1851

The coronavirus crisis has forced the franchise industry into a situation it’s never been in before. However, while these times are uncertain, this is far from the first crises that the industry has faced. From the dot-com bubble in the late 1990s to the Great Recession of the late 2000s, franchisors and franchisees alike have resurfaced on the other side of crises stronger than ever.Dan Rowe, founder and CEO of franchise development company <a href="http://www.fransmart.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-lessons-past-crises-can-teach-franchise-brands-about-surviving-difficult-times-2713083" target="_blank" rel="nofollow">Fransmart</a>, has been a part of the franchising industry through the crises listed here and more. He sat down for an interview with 1851 Franchise to discuss three lessons he’s learned that will help franchise brands face COVID-19 now.<h4>Take Action Sooner Rather Than Later</h4>One of the most important things for franchisors and franchisees to do now is to think ahead. While it’s natural to want to freeze due to COVID-19, now is the time to take action. A lot of businesses aren’t going to survive this crisis, which will leave a lot of A+ real estate up for grabs. Landlords are also going to be providing great deals to tenants to get business, giving franchisees the upper hand in lease negotiations.&nbsp;“Now is the perfect time to get out there and make deals. By the time that franchisees sign and get everything in order, it’ll be May or June. It’ll then be August by the time that a site is secured. Even if you push now, you’ll open in January or sometime in Q1. If you wait too long, you’ll miss out on great locations and great deals from landlords,” said Rowe.<h4>Leave Room for Flexibility in Franchise Models</h4>COVID-19, like any other crisis, also drives home the need for franchisors to be able to pivot. Rowe recommends that franchise brands use this time to tear apart their business model and figure out a way to restart it in a way that will ultimately make franchisees more profitable.“I think there’s a heightened sense of value for both customers and franchisees,” said Rowe. “Franchisors have to get flexible with their franchisees and let them do things like conversions that allow them to open up for less money. They also need to automate more of their restaurant businesses and find ways to do more volume in fewer square feet.”<h4>Be Prepared to Reopen and Do Business Differently</h4>Life on the other side of COVID-19 isn’t going to be familiar. While consumers will slowly return to their favorite local businesses, brands need to be prepared for things like social distancing and elevated cleaning standards to continue.Rowe said, “Customers have to feel trust with your brand. They need to think, ‘I trust this place, I trust they’ll keep me safe.’” He continued, “When we flip the switch and people go back to work, things aren’t going to be busy overnight. It’s going to be gradual. I also think you’ll have a much better chance of not getting shut down in the future if this happens again by having safety measures in place. Employees need to be wearing masks and gloves, there needs to be regular hand washing and temperature checking, cleaning stations need to be accessible for employees and customers and all self-serve items need to be removed.”By keeping these three things in mind, franchisors have the ability to set their franchisees up for greater success on the other side of COVID-19 while putting themselves in a better position to handle similar situations in the future.

3 Lessons Past Crises Can Teach Franchise Brands About Surviving Difficult Times

1851 Franchise

Fransmart founder and CEO Dan Rowe offers insights learned during past financial crises that can be leveraged now to help both franchisors and franchisees come out on the other side of COVID-19 stronger than ever before.

3-lessons-past-crises-can-teach-franchise-brands-about-surviving-difficult-times

TruBlue Home Service Ally

TruBlue Featured in USA Today as Key Player in Helping Seniors Age Safely at Home

trublue-featured-in-usa-today-as-key-player-in-helping-seniors-age-safely-at-home

Right at Home

Right at Home Marks 30 Years With Continued Franchise Growth

Right at Home Marks 30 Years With Continued Franchise Growth, Tech Advancements, and Strong System Engagement in First Half of 2025

right-at-home-franchise-growth-2025

KidStrong Franchising, LLC

Unlocking Superpowers: How KidStrong Is Building the Next Generation of Confident Kids — and Thriving Franchise Owners

kidstrong-franchise-confident-kids

Image of a kid growing up, developing with kidstrong, high fiving and smiling. 

How KidStrong has Become the Franchise Disrupting Child Development by Partnering with Purpose-Driven Franchise Owners 

kidstrong-franchise-opportunity-child-development

Picture of kids for franchise business Kidstrong which focuses on child development and fitness

KidStrong Is Pediatrician-Recommended for Raising Confident, Capable Kids and Families Can't Get Enough

kidstrong-child-development-program

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Franchisee spotlight graphic with photos of Danielle Rosemond & Usman Khan & TruBlue logo

Family Members of Local Physicians Bring TruBlue Franchise to North Central Nassau, Long Island: A Health Care-Inspired Approach to Aging in Place

family-brings-trublue-franchise-to-north-central-nassau

Top 25 Franchise Marketing Leaders: Kelsey McManemin — Vice President of Marketing, HTeaO

top-25-franchise-marketing-leaders-kelsey-mcmanemin-vice-president-of-marketing-hteao

3 Lessons Past Crises Can Teach Franchise Brands About Surviving Difficult Times

MORE STORIES LIKE THIS