Co-founders Wade Millward and Jonathan Frazier Set New Standards for Franchise Insurance Compliance
One overlooked insurance detail can expose a franchise system to lawsuits costing millions, and most franchisors don’t even know it. That’s exactly the problem Wade Millward (above, left) and Jonathan Frazier (above, right) set out to solve when they launched Rikor, a tech-enabled agency focused exclusively on franchise insurance. “We’re not generalists,” says Millward. “Franchising is all we do. And honestly, that focus is what allows Rikor to deliver so much value.”
Franchise insurance is often treated as a box to check, say Millward and Frazier. They’ve seen firsthand how unclear policies, outdated Franchise Disclosure Documents (FDDs) and a lack of risk management can leave brands wide open to devastating claims. That’s why Rikor partners directly with franchisors to provide proactive, systemwide franchise insurance solutions — from initial FDD evaluations to real-time policy monitoring.
That focus is increasingly important as franchising expands. According to the International Franchise Association’s (IFA) 2025 Franchising Economic Outlook, franchise employment is expected to grow by 2.4% and add approximately 210,000 jobs in 2025, bringing total franchise employment to over 9 million. More growth means more locations, more employees — and more potential exposure if insurance isn’t handled correctly.
With more than 150 franchise brands already working with Rikor, Millward and Frazier are on a mission to raise the standard for franchise insurance and protect the businesses behind the logos.
Why Strong Franchise Insurance isn’t Optional
Millward says Rikor’s early momentum came from a few key believers. One was Scott Abbott, CEO and co-founder of Five Star Franchising, a platform company with multiple home services brands.
Abbott became a supporter of Rikor after facing a large claim resulting from an on-the-job injury involving a worker for one of his franchisees’ subcontractors. The subcontractor didn’t have workers’ comp, the franchisee’s policy had lapsed and liability came back to the brand. “People think they’re protected — franchisors blame franchisees, franchisees blame subcontractors — but the liability still comes back to the brand,” Millward says.
Another turning point came in Sept. 2021 at the Springboard conference for emerging franchisors in Philadelphia. In the lobby, Millward and Frazier met Ryan Zink, then CEO and co-founder of Franchise FastLane, a leading franchise sales organization. “When Ryan heard what we do, he said, ‘Everybody needs this,’” Millward recalls. Both Zink and Abbott remain strong advocates for Rikor. Abbott’s company recently partnered with Rikor to run an insurance program across multiple brands. “We audited 25 policies, and every single one needed changes,” Millward says. “We didn’t just save them money, we delivered stronger coverage and compliance.”
It All Starts With the FDD
Rikor’s first step in working with a franchisor is a deep-dive FDD insurance analysis. “Ten times out of 10, the insurance language in the FDD is wrong,” Millward says. “It’s vague, outdated or copied from an unrelated industry.” The team produces a detailed report analyzing Item 7 (startup costs), Item 8 (required vendors and supply restrictions), and Item 19 (financial performance data, if provided).
Rikor then compares the FDD to the operations manual, flagging gaps, inconsistencies and missing insurance details. Rikor recommends revising the FDD with accurate requirements based on the brand’s actual risks. “If a brand tells a franchisee their insurance will be $1,500, and it ends up being $6,000, that’s a problem,” Frazier says. “Franchisees build their budget on that number — it has to be accurate.” Once the franchisor approves the updates, Rikor steps in to support the brand and educate franchisees.
Insurance Education and Ongoing Support
Frazier says the franchising world needs an insurance agency that truly understands the business model. That means improving FDDs and teaching franchisors about key policies like vicarious liability, which provides coverage for a party being held responsible for the actions of another party; E&O, or coverage for errors and omissions; and D&O, protecting directors and officers from personal financial loss resulting from lawsuits related to actions taken in their roles. These policies can be an important part of a franchisor’s liability strategy — but only if they’re set up correctly. Frazier notes that some policies even have exclusions for franchises, making them useless despite the high price.
“Franchise insurance is like a foreign language,” says Frazier, explaining that franchisees might be first-time business owners without experience with general liability, workers’ comp or commercial auto coverage.
To solve that, Rikor created a learning platform with more than 60 short modules specifically for franchisees. “It cuts down questions, reduces confusion and gives franchisees a real understanding,” he says.
Rikor also provides ongoing support by assigning a dedicated insurance consultant for each brand plus a director of insurance compliance and success. “We’re not just selling policies — we’re an extension of the franchisor’s team,” says Millward.
The Rikor team monitors franchisee insurance policies year-round, tracks expiration dates and even monitors subcontractor coverage — something no other agency is currently offering, Millward says. All of this is done using proprietary technology and is offered at no cost in exchange for being a brand’s preferred agency. “There’s a common misconception that insurance is a commodity,” says Frazier. “That you just get three quotes and pick the cheapest one. But we’ve seen cases where a franchisee saved a few thousand bucks upfront and lost tens of thousands later because they didn’t have the right coverage.”
Millward and Frazier have been friends since age 13, and they bring complementary strengths to the table. Millward focuses on contracts, insurance language and risk management. Frazier brings the creative spark, leading software development, marketing and customer experience. “We love franchising. We love entrepreneurs. And we believe franchising needs better insurance consulting,” says Millward. “Franchisors are busy growing their brands. They shouldn’t have to become insurance experts, too. If a franchisor lets us analyze their FDD and their insurance, I promise we’ll bring value,” says Frazier.
To learn more about franchise insurance, visit the Rikor website.
