IFA Expresses Opposition for Raise the Wage Act

July 17, 2019


Jenna Weisbord, 310-995-0839

IFA Expresses Opposition for Raise the Wage Act

H.R. 582, "Raise the Wage Act" Would Create an Unlevel playing Field for Franchise Businesses

(WASHINGTON, July 17)— The International Franchise Association (IFA) today announced its opposition to the Raise the Wage Act, following Congress’s failure to make concessions to the bill that would offset its negative economic effects on small businesses.

In a letter sent to Congress, IFA noted that the failure to adopt the Wage Increase Fairness Act (H.R. 3515), as a bipartisan amendment to ensure that franchise businesses are treated equally when cities, states, or the federal government increase the minimum wage, was a missed opportunity for Congress to take business owners’ concerns into account.

“It is of critical importance that any minimum wage bill incorporates reforms that ensure a level playing field for local franchise owners,” said IFA Senior Vice President of Government Relations & Public Affairs Matt Haller. “Without a level playing field, local owners are at an enormous competitive disadvantage when competing for talent. Franchise owners will bear the brunt of these job losses as states and localities react to federal efforts and implement additional policies.”

The Congressional Budget Office (CBO) states the incremental increase of the federal minimum wage to $15 per hour by 2025 would have disruptive impacts on employers, particularly small business franchise owners, as well as negative effects on the job market for many first-time and entry-level workers.

To view IFA’s letter, please click here.


About the International Franchise Association
Celebrating 58 years of excellence, education and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.