How has Covid-19 changed your franchise development strategy?

Chief Development Officer Authority Brands

Covid-19 has been an important factor in changing our strategy for franchise development. The extraordinary time we are living through has created a unique circumstance that opens up opportunities for the dream of business ownership. Essential services have taken on a new meaning as a result of the pandemic, especially as businesses were forced to temporarily shut their doors for the safety of their employees, customers, and communities. Tens of millions of Americans are out of work, which has created an environment where people are asking themselves the question, “Should I consider doing something different?” For companies like Authority Brands, with a portfolio of seven home service brands, the field looks ready to harvest. We essentially have an opportunity for anyone.

Our services have been deemed essential and, for the most part, our brands and franchisees have remained open and operating the entire duration of the pandemic. Our trade brands are essential: people will not hesitate to call a plumber or an electrician if they need one. If your air conditioning is not functional, you will get that fixed as well. Mosquito Squad and America’s Swimming Pool Co. are focused on outdoor service and have minimal customer interaction. With people staying at home, their desire to use their outdoor living space is greater than before. And Covid-19 has completely changed the perception of assisted living facilities, which makes in-home care a more likely solution.

I was asked by our board of directors if we should pull back on investment in franchise development or move forward, and what strategy would we take if we moved forward. The strategy I pitched was to move forward in a bold way. This is a point in time when many are considering a change in their professional lives, and we needed to take advantage of that. We updated our messaging, invested in marketing, and created a prospecting outreach program to invite people to consider the opportunities of a lowcost investment in an essential service business.

We also undertook a franchise broker outreach program. Our goal was to speak with as many franchise brokers as possible (on the phone!) and let them know that our brands were open and operating.

Our franchise development process had to change as well. We developed virtual “Meet Your Team” days for each brand and sought out new lending sources that understood the new environment. The franchise development team also took the lead in providing essential information to our franchisees and prospects on the SBA lending environment, including individual phone consultations and daily communication on PPP loan acquisition and forgiveness, and capital availability through other programs and new loans.

The outcome: Lead flow is strong, we have a growing pipeline, and we are closing on new franchise license agreements each week. We are on track to grow a number of our brands at a pace not previously met.

CEO and Co-Founder TruFusion

As we prepared for 2020, like most companies across the globe, there was no way we could have predicted what was to come. As a fitness and yoga concept that offers an extensive variety of boutique-style classes all under one roof, TruFusion was designed to provide an in-person experience. But once Covid-19 forced the fitness industry to temporarily close locations, we needed to take immediate action to support our franchisees. First, we created online resources to help franchisees maintain member engagement. And then, to prepare for reopening, we implemented new protocols and procedures systemwide so each location could safely reopen.

We’re extremely grateful that our franchise development strategy is one component of our business that has been able to remain consistent amid the pandemic. We have dozens of locations currently in development across the United States and many additional agreements currently in the site selection process. With a strong pipeline already in place, we envisioned 2020 as an opportunity to execute new avenues that would fuel our franchise development momentum, including launching a new prototype and bringing on board a new addition to our franchise development team.

TruFusion’s flagship studios are between 10,000 and 14,000 square feet, which includes 4 to 5 state-of-the-art fitness and yoga rooms. The site selection process for such a large footprint takes some time. The new prototype we recently rolled out consists of 2 to 3 rooms and totals of 4,500 to 7,500 square feet. With a smaller footprint, the new studios will provide the same offerings as traditional locations, but with the flexibility of additional real estate options for new and existing franchisees to explore. This new option allows us to grow more rapidly.

In alignment with the smaller prototype, we recently tapped seasoned industry expert Brandon Campbell to spearhead the brand’s franchise efforts as the director of franchise development. Having a new dedicated and experienced individual on our executive team to focus on our franchise development growth will be an asset as we continue to forge ahead.

By executing these initiatives and being an ideal option for consumers looking to experience a variety of boutique fitness classes for one cost under one roof, we’re primed to continue on the path we planned for 2020. As we look toward Q3 and Q4 with new openings on the horizon in key markets—including Denver, West Hollywood, San Francisco, Houston, San Antonio, and Ballard, Washington—we’re optimistic about the future and are looking forward to having our members back in the studio at full capacity when the time is right.