1851

November 3rd didn’t immediately determine the winner of the U.S. presidential election, but it did see a decisive victory for proponents of the <a href="https://fightfor15.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-floridas-minimum-wage-increase-means-for-franchises-2714203" target="_blank" rel="nofollow">Fight For $15</a> with a narrow majority of Floridians voting in favor of Amendment 2, which will raise the state’s minimum wage to $15 an hour by 2026.The passing of the new minimum wage represents a big win for labor organizers, but a potential regulatory headache for many business owners in the franchise space.&nbsp;Currently, the federal minimum wage stands at $7.25 an hour. As one of 29 states with state minimum wages in excess of the federal standard, Florida’s minimum wage already stood at $8.56 an hour before the passing of Amendment 2.&nbsp;Now, the state has until September 30, 2026 to get that wage up to a full $15.&nbsp;Here’s what Florida’s business owners and franchisees need to know about the change.&nbsp;<h4>What to expect</h4>The Florida Policy Institute <a href="https://www.floridapolicy.org/posts/a-minimum-wage-boost-would-improve-equity-for-2-5-million-floridians-and-bolster-the-states-post-pandemic-recovery?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-floridas-minimum-wage-increase-means-for-franchises-2714203" target="_blank" rel="nofollow">estimated</a> that 2.5 million Florida voters will see a pay raise resulting from the measure. Business lobbyists have fought against the wage increase, arguing that it will spike costs, kill jobs and pass expenses onto consumers.But Florida isn’t the first state to aggressively hike minimum wages. New York has passed similar initiatives, resulting in a jump from $9 an hour to $15 an hour in just three years.&nbsp;U.S. Chamber of Commerce Executive Director of Labor Policy Sean P. Redmond wrote in a <a href="https://www.uschamber.com/article/new-york-s-minimum-wage-case-study?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-floridas-minimum-wage-increase-means-for-franchises-2714203" target="_blank" rel="nofollow">case study</a> that New York’s wage hike had forced employers to slash jobs, cut overtime, and in some cases, postpone opening new businesses. Redmond and other business advocates take a dim view of New York’s wage hike, but Florida’s approach will be unique.&nbsp;1851 Franchise Magazine’s <a href="https://1851franchise.com/what-floridas-economic-outlook-means-for-franchisors-2714154#most-recent">extensive guide on Florida’s business outlook</a> for franchisees is a good place to start understanding the unique business environment in the Sunshine State.&nbsp;Florida’s plan to raise wages takes a much more gradual approach than New York’s. Instead of three years, the state hopes to raise the wage in six.&nbsp;Florida’s Amendment 2 raises the minimum wage to $10.00 an hour starting September 30th, 2021. “Each September 30th thereafter, the minimum wage shall increase by $1.00 per hour until the minimum wage reaches $15.00 per hour on September 30th, 2026,” the amendment’s <a href="https://initiativepetitions.elections.myflorida.com/InitiativeForms/Fulltext/Fulltext_1801_EN.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-floridas-minimum-wage-increase-means-for-franchises-2714203" target="_blank" rel="nofollow">ballot summary</a> reads.&nbsp;<h4>What the experts are saying</h4>Overall, top economists remain divided over the wage increase. Labor advocates point to millions of workers having more money to spend and potential knock-on effects from the increased pay, but some studies have found that employers cut employee hours so much the workers actually made less.&nbsp;A 2019 Congressional Budget Office <a href="https://www.cbo.gov/system/files/2019-07/CBO-55410-MinimumWage2019.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-floridas-minimum-wage-increase-means-for-franchises-2714203" target="_blank" rel="nofollow">study</a> found estimated a federal $15 minimum wage would boost the pay of 17 million Americans while killing 1.7 to 3.7 million jobs.&nbsp;“There is no consensus among economists. Economists are all over the place on this,” Fed Chairman Jerome Powell <a href="https://kustoff.house.gov/media/press-releases/kustoff-questions-chairman-jerome-powell-state-our-economy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-floridas-minimum-wage-increase-means-for-franchises-2714203" target="_blank" rel="nofollow">said in response to the study</a>.&nbsp;Florida’s structured, transparent wage hikes over the next six years give franchisees and entrepreneurs the opportunity to brace for the coming changes. As always, individual businesses in Florida will thrive or die on their ability to adapt to a changing world.

What Florida’s Minimum Wage Increase Means For Franchises

1851 Franchise

While America still doesn’t know who its next president will be, one thing became clear on November 3: The Florida small business community is in for a major shakeup. 

what-floridas-minimum-wage-increase-means-for-franchises

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

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

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

What Florida’s Minimum Wage Increase Means For Franchises

MORE STORIES LIKE THIS