Starting last week, the International Franchise Association is providing free webinars on topics related to COVID-19 (the “Coronavirus”) and its impact of on the economy. Click on the following link planned topics and times for the webinars:
Future topics include:
building your brand in times of crisis,
cash flow management,
franchisee response to coronavirus,
I am happy to discuss any of these topics, as well as others with which you and your business partners are wrestling, at your convenience. Among many others, these can include pertinent topics such as negotiating lease rent forbearance, trends in royalty fee reductions by franchisors, bankruptcy, updating your documents and state registrations, preparing to quickly grow when the dust clears, etc.
I look forward to hearing about your experiences and perspectives, and are excited to share with you our experience, thoughts, analysis, and help.
In my 40 years of experience in the franchise industry, I have seen the economy and the business world go through several of these scary, game-changing times. In each instance, continuation of business systems and renewed interest in expansion and the opening of new opportunities and locations increased significantly following the crisis. There are several reasons:
1. Many employees and businesspersons will lose their jobs and trades.
2. A large number of them will have severance packages, savings, 401-Ks, family resources, personal and business incentives, and a desire to move on to greener pastures. Often, they decide to change their life path and move into business ownership opportunities that hold particular personal interest.
3. Business systems that work hard to survive the catastrophe, sustain and adapt their programs, and maintain and augment their documentation and state registrations, can successfully position themselves to respond quickly, effectively, and profitably when the time comes.
4. Many use the crisis time to carefully craft incentives, promotional programs, and roll-out processes designed to continue, expand, and create business, to retain customers, and to attract new opportunities.
5. If your business is based upon win-win attitudes and synergistic teamwork, you have a highly-flexible-overlay to business concepts that by its very nature allows community advantage from individual insights, motivation, resources, and evolution.
6. Credit and governmental programs will be offered to help both existing and new businesses and franchise systems.
I am certain that innovative business survival and expansion programs will be adopted comparable to the new Federal Families First Coronavirus Response Act for employees that was passed by congress and signed by President Trump on March 18. NOTE THIS ACT PROBABLY APPLIES DIRECTLY TO YOU AND TO YOUR EMPLOYEES.
The law goes into effect in 15 days (April 2, 2020 through December 31, 2020) and the US Department of Labor is supposed to issue regulations to interpret the law (together with a form notice for employers to use). Many states have adopted or are considering similar and corresponding rules, regulations, laws, and credits.
I strongly recommend you continue to move forward with the updates and improvements to your business concepts, systems, and operational components. The cost to do so now is much less than the cost to resurrect them later. In this way, your system, your status, and your operations will be active and ready when financial activity starts up again after the pandemic subsides. This is also a great time to put newly available personal and staff time to use to update, adapt, and re-energize your systems, manuals, sources, plans, and business strategies. Also remember that many of your business advisors, suppliers, financial partners, and resource managers similarly have new-found availability and a shared desire to come out on top when the time arrives.
Here at My Value Advisor, we recommend that every business ultimately structure itself as (or similar to) a Franchise Business. In order to successfully position your business for sale, you need to think and act like a business selling franchises. Why? Because franchises intuitively have their business processes and procedures carefully reviewed, documented and implemented.
As always, your health, happiness, and wellbeing, together with the success of your business system and stakeholders, are top priorities for me. Please contact us through the My Value Advisor website and we will reach out.
Douglas D. Smith, Attorney at Law