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Franchise Daily Digest: April 2

Franchise Daily Digest: April 2

In today’s briefing, we speak with Gold’s Gym about how the brand is tackling the challenges brought about by COVID-19.

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Gold’s Gym CEO and president talks to Global Franchise about the future of the fitness franchise

We recently got the chance to speak with Adam Zeitsiff, CEO and president of Gold’s Gym, about how the international brand is dealing with the current health crisis, and how it’ll inevitably bounce back from tough times.

“For most fitness brands, the core of our business lies in delivering a service to people within the four walls of our gyms, and under the current circumstances, that just isn’t an option,” said Zeitsiff. “But even if our gyms can’t operate as usual, fitness remains an incredibly important part of people’s lives – perhaps more important than ever so people can maintain healthy immune systems to ward off potential health issues.”

Make sure to check out our full conversation with Adam here.

FranConnect survey reveals 65 per cent of franchisors are continuing proactive franchise sales efforts

In a March 2020 survey, FranConnect, a leading provider of franchise management platform solutions, found that approximately two-thirds of franchisors are actively moving forward with franchise sales efforts despite the paralyzing impact of the COVID-19 crisis in anticipation of an influx of Americans looking for business opportunities as unemployment soars.

However, 75 per cent of full-service restaurants, which is one of the hardest-hit industries in relation to the current health crisis, have reported halting their franchise sales.

Further findings include:

Business services and commercial and residential services were relatively unaffected, with 68 per cent having less than 10 per cent of their systems closed

Most brands are expecting a significant decline in sales, with over 75 per cent reporting a decline of more than 20 per cent

Quick-service restaurants are the most likely to have significant layoffs or furloughs, with 50 per cent saying that such employment changes are very likely

Restaurant Brands International, parent company of Burger King, to support franchisee network

Food and beverage franchisors are some of the hardest organizations being hit by the COVID-19 crisis, from a financial perspective, and many are tackling the ongoing challenges in varied and strategic ways.

In North America, Restaurant Brands International, the parent company of Burger King, is going to send around $70m in cash advances and rebates to franchisees, to assist with runnings costs and rent payments, as reported by CNBC.

Restaurant Brands International is the landlord for roughly 3,700 Tim Hortons and Burger King locations in the U.S. and Canada, and recently converted rent to being entirely based on sales of each site. The franchisor is also deferring rent payments for up to 45 days.

British Franchise Association releases latest digimag on COVID-19 support

The British Franchise Association (bfa) has published its latest issue of franchise business insights (FBI), a publication dedicated to providing advice and guidance for franchisors and franchisees alike. In the latest issue, the association focuses on supporting the franchise industry during this unprecedented time.

The new issue features contributions from renowned organizations such as d&t, on ‘How to Vaccinate your Franchise’, and Andrew Willshire of Paris Smith LLP, who shares some key considerations for employers and covers some of the most frequently asked questions around topics such as furlough and self-isolation.

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