How has COVID-19 affected the state of franchising?
FranchiseED’s upcoming event will help potential franchisees understand the impact the pandemic might have on business opportunities.
How has the coronavirus pandemic impacted the state of franchising and how to assess a franchise opportunity?
For FranchiseED’s Kerry Miles, it is important to not only look at how the business has operated historically, but look at levels of innovation and adaptation to the new and emerging challenges induced by the global health crisis.
“COVID-19 has rapidly remade our world. For some businesses sales have skyrocketed, while others have shut their doors for good,” Miles said. “How well has the franchise weathered these recent unprecedented events? What additional support has the franchisor provided, if any? What has been the impact on franchisees of the brand? Are they still investing in marketing the brand or have they had to pull resources back? What are their priorities moving forward?”
These questions, Miles noted, cover aspects around the risk and return of the business and calculating how much capital is needed beyond the purchase price to fund the business until the business turns a profit. T
he Australian Franchise Expo Online on 18 September, hosted by FranchiseED, has a range of sessions on offer to help people understand the impact COVID-19 might have on business opportunities, covering questions to ask to help them understand the opportunities and identify risks in these unprecedented times, as well as a number of sessions covering standard due diligence questions.
QSR Media readers can avail a 50% discount to the event with the code “QSRVIP”. Click here to register.
