Business closures arising from the COVID-19 outbreak have wreaked havoc on the franchise industry. While restrictions are expected to be relaxed in the coming days and months, it is unknown how long a return to “normal” might take. When businesses re-open, it is unclear whether customer volume will return to pre-COVID-19 levels. The unfortunate reality is that some franchisees and suppliers may not have the financial viability to withstand the extent of the business interruption.

Franchisors want to know what they should be doing right now in order to mitigate legal and commercial risks that may result from the pandemic and to better prepare for emergency business interruptions in the future. In this bulletin, our team of franchise lawyers across a broad range of practice areas suggest nine tips to help franchisors manage the crisis.

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This article is published to inform clients and contacts of important developments in the field of franchise and distribution law. The content is informational only and does not constitute legal or professional advice. We encourage you to consult a McMillan lawyer if you have specific questions or concerns relating to any of the topics covered here.