Covid-19 is having an impact on businesses of all shapes and sizes - and franchise businesses have not escaped unscathed.
However, the current health crisis and global lockdown is particularly painful for franchisees, many of whom have had to shutter their operations and yet still remain subject to minimum royalty obligations and other commitments they will now struggle to meet.
And with franchisees under threat, some franchisors face losing large parts of their franchise network if steps cannot be taken to reduce the impact.
So what can be done?
Well, the unique nature of the franchise business model means that there is in fact some flexibility in the system and certain contractual levers that can be pulled (or released) to limit the damage in the short-term and help ensure that there is a healthy franchise network when we emerge from the current crisis.
You can find out more about how franchisors and franchisees can work together to combat the impact of Covid-19 in this more in-depth article penned by me and my colleague Simon Entwistle.
Ultimately, successful well-run franchisors and franchisees have a mutual interest in ensuring each other’s survival and protecting their respective businesses.