9 Tips for Field Managers on Supporting Franchisees During Covid-19
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9 Tips for Field Managers on Supporting Franchisees During Covid-19

9 Tips for Field Managers on Supporting Franchisees During Covid-19

Editor's Note: The following article is from Greg Nathan's Healthy Franchise Relationships Tips newsletter. Subscription information is at the end.

If there is anyone who can add enormous value to a stressed franchisee at this time, it is their field manager (or whatever you call this role in your network). I have particularly noticed high-caliber field managers focusing on three important areas: 1) emotional resilience, 2) financial management, and 3) operational effectiveness. Here are 9 tips field managers might like to keep in mind when considering these areas.

Emotional resilience

  1. Keep an eye out for mental health warning signs. While you are not expected to be a counselor, given that business stress is at an all-time high, and that stress can trigger mental health symptoms, we all need to be aware of the signs someone (or yourself) could be in trouble. These include becoming withdrawn and non-communicative; showing unusual levels of anxiety or anger; looking unwell and unkempt; or being extremely down and unmotivated to take action. Field managers need to be observant of indications that all is not well at the personal level, and take the time to listen to franchisee concerns in a supportive, empathetic manner. I also think it is a good idea to be aware of any free phone or online mental health services available in your vicinity to anyone who feels they need emotional support.
  2. Stay on top of your own mental resilience. Because we can't lead from behind, field managers need to ensure they are maintaining a constructive mindset, and not taking on everyone else's stress and worry. It is possible to care and show empathy without feeling personally responsible for the feelings of others. This requires a certain level of professional detachment so you can think clearly and perform at your best. It also helps to have a good network of supportive peers, and to keep your personal vitality high by eating nutritious food, getting enough rest, exercising regularly, and focusing on your sense of purpose.
  3. Keep franchisees focused on the future and what they can control. When people are feeling threatened, as many are at the present time, a natural tendency is to become defensive, closed-minded, and fixated on what can go wrong. This is not helpful when problem-solving and proactivity are required. A proven strategy to counteract this is to ask solution-focused questions that move the mind to a more constructive style of thinking. For instance, What is the best possible outcome we could achieve at the moment? What do you need? What is a small step we can take to make this happen? How can I support you?

Financial management

  1. Assist them to control their costs. There are two types of costs - fixed and variable - and it is the former that can quickly sink a business when there is a decline in sales. For most small businesses, significant fixed costs include rent, loan repayments, and wages. Every dollar you can help your franchisees save will increase their financial viability - especially assisting them to negotiate with suppliers, landlords, and lenders. Some people will need direction to become more ruthless with their expenses if their business is to survive.
  2. Stay fully informed of relevant opportunities and threats. In an uncertain and rapidly changing environment, survival depends on staying up to date and aware of what's happening. While franchisees may be aware (to a greater or lesser degree) of various government grants and changes in the regulatory environment, they may not know how to access these promptly. This is where sharing information in a group can provide a competitive advantage. However, it is vital that field managers ensure franchisees are operating above the line, and apply only for what they are entitled to. Otherwise they will be putting themselves, and the brand, at risk.
  3. Focus on cash flow management. In times of financial crisis, monitoring weekly cash flow is far more important than analyzing monthly financial statements. Once you have reviewed the business's costs together, a new breakeven should be calculated. This is extremely powerful in helping franchisees regain their sense of control and direction. Field managers also can assist with cash flow management by advising on the management of debtors, creditors, stock, and sources of funding. It is vital that franchisees are totally open with you regarding their unique financial position. You may need to be brutally frank if you think important information is being withheld.

Operational effectiveness

  1. Encourage sound people management practices. Field managers should provide appropriate guidance to encourage franchisees to make sound commercial decisions about how to manage their labor costs. Decisions to furlough or lay off staff should obviously comply with legal requirements so the franchisee's business, or your brand, is not put at risk. Franchisees also need to manage these decisions sensitively so they maintain the loyalty of their people.
  2. Assist them to ensure everyone feels psychologically safe. It is essential that staff and customers are not just kept safe, but that they feel safe. At the moment, people have a heightened sense of threat and need additional reassurance that a business and its staff are safe to interact with. While field managers should ensure all Covid-19 safety practices are implemented to 100% compliance, it is also important that everyone having contact with a franchisee's business is clearly informed of these practices. This includes not only customers, but also the families of staff.
  3. Be a conduit for new best practices. Because the world has changed, best practice today is different from what it was 3 months ago. Field managers should be collecting the strategies and ideas that franchisees are coming up with, and facilitating the sharing of these individually and through virtual group meetings.

Speaking of sharing best practices, I am extremely pleased that my team at the Franchise Relationships Institute have organized a special virtual forum for field managers, commencing this week. This will provide a practical opportunity to share strategies and discuss how you are going about your work in the current environment. The forum runs for 90 minutes on Tuesday evenings from 7:30 p.m. to 9:00 p.m. (U.S. EDT) over five weeks, costs just AUD$395 for the program, and starts today, May 5th. Click here for more information and to register.

Until next time,
Greg

Subscribe here to Greg's Tips, or read more about franchisor-franchisee relationships here.

 Greg Nathan is Founder and Director of the Franchise Relationships Institute, based in Australia. He is a registered psychologist and is recognized globally for his pioneering research into the factors that create a healthy franchise relationship and success for both franchisors and franchisees. He is recipient of the Franchise Council of Australia's (FCA) inaugural National Contribution to Franchising Award, an inductee into the FCA Franchising Hall of Fame, and recipient of the U.S. IFA's Crystal Compass Award for Outstanding Leadership in Franchising. He has written 5 best-selling franchising books, including Profitable Partnerships and The Franchisor's Guide To Improving Field Visits, and has developed a number of groundbreaking models such as The Franchise E-Factor, which are used by franchisors and consultants all over the world.

Published: June 30th, 2020

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