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.
Led by panelists and franchise real estate specialists Rocco Fiorentino, CFE, and Ty Brewster, CFE, the “Landlords and Rent Relief – Outside the Government Relief Packages” webinar focused on the functional aspects of landlord-tenant relationships and lease agreements given high levels of business uncertainty due to Coronavirus/COVID-19. The panelists underscored the need for franchisor clients to equip themselves with knowledge on the terms and provisions of their lease agreements; to know their business, sales, and operations history; and to communicate clearly and strongly with their landlords to negotiate the best possible agreement.
IFA Franchisee leaders Tamra Kennedy and Tom Baber provided valuable insight into COVID-19 response operations from a franchisee perspective during the “Franchisee Response to Coronavirus – First Steps & Planning” webinar. The panelists stressed the need for good communication within your franchise system, among franchisees, and between employer and employee. The panelists also underscored the franchisee-specific resources IFA would provide in coming days, as well as strategies to cope with liquidity stress and decreased revenue that franchisees are facing amid this public health crisis. IFA lobbyist Suzanne Beall updated participants on legislative strategy ahead of the “Phase 3” stimulus bill being negotiated in Congress, and IFA supplier member Justin Klein offered his guidance on how to ready an action plan with knowledge and resources gained from the provisions of franchise, lease, and development agreements.
Everything you wish you had known going into franchising, and everything your business needs to know now to be franchise finance professionals.