Seattle's Fast Tracked Franchisees Are Fit To Be Tied

ItsyourturnThe Seattle City Council unanimously voted to raise the city’s minimum wage to $15 per hour. The measure, championed nationwide by labor advocates, including fast-food franchise employees, also had overwhelming public support, as well as validation from academics and economic theorists.

And yet, the devil is in the details of the rollout, as reported by in a post titled “Seattle Says Franchises Aren’t Small Businesses, Forces Them on $15 Wage Fast Track.”

Just as we share our vast point of sale (POS) experience and expertise with startup owners in order to help them make the best decisions from the very beginning, we at Sintel Systems are happy to share articles, advice and commentary about the retail restaurant market.

Here are the highlights of the post:

• Seattle’s $15 per hour target will make it the highest minimum wage in the U.S., but that’s not what has small business owners concerned. Rather, the flare-up is over what entities qualify as a small business under the measure.

 • The plan allows small-business owners seven years to adopt the $15 wage minimum. However, because franchise owners are considered as businesses with 500 employees or more nationally, they will have just three years to comply with the new law.

• As a result of the law applying these different standards, the International Franchise Association (IFA) has filed a lawsuit against the City of Seattle. “These hundreds of franchise small-business owners are being punished simply because they chose to operate as franchisees,” quoted IFA’s CEO, Steve Caldeira. “Decades of legal precedent have held that franchise businesses are independently-owned businesses and are not operated by the brand’s corporate headquarters.”

• The IFA claims a minimum wage increase to $15 will impact 600 Seattle franchisees owning 1,700 franchises and employing 19,000 workers.

As the only full-service POS provider — from software development to franchise incubator to ongoing support — part of Sintel’s commitment to our customers and industry is to share ideas and information. Whether you’re a first-time franchise hopeful, a small business owner or an established chain, it’s always smart to stay on top of the latest news in labor issues to achieve financial success.

If you are interested in learning more about Sintel’s POS systems and how our knowledge and support can impact your future success, call us for a complimentary phone consultation.

Read the full post here.

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