WHAT ARE YOU DOING TO HELP YOUR EMPLOYEES THROUGH THIS? There was only so much I could do at the beginning. I have a few of them teaching classes, and I bought everyone a nice dinner for two at a local restaurant to support small businesses, but also to do something nice for the employees. I did pay my two mangers as there was still work to be done, but it is limited. I recently got approved for the PPP money for both clubs, so I will start paying my employees again. WHAT ARE YOU DOING FOR YOUR CUSTOMERS? We are doing virtual classes with our trainers, but also giving them Title Boxing Club on Demand so they can still work out from home. Otherwise just a lot of social media engagement and asking them to tag us. HOW ARE YOU WORKING WITH YOUR SUPPLIERS? No supply issues. WHAT ARE YOU DOING ABOUT CASH FLOW, PPP? As I said, I got the PPP money. I have applied to the state for their $10,000 grant money and also for a $50,000 SBA loan through them for both clubs, but nothing has come from the state. I applied for the $10,000 grant money from the county and got one of the clubs approved for it so far. I am still waiting for the funds. WHAT ELSE WOULD YOU LIKE TO SEE FROM YOUR FRANCHISOR OR GOVERNMENT? I would have liked a bigger discount on the royalties from the franchisor, and I think it should go for 90 days after we reopen, not one month, as it will take time to ramp things back up. I think the government should have something that helps the business owner more with the rents than anything. The landlords are not forgiving at all. They are deferring some rent, but are expecting you to pay it within the year. That is really going to be tough. The 25% from PPP needs to be bigger for this part of the equation. ARE YOU PLANNING TO REOPEN AND REBUILD YOUR BUSINESS POST–COVID-19? Yes, that is the game plan for both clubs.
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FRANCHISEUpdate
ISSUE 2, 2020
BROOKE WILSON
Brooke Wilson and her husband Les have built a Two Men and a Truck franchise business serving markets in North Carolina and Georgia. The married couple’s multi-unit company generates annual revenue of more than $12 million. Although their moving trucks have been declared an essential business, they are facing the pandemic just as their peak spring and summer season arrives. HOW HAS COVID-19 AFFECTED YOUR BUSINESS? In several ways. Our business is seasonal, with a near-perfect bell curve peaking in the months of May, June, and July. February and March are typically ramp-up months for us in terms of inventory and staffing. We began February with a strong recruitment push as usual, but have since slowed with some concern over how our markets will perform through and post-Covid. We added 11 fleet vehicles (each carrying an investment of $100,000), equipment, and acquired two franchise markets in February. Fortunately, the trucking industry (including movers) has been deemed essential, and we are able to continue services. We were able to shift administrative and clerical support to work from home, and have made adjustments in operations to reduce opportunity for exposure. Employees are eager to work, and we have not been forced to furlough or lay off. Following an initial surge in service requests – likely in anticipation of shelter-in-place quarantine – we have seen a drop in lead volume into April (approximately 30% in some markets). This appears to align with what we’re seeing in the real estate market.