IFA to Sue Seattle City Council Over Minimum Wage Hike

The Nothwest news reports that the IFA will sue over the $15 minimum wage increase.

A bold but necessary action by the IFA. Franchisee associations should join in the lawsuit or hopefully file Amicus Brief:

The Washington, D.C.-based International Franchise Association says the ordinance is discriminatory because it requires franchise owners to raise their minimum wage as quickly as any other big business rather than under the rules passed for other small businesses."The City Council's action today is unfair, discriminatory and a deliberate attempt to achieve a political agenda at the expense of small franchise businesses owners," says IFA President and CEO Steve Caldeira.

Treating all franchisees the same as large businesses is patently unfair. 

Under the new measure, businesses with fewer than 500 employees have seven years to phase in the $15 minimum wage. Big businesses and franchises - regardless of employee count - must raise their minimum wage to $15 within three years, or four years if they provide health insurance.

The notion that franchisees are wealthier than other small business owners cannot be supported by fact or verified

City Councilmember Kshama Sawant, a leading supporter of the $15 minimum wage effort, has said repeatedly that franchise owners are wealthier than other small business owners and can afford to pay the higher wage sooner even if they have a small number of employees.

Seattle races to the bottom

Does anyone not expect rents to rise as soon as landlords in the poor areas of Seattle realize that their tenants (the ones who aren't phased out becausee they have no skills) have hundreds in extra cash that they can immediately and easily grab? Well done, Seattle.

When are these social engineers going to ever learn?

And where are the people who are let go going to live after better workers take the now $25/hr jobs?

franchisor theft

Oh no the employees might get some of the franchise CEO,s money! What will ed do now! We can't have this! Quick write a bunch of junk that makes the franchisee think the franchisor is on their side! Take a long walk on a short pier ed.

Rents will not rise

Seattle rents will not rise. The Socialist who got the $15 wage has said that her next initiative will be the imposition of rent control.

Seriously.

Seattle doomed itself

Rent control. Phew. How about bloviayting control? That Socialist just cannot seem to stop to talking and needs the nanny state to correct her behavior for her own good.

Why do these clueless folks believe that it a Subway shop owner's job to create and sustain a Middle Class in the United States?

That isn't his job. His job isn't sell a product that the public will pay him for, hopefully a sum greater than the cost to make it. That's it.

If the city council wants to create a middle class, it should stop punishing people who have nothing to do with the policies that destroyed the Middle Class. They should focus their wrath on the U.A.W., first.

Bad News For Franchisor Losers

Some franchisors are happy with the higher wages. It will put the losers out of business. Franchisees in systems like Quiznos will have nowhere to turn when costs start rising. Cut staff? Most of them are already working 80 hour weeks now. Raise prices? Losing additional customers will offset any gain caused by higher prices. Also, Quiznos makes its money selling product to franchisees. Lower retail prices mean more sales. Franchisee profitability is of no interest to operators already 200 million dollars in the hole. Systems like Subway will continue to make money and the franchisee co-ops will ensure that any increased costs are absorbed. For Quiznos look for one final bankruptcy and then liquidation. Follow The Buzzards.

Since the "exploitive"

Since the "exploitive" business model of franchising depends on the CHEAP Labor and the CHEAP capital of franchisees who are entrapped into long-term devised contracts where they may never make a dime in profits and struggle to stand at break even, it seems obvious that an increase in the minimum wage will do great harm to Franchisors and franchisees alike/

It really offended someone when I suggested that franchising has "social" consequences for the people because most franchisees cannot afford to pay "living wages" and stay in business themselves.

Made me laugh that this person insisted that franchisees are "independent" little businesses. Truth is that the franchisor may start out as the little independent business man who can grow a chain because he can exploit the franchisees under current law and the FTC Rule that protects franchisors from fraudulent inducement in the sale of the frandhises to the innocent public.

Re: Since the "exploitive"

You have been saying the same thing for years.

You and your husband didn't need to buy a franchise and fail. No one forced you to do it.

Re: Since the "exploitive" again

When will you realize that all of the hard earned slave wages goes strait to the Franchisor Ceo's pocket! You think your sooooo intelligent being an @ss to those who sacrifice their hard earned money just for the pockets of the cheating wealthy. (and that's saying it nice) Unlike ed and calling people names out of frustration that his kind is losing this corrupt way of life!

Re: Re: Since the "exploitive" again

You are so right franchisors have been a big part of the economy for the past 50 years.

Franchising has been successful because it has ripped off so many people for so long. It is surprising that this franchising Ponzi scheme has fallen apart.

And those darn successful franchisees like Aziz Hashim are co-collaborators with the exploitive franchisors. You should tell Aziz to be less successful.

Re: Re: Re: Since the "explotive" again

Besides Aziz, we will also need to tell the vast majority of franchisees who continually do well with their businesses, have strong relationships with their franchisors and other franchisees, continue to expand (how is that possible given what is said here - but it is so very true that most franchisees do well and expand) and laugh at the folks here that just continue to blame everyone but themselves for either picking bad franchise opportunities or running crappy businesses that they also need to be less successful.

The out of world sentiment on this site about franchising is so far from reality it is amazing. There are good franchisors, bad franchisors, crappy franchisors and even some great franchisors. There are also good franchisees, bad franchisees, crappy franchisees and many like Aziz, great franchisees.

To complete this post let me not forget the important closing that is needed on bluemaumau - hahahahaah Follow the Buzzards Quiznos Quiznos Quiznos Qtard. Hopefully I have not left anything out.

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Since the "exploitive" business model of franchising depends on the CHEAP Labor and the CHEAP capital of franchisees who are entrapped into long-term devised contracts where they may never make a dime in profits and struggle to stand at break even, it seems obvious that an increase in the minimum wage will do great harm to Franchisors and franchisees alike/
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No. The business model is predicated upon finding greedy people who think they are entitled to profit by exploiting the unskilled labor pool simply because they have scrapped together enough money for a franchise fee and build out cost. Or greedy people who think they are smarter then the other guy and plan to start up a franchised unit and them quickly sell it to some one else. I see these folks all the time, who have no real intention of being owner operators and got burned by not correctly calculating the build out cost. Most would be franchisees do not have an immigrants work ethic, they don't see franchising as way to employ themselves and eek out a long term living by carefully managing costs and low wage employees, rather they see perhaps a few years of long hours until they business volume builds and they can slip in some manager who will for some reason treat the business as their own and the unit will happily churn out fat profit margins to the owner due to the worker bees who are not paid enough to live without government assistance.