COVID-19: Franchising tips for surviving
19 March 2020 by Simone Pentis
Following on from our other recent articles on COVID-19, if you have not already, you need to urgently determine and review the risks particular to your group, creating and implementing plans to ensure these risks are mitigated, then continually reviewing these to ensure they are working effectively.
Furthermore we continue to emphasise the need for proper communication to go out to all your stakeholders, staff, franchisees, suppliers and customers to let them know what is happening, how and what your plans are in dealing with this, what they may need to do, and to overall provide comfort and encourage everyone to work together to support each other and minimise impact.
Please note that different messages should be done for the different groups so as to show that you are sending appropriate messages for them, that are considered and focused on their needs and concerns. Ideally, you want everyone feeling heard and valued so as to encourage and foster their continued support.
This is something we all need to ensure that we are not only properly dealing with, but are being seen and perceived to be properly dealing with by our stakeholders.
Given the above and the feedback we have been receiving, we thought we would send out some further matters for consideration to assist you during this time:
In addition to sending out messages to the network, you may want to consider online presentations/meetings with franchisees and team members to ensure they are getting properly informed, with facilities to do Q&A;
Supporting the above, a hotline for concerned employees, franchisees, customers. Even them just knowing that you have set this up may help them feel valued as well as give you a heads up on any potential issues;
Ensuring franchisor and franchisees are not only communicating with their customers, but the messages are consistent. (Franchisors should consider creating something for franchisees to use if they have not already, with franchisees required to get pre approval if varying the pre-approved messages);
Consideration be given to the different mediums that can be used to get your messages out i.e. emails, websites, Instagram and Facebook (Franchisee and franchisor versions); and
Uploading pictures/videos that support what you are doing, so people can not only read but actually see for themselves the extent you are going to ensure they feel protected and valued.
In relation to this you may want to emphasise what you were already doing prior to COVID-19, then highlight how you are now seeking to go above and beyond for the protection of your customers and team.
For example showing the actual cleaning process and/or how staff members conduct their roles in a manner that highlights their hygiene standards. Any other supporting material, i.e. noting that may be some reduced operation hours or changes to current offerings to reflect your increased hygiene standards;
Now is also the time to review your current operations. Focus on your business strengths, see how you can best use these and whether there are any efficiencies you can create in your business or use any down time to have upskilling/training done online;
You may want to consider or fast forward any other products or services you can make available to replace or support services/products currently being affected at this time.
For example improved online booking, better use of technology, improved training, online meeting facilities, new products/merchandise, new methods of delivery of services and products etc; and
In addition to you speaking with your accountant as to any potential support, benefits or incentives you can claim or get involved in (banks, insurers, government etc), you should investigate whether there are any benefits/incentives available to your customers or franchisees in connection with their interaction with you and/or by continuing to make purchases with you and/or your network.
Get the information out to them so they can take advantage. This helps them and you!
Please note before undertaking some of the above, consideration of the Franchise Agreement should be first made in case there are any limitations or processes you need to first consider.
Also you should consider your Force Majeure clauses or clauses that deal with supply/service reductions, infections/diseases, in your various contracts other contracts you and/or your franchisees are a party to.
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Remember if we can all be more savvy now, more efficient and creative, this may create opportunities and benefits not previously fully perceived or taken advantage of, which will not only assist you now but bode very well for your future.
Please contact us on admin@advpartners.com.au or call us direct on 0406 992 365 for guidance and assistance with reviewing your lease documentation, working out your strategy, assisting in negotiations and/or drafting relevant letters or documents to help you get the best deal in this situation and protect you going forward.
Please note that this is a general brief update, it does not purport to be comprehensive legal advice relevant to your circumstances. Consequently, specific legal advice for each of your circumstances should be obtained first before taking or not taking any action in respect to this area.