The contentious issue that is the minimum wage fight was never going to be a slam dunk. Now as the nation's biggest minimum wage hike ramps up in Seattle beginning next month, a top franchise lobby has been fighting back with a lawsuit that seeks to grant small businesses more time to comply with the law.
Seattle's City Council voted to raise the minimum wage in increments—to $15 an hour by 2017 for larger businesses with at least 500 staffers. But the International Franchise Association argues Seattle's ordinance discriminates against its members by lumping smaller franchisees with big businesses.
The national franchise group and five franchisees in the city filed the suit against the city last year. Oral arguments took place last week on a preliminary injunction motion potentially buying franchisees more time to implement the increase.
Under the ordinance, franchises are treated as large businesses because they receive the benefits of being associated with the larger franchisor network of many more than 500 employees," spokesman Viet Shelton said in an email to CNBC.
As a result, franchises have distinct advantages over the typical independent small business training, product development, and marketing support to name just a few.
We are big business when the money comes, small to pay. Franchises will pay.
Just a thought.
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