We have prepared some considerations for you how to proceed in the time of COVID-19. How to help you with your franchise. How to deal with emergency measures regarding COVID-19, what is currently possible and how to continue to maintain relationship with your franchisees and customers.

  1. Evaluate your capacities and resources, consider alternative scenarios and open your mind for new ideas with respect to your franchise network.

  2. Maintain active, open and fast communication with your franchisees.
  3. Be aware that this is an emergency situation and that the entire franchise network will be judged by the actions you take now.
  4. Keep in mind the history and reputation of your franchise network, keep calm and focus on the future of your franchise network, your franchisees and customers.
  5. Focus on being a good and fair franchisor -  it is the times like these when some individuals could choose to become a franchisee and join your franchise network.
  6. Coordinate with your advisors to:

    a.       make sure that your measures regarding COVID-19, response to requirements and inquiries of franchisees comply with your franchise agreement and guidelines;

    b.      design, implement and communicate the measures taken in order to protect your employees, customers and other individuals;

    c.       consider permitting modified franchisees‘ operations and potential deviations from the mandatory procedures;

    d.      closely monitor your supply chain and plan for supply disruptions or cancellations of supplies of goods or services; you may also propose new alternative suppliers;

    e.      evaluate the respective force majeure provisions contained in your franchise agreement and their potential application to the current crisis – such as whether or not they permit your franchisees to terminate their franchise agreements prematurely or claim deferral of royalties or other fees, or  to refrain from fulfilling other obligations; anticipate requests or increased activity of franchisees in this respect and active negotiating to remain within the franchise network, in particular using a win-win strategy; a certain level of benevolence with respect to the franchisees‘ obligations contained in their franchise agreements and guidelines will certainly be necessary;

    f.        advise your franchisees how to proceed at their branches now.

    g.       propose solutions of employment-related issues that your franchisees and their employees may have;
  7. Closely monitor franchise metrics in the entire franchise network, including sales and costs. This data will serve you as a basis for immediate response as well as much desired indicators for future development of your franchise network;
  8. Review binding plans and indicators, focus on Q4 and longer-term growth plans.

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