Tips on how franchisors can prepare for the post-Coronavirus market
Times have never been stranger, and with the coronavirus crisis bringing with it an economic downturn, franchisors will be wondering what to expect from the post-coronavirus market.
With lockdowns and quarantines beginning to be lifted across the UK, many franchisors will be wondering if they can get back to selling their franchise licences and running their business.
We asked our expert advisers at Franchise UK, how franchisors can prepare for the post-coronavirus market.
Back up your supply chains
Many franchisors operate with large supply chains behind them, providing their individual branches with quality supplies and products from centralised sources. With the collapse of businesses during the coronavirus crisis, many supply chains have become compromised.
To be successful, franchisors will need to ensure that all of their branches can have access to the same quality products. That means shoring up existing supply chains and potentially creating new ones.
Renegotiate terms
Businesses will also be feeling the pinch, with many having been closed for an extended period of time and many more franchises being under threat of permanent closure.
Head offices and franchise owners will need to look at renegotiating terms in order to keep businesses afloat. Head offices might need to take a cut in the profits from their franchisees and renegotiate licence terms.
Businesses might also need to renegotiate other businesses costs, such as leases, rates or rental costs to give them more cash going forward.
Adapt your business models
Most importantly of all, however, is the fact that the post-COVID-19 world is going to be one where adaptation and innovation are highly priced.
Businesses that can adapt will thrive, while those that can’t may very well close down forever. In the food industry, for instance, restaurant franchises are being forced to adapt to a new market, where takeaway and delivery have become the most important aspects of the business, rather than dine-in services.
Here at Franchise UK, we have extensive listings of all the best franchises for sale across the county. Take a browse through our online franchise sales to find the perfect business opportunity for you!