one-stop solution for whole-person care, making it easier to navigate and improve outcomes.

A Call to Action for Franchise Leaders

Franchise leaders, the time to act is now. The challenges of rising healthcare costs, employee turnover, and lost productivity aren’t just financial—they threaten the very core of your business. Revive offers a path forward—a way to cut costs, improve employee health, and improve operational efficiency. Don’t wait for the crisis to deepen; take action today to secure the future of your franchise. By adopting a culture of health and caring, starting with Reviveyou can transform your business and ensure long-term success. To learn how you can lead a cultural revolution in your franchise, contact Dumoff at: [email protected]

Mark Dumoffco-founder of Revive, a visionary entrepreneur and executive whose mission is to provide everyday consumers virtual access to affordable, high-quality human care; Bring healing into the home of children battling cancer by creating dream bedrooms in their homes through his non-profit foundation. Healing spaces; and revolutionize the standard of care for opioid withdrawal and recovery, allowing more people suffering from addiction to regain their health and well-being.

Dale HerbTransformational Human Resources Leader and Business Partner with extensive experience working with global corporate and franchise brands delivering collaborative human capital solutions with David Ulrich Associates Leadership Engagement Partners (LEAP).