Why it’s getting harder to be a restaurant franchisee

In 2024, it’s becoming harder than ever to be a successful franchisee. On top of ongoing rising food costs and labor shortages, federal and local legislation is cracking down on businesses while expanding worker rights and protections.

This year, 25 states introduced or will introduce new minimum wages, with six states increasing their minimum wages to either match or surpass $15 (California, Connecticut, Maryland, New Jersey, New York, and Washington state). 

On top of ever-increasing minimum wages, the joint employer rule is top of mind for many business owners. The National Labor Relations Board introduced a broadened joint employer in October that would make franchisees and franchisors jointly liable for labor terms and conditions such as union contracts, pay, scheduling, and more, reviving an Obama-era rule that was limited in scope during the Trump Administration.