116 Business View Magazine - July 2016
a negative impact on their business, with 82 percent
saying the impact would be “significant.”
The Franchise Business Leader Survey also reveals
concern about the enactment of discriminatory in-
creases in the minimum wage. More than 85 percent
of franchisor and franchisee members believe that re-
cent efforts by some cities and states to increase the
minimum wage will negatively impact their business.
In addition, more than two-thirds of franchisors and 85
percent of franchisees reported that their businesses
have already been “negatively impacted” by the Afford-
able Care Act.
“The business model for franchising is under assault,”
said Matthew Patinkin, a franchise owner of Auntie
Anne’s Pretzel shops. “First, the complaint by the gen-
eral counsel at the National Labor Relations Board
leaves franchise business owners like me uncertain
and very concerned about the future. The complaint
targets McDonald’s, but all other franchises are also at
risk. I’m also concerned that Obamacare has changed
the definition of full time to 30 hours per week. This
is an irrational requirement of the Affordable Care Act,
and will cause small business owners like me to reduce
the hours of some of our workers. Rather than helping
employees, this change will make life more difficult and
more costly for lots of hardworking families.”
Key findings from the business outlook include:
Franchise businesses will add 247,000 new direct jobs
this year, a 2.9 percent increase to 8.8 million direct
jobs, over last year. That is on top of the 235,000 fran-
