September 21, 2010

Rebuilding Your Landlord's Building?

Now here's a rebuild that probably
needed to happen. This Green Bay
store was built in 1958 and was
Ray Kroc's unit # 91.

But that still does not mean that it
makes sense for the Owner/Operator
to pay for the rebuilding of a building
owned by McDonald's Corporation.
As we've written before:

"When the early remodeling policies were developed McDonald's did not
hold vast amounts of real estate equity in secret subsidiaries . Today the
McDonald's real estate empire is an "off the books" operation with no
disclosure and is based largely on myth. When Operators pay to improve
these properties any increases in value will accrue to the "off the books"
owners, not to shareholders, and certainly not to Owner/Operators. These
billions in real estate equity will remain safe from prying eyes and
available for "off the books" manipulation."

Article is HERE



Richard Adams said...

And this does not mean that rebuilding a store opened in the mid-1980s should be a candidate for a rebuild. Unless it was run as a McOpCo for any length of time. In that case the facility was ill-maintained and probably needs to be torn down - but not at the Owner/Operator's expense.

Anonymous said...

I've read your email about opnad and it makes sense. Will that topic be discussed on this blog?

Richard Adams said...

Nope, that's more appropriate for an E-mail discussion. If you are a McDonald's Owner/Operator and not on our E-mail list please send me a message.

However, do not use your "partners" address we can't assume that's secure. Use your private address.