Table of Contents
In Short
- Senior care franchises must comply with strict laws, including CQC regulations and the Health & Social Care Act 2008.
- Franchisors should provide clear agreements, training, and audits to maintain quality standards.
- Strong data protection measures are essential to safeguard sensitive patient information and ensure GDPR compliance.
Tips for Businesses
Focus on clear agreements, staff training, and data security to meet legal standards and build trust. Regular audits help maintain compliance with CQC regulations and protect your reputation. Invest in supporting franchisees with safeguarding and operational guidance to ensure consistent care quality across your network.
As a franchisor or a franchisee, the care sector in the UK offers growing opportunities while being strictly regulated. Businesses operating in the industry are subject to higher scrutiny and high service standards in accordance with their responsibilities. This article outlines key legal requirements for senior care franchises, focusing on contractual and statutory requirements, training needs, and patient data protection.
Contracts & Statute
1. Key Franchise Documents
The basis of a working franchise relationship is the Franchise Agreement. This should set out the rights and responsibilities of both parties, including territory rights, fee structures, and quality control measures. More specifically, for healthcare services, the agreement may include the compulsory qualifications employees should achieve and patient safeguarding measures.
Franchisors should also focus on drafting the Operations Manual, which either becomes a legally binding part of the Franchise Agreement or is enforceable via the Franchise Agreement. The Operations Manual provides comprehensive guidelines for day-to-day operations, care standards, and compliance with healthcare regulations.
2. Statutory Requirements
Senior care franchises must comply with several key pieces of legislation:
- Health & Social Care Act 2008: This act includes guidance on the role of the Care Quality Commission (CQC), which evaluates care providers using checks;
- Mental Capacity Act 2005: This legislation protects and empowers individuals who may lack the mental capacity to make their own decisions, a crucial consideration in senior care; and
- Health and Social Care Act 2008 (Regulated Activities) Regulations 2014: These regulations set out the fundamental standards below which care must not fall, covering areas such as person-centred care, dignity and respect, and safeguarding from abuse.
3. Leases
While some senior care franchises may provide domiciliary care (home care services), others operate from physical premises. Franchisors should provide guidance on securing appropriate locations, ensuring that leases allow for the specific use of delivering quality care services and meet accessibility requirements for elderly clients.
Training Requirements for Franchisees
1. Certification & Licencing Requirements
Franchisees in the senior care industry must obtain appropriate qualifications. This primarily involves registration with the Care Quality Commission (CQC) in England. Franchisors should provide comprehensive support in this process, including guidance on registration, assistance with CQC checks, and ongoing compliance support.
Some staff may require additional qualifications, such as vocational studies, which franchisors should outline.
2. CQC Guidelines
Significant emphasis is placed on safeguarding vulnerable adults, particularly where franchises may occupy a position of power. Franchisors must ensure that their training covers the prevention of physical or financial abuse.
The CQC website sets out a framework for proper care, which all franchisees should be aware of and familiar with.
3. Franchisor Audits and CQC Checks
A prime concern for any franchisor is maintaining quality across the network. A mediocre CQC check outcome can impact the whole franchise network. For this reason, franchisors should conduct regular audits of franchisees’ senior care services to benefit patients.
More specifically, they should also carry out CQC-style audits without notice in preparation for actual checks from the CQC. If any issue is identified at an actual CQC check, measures should be implemented as soon as possible.
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Protection of Information
1. Patients’ Personal or Sensitive Information
Any healthcare business handles a significant amount of sensitive personal data, which requires additional safeguards.
For example, secure methods should be implemented to collect and store clients’ information. Anyone wanting to access and share this data should be under an agreement with the franchisee/franchisor.
2. Data Protection Act 2018
The Data Protection Act 2018, which implements the EU’s General Data Protection Regulation (GDPR) in the UK, is particularly relevant to senior care franchises. For example, businesses must have a lawful basis for processing personal data, which is often on the ground of ‘legitimate interest’.
Healthcare services also often collect what is known as ‘special category’ data, which requires additional safeguards. Therefore, all practices should be GDPR compliant.
This factsheet sets out how your business can become GDPR compliant.
Key Takeaways
There are many legal requirements for setting up a senior care franchise. Any healthcare operation requires additional safeguards around client treatment, data processing, and staff training in accordance with the nature of the services offered. This places extra requirements on franchisors to be aware of their legal requirements and to comply with their obligations towards franchisees and their staff. By addressing this, franchisors can build a compliant, ethical, and successful senior care franchise network that prioritises the well-being of vulnerable clients.
If you require assistance setting up a senior care franchise, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you can access unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
However, a franchise structure is a business model rather than a legal structure. Your business will have a legal structure and so will those of your franchisees. The franchising model involves a franchisor granting a franchisee the right to use their established business model.
A franchise agreement is a legally binding agreement between a franchisee and a franchisor. This document records the terms and conditions of the business relationship. The document is essential in setting out the parties’ rights, responsibilities and obligations.
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