---
title: "Black Enterprise: In Short Term, “Up to 30,000 Franchises Could Be Closed.”"
url: https://burnaze.com/article/a6309320-bae2-4301-ad99-33b59be31e74
source: "1851 Franchise"
original_url: https://1851franchise.com/black-enterprise-in-short-term-up-to-30000-franchises-could-be-closed-2712591
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Finance & M&A"]
published: 2020-03-23T13:08:17.000Z
modified: 2026-11-01T02:30:06.579Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/8d47b75c51a42ada249fbaa66b345b928629.jpg
---

# Black Enterprise: In Short Term, “Up to 30,000 Franchises Could Be Closed.”

**TL;DR:** Black Enterprise predicts up to 30,000 franchises could be closed before the COVID-19 outbreak is contained and the economy recovers. The restaurant industry is expected to be hit the hardest, with an estimated unit loss of 7,800 and 173,000 job losses.

*originally published in 1851 Franchise on 2020-03-23. [Read the original](https://1851franchise.com/black-enterprise-in-short-term-up-to-30000-franchises-could-be-closed-2712591).*

## Story

**Drawing from analysis released by franchise advisory firm FRANdata,** **Black Enterprise issued an unsettling outlook for the franchise industry** **on Friday, predicting that “Up to 30,000 franchises could be closed” before the COVID-19 outbreak is contained and the economy begins to recover.**

**Unsurprisingly, given the state-ordered dining-room closures across the U.S.,** **the restaurant industry is poised to be hit the hardest****, “with an estimated unit loss of 7,800 and 173,000 job losses possibly tied to shutdowns.”**

**Less talked about in recent weeks, though, is the personal-services segment, which Black Enterprise said will see an “estimated unit and job loss [of] respectively ... 7,300 and 81,000.”**

**According to the article, these losses could prove particularly damaging for the growing community of Black business owners.**

> **When it comes to opening a business, franchising is where many African Americans make money. The number of black-owned franchises rose briskly to 8% in 2012 from 4.4% in 2007, research by the International Franchise Association (IFA) revealed, Black Enterprise reported in 2018.****Blacks had the biggest gain in the percentage of businesses run as a franchise within the minority, ethnic, and gender groups. Those black-owned firms grew to 4.8% in 2012, up roughly 66% from 2.9% from 2007.**

**Though that outlook is decidedly grim, there is no modern precedent for a crisis of this scope and nature, so every prediction should be taken with a grain of salt. We are still waiting to learn about** **potentially massive relief packages** **that could buoy the industry, and business owners are already** **introducing creative pivots to avoid the worst effects of the crisis.**

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- restaurant industry (topic)
- International Franchise Association (company)
- covid-19 impact (topic)
- FRANdata (company)
- franchise closures (topic)
- black-owned businesses (topic)
- personal services segment (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/black-enterprise-in-short-term-up-to-30000-franchises-could-be-closed-2712591). Summarized by Burnaze (https://burnaze.com/article/a6309320-bae2-4301-ad99-33b59be31e74).