open and able to care for their children. To keep spirits high and boost morale, we’ve created a calendar with a daily “fun event.” These events keep both our students and employees laughing and smiling and bring a little extra light into the day. Overall, we are staying positive and trying to help our employees and community as much as possible. IS YOUR FRANCHISOR HELPING KEEP YOU AFLOAT? Our team at the Children’s Lighthouse corporate office – or Franchisee Support Center, as we call it – have been incredible! They’ve been extremely communicative and transparent as new information is released. They are holding conference calls with the franchise system, check in with us individually on a regular basis, and provide us with all available programs to help our employees and families. They even cut our franchise royalties fees in half for the month of April. This, along with additional marketing materials and support, has been extremely helpful in keeping our business afloat. WHAT ARE YOU DOING TO HELP YOUR EMPLOYEES THROUGH THIS? We care deeply about the safety and well-being of our staff. So we’re providing all employees with a face mask, personal hand sanitizer, sanitation wipes, gloves, extra uniforms, and food if they need it. We’ve made it clear to our team that we are here for them and want to make sure they feel safe, happy, and supported. To keep spirits up, we’re also providing lunch throughout the week, offering special drinks and treats, as well as incorporating fun activities. WHAT ARE YOU DOING FOR YOUR CUSTOMERS? We want to make sure that all those who need child care during these uncertain times have access to it. So we are offering discounted enrollment rates and providing families the option to change their schedule to part-time. We are being as flexible as possible to accommodate the needs of those in our community. We have also provided all of our families with personal hand sanitizer and sanitation wipes. HOW ARE YOU WORKING WITH YOUR SUPPLIERS? The City of Gardner has waived all electric fees for a month. WHAT ARE YOU DOING ABOUT CASH FLOW, PPP? We have applied for the PPP, but we’re still waiting to receive funds. WHAT ELSE WOULD YOU LIKE TO SEE FROM YOUR FRANCHISOR OR GOVERNMENT? I would love to see the extra weekly $600 unemployment check also be given to essential workers on the front line. HOW ARE YOU PLANNING TO REOPEN AND REBUILD YOUR BUSINESS POST–COVID-19? We’d been hoping that by May, things would start to go back to normal and we would be operating as normal. That said, we intend to closely follow any updates regarding state and federal mandates. Before the coronavirus pandemic, our schools followed strict health and sanitation practices that have since been increased. We intend to maintain that standard moving forward to reduce the spread of germs and to ensure the well-being of our students, families, and staff.
JOHN SAHAKIAN John Sahakian operates two Title Boxing Clubs in Maryland – or at least he did until Covid-19 shut them both. He’s received PPP money to help pay employees, but says the 25% left over for rent and other expenses is not enough, and hopes that percentage will be changed. He also has applied for additional financial help from state and county sources and the SBA. HOW HAS COVID-19 AFFECTED YOUR BUSINESS? Dramatically. We have a few members at each club opting in to keep paying us more for support, but I would say we’re seeing a 90% to 95% drop-off. WHAT ARE YOU DOING RIGHT NOW TO GET THROUGH THIS? I am paying my two managers as we are still doing things through social media for both clubs to try to keep members engaged. We are paying a few trainers to tape classes from home that we are posting. Otherwise, I personally am using what I have in my savings to pay my own bills. IS YOUR FRANCHISOR HELPING KEEP YOU AFLOAT? Their help is minor. They gave us a 30% reduction in royalties about a week or two before things got really bad and everyone closed. They have stayed at that percentage. They will give it to us for another 4 weeks after we reopen. I felt it could have been more. They did give us Title Boxing Club on Demand, which was an app the company already had running. They gave our members free access to it until the end of May, which has been very helpful.
FRANCHISEUpdate
ISSUE 2, 2020
105
