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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