After California lawmakers passed a landmark fast-food bill, an independent advocacy group of McDonald's owners is pushing back against what it says will be a "devastating financial blow" to its franchisees in the state, according to a memo to its membership viewed by CNBC.
It includes a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, starting April 1.
The National Owners Association, an independent advocacy group of more than 1,000 McDonald's owners, projects in the memo the bill will cost each restaurant in the state $250,000 annually.
McDonald's sent its own letter to its restaurant system on Monday, which was viewed by CNBC.
The new legislation eliminated the threat of joint franchisor-franchisee liability, which McDonald's said would "destroy the franchise model in California and strip thousands of restaurant owners of the right to run their business."
Persons:
Gavin Newsom's, McDonald's, Roger Delph
Organizations:
CNBC, Gov, Labor, National Owners Association, National Restaurant Association, International Franchise Association, IFA, [ Service Employees International, America, Team, Industrial Welfare Commission
Locations:
California