The Reopening of Franchise Sales during the COVID-19 Pandemic

Coronavirus has impacted several businesses and has eventually impacted global economy drastically. Since the outbreak of the COVID-19, numerous businesses are in economic recession. It has also been anticipated that this coronavirus crisis will thereby cause a more significant global recession.

Furthermore, the franchising industry has also been affected to a larger extent. Especially the franchises related to the hospitality sector have faced a severe wrath of the pandemic. The supply chains related to these franchises have also dealt with loss during the lockdown.  Regardless of the sector, all the companies and the businesses involved in franchising industry have the same concerns over risk management, partner selection, enforcement of quality standards, and legal and regulatory compliance.

Taking the current scenario into picture, several companies and businesses have planned their reopening. After quite a long time, the world is reviving, and people are finally getting out with high precautionary measures. During such times, the franchising industry is also anticipated to attain its earlier position in the industry.

Why franchising is gaining ground again?—a question that is very commonly asked in pandemic times. However, franchising has been beneficial after the reopening. It has gained grounds because it is an easier business. This has been advantageous over multiple other traditional business models. With the help of franchising the global market has raised as well as it has been considered to be smooth and efficient. One of the most crucial factors responsible for the international franchise expansion is finding the appropriate partners. But, the COVID-19 pandemic been a bit difficult for the international franchising industry, hence, making the renewal is a challenging task now.

We have listed down some of the important qualities the franchisor needs in order to reopen his franchise sales.

1. Leadership:
   

   Maintaining strong leadership phase in the current reopening phase is equally important as it was earlier during the post COVID time. Franchisors have to continue building their franchises with the same leadership goals as they were doing earlier. In order to continue with the franchising, the franchisors are expected to conduct regular communication, maintain transparency, and empathy to franchisees. Franchisors should also continue leading collaboratively on strategic issues surrounding the reopening phase, encouraging franchisees to be part of the conversation.

2. Communication with Brand Customers:

   During the reopening phase, there should be effective communication between the franchisors and his brand customers. Keeping in mind the goal of projecting a consistent image to the consumer about what the brand is doing is a very crucial step during the reopening phase. To reduce the spread of COVID-19, the customers will find comfort in consistent, clear messaging regarding changes to business operations and increased health and safety measures. The reopening of the franchisees should be in consideration with the federal, state, and local guidance.

3. Organized Communication Strategy:
   

   Emphasizing on the communication with the franchisees is an essential element to reopen the franchise sales. Therefore, the franchisor should be mindful in ways of communication with respect to the franchisee’s roles and responsibilities. These franchisors should communicate with franchisees regarding the recommendations and best practices on a variety of reopening issues—which ranged from the implementation of new operating models and customer communication regarding the cleaning etiquettes in COVID-19 times.

4. Responding to Franchisee Non-Compliance:
   

   The franchisors should also keep in mind the non-compliance of the franchisees. These franchisors should seek a consistent process for addressing the various issues faced by the franchisees n noncompliance related to reopening, when and how that communication will occur, what standard language to use in addressing such noncompliance, and how you will incorporate applicable reopening orders, and franchise agreement provisions. Along with this, the franchisors might also consider preparing relief packages for franchisees who meet defined financial criteria to provide additional financial assistance to help a franchisee reopen its business.

5. Strategize Operating Model:
   

   The franchisors should encourage franchisees to consider any needs that should be changed in their day-to-day operations to comply with all federal, state, and/or local orders, guidelines, or requirements or to otherwise ensure the safety of employees and customers. Franchisors have developed approved or recommended operating models (e.g., reduced hours, changes in staffing, curb-side service, limited seating, etc.) during the time of pandemic.

These are just some of the measures that could be taken during the resuming of the franchises. After a long break, it is evident that the franchisors will need to reassure their franchisees for the sales thereby, making it a little hard for the customers.

Here are 5 ways by which franchisees can retain touch with their consumers.

1. Bridge Communication Gaps:
   

   COVID-19 is going to affect even after it is gone. These uncertainty unrests the franchisees. But the franchisor can claim its franchisees by maintaining daily communication. They can distribute content to franchisees through video, posts, articles, and personal phone calls but communication will remain to be the key.

2. Provide Special Offers:
   

   If a regular customer cancels the service due to the issues in personal income due to the pandemic, the franchisees can offer them complementary services for a limited period.

3. Help them control the costs:
   

   In such a bizarre situation, franchisees need to reduce their costs and adjust their budgets. Small businesses include fixed costs like rent, loan repayment, and salary. By saving the costs the franchisee can increase financial stability.

4. Sharpen the mental health:
   

   Everything is in the mind, mostly a calm mind. The franchisors shall not panic and react to the aftermaths of the pandemic. They should maintain a self-confident and peaceful mind-set that can give birth to more idealistic solutions. It should include a good chain of supportive colleagues.

5. Marketing is in demand than ever before:
   

   Marketing involves advertising which demands a pool of money. They are investing their savings to start a new career. When franchisees will invest in other franchisees they will gain deeper insights and resume initiating partnership after COVID-19.

Thus, the franchisors should be vigilant enough during the reopening of the franchises. They should also make sure that their franchisees are taking the appropriate and the required measures in times of pandemic.

Also read : 5 Steps to Improve Your Franchise Sales

Read full issue : The 10 Disruptive Franchises of 2020