From days of “do not panic” to complete lockdowns in various states: COVID-19, have affected the lives and businesses of many. The recent outbreak had certainly called upon industries to take drastic measures to effectively deal with the current situation.
Franchising industry, particularly, had to face major setbacks since the whole supply chain management is under the pandemic impact. Clients are likely to delay their purchases putting stress upon the franchisees who are already afraid to renew their contracts or make any further payments.
In times like these, there’s still a lot in which franchisors can hop in and save their falling sales number. The going is tough but once you reassure that everyone is in it together; there’s a lot you can achieve to make this transition easier.
3 ways to save your falling franchising industry
While people are locked inside their houses for safety concerns there's still much franchisors can do to save their collapsing franchise business and keep their clients engaged.
Here are three quick yet powerful suggestions that you as a franchisor might be looking to keep yourself in the game and emerge out stronger.
1. Establish meaningful connections with franchisees
It is an ideal time to engage with your franchisees. In times where franchisees could be desperately looking out for support, try to connect with them at a deeper level.
Form a task force that possibly deals with ways in which you and your franchisees should deal with the virus. Cover aspects such as the health and welfare of your franchisees and their ability to carry out day to day functions.
Brainstorm on financial planning for franchisees and closely monitor the supply chain of your franchise network.
2. Review your supply chain or third-party agreements
Such a situation calls for contract reviews as many suppliers or franchisees might want to invoke force majeure clauses. Hence, it’d be wise to look at the contracts beforehand.
You can either agree on the coronavirus as a force majeure event or dispute it. However, it’d be better to negotiate and reach a common point such as: temporarily rerouting orders through areas less affected by the pandemic.
Reviewing the agreements may also lead you to re-draft your contracts and agreements for the better if a situation like this arises in future.
3. Consider switching to E-commerce
Don’t be afraid to go out of track and think about setting up e-commerce stores to build long-lasting relationships with your existing and potential clients in times like these.
According to research, by 2040, approximately 95% of all the purchases are expected via e-commerce. E-commerce is the easiest, fastest and most reliable way of buying things. So why not start doing it now?
Naranga franchise management system is proudly offering e-commerce and other digital marketing services to help you and your franchisees sail through these difficult times. Don’t hesitate to reach us out or request a demo and set things up within 72 hours.
Takeaway for franchisors!
Times are hard but aren’t meant to last forever. There’s a lot you can do to make this transition easier for yourself and your franchisees. Don’t lose hope because your possibilities of growing business are endless.
Keep check of all your tax payments, come up with marketing campaigns that delight and engage your franchisees alongside helping them through e-commerce facilities.
These are the times when franchisees are rooting for the support of their franchisors for thought leadership and ready-made solutions. It’s a now or a never! Buckle up and start coming up with strategies that automate and ease up processes for franchisees.