TL;DR
Pool Scouts President Michael Wagner spoke with FOX Business about the potential impact of the Raise the Wage Act on franchise owners. The act could lead to increased labor costs and higher prices for Pool Scouts' services.
FOX Business spoke with Pool Scouts* President Michael Wagner about how the Raise the Wage Act, which would raise the federal minimum wage to $15 per hour, could impact franchise owners.
Pool Scouts, a pool maintenance and cleaning franchise, provides weekly and biweekly pool cleanings for customers, and Wagner believes these services will become more expensive due to the raise in labor costs.
“Pool Scouts is the premium brand in the swimming pool cleaning and maintenance business, with 65 territories awarded to 26 franchisees,” Wagner said. “Our biggest costs are labor and chemicals. While chemical cost increases are passed directly on to customers, the labor cost increase will require our franchise owners to raise their prices for our most common services: weekly and biweekly cleanings.”
Wagner also believes the act would hurt recruiting efforts for franchise brands. By raising wages to $15 per hour, brands may find less room to further increase wages in the future.
In this story
This story was originally published in 1851 Franchise on February 15, 2021. Burnaze summarizes and links to the original reporting.
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