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

Children's Lighthouse

Children’s Lighthouse Wraps Up Q1 With Two New Openings and Continued Industry Recognition

childrens-lighthouse-wraps-up-q1-with-two-new-openings-and-continued-industry-recognition

Happy Joe’s Franchising

Why Texas Is the Perfect State To Open a Happy Joe’s Franchise

why-texas-is-the-perfect-state-to-open-a-happy-joes-franchise

Seniors Helping Seniors®

Photo of two people, with white hair, sitting on couch, smiling at each other

Seniors Helping Seniors® In-Home Care Services Expands in Manassas and Fredericksburg, Virginia

seniors-helping-seniors-in-home-care-services-expands-in-manassas-and-fredericksburg-virginia

BooXkeeping

Tech-Driven Bookkeeping: How BooXkeeping Franchisees Are Embracing the Future

tech-driven-bookkeeping-how-booxkeeping-franchisees-are-embracing-the-future

Fitness Premier

Fitness Premier's State-of-the-Art Facilities and Multi-Discipline Approach Fuels Franchise Owner Success

fitness-premiers-state-of-the-art-facilities-and-multi-discipline-approach-fuels-franchise-owner-success

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 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

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

FAT Brands Becomes First Restaurant Franchise To Accept Bitcoin for Royalty Payments

fat-brands-becomes-first-restaurant-franchise-to-accept-bitcoin-for-royalty-payments

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Hooters Bankruptcy - Chapter 11 - April 2025 - 1851 Franchise

Hooters Files for Bankruptcy, Sells Restaurants to Franchisee Group

hooters-bankruptcy-chapter-11-april-2025

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

Franchise Deep Dive: Studio Pilates Franchise Costs, Fees, Profit and Data

franchise-deep-dive-studio-pilates-franchise-costs-fees-profit-and-data

Franchise Deep Dive: The UPS Store Franchise Costs, Fees, Profit, and Data

franchise-deep-dive-the-ups-store-franchise-costs-fees-profit-and-data

Lindora’s New President Discusses Franchise Growth and the Future of Health and Wellness

lindoras-new-president-discusses-franchise-growth-and-the-future-of-health-and-wellness

SoBol’s President and COO Shares Growth Journey and Franchise Vision

sobols-president-and-coo-shares-growth-journey-and-franchise-vision

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

Five Things Franchisees Need To Know About Minimum Wage Requirements

MORE STORIES LIKE THIS