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Updates


KANSAS CITY REJECTS SEIU-BACKED DISCRIMINATORY WAGE PROVISION

Although Kansas City is now the most recent city to be stricken by a steep wage floor increase, the IFA and the Franchise Action Network were successful in eliminating language that would unfairly discriminate against locally-owned franchise businesses.

IFA President & CEO Steve Caldeira, CFE, issued the following statement yesterday regarding the Kansas City Council’s decision to pass a minimum wage increase to $13 an hour by 2020 without language that discriminates against franchisees:

“The Kansas City Council decision marks yet another resounding defeat in the SEIU’s political and financially-motivated attempt to destroy the franchise model by treating franchisees as large businesses, rather than the small, locally-owned businesses that they actually are. Kansas City Mayor Sly James acknowledged in the Kansas City Star that the new law, 'rushed through without full research and data, is fraught with pitfalls and problems.'

"Today’s decision reaffirms that Seattle, WA is on an island by itself as once again another prominent municipality has rejected the SEIU’s blatant misinformation and propaganda campaign to mandate wage increases for franchises at an accelerated rate compared to non-franchise businesses.

“While the city’s decision to pass a significant minimum wage increase on businesses with more than 15 employees will undoubtedly result in job losses, business closures and higher prices for consumers if it survives a likely legal challenge, it is clearly a resounding victory for Kansas City franchisees who would have been forced to compete on an uneven playing field.”

Since the beginning of this discussion, IFA has encouraged the City Council to recognize the 1,400 local franchises with over 18,300 employees as the small businesses that they are, and not discriminate against the franchise business model simply because they operate under a well-known brand name, which they pay to license the trademark.

More information about IFA’s campaign is available at http://www.franchiseactionnetwork.com/kcforfranchisefairness/.

Date: 2015-07-21

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