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Good News For Franchisors On Health Care

Here’s some good news for franchisors this Thanksgiving weekend.

President Obama’s healthcare initiative earlier this year had alarmed many franchisors who felt they could no longer afford to pay their employees. That was certainly the word coming from McDonald’s, who had said they were going to stop paying health care wages for their 30,000 hourly workers.

But as the Wall Street Journal reported, the government rolled back those plans earlier this week, which is a sign that the president is taking on board the advice of America’s leading franchises, who had objected to paying the high level of cost proposed under the plan.

Providers of "mini-med" policies, like McDonalds, which caps benefits at a low level, had objected that they would have trouble meeting those levels, in part because they have high administrative costs.

McDonald’s expressed its satisfaction with the move and other retailers sounded pleased with the move.

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