These 24 states have enacted specific regulations affecting QSR franchises, including predictive scheduling, fast food worker protections, or industry-specific minimum wages.

Alaska

2 regulations

•Higher minimum wage than federal standard
•Annual inflation adjustments to minimum wage

Arizona

2 regulations

•Annual inflation adjustments to minimum wage
•Proposition 206 requires paid sick time

California

5 regulations

•AB 1228 (FAST Act): $20/hour minimum for fast food workers at chains with 60+ locations nationally
•Fast Food Council with authority to set wages and standards
•Predictive scheduling requirements in some cities (SF, LA)
+ 2 more...

Colorado

2 regulations

•Annual inflation adjustments to minimum wage
•Paid sick leave requirements

Connecticut

2 regulations

•Paid sick leave requirements
•Higher minimum wage than federal standard

Delaware

1 regulation

•Scheduled increases to $15/hour minimum wage

Florida

2 regulations

•Scheduled annual increases to reach $15/hour by 2026
•Amendment 2 approved gradual minimum wage increases

Hawaii

2 regulations

•Higher minimum wage than federal standard
•High cost of operations and real estate

Illinois

3 regulations

•Scheduled minimum wage increases
•Chicago Fair Workweek Ordinance (predictive scheduling)
•Paid leave requirements in Chicago

Maine

2 regulations

•Annual inflation adjustments to minimum wage
•Paid sick leave requirements

Maryland

2 regulations

•$15/hour minimum wage for large employers
•Different rates for small employers

Massachusetts

3 regulations

•$15/hour minimum wage
•Paid family and medical leave
•Strong labor protections

Michigan

2 regulations

•Scheduled minimum wage increases
•Paid sick leave requirements

Minnesota

2 regulations

•Annual inflation adjustments to minimum wage
•Paid sick leave requirements

Missouri

1 regulation

•Annual inflation adjustments to minimum wage

Montana

1 regulation

•Annual inflation adjustments to minimum wage

Nebraska

1 regulation

•Scheduled increases to $15/hour by 2026

Nevada

1 regulation

•Daily overtime after 8 hours (unique provision)

New Jersey

2 regulations

•$15/hour minimum wage with annual inflation adjustments
•Paid sick leave requirements

New York

4 regulations

•NYC Fair Workweek Law (predictive scheduling, premium pay)
•Higher minimum wage in NYC metro ($16/hour)
•Paid sick leave requirements
+ 1 more...

Oregon

3 regulations

•Three-tier minimum wage system (urban/standard/non-urban)
•Paid sick leave requirements
•Portland has predictive scheduling ordinance

South Dakota

1 regulation

•Annual inflation adjustments to minimum wage

Vermont

1 regulation

•Annual inflation adjustments to minimum wage

Washington

5 regulations

•Highest state minimum wage in the nation
•Seattle has even higher local minimum wage ($19.97 for large employers)
•Annual inflation adjustments
+ 2 more...

All 50 States

How to Choose the Right State for Your QSR Franchise

Selecting the right state for your QSR franchise is one of the most critical decisions you'll make as a prospective franchisee. Labor costs, regulations, market saturation, and consumer demographics all vary significantly by state.

Key Factors to Consider

1. Minimum Wage & Labor Costs

States range from the federal minimum of $7.25/hour to over $16/hour in Washington and California. Labor typically represents 25-35% of QSR operating costs, so wage differences directly impact profitability. Higher-wage states often have stronger consumer purchasing power, but require careful unit economics analysis.

2. Regulatory Environment

States like California and New York have enacted significant QSR-specific regulations, including predictive scheduling, enhanced worker protections, and industry-specific minimum wages (California's AB 1228 sets $20/hour for fast food workers). These regulations increase compliance costs but can also reduce turnover and improve operations.

3. Market Saturation

High QSR density doesn't always mean poor opportunity. Large markets like California (24,000+ locations) and Texas (22,000+ locations) continue to support new entrants due to population growth and consumer demand. Smaller markets may offer less competition but also smaller customer bases.

4. Real Estate Costs

While not reflected in minimum wage data, real estate costs vary dramatically. States with lower labor costs often have lower real estate expenses as well, improving overall unit economics. Consider lease rates, build-out costs, and franchiser-approved site criteria.

5. Population Trends

Fast-growing states like Texas, Florida, Arizona, and North Carolina offer expanding customer bases and development opportunities. However, established markets in the Northeast and Midwest provide stability and proven customer loyalty.

Next Steps

Use our state-by-state guides to research specific markets, then narrow your focus based on your capital availability, risk tolerance, and operational preferences. Most franchisors can provide territory-specific performance data and will work with you to identify optimal locations within your chosen state.

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