Ovenu founder Rik Hellewell reduces his income to waive franchise fees during coronavirus pandemic

Mr Hellewell believes his measures along with government incentives will help cushion the detrimental impacts his franchisees are facing

Ovenu founder Rik Hellewell reduces his income to waive franchise fees during coronavirus pandemic

Mr
Hellewell believes his measures along with government incentives will help
cushion the detrimental impacts his franchisees are facing

As thousands of businesses across the country shut down amid the coronavirus outbreak, the self-employed have been left scrambling to make ends meet. One business founder has decided to provide extra support to his franchisees struggling to keep afloat. Ovenu founder and managing director, Rik Hellewell, has reduced his salary to significantly drop franchise fees and ease the financial strain on businesses during the global pandemic.

Mr Hellewell, who founded Ovenu in 1994, is committed to supporting his franchisees during their time of need. He decided to cut his income and reduce franchise fees for three months amid the coroanvirus pandemic. Mr Hellewell made this decision before the coronavirus working restrictions were put in place, and long before the government’s £3 billion financial support package to help the UK’s five million self-employed. In March, UK Chancellor Rishi Sunak announced the scheme which will pay direct cash grants of 80% profits to those self-employed, up to a maximum of £2500 per month.

Mr Hellewell is confident that the combination of both his measures and the government’s initiative will help Ovenu’s franchisees, many of whom are sole-operators, to be cushioned from impacts of the nationwide shutdown affecting the retail industry. He will be reviewing the situation regarding franchisee fees in three months.

“I advised my franchisees that I would be waiving a significant proportion of my income in the form of franchise fees for a three-month period, long before the government announced its package of financial support for the self-employed,” Mr Hellewell said. “This is the biggest challenge Ovenu has faced in its 26-year history and I decided early on that the business must act decisively to support its franchisees in this global crisis.”

“I am determined to protect what is a hugely successful business model and our franchisees have acknowledged this generosity and the ongoing support that Ovenu continues to provide.

“Their livelihoods – and those of every other small business – rely on the relationships built up with customers over many years and we need to work together to ensure they are ready and able to begin work once this very concerning situation is over.”

Mr Hellewell has also praised his third-party suppliers for reducing their own contracted fees to help businesses during this difficult time. However, Mr Hellewell was disappointed that Ovenu’s multi-national landlord declined to waive or reduce the rent on its Berkshire-based training and distribution centre saying they only collect the rent monthly rather than quarterly.

Mr Hellewell has urged the Chancellor against reforming tax arrangements for businesses and the self-employed, as this could potentially curb the entrepreneurial spirit of SMEs who make the backbone of Britain’s economy.

“Any move to increase the tax burden on small and medium-sized businesses will have a devastating effect on an economy that, post coronavirus, will need encouragement rather than discouragement to get Britain back on her feet,” Mr Hellewell added.

Along with government support, it is important businesses support their franchisees and give them the help they need during this difficult time, embodying community spirit and a strong sense of solidarity the country desperately needs.

ABOUT THE AUTHOR
Latifa Yedroudj
Latifa Yedroudj
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