Small Employers Weigh Impact of Providing Health Insurance

Like many franchisees, Robert U. Mayfield, who owns five Dairy Queens in and around Austin, Tex., is always eager to expand and—no surprise—has had his eyes on opening a sixth DQ. But he said concerns about the new federal health care law had persuaded him to hold off.

"I'm scared to death of it," he said. "I'm one of the ones sitting on the sidelines to see what's really going to happen."

Mr. Mayfield, who has 99 employees, said he was worried he would face penalties of $40,000 or more because he did not offer ...