Franchisors, franchisees, and aspiring ones continue to witness and experience first-hand the challenges and wins of the franchising industry, even with the current adversity. Clearly, there is no more doubt that going into franchising will provide the greatest chance of being successful in the business – no matter what happens.
This was strongly emphasized in the recently concluded Franchise Asia Philippines 2020 Virtual Conference when Catherine Monson, CFE, Chairperson of the International Franchise Association (IFA), talked about “Franchising Resiliency in the Post Pandemic World”.
The power of franchising today
There were five main points discussed by Monson when she talked about how powerful franchising is during the pandemic.
1. The adaptability of franchising
Franchising has proven to provide more versatility and adaptability unlike other types of businesses. Franchisors and franchisees are able to pivot toward new innovations, services, and products amidst the pandemic in order to seize opportunities for survival and growth.
2. Franchisors assisting franchisees
Being part of a franchise relationship has brought out the advantage of being able to help and being able to seek out for help. Franchisors are taking this opportunity to show their goodwill and leadership through helping their franchisees on new strategies, reduction of fees, and provision of grants and loans.
Having useful information is truly an advantage now more than ever. Effective communication campaigns and strategies are being maximized by franchisors to keep franchisees and the entire network informed and positive.
4. Closer relationships between franchisees and franchisors
If there is another good thing that has come out of the pandemic is that it has been bringing franchisors and franchisees closer to each other. There is strength in unity and the best way to conquer challenges is to be united. With the on-going success of franchise brands, it is clear that one of the reasons behind this is the closer franchise relationship between franchisors and franchisees.
5. Competitive brands working together to create safety standards
Health and safety are the top-most priorities of every individual, household, and organization especially in the new normal. In order to be at the forefront of the movement to bounce back from the impact of the pandemic, franchise brands are working in unison to establish safety standards and to stay relevant as “essential” businesses.
A brighter future ahead
Monson expressed her enthusiasm as the coming years in the post-pandemic era will indeed be bigger and brighter for the franchising industry. Because of today’s adversity, better leaders, businesspeople, franchisors, and franchisees are born.
“More real estate will be available at lower rents and many more franchise candidates will be looking for franchise opportunities,” said Monson. Moreover, the current circumstances have further improved franchisee engagement and sped up technological advancements.
In the post-pandemic era, long-term winners will be those businesses that can build revenue and gain marketing share the fastest. And franchise companies are at the forefront in terms of these aspects.
As she concluded, Monson added that, “The great support during the pandemic will lead to even better validation [and] may create opportunities for acquisitions and conversions.” #