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Tom Spadea led a session for The Franchise Brokers Association earlier this month. In this episode, Tom talks about how franchises are currently impacted by COVID-19 and what they can be doing now to prepare for what happens after the crisis.
[2:30-5:30] How do you want to be viewed after the crisis is over?
As we all are experiencing the effects of COVID-19, Tom asks everyone to think about what is actually in your control and how you want to be viewed after the crisis is over. Remember that you are living through your legacy as a business owner and the way you treat employees, vendors, franchisees, etc. during this time is going to be remembered.
[8:00-12:00] Never waste a good recession.
Don’t delay things that are in progress. If you put your head in the sand, you’ll be worse off. While you are in hibernation mode, think about things that you have put on the back-burner.
[12:30-15:00]Loans & forgiveness
If you need the funding, get it!
[19:10-23:30] Should brokers have clients continue or pause?
You shouldn’t be thinking purely about yourself. Remember, how will people look at you when the crisis ends?
Be kind, be conscious & build your reputation.
[23:30-26:30] Do you think taking one of the loans will negatively affect FDDs or a future candidate’s decision?
If you need it to survive, take the loan because we don’t know how long this will last. Tom doesn’t think this will negatively affect a candidate’s decision. We’re all going through the same crisis.
[26:25] Do you anticipate more bankruptcies?
Yes, you don’t need to “outrun the bear.”
[31:00-34:00] Recommendations for franchisees and franchisors regarding training and money
We’re now a country of germaphobes. Use this time to think about how things will be different after the crisis.
[34:00-36:20] This is a time where weaker systems may collapse, and it’s OK to use this time to reset.
Recognize when it’s time to hit the brakes or quit. If you were struggling before the crisis, you may need to revaluate. Use this as an opportunity to reset.
[36:20-37:30] Could this be a good time for franchise brokers to see what franchisors are doing?
Yes, brokers should connect with the franchisors to see how they are working with their franchisees. Franchising is going to come back & brokers should spread that positivity to franchisors.
[37:20-40:00] State registrations for FDDs
Many states are making changes, but they aren’t all completely clear. Brokers need to explain to candidates that there are going to be delays.
[43:00- 44:45] Advice to brokers: this uncertainty is a great exercise to get back to the fundamental role you play. Give coaching and guidance.
[45:45-47:00] Are virtual Discovery Days sufficient?
It is a reasonable replacement to an in-person Discovery Day. While it’s not the ideal situation, it’s what we have to do right now.
Watch the full webinar below:
Have questions? Feel free to contact us.