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Franchising Faces More Challenges from States and Cities
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Recent minimum wage increases have targeted franchise chains including the New York State minimum wage increases for fast food outlets and the Seattle wage increases that lumped franchisees in with large companies. However, there are changes in the works that can cause more problems for franchisees.  A number of cities have attempted to make changes that can further impact small businesses and franchise companies. Proposed actions include a Fair Scheduling law in Minneapolis that would penalize businesses for not providing advance notice for scheduling changes. There are also proposals in some cities that would prohibit background checks and drug screening for job applicants. Other proposed changes include mandatory sick days and a prohibition that prevents criminal background questions being placed on a job application. The bottom line, is that a number of cities and states are looking to enact employer mandates intended to protect and provide more benefits to employees.Franchisors and franchisees need to be constantly aware of these types of changes being introduced in their market areas and get involved in combating regulations and laws that can negatively harm their franchise.
Posted on November 8, 2015 at 5:37 PM
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