The impact of higher mandated pay on franchisees is contentious.
Read MoreNew York Gov. Cuomo's power play for a $15 minimum wage
A recent survey from the conservative Employment Policies Institute, a conservative nonprofit research organization, found franchisees are more harmed than nonfranchised businesses when implementing wage hikes.
The survey of more than 600 businesses found franchisees are more likely to take "offsetting steps including reducing staff, reducing hours and using automation to manage the increased labor costs caused by minimum wage increases" than are nonfranchised businesses.
This trend was more pronounced in the fast food and hotel sectors — more than 80 percent of franchised fast food owners said they would be more likely to reduce hiring, versus 58 percent of non-fast-food restaurant owners. And nearly 90 percent of franchised hotels said they would raise room rates, compared with 70 percent of nonfranchised hotels.
"Policymakers will compound the damage of a $15 minimum wage by arbitrarily targeting businesses with a recognizable brand for uniquely-harsh wage mandates," Michael Saltsman, the Washington, D.C.-based institute's research director, said in a statement.