Inside the Franchise Surge No One Saw Coming

March 2020. The world shut down.
Dining rooms went dark. Hotel lobbies echoed with silence. Storefronts flipped to “Closed Until Further Notice.”

The COVID-19 impact on the franchise industry was a gut punch. Thousands of franchise locations vanished. Hundreds of thousands of jobs disappeared almost overnight.

But here’s what didn’t make headlines:
A quiet franchise boom was brewing beneath the collapse.

Brands that moved fast didn’t just weather the storm - they rewrote the rules. They pivoted, innovated, and turned disruption into momentum.

 Today, in 2025, the franchise landscape is almost unrecognizable. And some of the best franchises to own right now? Born from the ashes of that chaos.

Let’s break down how the industry didn’t just bounce back - it evolved.
And why that matters if you're thinking of making your next big move.

From Freefall to Fast Track: A 5-Year Franchise Snapshot

FRANdata’s report offers a sobering look at early losses:

• 8,000–10,000 restaurants gone in 90 days

• 225,000+ jobs lost in food alone

• Personal services: down 9,000 units, 100,000+ jobs

• Lodging: down 1,000+ facilities, 38,000 jobs

U.S. franchise economic output dropped 14.7%, from $794B in 2019 to $677B in 2020 -  the sharpest decline in modern franchise history.

But here’s the twist:

By 2024, that number rebounded to $893.9 billion, surpassing pre-pandemic levels. Over 821,000 franchise units and 8.9 million jobs are now fueling the U.S. economy.
That rebound wasn’t accidental. It was powered by transformation, reshaping the franchise landscape in ways few expected.

🔁 The Pivot Playbook: How Franchises Rewrote Their Futures

Franchises that moved fast - digitally, operationally, and strategically—outpaced the crisis.
Here’s how the best franchises to own adapted:

• Quick-Service Restaurants (QSRs) embraced delivery, drive-thru, and contactless pickup
  

• Personal services went virtual with consultations and appointments
  

• Cleaning brands shifted to disinfection protocols and pandemic-specific services

These changes weren’t temporary fixes - they laid the foundation for long-term growth.

🔄 Supply Chain Reset: From Global to Local

The COVID-19 impact on the franchise industry exposed the fragility of global supply chains. Ports jammed. Imports stalled. Costs soared.
Franchises that thrived through diversified sourcing and went local. According to the International Franchise Association, these moves led to fewer disruptions and faster recoveries - a new standard for operational resilience.

In today’s franchise landscape, “local” is no longer a trend—it’s a competitive advantage.

Digital Transformation: The New Baseline

Pandemic restrictions accelerated digital transformation by years.
By 2023:

• 70% of top-performing franchises implemented online ordering and mobile apps
  

• Digital loyalty programs became standard
  

• Customer data was leveraged to drive retention and personalization

Brands that embraced tech grew faster and kept more customers. In today’s market, digital-first is essential, especially among the best franchises to own.

Where Growth Is Happening Now

As of 2024, franchise growth is alive and well, but it’s happening in new places: The franchise landscape post-COVID is broader, more diverse, and full of niche opportunities. If you’re exploring ownership, these sectors are strong bets for long-term ROI.

Looking Ahead: What 2025 Will Reward

The future franchise winners will have three traits:

• Tech-Savvy – Seamless digital operations are now table stakes
  

• Customer-Centric – Brands that elevate experience will lead to loyalty

• Nimble – Agility beats scale in the next evolution of franchising

Consumer spending in 2025 will favor experiential and service-based businesses, from boutique fitness to premium grooming to travel.

Your opportunity? Get in early on the next generation of best franchises to own, built for this new world.

The Rewired Playbook: Lessons from the Pandemic

Let’s recap what the COVID-19 impact on the franchise industry taught us:
✅ Agility Wins – Speed to pivot separates leaders from laggards
✅ Local Matters – Supply chain diversity is a growth strategy
✅ Digital is Non-Negotiable – Tech is the new backbone
✅ Service Sectors Are Hot – QSRs and personal care are surging
✅ Franchisee Support is Crucial – Strong systems create strong outcomes

The COVID-19 impact on the franchise industry didn’t just shake things up, it cracked the old model wide open. What rose from the rubble?

A new era of smarter, faster, future-ready franchises.
If you’re thinking about business ownership, this is your moment.

The playbook has changed - and the best franchises to own are the ones rewriting it.
At ReWired Franchise Advisors, we cut through the noise, surface the brands built for tomorrow, and help you find the right fit for your goals, lifestyle, and future.

👉 Let’s start your franchise discovery journey - before the next wave of growth leaves the station.