Franchise Discrimination

Protecting Brands

Several states have pursued legislation that would discriminate against franchise businesses versus other independent businesses. On wage and hour, paid leave or other issues, IFA believes lawmakers should treat franchise businesses the same as all small businesses.

Discriminatory Minimum Wage:

Discriminatory minimum wage increases falsely consider local franchises as "big" businesses, not individually owned and operated businesses, exposing them to shorter timeframes to phase-in wage increases.

IFA is working with Congress, and state and local municipalities to ensure all businesses are treated equally with regard to minimum wage policy, preventing ordinances from requiring franchises to implement new minimum wage levels at a faster pace than non-franchised businesses.

Some states or localities that have enacted discriminatory minimum wage policies are Seattle, New York City (Quick Service Restaurants only), and Minneapolis.

Other states or localities that have aimed to enact discriminatory minimum wage policies, but now have policies that provide equality for franchises include: St. Paul, Baltimore, Los Angeles, San Francisco, Kansas City & St. Louis, State of New York, and Chicago.

Predictive Scheduling:

Local governments across the country are beginning to pass ordinances regarding predictive scheduling. Employers in certain areas and industries will be required to provide their employees with advance notice of their schedules and be subject to fines if they change employee schedules within the allotted timeframes. 

Most of the predictive scheduling laws on the books and under consideration apply specifically to retail and fast food companies of a certain size, and usually include part-time and seasonal employees in their scope.

Some states or localities that have enacted discriminatory predictive scheduling policies are Philadelphia, Seattle, San Francisco & Emeryville, New York City, and Oregon.

Currently, there is legislation introduced in Los Angeles, and the State of Washington.

For inquiries on discriminatory franchise laws, please contact