Reopening the Residential Services Sector of the Franchise Model

Webinar Summary -

In this Reopening Blueprint webinar, panelists from the residential services sector discussed their reopening, or revitalization, strategies as they move from providing essential services during the COVID-19 pandemic to grappling with new business realities in a new post-lockdown landscape. From both a franchisor and franchisee perspective, panelists stressed their steps taken and how they plan to strive for success as the economy recovers.

Key Bullets -

• Reimagined the customer and employee experience – reinforced health and safety measures and practices
• Overcommunication with all constituencies – customer and employee – to educate on new practices and service delivery
• Protect culture, and enrich through education, outreach, collaboration
• Sometimes moving forward in this new environment means saying no to a customer who isn’t aligned on health and safety practices that keep employees and team safe

Full Bullets –

• Building the Blueprint
  • 300+ different types of business in IFA Membership
  • Blueprint roughly divided into 9 business verticals
  • Working groups within each vertical
  • Worked to identify areas to reexamine
    • Entering & exiting
    • Ordering/queuing
    • Interacting/transacting
  • Franchising is well positioned to implement new safety protocols, given its history of implementing brand standards
• Deploying/Evolving the Blueprint
  • Blueprint sent to Administration Task Force
  • Distributing to Governors and their staffs
  • Distributing to Members of Congress
  • Deploying locally as needed
  • As states reopen, this is intended to be a living document and will continually update
  • As we learn what is working (and what is not) the document will be revised

Mike Isakson – Merry Maids Residential services

• In-home cleaning deemed essential, never closed
• March 10 – PPE, fear, revenues, 50% cash flow, new delivery model
• March 14 – FFCRA
• March 26 – CARES Act, IFA Guidance
• April 16 – PPP Funding
  • Training
  • Social distancing
  • Leadership focus on new model
  • Heroes service – given cleanings to nurses
  • Customer win back/loyalty
  • Work family care & culture
• April 18 – PPP Funding starts 8 weeks
• June 3 – Revenue Trend –20% pre-COVID, -40% from prior year
• June 13 – End of PPP 8 weeks
  • Forgiveness worksheet
  • Matching demand to capacity
  • Operating model change
    • Fixed expenses are higher
• December 31 – 2020 Cash flow breakeven
  • Return to historical operating model
• Moving to a higher level of partnership and trust between franchisor and franchisee expected
  • Work to find intentional ways to build trust

Saunda Kitchen – Mr. Rooter

• CAT (Catastrophic) Team Event response
  • Shelter in Place
  • Secure Team Safety
  • In Person Team Meetings
  • Froze payments, hiring
  • Company culture gatherings postponed
• Protect the culture
  • Over communicate
  • Hazard pay for every team member
  • Share purchasing power – providing access to food, other essentials
  • Implement real time CDC Protocol – deemed essential from beginning
  • Build Team & Consumer Confidence
    • Changed script, let consumers know what had changed in how they did business
    • Making sure all understood about how to protect consumers and team members
  • Gain Access to Capital – PPP, line of credit
  • Increase marketing spend 40% - maximized increase
  • Gather intel: IFA, Mr. Rooter Zees, Corporate
• Strategic success
  • Capture labor market
    • Skilled employees
    • Those looking for a shift
  • Brand awareness
    • Show up with team members
  • Capital investments

Charlie Chase – First Service Brands

• Focus on health and safety for all employees
• Focus on communities served, state or provincial laws, and never dipping below Federal standards
• Educate, Collaborate, Communicate
• Franchisors like to control things…this is a time when franchisors shouldn’t over control, but rather allow innovation to bubble up, and watch and listen to franchisees
• Sometimes it requires saying no to a customer who isn’t aligned on company policies on health and safety
• Practices that help to learn and live with the virus; practices that keep people healthy

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