By David O. Williams
The Colorado Statesman, August 28, 2016
Robert Cresanti, president and CEO of the International Franchise Association, calls the nationwide push for mandated minimum wages such as Colorado’s Initiative 101 an existential threat to the uniquely American and highly successful business model of franchising. ...
While Initiative 101 only seeks to increase the state’s minimum wage to $12 an hour by 2020, Cresanti argues that entry level jobs at current wage levels (Colorado is $8.31 an hour compared to the federal minimum of $7.25) provide on-the-job training and allow workers to move up into higher paying management jobs and even franchise ownership. ...
But Bill Phelps, CEO of Wetzel’s Pretzels and an IFA member, counters that mandated minimum wage increases in California, where his company is based, have actually boosted business by giving employees more disposable income.
“I was concerned as many franchisors were concerned when we had the minimum increases in California, first from $8 to $9 and then from $9 to $10, and what has happened is it’s been great for our business and it’s been great for the franchisee’s businesses,” said Phelps, whose company has four locations in Colorado.
Phelps also doesn’t buy the on-the-job training argument.
“They need a living wage. They need to pay their rent. They need to pay for food and other necessities, and they can’t do it at $7.25 an hour,” Phelps said of the federal minimum, which has remained unchanged since 2009. “The fact is it’s a wage that is given to a lot of people, and a lot of older people are living on the minimum wage.” ...
Copyright 2016 The Colorado Statesman