This just in: a federal court in Seattle has denied the International Franchise Association's request to enjoin the portions of Seattle's minimum wage law that discriminate against franchisees. The IFA "asked the court to enjoin the city from treating franchisees as large, national companies rather than the small, locally-owned businesses that they are."
I've talked about Seattle's discriminatory minimum wage law a number of times on this blog. Wile I don't oppose a minimum wage increase, the increase should be fair and should apply evenly across the board, to everyone. Treating franchisees in the same category as large businesses is just factually and legally incorrect. The court's refusal to enjoin the law is disappointing and may lead to the closure of a many franchisee-owned small businesses in the city.
According to the IFA, the decision, while disappointing, is not the end of the fight.
Given this defeat, it is even more important in my view for franchisors to consider amending their Franchise Disclosure Documents to address these discriminatory laws.