The National Owners Association called California’s new AB 1228 “draconian” and expensive to franchisees in a memo distributed to its members.
“The new ‘AB 1228’ legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant,” the advocacy group said.
“These costs simply cannot be absorbed by the current business model.”
Among the bill’s key components would raise the minimum wage for fast-food workers to $20 per hour and would apply to restaurants with at least 60 locations nationwide, except for restaurants that make and sell their own bread.
“California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity. Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry,” California Governor Gavin Newsom said.
From Fox News:
The state Senate passed AB 1228 Thursday. The NOA said franchisees, suppliers and McDonald’s "must engage to support our California McFamily" and identified steps it said they each should take with ideas ranging from the franchisees establishing 501(c)4 entities and state political action committees (PACs) to create an official arm to lobby the government.
