Wednesday, June 25, 2014

Unions press to treat franchise retail operations as big businesses; it could be an issue for career-changers considering buying franchised units

Cities and states raising minimum wages may not realize that many retail stores – especially fast food – bearing national brandnames are actually owned and run by individuals or “mom and pop” families that have simply paid for the right to use the brand as a franchise.  Or they might not care, if the real goal is to unionize as many small businesses as possible.  That’s the thrust of an op-ed on p. A13 of today’s Wall Street Journal by Steve Caldeira, link here, an editorial that includes a video. The title is “A union ruse to organize mom-and-pop stores; The SEIU’s campaign to raise the minimum wage redefines sandwich shops as big businesses”. 
Most of the laws, such as in Seattle, give much longer for small businesses to comply with raised minimum wages.  But they often consider any franchise to be part of a “large employer” which, when you consider how a business operates, is false. It is true that larger franchises do give a lot of supervision and training to owners.
Employment outplacement centers often encourage some clients to consider franchising.  I frankly don’t like the idea of dedicating my own resources to promote somebody else’s brand.  

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