CFW OUTLETS COMPLIANCE CODE

This Code is a guide for the Field Officers on how to handle non-compliant CFW franchisees. It defines contraventionsof specific CFW franchise standards so as to clarifythe relevant steps an officer should take. Depending on the seriousness of the matter, disciplinary action may vary from aVerbalWarning (documented) to Summary Closure. Levels of disciplinary action are as follows:

  1. Verbal Warning (Always to be documented)
  2. Written Warning
  3. Temporary Closure
  4. ImmediateClosure

Classification of Offense/Misconduct/Failure:

  1. Minoroffense/misconduct/failure
  2. Serious offense/misconduct/failure
  3. Very serious offense/misconduct/failure
  4. Grossoffense/misconduct/failure

Note: Gross offenses/misconduct result in Immediate Closure

FRANCHISEE OBLIGATION/STANDARD / NON - COMPLIANCE / DEGREE (DEFINITION) / SUPERVISOR’S ACTION
1 / Regular opening hours – A minimum of 40hours per week / Frequent closure over normal working hours without prior notification to SHEF / Seriousoffense /
  1. 1st time – Verbal warning
  2. 2nd time – a week after -1stWritten warning–
  3. 3rd time – after another week – Final warning and report to HQ for management to take action

2 / Seek approval from SHEF if there is need to hire an employee to manage the business in your absence. / Leaving the management of the outlet to unauthorized persons. / Very Serious offense /
  1. TemporaryClosure.
  2. Report to HQ for further action

3 / Not to compete with SHEF or be involved in any business which is directly or indirectly in conflict with SHEF’s business. / Setting up or being involved in such business / Very Seriousoffense /
  1. Thorough investigation to confirm such suspicion
  2. Termination of franchise agreement if offense is confirmed.

4 / Franchiseeand employees to always wear clean, tidy uniform – white overcoat / Manager and/or Staff running the outlet without the uniform / Minor failure /
  1. 1st time –Verbal warning
  2. 2nd time – within one month - 1st Writtenwarning
  3. 3rd time – after one month – 2ndWritten warning - report to HQ for action

FRANCHISEE OBLIGATION / STANDARD / NON - COMPLIANCE / DEGREE (DEFINITION) / SUPERVISOR’S ACTION
5 / Purchase all products from SHEF. Offer only services approved by SHEF / Stocking of items not purchased from SHEF
Offering services not approved by SHEF eg circumcision / Gross Failure /
  1. Immediate Closure
  2. Report to HQ for further action

6 / Submit prescribed monthly Reports and records to SHEF by the 3rd of following month. /
  • Failure to keep records
  • Failure to submit records on due dates.
  • Intentionally submitting inaccurate records
/ Serious Failure /
  1. 1st time – Verbal warning
  2. 2nd time – second consequent month - 1stWritten warning
  3. 3rd time – third consequent month - 2nd Written warning andreport to HQ for further action

7 / Prompt payment of loans / Failure to repay loans within the agreed period / Very Serious Failure /
  1. 1st months default – 10% penalty plus 1stwarning
  2. 2nd month default – 10% penalty plus 2ndwarning. Agree on a plan to collect the defaulted amount.
  3. 3rd month default – Notice for Termination of Franchise Agreement
In between the warnings Field Officers should mentor the defaulter. Should also collect part payments over the month from those not able to pay lump
sum
8 / Prompt payment for supplies(within credit policy) / Failure to honour credit terms / Very Serious Failure /
  1. No more credit. Pay Cash for deliveries
  • HQ to write demanding payment
  1. Defaulted amount to be cleared within 60 days from date the payment falls due and with an interest of 10% per month
  2. During this period, the field officers will follow up and counsel the customer. They will also agree on a repayment plan
  3. If the defaulted amount is not paid within these 60 days, the outlet will temporarily be closed and customer asked to pay outstanding amount within another 30 days
  4. If payment is not made within the 30 days, terminate the franchise agreement

FRANCHISEE OBLIGATION/STANDARD / NON - COMPLIANCE / DEGREE (DEFINITION) / SUPERVISOR’S ACTION
9 / Carry outCommunity outreach activities / Failure to meet agreed plans and targets for outreach activities. / Serious Failure /
  1. 1stMonth –Verbal warning
  2. 2ndMonth – 1stWritten warning
  3. 3rdMonth – 2ndWritten warning and report to HQ for management to take action

10 / Maintain optimum stock levels / Over a 2 month period, failure to place orders to maintain adequate stock levels to keep the business vibrant / Serious Failure /
  1. 1stMonth – 1stWritten warning
  2. 2ndMonth – 2ndWritten warning - Report to HQ for management to take action

11 / Pricing – SHEF sets maximum prices for products and services / Selling products and services at prices above the SHEF recommendedprices / Very Serious Failure /
  1. 1st time – Written warning
  2. 2nd time – Final warning - Report to HQ for management to take action

13 / Attend all prescribed Continuing Education and training sessions / Missing 10% of planned sessions in a quarter / Serious failure /
  1. 1st time - Verbal warning
  2. 2nd time – Written warning
  3. 3rd time - Management to take action.

14 / Maintain very good reputation within the community / Being involved in criminal activities and being caught on the wrong side of the law / Gross misconduct / Immediate closure & consequent termination of franchise agreement
15 / Consistently make correct diagnosis and give correct treatment for the diagnosis in line with SHEF Standard Treatment Guidelines and Formulary / Incorrect diagnoses and/or treatment, not in line with current MoH guidelines and SHEF Standard Treatment Guidelines and Formulary / Very Serious Failure. / 1stOccurrence -Written warning
2ndOccurrence - report to HQ for management action
12 / Achieve agreed Patient number and Sales Targets / Over a 3 months’ period, failure to achieve agreed upon Patient number and Sales targets / Serious Failure / 1stMonth –Verbal warning
2ndMonth – 1stWritten warning
3rdMonth – 2ndWritten warning and report to HQ for management to take action

1

Date: 10March 2007