Introduction
Staffing shortages have become one of the most persistent challenges facing franchise businesses across the United States with 43% of U.S. businesses reporting they are short-staffed at least once a week and 70% of employers struggling to fill job vacancies in 2025.
In a 2025 International Franchise Association (IFA) survey, 37% of respondents identify the availability, quality, and cost of labor as their top business challenge, while 12% cited inflation concerns as the third most significant business challenge in 2025.
Understanding why these shortages exist and what practical steps franchisees can take is essential for maintaining stable operations and planning for the future.
This article explores the underlying causes of franchise staffing shortages, how they affect businesses, and the workforce strategies available today, including domestic hiring adjustments and employment-based immigration pathways.
The goal is to provide clear, practical information that helps franchise owners and managers make informed staffing decisions.
Why Staffing Shortages Continue to Affect Franchises
As of 2025, about 70% of U.S. employers are struggling to fill open positions, underscoring why many franchise owners struggle to recruit workers amid fierce competition for talent.
Part of this challenge stems from broad labor supply dynamics: the U.S. labor force participation rate hovered around 62.3% in mid-2025, its lowest level since late 2022, signaling that many potential workers have stepped out of the workforce entirely.
Meanwhile, even with unemployment holding at a historically low 4.1 to 4.3%, demand for workers remains high, creating a tight labor market where franchises and other employers compete with corporations offering higher wages, flexible schedules, or signing bonuses to attract talent.
How Labor Shortages Impact Franchise Operations
When franchises operate with fewer employees than needed, the effects extend far beyond hiring difficulties. Understaffed workplaces strain existing employees, 66% of workers report experiencing burnout, and 60% feel emotionally detached when their employers are understaffed, showing how labor shortages increase stress and morale issues for existing staff.
Customer experience also suffers. According to surveys, 58% of businesses reported that labor shortages are negatively affecting customer service levels, and roughly 75% have had to turn away customers or reduce operating hours because they lack sufficient staff directly harming brand loyalty and revenue opportunities.
From a financial perspective, franchises face rising costs as they compete for scarce workers. For example, 85% of restaurant operators increased wages in the past year in an effort to attract employees, underscoring how labor shortages raise operating expenses.
Additionally, sectors that rely heavily on on-site service, such as accommodation and food services, continue to exhibit above-average job vacancy rates, with 4.5% of overall labor demand remaining unfilled as of early 2025.
Rethinking Traditional Hiring Approaches
In the current labor environment, many franchise businesses find that traditional hiring strategies are less effective. In 2025, 76% of employers report talent shortages, underscoring the need to rethink how job postings and recruitment efforts attract candidates.
Hiring processes also take longer than in previous years, 60% of companies reported increased time-to-hire in 2024, while the average time to hire remains around 42 days, a pace that can discourage job seekers and delay filling critical roles.
Candidate expectations are shifting, too: competition for talent remains high, with 67% of HR professionals citing it as the top hiring challenge, and many job seekers now prioritizing flexibility and efficient application experiences.
Because nearly 70% of organizations still face challenges recruiting full-time workers, franchise owners are increasingly reassessing job requirements, simplifying application steps, and investing in local outreach or technology-driven recruitment tools as part of a broader effort to attract and retain talent.
The Role of Employment-Based Immigration in Workforce Planning
Each year, the U.S. allocates roughly 140,000 employment-based immigrant visas, and about 28.6% (≈40,000 visas) fall under the EB-3 category, which includes roles suitable for many franchise employers, from skilled workers to those requiring limited formal training.
Within EB-3, there is a sub-cap of around 10,000 visas specifically for unskilled (Other Workers) positions, a pool that can help fill long-term staffing needs in sectors like hospitality and retail where domestic hiring struggles persist.
High demand for EB-3 visas is reflected in the 2025 Visa Bulletin, which showed that EB-3 and Other Worker categories were nearing their annual limits before the fiscal year ended on September 30.
This employment-based pathway helps employers access a broader labor pool at a time when the U.S. had about 7.4 million job openings, and turnover remained notable at roughly 3.2% of the workforce, underscoring persistent hiring challenges.
How To Understand the EB-3 Hiring Process for Franchise Employers
- The first step in the EB-3 process is demonstrating a real need for workers that cannot be met by the local labor market.
Employers must define the job role clearly, including duties, requirements, and work conditions, while ensuring the position meets Department of Labor standards.
- The employer then completes the PERM labor certification process. This involves testing the U.S. labor market by advertising the position and documenting recruitment efforts.
The goal is to show that there are no qualified, willing, and available U.S. workers for the role at the prevailing wage.
- After receiving labor certification approval, the employer files an immigrant petition with U.S. Citizenship and Immigration Services.
This petition confirms the employer’s ability to pay the offered wage and establishes the worker’s eligibility for the EB-3 category.
- Once the petition is approved and a visa number becomes available, the foreign worker applies for permanent residence either through consular processing abroad or adjustment of status within the United States, depending on their location.
This process requires careful planning and compliance but can provide a stable workforce solution when domestic hiring options are consistently exhausted.
Common Misunderstandings About Hiring Foreign Workers
A common misunderstanding among franchise owners is that employment-based visas like EB-3 are only for highly skilled or technical roles. In reality, EB-3 expressly covers three subcategories: skilled workers, professionals, and “other workers” requiring less than two years of training, making it suitable for many franchise positions that struggle to find domestic applicants.
Another misconception is that hiring foreign workers undermines opportunities for U.S. workers. However, the PERM labor certification process requires employers to prove they tested the U.S. labor market and could not find qualified domestic candidates before sponsoring foreign workers, ensuring domestic labor protections remain a priority.
Some employers also think the EB-3 process is impractically slow or overly complex. While processing can take about 12–24+ months in many cases, this timeline is considered part of a long-term workforce strategy rather than a short-term fix in competitive labor markets.
Frequently Asked Questions About Franchise Staffing and EB-3 Visas
What types of franchise jobs typically qualify for EB-3 sponsorship?
Many franchise positions qualify under the EB-3 category because the program is structured to address long-term labor shortages rather than highly specialized roles alone.
Jobs that involve routine, essential tasks and require limited formal training often fall into this category. In franchise settings, these roles are commonly found in food service, hospitality, cleaning services, retail support, manufacturing support, and logistics-related operations.
The determining factor is not the brand or industry, but how the job is defined and whether it meets Department of Labor standards.
To qualify, the position must be permanent and full-time, meaning the employer intends to employ the worker on an ongoing basis rather than temporarily.
The job must also reflect realistic requirements that match what is normally expected in the industry.
Employers cannot inflate job qualifications to restrict U.S. applicants, nor can they lower standards in a way that violates labor regulations.
The role must be one that genuinely exists within the franchise’s normal operations.
The EB-3 category includes what is often referred to as “other workers,” which covers jobs requiring less than two years of training or experience.
This classification aligns closely with many franchise roles that are difficult to fill due to local labor shortages.
The eligibility determination depends on job duties, training requirements, and labor market availability rather than job title alone.
How does the government determine whether U.S. workers are available?
The availability of U.S. workers is assessed through the PERM labor certification process, which is administered by the Department of Labor.
This process requires employers to actively test the local labor market before proceeding with foreign worker sponsorship.
Employers must advertise the position using approved recruitment methods and provide clear documentation of their efforts to attract U.S. workers.
During this recruitment period, employers are required to review applicants and evaluate whether they meet the job’s minimum requirements.
If applicants are rejected, the reasons must be lawful, job-related, and properly documented.
This ensures that the process protects U.S. workers while allowing employers to move forward when genuine labor shortages exist.
The Department of Labor evaluates whether the recruitment was conducted fairly and whether the employer’s conclusions are supported by evidence.
Approval is based on whether qualified, willing, and available U.S. workers applied during the recruitment period.
This structured approach is designed to balance workforce protection with employer needs in industries experiencing persistent staffing gaps.
How long does the EB-3 process usually take?
The EB-3 process is a multi-step procedure that unfolds over several stages, each with its own processing timeline.
The labor certification phase alone can take many months due to recruitment requirements and government review.
After labor certification approval, the immigrant petition phase involves additional processing by U.S. Citizenship and Immigration Services, which can also take a significant amount of time depending on workload and case complexity.
Another factor affecting timelines is visa availability.
EB-3 visas are subject to annual limits and country-specific caps, which means some applicants may experience waiting periods before they can proceed to the final stage.
These delays are influenced by global demand rather than employer performance, making advance planning essential for businesses considering this pathway.
Because of these timelines, many franchise employers treat EB-3 hiring as part of a long-term workforce strategy rather than a short-term solution.
Employers who integrate immigration planning into their broader staffing forecasts are often better prepared to manage labor needs as their business grows or stabilizes.
What responsibilities does the employer have after the worker is hired?
Once a foreign worker is hired under the EB-3 category, the employer is responsible for providing the job as described in the labor certification.
This includes maintaining the offered wage, work schedule, and job duties.
Consistency between what was approved and what is actually provided is critical for compliance with both labor and immigration regulations.
Employers must also maintain accurate employment records and comply with all applicable labor laws, including wage and hour requirements.
Sponsored workers are entitled to the same protections as U.S. workers, and employers must ensure that workplace conditions meet legal standards.
These obligations continue throughout the employment relationship, not just during the immigration process.
From a practical standpoint, employers should view sponsored workers as long-term employees rather than temporary solutions.
Clear onboarding, training, and communication help ensure successful integration into the workplace.
A stable employment relationship benefits both the employer and the worker while supporting overall operational continuity.
Can small franchise owners realistically participate in EB-3 hiring?
Small franchise owners are eligible to participate in EB-3 hiring as long as they meet the program’s financial and legal requirements.
The government does not impose a minimum company size requirement. Instead, the focus is on whether the employer can demonstrate the ability to pay the offered wage and sustain the employment relationship over time.
Financial documentation is an important part of the process.
Employers must show that their business can support the position at the required wage, using tax returns or financial statements.
This requirement applies equally to small and large employers and helps ensure that sponsored workers are placed in stable jobs.
For small franchise operators, preparation and planning are especially important.
Understanding timelines, compliance obligations, and workforce needs in advance allows smaller businesses to participate effectively.
When approached thoughtfully, EB-3 hiring can be integrated into long-term staffing plans regardless of business size.
Final Thoughts
Staffing shortages have become a defining challenge for franchise businesses operating in today’s labor market.
These shortages are not limited to a single industry or region but reflect broader changes in workforce participation, employee expectations, and economic conditions.
Franchise owners must now operate in an environment where traditional hiring methods may no longer deliver consistent results, making workforce planning an essential part of long-term business stability rather than a reactive task.
Addressing these challenges requires a realistic assessment of both short-term and long-term labor needs.
Improving domestic recruitment efforts, adjusting job structures, and supporting employee retention remain important components of a sustainable staffing strategy.
However, these measures alone may not fully resolve persistent labor gaps, especially in areas where the available workforce continues to shrink.
Recognizing these limitations allows franchise owners to explore additional options with greater clarity and purpose.
Employment-based immigration programs, including the EB-3 category, represent one of several tools available to employers facing ongoing hiring difficulties.
These programs are structured to complement domestic labor protections while providing businesses with access to a broader workforce when local recruitment efforts fall short.
When understood and used appropriately, they can support workforce continuity without undermining opportunities for U.S. workers.
Ultimately, effective staffing strategies are built on informed decision-making and long-term planning.
Franchise owners who take the time to understand labor trends, regulatory requirements, and workforce options are better positioned to adapt to changing conditions.
By approaching staffing challenges with a balanced and forward-looking mindset, franchises can maintain operational consistency while preparing for future growth in an evolving labor market.
