February 08, 2021

Franchise Association, 15 Business Groups Praise Bipartisan Legislation

(WASHINGTON, FEB. 8) – The International Franchise Association (IFA), along with 14 other business groups, today applauded the introduction of the bipartisan Wage Increase Fairness Act in the House of Representatives.

The legislation, which is sponsored by Reps. Scott Peters (D-CA) and Rodney Davis (R-IL), provides “franchise fairness” regarding minimum wage levels across the country. The bill ensures that all businesses are treated equally with regard to minimum wage policy, preventing ordinances from requiring independently owned franchise businesses to implement new minimum wage levels at a faster pace than non-franchised businesses.

“This common-sense bill ensures that all small businesses are treated equally, regardless of the name on the door. By enacting ‘franchise fairness,’ Congress can better ensure a level playing field for our country’s 733,000 franchise businesses. IFA commends Reps. Peters and Davis for once again sponsoring this bipartisan legislation,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs.

Additionally, IFA led a letter, signed by 15 business groups with franchise members, including the American Hotel and Lodging Association, the Asian American Hotel Owners Association, the Coalition of Franchisee Associations, the National Restaurant Association, the National Retail Federation, and the U.S. Chamber of Commerce in support of the legislation.

The Wage Increase Fairness Act follows several localities, namely New York City, Seattle, and Minneapolis, increasing the minimum wage at a faster rate for franchises than for non-franchised businesses.

Importantly, the legislation only ensures all businesses are treated equally. States and localities would still be free to go above the federal minimum wage level. The bill would only prevent states and localities from requiring that franchise businesses implement new minimum wage levels at a faster pace than non-franchised businesses.

America’s 733,000 franchise businesses employ more than 8 million Americans. More than 30 percent of franchises are minority-owned, compared to 18 percent of non-franchised businesses.

To read the full industry support letter, please click here: https://www.franchise.org/sites/default/files/2021-02/Letter%20FINAL%20-%20Wage%20Increase%20Fairness%20Act%202021.pdf