Member Articles
How to be a Good Franchisor in the COVID-19 Era?
Related Articles inEmployment & Labor | Corporate & Business
More Employment & Labor | Corporate & Business Aricles → Latest Firm's PressLavery Lawyers In recent weeks, and especially in recent days, we have seen the serious repercussions of the spread of COVID-19 on Quebec businesses and SMEs. Government authorities are planning financial assistance measures for businesses, and some chambers of commerce have already announced that new services will soon be offered to businesses to help them deal with the crisis. We are as yet unaware of the details of this assistance and how it will be allocated. In the meantime, what will happen to companies with a franchise business model that are required to meet certain financial undertakings and standards as part of their day-to-day operations? During these unpredictable and uncertain times, how can you be a good franchisor and support your franchisees? Assistance and guidance from franchisors is important in a situation like this. It can take different forms, some of which are described in this bulletin. This is an extraordinary opportunity to show franchisees that you are a caring provider that considers the survival of their businesses to be a priority. Here are a few suggestions for supporting your franchisees over the next few weeks, if not the next few months:
Most of these proposals involve a greater financial commitment on the part of the franchisor. However, it is important to remember that a franchisor has an obligation to collaborate and partner with its franchisees. Of course, no one is bound to achieve the impossible. A franchisor’s capacity to adequately support its franchisees during this difficult period will serve its interests and those of the network in the longer term. Assistance provided by the franchisor will allow more franchisees to survive and resume their activities when the situation improves. The franchisor’s support and, particularly, flexibility with respect to financial obligations arising from the franchise agreement will send a clear message to franchisees that they are not left to fend for themselves during this period of uncertainty, and a greater climate of trust will be established in your franchisor-franchisee relationship. Moreover, all sectors of Quebec’s economy are affected by the pandemic and a solidarity movement is being established among institutions, financial partners and businesses to implement solutions and strategies to promote trade and the resumption of economic activities. We are following developments on a daily basis. Our franchising and distribution team and all our professionals are at your disposal and offer you their expertise in advising and supporting you in meeting the challenges that the current COVID-19 situation may create for your network. Please do not hesitate to contact us. It will be our pleasure to collaborate to find a solution that is right for YOU. It’s time to stand together!
|
Link to article
Related Articles in
Employment & Labor | Corporate & Business
- National Pensions Webinar
March, 2021 - Continued Flexibility for Employers and Third Wave Hits Hungary - Will this be the 'New Normal'?
March, 2021 - Corporate Insolvency Regime in the ASEAN Region – Focus on Bangladesh
March, 2021 - Buchalter COVID-19 Client Alert: Cal-OSHA Wins First Round in Major Court Challenge to its COVID-19 Emergency Regulation
February, 2021
More Employment & Labor | Corporate & Business Aricles →
Latest Firm's Press
Lavery Lawyers