This article originally appeared on QSR on July 21, 2021.

April Mason authored an article for Quick Service Restaurant (QSR) online, published July 21, 2021, discussing franchising opportunities and challenges in the food service industry as we look forward to a post-pandemic world.

While many restaurants were hit hard by the COVID-19 pandemic and unable to survive the shutdowns, others were well equipped for off-premises sales or able to quickly pivot to new offerings, which has given them sustained potential for growth through franchising. This includes those who have adapted to accommodate rising preference for curbside pick-up and delivery, as well as brands that have developed effective apps and technology to drive more sales. Another advantage for those franchises that effectively navigated the pandemic is an abundance of desirable real estate due to a spike in closures.

However, the post-pandemic era is not without challenges for restaurants looking to grow via franchising. First, the restaurant industry is facing a major shortage in labor, along with demand for wage increases and other costly challenges. Additional costs related to COVID protection, liabilities and ongoing restrictions create new obstacles. Further, there will be new legal considerations for franchisors, including how to address 2020 or 2019 sales figures in the financial performance representations (FPRs) in the financial disclosure document (FDD) without misleading potential franchisees.

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About QSR
QSR magazine and its website QSRmagazine.com are the leading sources of news and information about the $300 billion limited-service restaurant industry. For 20 years, QSR has defined this market, which includes traditional fast food, fast-casual dining, coffee, snacks, full-service takeaway, concessions, convenience stores, and related segments of the foodservice industry.