1851

<div id="pastingspan1" style=""><span style="">Small businesses have a strong presence in the country&#8217;s workforce. According to the <a href="https://www.sba.gov/sites/default/files/Small_business_bulletin_June_2015.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=five-things-franchisees-need-to-know-about-minimum-wage-requirements-4747" target="_blank" rel="nofollow" target="_blank">Small Business Administration</a>, smaller companies continuously add more jobs to the American economy than large corporations. They also employ nearly half of the country&#8217;s private sector workforce.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">That&#8217;s why it&#8217;s essential for the U.S. to create an environment in which small businesses are encouraged to grow. When issues that determine the way companies are able to handle their day-to-day operations, like minimum wage requirements, are debated, it&#8217;s important that they&#8217;re handled with both employers and their hard-working employees in mind.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">Here are five things franchisees to know about minimum wage requirements.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1"><span style=""><strong>What&#8217;s happening with minimum wage requirements in the U.S.:</strong></span></div><div id="pastingspan1" style=""><span style="">The &#8220;Fight for $15&#8221; movement, which aims to raise the minimum wage to $15 an hour, is building momentum in cities across the country. About a dozen cities have approved bumps in their minimum wages so far, including major business hubs like Los Angeles, San Francisco and Seattle. Even states like New York are getting involved in the debate and creating plans to eventually hit the $15 mark.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">These minimum wage hikes have a direct effect on the franchising industry&#8212; not only does it determine the cost of running a business for local franchisees, it also plays a role in qualifying individual franchise units as big or small companies.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1"><span style=""><strong>What minimum wage requirements mean for franchising:</strong></span></div><div id="pastingspan1" style=""><span style="">Drastically raising the minimum wage changes the way any small business runs their operations. Companies have to find a way to make up the additional costs that are now going to employees so they don&#8217;t end up deterring growth. Often times that results in businesses raising their prices, which is bad for attracting customers, or downsizing and firing employees.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">But the franchising industry is especially invested in the nationwide minimum wage debate because of its unique model. Traditionally, franchisees have been defined as independent local business owners who operate separately from their franchisors. But recently, local franchisees have been thrown in with big businesses. That distinction is important because in certain minimum wage rulings, small businesses have been afforded more time to comply with the high $15 threshold than their franchisee counterparts.</span></div><div><br /><div id="pastingspan1">"Franchisees need to understand that the fight right now is not about whether to rise the minimum wage, but simply that we want franchisees to be treated like other independently owned businesses," said Amy Cheng, a partner at Cheng Cohen LLC. "There needs to be a level playing field or franchised businesses will not survive."</div><div>&nbsp;</div></div><div id="pastingspan1"><span style=""><strong>The most recent update:</strong></span></div><div id="pastingspan1" style=""><span style="">Seattle, which was the first major city to commit to a $15 minimum wage, has become a <a href="http://1851franchise.com/details/4497/Seattle-Minimum-Wage-Law-Challenge-Rejected-By-Supreme-Court" target="_blank">battleground for the minimum wage issue</a>. In fact, it&#8217;s been taken all the way to the U.S. Supreme Court&#8212;the <a href="http://www.franchise.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=five-things-franchisees-need-to-know-about-minimum-wage-requirements-4747" target="_blank" rel="nofollow" target="_blank">International Franchise Association</a> (IFA) and five Seattle franchisees sued to block portions of the $15 minimum wage law that excluded franchises from other small businesses that were given an extra three years to pay their employees $15 an hour. But the Supreme Court refused to hear the decision of the lower appeals court, changing the way franchises can conduct their business in Seattle.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1"><span style=""><strong>The International Franchise Association&#8217;s response:</strong></span></div><div id="pastingspan1" style=""><span style="">The IFA has a long history of <a href="http://www.franchise.org/15-minimum-wage-is-unrealistic-and-would-jeopardize-franchise-ownership-and-job-opportunities?utm_source=1851franchise.com&utm_medium=article&utm_campaign=five-things-franchisees-need-to-know-about-minimum-wage-requirements-4747" target="_blank" rel="nofollow" target="_blank">fighting high minimum wage requirements</a>. When the $15 debate began making national headlines a few years ago, the organization&#8217;s response was swift and direct claiming that mandated increased wages would lead to higher prices for consumers, lower foot traffic and sales for franchise owners, and ultimately, lost jobs and opportunities for employees to become managers or franchise owners.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">The organization has not stopped fighting potentially damaging minimum wage requirements. The IFA maintains its stance that putting local franchises on the same level as large conglomerates ultimately closes the door on entrepreneurs looking to start small businesses and create jobs.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">After the Supreme Court refused to hear the IFA&#8217;s Seattle appeal, the organization released a<a href="http://www.franchise.org/ifa-issues-statement-in-response-to-supreme-court-ruling-in-seattle-case?utm_source=1851franchise.com&utm_medium=article&utm_campaign=five-things-franchisees-need-to-know-about-minimum-wage-requirements-4747" target="_blank" rel="nofollow" target="_blank"> statement</a> saying, &#8220;Seattle&#8217;s ordinance is blatantly discriminatory and affirmatively harms Seattle hard-working franchise small business owners every day since it has gone into effect. We are simply attempting to level the playing field for the 600 local franchise business owners employing 19,000 people in Seattle.&#8221;</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1"><span style=""><strong>What&#8217;s next for the minimum wage debate:</strong></span></div><div id="pastingspan1" style=""><span style="">As more cities and states consider raising their minimum wage requirement to $15, the franchising industry will continue to fight for its unique business model. That means furthering efforts to educate the public on the growth potential and benefits of the proven system, and working with government officials to create a healthy environment for franchises in the years to come.</span></div><div id="pastingspan1" style=""><span style=""><br /></span></div><div id="pastingspan1" style=""><span style="">In an appearance on <a href="http://www.foxbusiness.com/politics/2016/05/05/small-business-worried-by-anti-business-rhetoric-on-campaign-trail.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=five-things-franchisees-need-to-know-about-minimum-wage-requirements-4747" target="_blank" rel="nofollow" target="_blank">Fox Business</a>, Aziz Hashim, chairman of the IFA, said, &#8220;It can be a lot better if we have some certainty as to the policies the government would like to put forward. And as you know, business does well when we have certainty, and right now we feel as if there are a number of attacks on small business.&#8221;</span></div><div style="   font-style: normal;"></div>

1851 Franchise

As more cities raise the minimum wage to $15, the franchising industry will continue to fight for its unique and successful business model.

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

Five Things Franchisees Need To Know About Minimum Wage Requirements  

five-things-franchisees-need-to-know-about-minimum-wage-requirements

Fresh Coat

Fresh Coat West Greensboro - Fresh Coat Cares - Red Cross

Fresh Coat Cares Partners With the Red Cross to Refresh Community Conference Space

fresh-coat-cares-partners-with-the-red-cross-to-refresh-community-conference-space

Voodoo Brewing Co.

What’s in the 2025 FDD? A Closer Look for Voodoo Brewing Co. Franchise Buyers

whats-in-the-2025-fdd-a-closer-look-for-voodoo-brewing-co-franchise-buyers

United Water Restoration Group

Master Marketer, Community Builder: How Rodney Washington Turned Local Visibility Into Success

Master Marketer, Community Builder: How Rodney Washington Turned Local Visibility Into Franchise Success

master-marketer-community-builder-how-rodney-washington-turned-local-visibility-into-franchise-success

Preservan

How to Read the Preservan 2025 Franchise Disclosure Document

how-to-read-the-preservan-2025-franchise-disclosure-document

Woodhouse Spas

Why Woodhouse Spas Is in a Class of Its Own: Comparing the Franchise Opportunity Across the Wellness Industry

why-woodhouse-spas-is-in-a-class-of-its-own-comparing-the-franchise-opportunity-across-the-wellness-industry

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises

homebuyers-keep-buying-and-thats-good-news-for-home-service-franchises

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

Floyd’s 99 Barbershop Franchise Costs, Fees, Profit and Data for 2025

floyds-99-barbershop-franchise-deep-dive

From Franchisee to Franchisor: How Howard Picker Is Using His Experience to Drive Sustainable Growth at Floyd’s 99

howard-picker-floyds-99-barbershop-franchise-franchisor-hot-seat

KFC Franchise Costs, Fees, Profit and Data for 2025

kfc-franchise-deep-dive

Unlock Children's Potential: KLA Schools' Franchise Model Centers on Curiosity-Driven Learning

kla-schools-franchise-child-led-learning

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

The Ultimate Guide To Selling Franchises — How To Build Webinars

how-franchisors-can-build-effective-webinars-to-reach-prospective-franchisees

The Ultimate Guide To Selling Franchises: How To Budget Properly

how-franchises-can-budget-their-finances-properly

The Top 20 Handyman Franchises To Invest in for 2025

top-handyman-franchises-to-invest-in

The Ultimate Guide to Selling Franchises: How to Position Your Value Proposition

The Ultimate Guide to Selling Franchises: How to Position Your Value Proposition — Point of Differentiation

how-to-position-your-value-proposition-with-a-point-of-differentiation

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Five Things Franchisees Need To Know About Minimum Wage Requirements

MORE STORIES LIKE THIS