1851

Of the many industries disrupted by the COVID-19 pandemic, commercial real estate was among the hardest hit. One might reasonably assume that a struggling commercial real estate sector would be good news for franchisees hoping to secure more flexible contracts, but according to <a href="https://www.franchisetimes.com/franchise_news/few-long-term-lease-changes-emerge-from-covid-19-pandemic/article_d21464ae-d066-11eb-b294-9f306cc798ad.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-commercial-real-estate-leases-are-not-changing-much-after-covid-19-2716035" target="_blank" rel="nofollow">a recent article in Franchise Times</a>, the real estate world’s rough year was not the boon for franchising many had hoped for.According to Joseph Wasch, a Franchise Times writer and senior partner at Wasch Raines, the reason commercial leases haven’t been overhauled is that the sector at large remains bullish on its future."We were slow between March and April of 2020, but from May on, it was like, boom, everyone was calling us, can we have a lease reviewed or an FDD we want you to review," said Wasch.There have been some changes to standard commercial real estate terms, most notably an expansion of force majeure clauses to include “government-mandated shutdowns related to pandemics,” Wasch said. But aside from that decidedly narrow concession, standard contracts are likely to remain largely unchanged compared to those offered before the pandemic.It’s not all bad news for franchisees, though. Wasch notes that because of the marked increase in vacancies, commercial landlords are showing more willingness to negotiate on pricing and construction timelines.&nbsp;According to Wasch, most business owners who successfully stuck it out through the pandemic should have little interest in increased contract flexibility anyway, since they are likely focused on growing, not exiting their businesses."The thing about leasing is this: If you have a successful franchisee who is a good operator and he is making money, it doesn’t matter what's in the lease; you just throw that 80-page document into your desk drawer and forget about it until you renew," said Wasch. "If you're doing well, the lease becomes invisible."That perspective likely comes as cold comfort to franchise owners who are nervous about <a href="https://1851franchise.com/is-the-global-housing-market-about-to-crash-2716005#home">the next economic downturn</a>, which is why many franchisees are increasingly eschewing brick-and-mortar operations altogether in favor of <a href="https://1851franchise.com/best-mobile-franchises-to-buy-in-2021-2715322">mobile</a> and <a href="https://1851franchise.com/best-home-based-franchises-to-buy-in-2021-2715181">home-based</a> franchise opportunities.

Why Commercial Real Estate Leases Are Not Changing (Much) After COVID-19

1851 Franchise

Franchisees are not finding the increased flexibility in real estate contracts they’d hoped for in a post-pandemic landscape.

why-commercial-real-estate-leases-are-not-changing-much-after-covid-19

The Cleaning Authority

Why This Corporate McDonald’s Rep Decided To Open His Own Franchise With The Cleaning Authority

cleaning-authority/kent-lewis-franchise-success

KidStrong Franchising, LLC

KidStrong Wraps Up Q3 With First Manhattan Location, 45 New Franchises and Record-High Attendance

kidstrong-q3-growth-2025

Woodhouse Spas

Photo of front lobby area of Woodhouse Spa

Why Woodhouse Has No True Competitor in the Spa Franchise Space

luxury-spa-franchise

Right at Home

Right at Home Expanding In-Home Care Services in Wausau, Wisconsin 

right-at-home-expanding-in-home-care-services-in-wausau-wisconsin

The Growth Coach

Top 5 Reasons To Invest in The Growth Coach Franchise

top-5-reasons-to-invest-in-the-growth-coach-franchise

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Slim Chickens Opens R&D Center at World Headquarters To Drive Menu Innovation

slim-chickens-rd-center-fayetteville

Nearly 40% of Americans Are Eating Out Less as High Prices Redefine Dining Habits

nearly-40-of-americans-are-eating-out-less-as-high-prices-redefine-dining-habits

Authority Brands Enters Q4 with Record Momentum

Authority Brands Enters Q4 with Record Momentum, Surpassing 200 New Franchise Owners in the First 10 Months of 2025

authority-brands-enters-q4-with-record-momentum-surpassing-200-new-franchise-owners-in-the-first-10-months-of-2025

Franchises, work-life balance, millennials in franchising, millennials work-life balance

The Best Franchises for Millennials Wanting Work-Life Balance

best-franchises-millennials-work-life-balance

Photo of Papa Murphy's Take 'N' Bake Pizza franchisee Lily Wilford

Entrepreneur: This 18-Year-Old Saved Babysitting Money for College — Then Decided to Buy a Business Instead

18-year-old-franchise-owner-lily-wilford

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

image of michael panos and michel panos, owners of mellow mushroom in Atlanta

The Panos Family’s Role in Preserving Mellow Mushroom’s Character — and Expanding in Atlanta

mellow-mushroom-franchise-panos-restaurant-group-metro-atlanta

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

Why Commercial Real Estate Leases Are Not Changing (Much) After COVID-19

MORE STORIES LIKE THIS