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The CDC published <a href="https://www.cdc.gov/coronavirus/2019-ncov/vaccines/fully-vaccinated-guidance.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">new recommendations</a> on Tuesday for those vaccinated and unvaccinated against the COVID-19 virus, mostly as it relates to which activities are safe to do with and without a mask. These new recommendations are particularly interesting for fast food and quick service restaurants who, despite <a href="https://www.cnbc.com/2021/03/12/drive-thru-ordering-surged-during-the-pandemic-heres-what-comes-next.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">mostly closing indoor dining</a> in the early days of the pandemic, still had record sales years in 2020.The new recommendations state that <a href="https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/participate-in-activities.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">fully vaccinated people can now</a>:<ul><li>Gather indoors with other fully vaccinated people without masks or social distancing&nbsp;</li><li>Gather indoors with unvaccinated people without masks or social distancing (unless someone has an underlying health condition)</li><li>Conduct outdoor activities such as walking, running and biking without wearing a mask or distancing</li><li>Dine at an outdoor restaurant with people from multiple households without wearing a mask or distancing</li></ul>It’s this last change that is music to restaurant owners’ ears. Previous recommendations asked customers to wear masks whenever they were not at a table. Some states also prohibited indoor dining completely through most of the pandemic, and other restaurants decided to close indoor dining on their own to save costs.The official word from the CDC is likely to accelerate re-openings and ease patron’s worries about potential health effects of eating out.Linsey Marr, an aerosol scientist at Virginia Tech, told <a href="https://www.nytimes.com/2021/04/27/us/politics/coronavirus-masks-outdoors.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">The New York Times</a>, “Scientifically the vaccines are good enough that it’s highly unlikely that someone who’s vaccinated is going to be exposed to enough virus outdoors to have a breakthrough infection.”As restrictions ease, some quick service and fast food brands are preparing to welcome customers back into the dining room. Others are taking a different approach.<a href="http://www.dunkinfranchising.com/franchisee/en.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">Dunkin’ Donuts</a> has already <a href="https://www.qsrweb.com/news/dunkin-2600-us-dining-rooms-open-and-counting/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">re-opened 2,600</a> dining rooms nationwide with plans to open thousands more in the coming weeks. It’s one of the first fast-food chains to do so.Dunkin’ franchisee Jim Cain said in a recent <a href="https://news.dunkindonuts.com/blog/dunkin-dining-rooms-opening?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">press release</a>, “As we continue to see restrictions loosen, and our dining rooms reopen, you can feel that spark of energy from our restaurant team members and guests fill the restaurants.”Other chains aren’t as focused on in-house dining but on alternative ways to support the shift in consumer habits. <a href="https://www.kfc.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">KFC</a>, for example, is testing out <a href="https://www.cnbc.com/2021/03/12/drive-thru-ordering-surged-during-the-pandemic-heres-what-comes-next.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">pick-up cubbies</a> that will allow customers to order ahead and pick up on-site. <a href="https://company.bk.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">Burger King</a> is designing completely new <a href="https://www.cnbc.com/2021/03/12/drive-thru-ordering-surged-during-the-pandemic-heres-what-comes-next.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">restaurant formats</a> with smaller dining rooms and a bigger emphasis on the drive-thru.With the dramatic success of drive-thrus in 2020, some quick-service brands that are mostly dine-in or in-house pick-up are jumping on the bandwagon. <a href="https://www.sweetgreen.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">Sweetgreen</a>, <a href="https://www.shakeshack.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">Shake Shack</a> and <a href="https://www.chipotle.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-fast-food-and-quick-service-restaurants-are-reacting-to-new-cdc-recommendations-2715610" target="_blank" rel="nofollow">Chipotle</a> are just a few with plans to add drive-thru lanes and expand existing ones.While the future of in-house dining is up in the air, these new CDC recommendations are a positive omen for restaurant owners heading into the summer months.&nbsp;

How Fast Food and Quick Service Restaurants Are Reacting to New CDC Recommendations

1851 Franchise

Restaurant owners gear up for a busy summer of outdoor dining with new CDC recommendations for vaccinated people.

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CapitalSpring

Franchise Times: Alloy Personal Training Backed by CapitalSpring to Fuel Franchise Growth

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How Focused Menus Improve Franchisee Performance at Onigilly

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Extraordinary Brands

NEIGHBORHOOD barre Expands Through Franchising Nationwide With a Model Built for Local Communities

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Keke’s Breakfast Cafe Has Bold Franchise Growth Plans for 2026

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What Care Services Do Comfort Keepers® Franchisees Provide? A Look at Personalized In-Home Care and Owner Responsibilities

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Private Equity Fuels Jiffy Lube’s Next Chapter as Monomoy Strikes $1.3 Billion Deal

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McDonald’s and Burger King Take the QSR Burger Wars to Social Media

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Yum! Brands Pizza Hut Sale - 1851 Franchise

Possible Pizza Hut Sale Signals Shift in Yum! Brands’ Franchise Strategy

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Restaurants Stand Out in 2025 Hiring as Consumers Look for Simple Treats

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Photo of SONIC franchise logo against blue sky backdrop

KBP Brands Acquires 78 SONIC Locations Across Five States

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<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

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As the health and wellness business in America continues to fill out, the fitness industry is growing alongside it. The industry now generates&nbsp;<a href="https://www.ibisworld.com/united-states/industry/gym-fitness-franchises/5599/">over $7 billion</a> in annual revenue, with a revenue increase of nearly 3% in 2023 alone.Rebounding since COVID, both big box and boutique franchises have shown&nbsp;<a href="https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/">membership growth</a>, with premium establishments up 21% compared to a whopping enrollment bump of almost 70% on the budget gym side.&nbsp;&nbsp;<h3>The Pros And Cons Of Big Box Gyms</h3>When it comes to choosing the right fitness franchise, there are pros and cons to each.Big box gyms are able to cast a wider net, attracting a clientele ranging anywhere from newbie to seasoned veteran, with a lower cost of entry potentially attracting even the marginally curious to the idea of a well-established, properly marketed brand.&nbsp;Big box and other low-cost fitness franchises are also able to capitalize on services like personal training and retail amenities, increasing revenue.Driven by recurring membership fees, big box gyms generally cost less. However, the wider net cast in terms of building a clientele, tends to require more equipment in a bigger space, increasing costs like rent. And with a wider array of workout machines to both service and maintain, additional costs tend to follow.<h3>The Pros And Cons Of Boutique Fitness Concepts</h3>On the boutique side, franchises are typically able to offer a more personalized fitness experience, catering to niche markets with an eye on community, quality and loyalty. However, a more hands on approach to management and day-to-day operations may also be necessary to deliver the more customized, immersive experience often demanded of the more boutique environment.As a result, boutique fitness concepts are typically able to capitalize on a more premium pricing model driven by the idea of exclusivity.But, while less equipment in a smaller space can help rein in expenses, it can also be difficult to build the more specific clientele required by the boutique experience, rendering selection of proper location crucial.<h3>Finding The Right Fit</h3>As potential franchisees assess the available opportunities in the fitness franchise realm, it’s important to ponder a number of factors which can impact the bottom line.In terms of budgeting, a full understanding of both initial investment and ongoing operational costs is crucial.&nbsp;Getting to know the customer and surrounding area can help franchisees assess just how much the consumer is looking to pay for a gym membership, helping clarify the big box versus boutique decision when it comes to the question of how to buy a franchise.There’s also market saturation, with big box gyms in particular becoming an increasingly crowded marketplace.On the management side, it’s important for franchisees to seize upon a specific approach, whether it’s applying a more hands on style to the level of personal interaction required on the boutique side or focusing on the moving parts in play in the larger, more complex big box environment.&nbsp;When it comes to buying a fitness franchise, an understanding of the consumer, proper assessment of the marketplace and specific approach to management can go a long way towards avoiding potential risk, helping franchisees find success as they ponder entrepreneurship via fitness franchises.For more info on fitness franchises, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/fitness-franchises-2025-trends-opportunities-2729600">The Rise of Fitness Franchises in 2025: Trends, Opportunities and What to Expect</a></li><li><a href="https://1851franchise.com/top-health-and-wellness-franchises-2729821">Top 15 Health and Wellness Franchises Opportunities for 2025</a></li><li><a href="https://1851franchise.com/fitness-wellness-franchise-guide-2729443">How To Choose the Right Fitness or Wellness Franchise for You</a></li></ul>

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As the fitness industry continues to grow fast, the decision for potential franchisees lies in whether to invest in big box or boutique gym franchise opportunities.

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

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<a href="https://kbpbrands.com/">KBP Brands</a>, the multi-brand franchisee group with over 1,100 restaurants across 32 states,&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">has announced</a> its acquisition of 78 additional SONIC units. The new units are spread across Ohio, Kentucky, North Carolina, Tennessee and Virginia.This is the second SONIC acquisition KBP has completed in less than two years, and it makes KBP the fourth-largest SONIC franchisee in the system with 164 total locations across eight states.“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase,” KBP CEO&nbsp;<a href="https://www.linkedin.com/in/mike-kulp-820820">Mike Kulp</a> said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”KBP is one of the country’s largest franchisee groups, reporting approximately $1.5 billion in annual sales across its portfolio, which includes KFC, Taco Bell and Arby’s, another Inspire Brands franchise."Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," said&nbsp;<a href="https://www.linkedin.com/in/john-kelly-b48426b">John Kelly</a>, brand president at SONIC. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

The franchisee group, which already operates over 1,100 units, is growing its portfolio with the quick-service brand, becoming one of SONIC’s largest franchisees.

<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> is considering a potential sale of Pizza Hut and plans to close 250 underperforming U.S. locations, according to a&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">recent article on Simply Wall St</a>. For the franchising industry, the significance is less about the stock and more about what it says about how large franchisors are managing brand portfolios in a high-cost operating environment.<a href="https://1851franchise.com/pizza-hut-franchise-deep-dive-2722519">Pizza Hut</a> is one of the most recognizable names in franchising. If Yum! decides to sell it, that would be a notable shift for a company built on a multi-brand platform. For years, large brand groups have argued that operating multiple concepts creates advantages, including shared resources, stronger purchasing power and the ability to invest in technology across the system. A sale would suggest Yum! believes those benefits no longer outweigh the effort required to improve Pizza Hut’s performance.The planned closures may have the most immediate impact on franchisees. When a franchisor reduces its footprint, it can change how the brand performs in local markets. Fewer locations can mean less convenience for customers, which can hurt overall traffic. It can also weaken the effect of local advertising when there are fewer restaurants supporting promotions in the same trade area.Closures can also affect store-level economics in ways that go beyond the locations that shut down. In some markets, remaining franchisees may pick up some displaced demand. In others, customers may switch to competitors. The changes can also affect local co-op advertising budgets and, depending on how purchasing and distribution are structured, can influence costs tied to volume.The move comes as competition in pizza remains intense, with&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> continuing to push delivery, digital ordering and value-focused offers. Simply Wall St notes Yum! has been rolling out its Byte digital platform across brands. If Yum! changes Pizza Hut’s role in the portfolio, it could also change where the company focuses its technology and marketing investment.For franchise systems watching from the outside, Yum!’s review is a reminder that growth is not always the main priority. Sometimes the bigger decision is whether a legacy brand can be improved inside a platform or whether it will perform better under a different owner and a different plan.Read the original article&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Yum! is reviewing the brand and closing 250 U.S. locations, a move that could affect franchisees and reshape its restaurant portfolio.

How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: A drive-thru specialty coffee franchise focused on speed, quality and Southern hospitality.

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Window Genie Franchise - Deep Dive 2025 - 1851 Franchise

Franchise Opportunity Deep Dive: Window Genie is an owner-led, multi-service exterior cleaning brand with recurring demand and Neighborly backing that simplifies operations and supports growth.

How Fast Food and Quick Service Restaurants Are Reacting to New CDC Recommendations

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