Partner in ‘Restaurant Dive’ on Franchise Concerns for 2022

BCLP Partner Tony Marks, Franchise Team leader, was quoted Nov. 8 by Restaurant Dive concerning the key issues both franchisees and franchisors could face in 2022. Many restaurant franchisors are betting on strong growth in 2022, thanks to a combination of market factors. But one of the most pressing issues they face, Tony noted, is access to capital in the absence of federal support, such as the Restaurant Revitalization Fund. Also, he said, restaurant franchisees could soon contend with changing regulations at both the state and federal level. “There’s a legislative overlay to all of this … from the federal government with the PRO Act [the Protecting the Right to Organize Act 2021],” he said. And in California, Assembly Bill 5 (AB5), which reclassifies millions of independent contractors as employees, took effect in January. “This could change franchising, or how it gets interpreted,” Tony said of AB5. “Where [the] government may step in may further complicate a rebound.”