6 Ways Franchisors Are Assisting Their Franchisees During the COVID-19 Crisis

The franchise industry is undoubtedly facing a situation unlike anything it has ever seen before. Coronavirus has caused brands across multiple industries to temporarily close their doors — or at the very least, rethink their operations — putting franchisors in a position where they need to act fast in order to provide support. 

Because the current economic climate is unprecedented and the latest news is changing by the minute, there’s no quick fix or “right answer” when it comes to how franchisors can help their local owners successfully navigate the effects of this global pandemic and come out on the other side strong. That’s why 1851 Franchise publisher Nick Powills asked franchisors to weigh in on what they’re thinking about in terms of assistance to franchisees. Here’s what six executives from six different brands had to say.

Kathie O’Connor, Director of Franchise Support at Emerging Vision Inc.: “So far, our assistance has been primarily moral support, as we are all still in a state of shock and 40% of our locations are in the Bay Area. We're making sure to give the most current and relevant information to our franchise group from an operational standpoint and [are] just letting them know we're here and we are available. We have reduced the royalties and advertising by 50% starting 3/16.”

Danessa Itaya, President of Property Management Inc.*: “We are not enforcing [a] minimum marketing requirement, and we are providing an $100 credit to each franchise. When we announced this last week on a Zoom town hall, we had some of our top franchisees donate it back to give to some of the younger franchisees who might need it more. We have 260 franchisees. More than anything, the $100 was a token to show that we are in this with them as well. We’re taking this one month at a time.”

Michele Kerling-Fagundes, President of Mr. Pickles Sandwich Shop: “[We] reduced royalties in half, suspended marketing fees, [are] posting current info about SBA lending [and] LSM. [We’re not doing] inspections, just [offering] support. [Regarding] marketing, [we’re doing] iHeartRadio audio, email blasts [and] social media—[we’re] reminding our customers we are open and offer takeout, curbside, online ordering [and] third-party delivery. [We] formed a focus group with several multi-unit owners for feedback and [to] brainstorm marketing [initiatives]. [We’re also] offering a combo deal. [These are] tough times but [I] feel confident in May it will start recovering based on what we hear about China and Hong Kong. [We’re also] keeping temporary signage, SBA info [and] news posts in one area on our Franchise Portal for quick reference.”

Tom Parks, CEO of Premier Franchise Solutions: “We are making a point to not only reach out to franchisor clients but also to anyone we have awarded a franchise to in those systems. Typically franchise development moves from one deal to the next. We want anyone we have shared time with, who trusted us during their discovery process, to know we haven't forgotten about them and are here for them, even if that's only as a listening ear.”

Dimitria O’Rourke, Director of Franchise Support & Training at Broken Yolk Cafe: “I’m a franchisor of 33 franchises and 1 corporate location. We waived all royalties for March and will decide about April as we see what unfolds. We have been assisting with marketing efforts to get the word out [and] we are still open for takeout and delivery (at most locations). Some have just opted to close; we gave them the choice. [We’re] very much hoping for this to not go beyond [the] end of April so we can hire back our team in May.”

Philip Schram, Chairman of the 80-unit brand Buffalo Wings & Rings: “The entire corporate office has been rerouted to support franchisees. We offer concrete solutions on a silver tray. We test them first in our corporate stores, then roll them out to the network. Also, [we’re releasing] a lot of communication through a central SharePoint hub.”