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Why the Franchise Industry Needs to Increase Franchising Education Activities

Ashley Stewart, Staff Writer for the Puget Sound Business Journal writes on a proposal to implement a $15 minimum wage in Seattle, Washington. To describe the implications of this proposal on small businesses and especially franchisees Stewart uses the example of Subway franchisee, Matthew Hollek.

Matthew Hollek leveraged his house to start a Subway franchise. He calls it a small business, but city leaders disagree. They say franchise owners like Hollek should be included in the same category as big businesses such as Amazon.com when it comes to raising minimum wage.

To not classify franchisees, especially unit franchisees as small businesses is wrong

It’s one of the major sticking points emerging from Seattle Mayor Ed Murray’s phased-in proposal to reach a minimum wage of $15 citywide. Small businesses, under the plan, don’t have to implement the new wage as quickly as big companies.

Many politicans either don't understand the franchisee franchisor relationship or simply fail to acknowledge the truth. 

Many politicans just don't get it and this will be a reocurring issue in many cities and states. Some council members said they’re sticking with the plan to group franchises in the higher tier. Councilmember Kshama Sawant, a force behind the $15 minimum wage campaign, said franchise owners can afford to pay their workers more. “In order to be a franchisee, you need to be very, very wealthy,” she said.

Both franchisor and franchisee groups need to do a better job educating certain groups about our industry 

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About Ed Teixeira

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Public Profile

Ed Teixeira is the founder and owner of FranchiseKnowHow, which publishes articles and provides advice for prospective and existing franchisees and franchisors. He is also COO of  FranchiseGrade.com. Ed's most recent book is The Franchise Buyers Manual, a comprehensive guide for prospective franchisees. He has also published the Home Care Franchise Industry Update for the past 3 years. Ed has worked in the franchise industry for over thirty five years. He was a franchisee and has served as a corporate executive for firms in the retail, manufacturing, healthcare and technology industries. Over the course of his career Ed has been involved with over 1,000 franchise locations and has transacted international licensing in Europe, Asia and South America. His articles and interviews have appeared in numerous publications and media. Ed has spoken before various groups including: the International Franchise Association, the International Franchise Expo, European Healthcare Conference in Luxumbourg and the Chinese Franchise Association in Shanghai, China. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country. 

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Franchise Consultant