Pay for Work Guarantee (PfWG)

What is Pay for Work Guarantee (PfWG)

PfWG can be an effective way to provide work for Franchisees. It may involve provision of “free” services, or specific marketing activities such as delivering leaflets or leaving cards with target clients. Such activities must be feasible, in the sense that most Franchisees would be capable of performing them and of finding prospective clients to accept them.

Franchisees should be encouraged to claim PfWG. Claims must be paid cheerfully and promptly, and not refused on technicalities such as failure to formally report an income shortfall. They should only be refused when Franchisees are grossly in breach of their Franchise Agreements, such as not normally asking for work, refusing to provide services within the distance specified in the contract, or giving false client details or no phone numbers. Franchisors are advised to survey a random sample of clients before any PfWG payments are made.

PfWG payments are usually minor, but a prompt and cheerful payment buys significant goodwill. In some situations, it may be more cost effective to encourage the Franchisees to earn PfWG than to advertise for work as they typically pick up far more paid work than they receive in PfWG payments. Also, Franchisees who claim PfWG tend to become skilled at gaining work in the future and are less likely to run short at any time.