Small Business and Franchise Recovery in the Post-Biden Era

The post-Biden era presents a pivotal moment for U.S. franchise operators and small businesses, shaped by a decade of policy-driven interventions and evolving economic dynamics. While the immediate focus of Biden-era programs like the Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), and Shuttered Venue Operators Grant (SVOG) was crisis mitigation, their long-term implications for franchise sustainability and growth are now emerging as critical factors for investors.

Policy-Driven Tailwinds: From Survival to Resilience

The Biden administration's early interventions provided a lifeline for small businesses during the pandemic. According to a report by Akerman, these programs preserved 48 million jobs in small businesses (1–19 staff) and injected $28.6 billion into the restaurant and food service sector, disproportionately benefiting women, veterans, and economically disadvantaged entrepreneurs. By 2025, this support has translated into a broader entrepreneurial boom, with over 19 million new business applications since 2020 and small businesses accounting for 71% of net new jobs since 2019.

However, the long-term sustainability of these gains remains tied to structural policy shifts. The Inflation Reduction Act (IRA), for instance, introduced clean energy incentives and environmental justice initiatives, creating opportunities for franchises to align with decarbonization trends. Yet, as noted by JCIPR, corporate backsliding on ESG commitments in 2025-exemplified by layoffs at Nike and BP's delayed climate goals-highlights the gap between policy ambition and corporate execution. For franchises, this underscores the need to balance regulatory compliance with cost-effective sustainability strategies.

Tariffs, Margins, and Franchise Adaptation

Franchise operators face unique challenges in a post-Biden landscape. Tariff policies, as analyzed by Seeking Succession, have reshaped supply chains, particularly in industries like restaurants and retail, where profit margins are razor-thin. Franchisors are now advised to diversify suppliers, adopt transparent pricing models, and revise legal agreements to reflect inflationary pressures. These adaptations are critical for maintaining franchisee profitability amid rising input costs.

Technological Disruption as a Catalyst

Beyond policy, technology is redefining small business operations. AI-powered platforms like Raynmaker, as highlighted by Morningstar, are automating sales and operations for small businesses, reducing owner workloads while boosting customer engagement. Such tools offer a scalable solution for franchises to enhance efficiency, a necessity in an era where margins are increasingly squeezed by tariffs and labor costs.

Investment Outlook: Navigating Uncertainty

For investors, the post-Biden era offers a mixed landscape. While policy-driven tailwinds like the IRA and PPP legacy have strengthened small business resilience, structural headwinds-including ESG backsliding and trade policy volatility-demand cautious optimism. Franchises that integrate technology, diversify supply chains, and align with decarbonization trends are best positioned to thrive. Conversely, those reliant on outdated models may struggle to adapt to the new economic reality.

In conclusion, the interplay of Biden-era policies and post-2025 challenges creates both opportunities and risks for franchise operators. Investors who prioritize agility, sustainability, and technological adoption will find fertile ground in a sector poised for reinvention.