SME Consulting Services Abu Dhabi
The Coronavirus pandemic has led to directives and controls from governments, and obligations on various groups of society and economic sectors in order to protect human life in the face of a deadly and rapidly spreading epidemic. A change had to be made in human behavior, lifestyle, movement, and daily interaction. Governmental institutions, markets, commercial centers, and all kinds of businesses were closed, except for food, medicine, and the most urgent necessities. Retail shops have been closed or regulated and restricted
Franchise or other activities, including franchising in many activities in restaurants that are allowed to operate in the delivery way only, transport, aviation, tourism, and health sector, where the method of setting prior appointments is done. And the number of workers was restricted in the closed spaces. And health and regulatory conditions have been set for the entry and separation of clients, obligating the various sterilizers, and the organization of temperature checks and the method of work and teaching has been imposed remotely, and through electronic media.
Great and varied implications for franchising
These included new costs and multiple administrative and operational conditions. Thus, franchising companies in the Gulf region face the following problems:
The decline in income or loss due to lower demand -
Additional cost due to precautionary measures -
Employment obligations and meeting and covering obligations -
Loss of part of trained employment and payment of post-termination obligations
Reducing salaries and its impact on quality -
Administrative difficulties and operational adjustments -
Legal obligations and the franchise contract (including failure to specify force majeure) Many contracts have gaps-
Business Continuity or Closure -
Amendments and changes in government procedures and the need to adhere to them -
High rents in malls and other places -
Negative effects on the supply chain and production inputs that come from abroad, and products and services have been disrupted due to the impact of the global trade movement and the new restrictions on it.
The granting and granting parties are affected differently in the franchise due to the negative effects of all the franchising sectors and activities.
Necessary steps you must take to protect your business
The grantee must communicate with the donor and provide sufficient information about the situation, and the donor must be keen to follow up and work together as a team -
It is necessary to agree with the donor on the difficulty of commitment and fulfillment of the obligations from it all in a necessary period and postponing work for a limited period or modifying them, including financial payments and fees -
Seeking to reduce rents or delay the time of paying them
Cooperation and continuous and direct-contact between the donor and the grantee is the most important element of the continuity of the relationship to confront the epidemic.
We must work together on everything related to the supply chain and problems -
Consultation must be made by a competent authority in franchising about risks and their size, measures to confront them, and new market conditions during the epidemic and after its end.
Developing new plans for after the epidemic by negotiating with the donor to reach new solutions and ideas in case of losses
The donor shall fully cooperate and provide alternatives, amendment, and change required for continuity -
Think again about risk protection
The franchise contract must be technically completed by a consultancy in the franchise approved by the franchise links -
The contract is not like ordinary contracts, as it consists of a technical side and then a legal size based on it.
Consulting companies operating in the franchise fieldwork on the principles and international guidelines of the franchisee model.
Now it is necessary to review your previous and next contract by Franchise consultants to highlight the technical gaps and loopholes that need to be modified or aware in advance.
And to ensure a balance between technical, legal, and positive cooperation between the two parties to the franchisee
The completion of the contract from the technical side of the franchise model, allows you to participate locally and internationally in franchise exhibitions.
The necessity of innovation and creativity in creating new ideas and solutions to bypass risks and business continuity by studying risks in the business environment using a business diagnosis method.
