Updating Item 19 During Covid
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What is business as usual during a pandemic? What can a franchisor do to ensure that prospective franchisees are given an accurate picture of what doing business means in the age of Corona Virus and beyond?
Keith Gerson, president of franchise operations at FranConnect, tackles these newfound scenarios in his discussion with franchisors and industry attorneys.
Gerson explains why franchisors should consider updating Item 19 (Financial Performance Representations) in their Franchise Disclosure Document (FDD), so prospective franchisees understand how the franchise performed during the pandemic and any changes to the business model as a result of government mandates.
Gerson also answers how a franchisor can "sell-through" the adverse impacts of the COVID-19 Virus on many unfortunate brands based on their industry sector.
Published with permission from the International Franchise Association