Franchise Business Model before & After COVID: Realise, React & Retain

Realise:

Exactly 9 decades ago, two major events took place, & those were World War 1 followed by an uncertain catastrophic pandemic of Spanish flu took more than 50 million lives across the globe, and impacted the global economy to the extent where recovery seemed very difficult. However, after pandemic, the global economy had not only revived and also registered a significant growth.Now, just think “How and why did it happen in very short span?”- You will realise that “REALISATION OF SITUATION WAS THE KEY “not only to overcome from the situation but also to supersede previously achieved milestones.

Now, let us take current COVID situation into the scanner, and analyse it with regard to existing business challenges – We will find that there will be huge challenges for small enterprises as well as giant organisations to run the show with previous expenses due to limited or restricted commercial activities to generate the revenue.

For Franchise owners, during COVID-19, would be an opportunity to realise & to segregate essential & non-essential financial liabilities where they can rectify and reserve the liquidity so that when there will be upsurge in the market they can not only survive but excel their business growth plans. 

React:

Fortunately, we are living the era where we have sufficient data to analyse right from our spending’s to necessity. Likewise, human beings have evolved from previous pandemics, this time also, we need to introspect about our franchise business- with an immediate effect,being a franchise owner, we need to realise that which are the most critical activities required to continue the business .i.e. basic infrastructure, essential man power, amenities, should be secure first followed by IP protection and IT domain etc.

After identifying the essential requirements, Franchise owner can think of non-essential activities requirement ,and take a call on that whether it would be partially or completely excluded till the time COVID comes under full control i.e. all 3rd party activities and expansion planes.

Retain:

Being a franchise owner, it is very imperative to retain your customer base otherwise it might give sever impact on your future business plans therefore during this devastating time of COVID 19, we need to calibrate our thought process in such a way where we can convert adversity into the opportunity to create goodwill by the virtue of brand building through available resources. For example, owners of food franchises can contribute to social welfare by donating the food to the society of poor people, providing additional credits to their customer, in consultation with their franchise holders- they can float the special schemes as well  discounts to engage the employees, customers as well as themselves.

After the COVID 19, there are high probability that the franchises which have contributed to society, might be associated with high affinity in customer retention as well as consumer base.

Overall, with regard current catastrophic situation due COVID pandemic across the world, it would be beneficial for franchise owner as well as franchise holder to focus on the opportunity rather than adversity due COVID. Recapitalise on strengths of the franchise business, and try to establish trust element with inner as well outer circle about the domain expertise.