As the world gets back to business post Covid-19 the landscape for the UK franchisor has changed considerably and it needs to traverse the new normal with cautious optimism. Having robust contracts and policies will help to manage the uncertainty and “pandemic proof” the brand. This article focuses on key aspects that franchisors should consider adapting or addressing to operate a network in a post Covid-19 environment.
Franchise recruitment
Franchising has always proved resilient in a recession and with anticipated redundancies shrewd franchisors should be priming their brand for a surge of enquiries. It is vital that your recruitment collateral properly reflects the current way in which your franchise operating – both in terms of the system and achievable income. Continuing with pre -Covid income statistics or representations of the system will be misleading to franchise prospects and leave you open to later misrepresentation claims. It is therefore vital that you update your website, recruitment videos, brochure, disclosure document, business plans or accounts data to reflect current operation.
Franchise agreements
Are your agreements Covid proof. Do your Force Majeure clauses stack up – and protect you if and when pandemic circumstances arise. A second wave is inevitable if not local lockdowns that may impact your network. Revise your agreement for new entrants to the network to clarify what happens in these circumstances. Consider adapting territorial restrictions to address online trading.
Customer contracts
With the Consumer and Markets Authority live to customer complaints about refund policies and unfair or onerous practices it is vital that consumer facing franchises review their customer contracts to clarify the position on cancellation or suspension in Covid circumstances. Ethical brands are offering Covid Assurances to win back customer confidence.
Supplier contracts
With Covid present and the anticipated Brexit soon to come it is worth also reviewing supplier contracts to clarify the position in these circumstances – this is especially key for new supply arrangements that you are putting in place to comply with regulatory health and safety requirements for the network where product availability and access is central to operation of the network and continuity is key.
Operation manuals
Consider reviewing the policies and procedures in this. Is it in line with Covid practice? Will you need additional health and safety policies to cover both dealings with customers and dealings with staff. Does your data protection policy need amending to reflect the collation and storage of contact tracing data. This will be a moving feast as practice changes, relaxes and tightens over time. Your network will look to you for best practice – prompt update is key.
Focus groups
It is vital to keep the network engaged so that they feel considered – if you have not already done so implement a Covid back to business focus group to soundcheck changes ensure that members represent the entire network in terms of size, location and where they are on their franchise journey. Having a listening ear will help quell dissent and avoid escalation or revolt when managing a network in unusual times.
Tackle dissent promptly
There will always be troublemakers seeking to capitalise on unfortunate circumstances. Address these promptly to avoid them gaining momentum and supporters. Take legal advice if termination is a consideration. Actively work towards achieving smooth exits so that your time and money can be better spent supporting engaged and committed franchisees.
Communicate,
Communicate, Communicate
We are in times of uncertainty and constant changes – networks are adapting and evolving at rapid rates and it is key that you keep everyone on board with the vision. Whether it is virtual meetings, calls, written updates – become the central information point and maintain contact avoid franchisees feeling abandoned and uninformed which breeds dissent.
To Furlough or unfurlough
or rotate furlough
Seek legal advice on the next steps in furloughing staff – with the end of October approaching and most networks soon able to resume new normal business consider who might need to come back into the team and how to manage that process, when and for how long. Inevitably as part of that process you may also need to consider redundancies. Again, seek legal advice as Covid related redundancy is a complex area and the consequences of getting it wrong are an unnecessary spanner in the works. Also vitally ensure your network are properly advised in this area also – ideally not by you but third-party HR support that you direct them to.
Collaborate, Innovate,
and press on
Post Covid franchising is not the same. You are navigating a minefield of constantly changing legislation and economic circumstances with Brexit around the corner also. That said Franchising is in difficult times more resilient than the majority of business sectors. Position your business for success by surrounding yourself with supporters in the franchise community. We are all in this together and together we will succeed.
