Company founder acts decisively to support UK network during global crisis
Oven valeting specialist Ovenu has agreed to significantly reduce the fees it charges its 100-plus franchisees to support them during the coronavirus crisis.
Company founder and managing director Rik Hellewell (pictured) made the decision before the government’s introduction of stringent working restrictions and its announcement on the provision of financial support for the country’s five million self-employed.
Chancellor Rishi Sunak said the measures, designed to help protect individuals and businesses, include a direct cash grant of 80 per cent of profits, up to a maximum of £2,500 per month.
Rik, who founded Ovenu in 1994, is confident that the combination of both measures will mean Ovenu’s franchisees - many of whom are sole operators - are cushioned from the worst effects of the shutdown currently affecting huge swathes of the retail industry.
“This is the biggest challenge Ovenu has faced in its 26-year history and I decided early on that the business must act decisively to support its franchisees in this global crisis,” he says.
“I’m determined to protect what is a hugely successful business model and our franchisees have acknowledged this generosity and the ongoing support Ovenu continues to provide.
“Their livelihoods - and those of every other small business - rely on the relationships built up with customers over many years and we need to work together to ensure they are ready and able to begin work once this very concerning situation is over.”
Rik confirmed he will review the situation concerning franchise fees in three months’ time. He also praised the support Ovenu has received from its third party suppliers, which have reduced their own contracted fees.
However, he expressed disappointment at Ovenu’s multinational landlord after it declined to waive or reduce the rent on its Berkshire-based training and distribution centre - its only concession being to collect the rent monthly rather than quarterly.
Rik also urged Rishi Sunak, who has hinted that he intends to reform the tax arrangements of business owners and the self-employed, to think carefully before introducing anything that curbs the entrepreneurial spirit of those taking the risks and who remain the backbone of the UK economy.
“Any move to increase the tax burden on small and medium-sized businesses will have a devastating effect on an economy that, post coronavirus, will need encouragement rather than discouragement to get Britain back on her feet,” he says.