Legal Insights

COVID-19 and franchisors

• 16 April 2020 • 0 min read

Franchisors are faced with the duel pressures of managing their own businesses, which are in part dependent on the success of their network of franchisees.

A franchisor’s ability to support its network through the immediate effects of retail closures, travel restrictions and physical distancing, and plan for their emergence post-COVID-19, are critical to survival and success. The Consumer Markets & Franchising team is here to help – we are working closely with experts throughout the firm to assist our clients to navigate issues such as negotiations with landlords, workforce management, debt restructuring and franchisee management – all with an eye to success in the post COVID-19 world.

Franchisors

Partner Cath Debreceny and Stella Wild discuss the commercial leasing code of conduct and the recent changes to legislation to enshrine the Code.

Franchisors: Planning for COVID-19

What strategic steps could franchisors consider enacting to buffer, as much as is possible, their network and their own businesses, from the worst effects of COVID-19? We have set out below some of the action our clients are taking in the face of the unprecedented economic conditions.

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COVID-19 and premises and forced business closures – how to deal with the process and the aftermath?

A critical and pressing issue for those businesses with a ‘bricks-and-mortar’ presence is: How do I prepare for, survive and implement a forced shutdown? and What if I need to shut down my network in advance of a government directive to do so?

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Navigating business closures in COVID-19

The Consumer Markets & Franchising team have put together a factsheet summarising critical issues currently facing franchisors that have been created by the COVID-19 pandemic – especially in the face of retail closures.

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