can get the benefits they are eligible to receive. WHAT ARE YOU DOING FOR YOUR CUSTOMERS? We are taking catering orders, but most of our malls are closed, and we closed all our locations on March 21st. Sales were so low it was actually costing us more money to stay open. HOW ARE YOU WORKING WITH YOUR SUPPLIERS? We have great relationships with our suppliers. We have contacted them and they’ve offered discounts and extended terms to try to help us keep as much of our cash reserve in place for reopenings. WHAT ARE YOU DOING ABOUT CASH FLOW, PPP? We have applied for PPP and – like many – are still waiting to hear back. We have worked with our lenders to pay interest for a period of time, as well. WHAT ELSE WOULD YOU LIKE TO SEE FROM YOUR FRANCHISOR OR GOVERNMENT? I’d like to see the government work with the insurance companies and require them to cover Covid-19 under the business interruption policy. We pay a lot of money for insurance. There are many things covered under these policies and Covid-19 should not be an exception. HOW ARE YOU PLANNING TO REOPEN AND REBUILD YOUR BUSINESS POST–COVID-19? We are working with our partner zignyl on a two-week backto-open syllabus to ensure our staff gets extra training, is aware of the new processes and procedures for sanitation and cleaning, and to make sure we are doing our best to help prevent the spread of Covid-19.
ERIC DANVER Eric Danver is a multi-brand franchisee with 25 years in franchising. He began with Papa John’s and today operates 18 locations. More recently, he diversified from food and operates 16 Hand & Stone Massage and Facial Spas, making him the brand’s largest franchisee. However, it’s his original brand, Papa John’s, that is keeping the cash flowing during Covid-19, as he’s had to shutter all his spas for health and safety reasons. HOW HAS COVID-19 AFFECTED YOUR BUSINESS? Our Hand & Stone business is closed and has been since March 17. We have kept all of our managers and regionals on payroll at their full salaries, but unfortunately, we had to lay off our other employees. For those who have been laid off, we are working to ensure they can take advantage of all state and federal benefits. For our Papa John’s business, we have seen a significant uptick in our business and have been running 30%-plus comparable sales over the last several weeks. This has not only allowed us to keep all of our current employees, but we actually are hiring more to keep up with the demand. WHAT ARE YOU DOING RIGHT NOW TO GET THROUGH THIS? We have been for tunate compared to many other restaurants and businesses with our Papa John’s, as this business has no seating and is all delivery and carry-out. We also still have monthly membership revenue coming in at Hand & Stone. The Hand & Stone model is different than gyms and most typical membership-based businesses in that our members never lose their packages; they simply
FRANCHISEUpdate
ISSUE 2, 2020
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