IFA supplier leaders from global accounting firm Citrin Cooperman provided participants with “timeless tips” and guidance for businesses to conserve cash flow as they contend with business interruption. The panelists offered both short term and long term solutions to deal with the current crisis, including: deferring expenses; communicating with bankers to manage possible refinancing and repayment options; tax deferral; and review of existing contracts. Longer term, the panelists recommended planning for new sources of cash flow via government loans with an eye toward accommodating labor changes, and preparing business for liquidity challenges going forward.
IFA leadership discussed the various loan relief programs offered through government agencies, and as a result of the highly anticipated legislation recently passed by Congress. Though implementation of the Paycheck Protection Program loans (PPPL) by the Small Business Administration and via commercial lenders is forthcoming, the panelists outlined the importance of liquidity at this time and to take advantage of the loans offered by these outlets. The panelists took a step-by-step look at the loan terms and documentation needed by franchise businesses to access new loans and their eligibility for forgiveness within these programs.
Panelists discussed the legal implication of layoffs, furloughs, and closures from both legal and communications standpoints. Bruce Millman of Littler Mendelson discuss the differences between layoffs and furloughs, and the business effects due to the discontinuation of the employment relationship. The panelists discussed issues arising due to WARN Act considerations for businesses, as well as the internal and external communications strategies and processes for dealing with employment uncertainty, and laying off employees.
In the “Fitness and Health Industry in Times of Coronavirus” webinar, member leaders from Athletic Republic and Planet Fitness discussed the effects of COVID-19 on the fitness and gym space, franchisor-franchisee relations, and steps taken now and after the pandemic ends to communicate and retain members, and retain the customer experience. The panelists outlined the health and sanitation guidelines and differences for open versus closed locations, and emphasized important cost control strategies that they as franchisors are taking and recommending to guide and support franchisees through the economic turbulence.
In the “Crisis and Reputation Management in Times of Coronavirus”, public relations professionals discussed communications best practices for franchisors and franchisees as they navigate COVID-19-related uncertainty. The panelists discussed the “before, during, and after” phases of crisis communications and planning, and underscored the need for strong corporate culture as a lynchpin to guide current and future action. In particular, the panelists discussed the need for strategic clarity amid rushed decision-making, to take stock of process improvement, and to lay the groundwork for business re-openings with acts of empathy and goodwill during moments of crisis.
Former IFA leadership offered historical perspectives on times of crisis to chart a course through this period of COVID-19-related instability. The panelists stressed the need for positive culture aligned on common values of trust, open communication, and mutual support between franchisor and franchisee. The panelists also detailed the need for self-less leadership that puts the needs and priorities of others first, for relentless communication with stakeholders, and for empathy to those affected by the ongoing public health crisis.
In the “What Coronavirus Means for Franchise Brands” webinar, IFA Immediate Past Chair David Barr, John Teza, and IFA Vice Chair Charlie Chase discussed their approaches as franchisors while they deal with scaling down operations, cash flow, brands health, and planning for the near term due to COVID-19. The panelists urged franchisors to carefully plan for the short-term realities and to remain nimble to respond to the needs of customers and consumers. The panelists recommended a planning framework that emphasized education, collaboration, and communication over and above how franchise brands would normally train and talk to their franchise systems and teams.
ProfitMastery CEO Steve LeFever guided this webinar on the details of developing and enacting a concrete financial action plan for franchisors and franchisees alike, who are under stress from COVID-19-related cash flow and credit access strains. LeFever stressed the need for every business to undergo a balance sheet assessment of their solvency/working capital, liquidity, and leverage/risk to determine business health and create an ongoing financial report card. LeFever also provided step-by-step instructions for businesses to determine the now-critical cash flow burn rate, and guidance on how to lengthen businesses’ cash runway in times of financial stress.
Panelists Brad Hammock, Jim Paretti, and Libby Henninger of Littler Mendelson provided up-to-the-minute suggestions and guidance on the labor and employment implications of the coronavirus pandemic and in light of current law. The panelists outlined current OSHA and CDC guidance for businesses on what to do if an employee became symptomatic or sick with COVID-19, and how businesses are now required to comply with new paid sick leave and emergency Family and Medical Leave Act (FMLA) mandates. The panelists also detailed the wage and hour considerations mandated by recent legislative actions, and defined key terms and compliance relevant to businesses considering furloughs, layoffs, and temporary reductions and/or alterations in scheduling for exempt and non-exempt employees.