1851

The impact of the coronavirus crisis on franchising is far-reaching — there isn’t a part of the industry that it hasn’t touched. For brands with brick-and-mortar locations, this includes real estate. With concepts being forced to close their doors temporarily, a lot of owners are left wondering how they’re going to pay their rent not just this month, but for as many months as the need to quarantine continues.That’s why it’s important for franchisors to provide support to their franchisees when it comes to real estate and leases. According to Joe Ferguson, vice president of development for <a href="https://cousinssubsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=providing-real-estate-support-is-essential-during-the-coronavirus-crisis-2712775" target="_blank" rel="nofollow">Cousins Subs</a>, the first thing that franchisees should be doing — if they haven’t already — is getting in touch with their landlords.&nbsp;As Ferguson said, “I believe it is important to get in touch with your landlord as soon as possible and open up lines of communication. Ask your landlord how flexible they are able to be and discuss terms that may work for both sides. For example, I have had many landlords that have been willing to work with us in the short term, but they have requested that we continue to pay maintenance costs under the lease. Be honest with your landlord as to what you need in the short term and how you are going to be able to honor this new commitment. When talking with your landlord, understand that you are one of many tenants that the landlord is most likely working with given how hard retail is hit right now. Landlords will be as understanding as possible, but many most likely have large debt payments to make as well.”&nbsp;Danessa Itaya, president of <a href="https://propertymanagementincfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=providing-real-estate-support-is-essential-during-the-coronavirus-crisis-2712775" target="_blank" rel="nofollow">Property Management Inc.</a>, knows firsthand how focused landlords are on working with their tenants. She said, “When you look at residential or commercial real estate, including everyone who works in the hospitality or restaurant industries, there are a lot of tenants who are saying they can’t pay their rent. That’s why our franchisees are working to see what they can do.”She continued, “The great news is that banks are being proactive. They’re reaching out to property owners to talk about deferral and SBA lending — there are so many different resources available that allow property managers to be flexible with tenants.”In addition to helping franchisees communicate with their landlords and providing resources relating to lease agreements, franchisors also need to provide support to the candidates who started the discovery process before the virus hit.Ferguson advises candidates to continue moving forward with discussions: “I recommend staying in contact with those associated with the opportunities that you were looking into. Determine how each opportunity operated during these unprecedented times and how leaders of those companies worked with their partners. I think that you can tell a lot about a company and its leadership in times of crises, and it can help you understand who you may or may not want to go into business with.”&nbsp;Ultimately, the coronavirus crisis is just in its beginning stages, so the franchise industry will have to determine how to adjust to this new normal going forward.&nbsp;“I believe that this time will have a lasting impact on a number of restaurants, and those restaurants that may have been struggling prior to this period will not reopen when they are able to do so. I believe retail vacancies will increase in the short term, but proven concepts with strong operations will succeed,” said Ferguson. “The brands that are able to make it through this period will prove the strength of its brand, and those brands will continue to grow when things get back to normal.”

Providing Real Estate Support Is Essential During the Coronavirus Crisis

1851 Franchise

Executives from Cousins Subs and Property Management Inc. weigh in on the COVID-19 crisis’ impact on real estate for franchisors and franchisees.

providing-real-estate-support-is-essential-during-the-coronavirus-crisis

Onigilly Japanese Kitchen

Unlocking the Potential: How Much Can You Earn as an Onigilly Franchisee?

unlocking-the-potential-how-much-can-you-earn-as-an-onigilly-franchisee

Filta Environmental Kitchen Solutions

DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno 

Grease, Grit, and Growth: DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno, Nevada

grease-grit-and-growth-dewitts-ignite-new-chapter-for-filta-environmental-kitchen-solutions-in-reno-nevada

Layne's Chicken Fingers

Layne's Chicken Fingers-50 Unit-Wendy's-Franchisee-June-2025

Why This 50 Unit Wendy’s Franchisee Is Betting on Layne’s for His Next Big Move

wendys-franchisee-expands-with-laynes-chicken-fingers-texas

CapitalSpring

CapitalSpring’s Jim Balis Talks Growth, ROI and the Future of Fast Casual on “Rock My Restaurant”

capitalsprings-jim-balis-talks-growth-roi-and-the-future-of-fast-casual-on-rock-my-restaurant

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

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

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

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

rising-jobless-claims-affect-franchising

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

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

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

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

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

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

How This Franchise Consultant Turned a Love for Dogs Into a Business with Dog Training Elite

How This Franchise Consultant Turned a Lifelong Love for Dogs Into a Growing Business with Dog Training Elite

how-this-franchise-consultant-turned-a-lifelong-love-for-dogs-into-a-growing-business-with-dog-training-elite

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

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

Providing Real Estate Support Is Essential During the Coronavirus Crisis

MORE STORIES LIKE THIS