Resources

Q: How Does Franchising Work?

A: Franchising is an arrangement where a name brand company grants a local entrepreneur the right to use its business name, trademarks, and processes to produce and market a good or service. The business owner usually pays a one-time fee and a percentage of sales revenue as royalty. Typically, the brand provides national advertising and support, while the independent owner is responsible for day-to-day operations of the business, including hiring and scheduling employees.

As we navigate the new normal of franchising, we all have a lot of questions. When will this end? How do we continue to grow? What does this mean for my business? There’s still a lot of uncertainty, but it’s time to think about the future and the success that could come, post-COVID.

The Pet Industry in COVID-19

Over the past few weeks, there have been headlines across the nation celebrating how animal shelters are being completely cleared out.

At Blo Blow Dry Bar of Rocklin, California, we are taking care of those who take care of us.

For a limited time, when you purchase of a gift valued at $50+ from Blo Rocklin, we will donate a blow out to a local healthcare worker at Sutter Roseville Medical Center. Our gift cards never expire, so purchase now to use when we reopen our doors. 

IFA urges the SBA to issue final guidance that clarifies and maximizes franchise eligibility in the Paycheck Protection Program (PPP), as in line with Congressional intent.

Borrower fact sheet for the Payment Protection Program (PPP).

I have never been prouder to be part of franchising than I am now. Since the Coronavirus hit, we have seen our industry rally. The motto “in business for yourself, but not by yourself” rings true. We have been standing together, sharing best practices, and encouraging each other to keep going.

The COVID-19 pandemic has been and continues to be an incredibly challenging time for all businesses, including those in the retail and service franchise networks. It has called upon entire organizations, from CEOs to location owners, to look ahead, come together and remain strong.

Most franchise systems are facing severe financial impacts as a result of the continued spread of COVID-19 and the numerous government-mandated shutdowns that have been ordered by state and local officials in response. Even if your franchised operations are considered essential and able to remain open during the shut-down, franchisees may have exposures, in addition to a loss of revenue, which may further impact franchisors. Below is a list of possible exposures franchise systems should be thinking about and preparing an action plan to minimize the risk of loss.

Together, we are experiencing unprecedented times – times of uncertainty and unknowns, impossible to explain to our children, and even impossible for us to understand. These are uncharted waters, and even while Goldfish Swim School may be closed, franchisees are stepping up to give back and support their communities.

It was early March when my franchise, BrightStar of Roseville and Sacramento, CA, anticipated the demand for face masks. That's when I entrusted my homebound family members and myself to start designing and manufacturing masks! Our community caretakers were in need, and we stepped up to help them.