By Molly Mulebriar
A large Texas based restaurant chain with 115 locations and 5,500 employees was in a quandary. ACA was going to cost them millions of dollars whether they complied or not. What to do?”
They decided the best course of action was to franchise each location, giving current managers the first option to run their own operation. The corporation still controls how the business is run and operated through a detailed franchise agreement. Corporate income is derived from franchise fees and property rentals. The franchisees now bear the risk of running their own business.
Many locations have less than 50 full time employees, which allows them to avoid ACA mandates.
To date 24 locations are franchised.