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coupons cutting my comission

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I work for the franchise Fantastic Sams. We are paid a base salary or 50% comission which ever is greater. The company and the owner put out coupons for haircuts. These coupons decrease our comission. $8.95 coupon verses $12.00. They are constantly in circulation. Is this legal? This is a national franchise but we work in Alabama. (don't laugh) :) Thank you and have a great day!!!!



I am not sure that the franchisor or your employer are violating any employment laws. As far as franchise laws are concerned (both federal, Uniform, and state) the franchisor and the franchisee (your employer) has a right to take actions to increase business. Obviously they have to be lawful, darn it!

So the offering of coupons is generally speaking a lawful step to increase business. It is worth noting that your employer (the franchisee) is stating that your pay will be the larger of either a base or a commission. Thus, in either case you will get paid every pay day. Right?

Your "complaint" so to speak, is with the coupons as they tend to diminish your commission per client. That is true from a pure mathematical viewpoint. However, the goal of the franchisor and franchisee is to increase new and repeat customers through this marketing strategy. Properly used this is a proven and successful technique.

So I wish you well in 'Bama and hope business prospers for you.

Mark B. Replogle

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