Crisis Management in the Brazilian Franchising Sector During the Covid-19 Pandemic

Abstract

Objective: The objective of the article is to analyse the effects of the Covid-19 pandemic on the Brazilian franchise sector and to identify the main strategies adopted by companies to mitigate the negative impacts of the crisis.Method: The empirical research, using qualitative exploratory methods, was based on three in-depth interviews with franchising sector stakeholders, in addition to the thematic analysis of six webinars promoted by the ABF from April 15 to 28, 2020.Findings: Findings show that franchise chains had to rethink their relationships with various stakeholders such as customers, employees, suppliers, and the government. Besides, franchisors developed alternative sales channels such as websites, social networks, among others. Additionally, what sustained those companies during the crisis was their connection with their purpose.Relevance: This study presents contributions to other companies in a similar situation by exploring the actions taken by the franchise chains during the crisis and identifying the best practices and paths taken.Contribution: This article contributes to investigations on the effects of the Covid-19 public health crisis in the franchising sector, one of the most relevant economic sectors.