High costs and increased regulation threaten to shrink the franchise footprint in some states. During the pandemic, FRANdata noted the 13 registration states suffered more unit losses, dropping 3.2 percent compared to 2.4 percent in non-registration states in 2020 compared to 2019. Different reopening restrictions played a role. But with already high costs, the added threat of increased regulation may ultimately replace the pandemic as a significant stress point.