The franchise owner testified he would never have made the purchase of the Marin county stores if he was buying them for a five- year, or less, term. “I believed - I trusted McDonald’s to do the right thing,” he declared.
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February 28, 2011
Rewriting History for a McDonald's Operator
February 27, 2011
February 25, 2011
February 23, 2011
February 15, 2011
February 14, 2011
Three Little Words
Ronald Reagan said, "The nine most terrifying words in the English language
are: 'I'm from the government and I'm here to help."
But the three words that should terrify McDonald's Operators are "Long-Term
Equity".
There is no such thing as "Long-Term Equity", it's imaginary and when used
by McDonald's corporate types it's duplicitous. We only know two things about
the long term:
A) Remodel and rebuild requirements will continue to grow in expense and
frequency.
B) Every store will be scraped and rebuilt every twenty years.
Spending today's equity on McDonald's controlled real estate will not build
"Long-Term Equity".
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February 12, 2011
Check Your Local Franchise Listings
CNBC is re-running "Behind the Counter" their hour long
feature on franchising tomorrow, Feb. 13. It's been
controversial and was pulled off the air for a while because
of threats by franchisors. Below is the history.
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QSRs + OPM
I've always thought large franchise companies are akin to big governments
in that they have centralized command and control over their franchisees.
They do something else government does - they're irresponsible when
spending other people's money.
Adage reports that Burger King spent 58% of their ad budget on breakfast
(Sept. - Nov.) when breakfast only accounts for 8% of their business! And
Burger King sales were down 5% to 10%.
UBS analyst David Palmer asked, "Were they doing some good things
during breakfast but sacrificing their core menu?"
Isn't that the same thing McDonald's management did to their system
when struggling to sell espresso drinks in 2009? It's a shame billions in
voluntary franchisee advertising contributions are wasted just because some
misguided bureaucrat has a "Vision"..
A Bit of Heartburn History
Veteran McDonald's Operators will remember this groundbreaking article on the
February 11, 2011
High Stakes Litigation
If you find the legal side of franchising interesting I suggest you follow journalist
Janet Sparks. I first got in touch with Janet when she was publishing a hard-copy
newsletter on franchising. In fact, her newsletter was the first place the words
"Franchise Equity Group" appeared in any publication. Today she writes on
legal proceedings in the franchise business at Franchise Times and the website
Blue Maumau. The January issue of Franchise Times contains her article on
high stakes litigation. I recommend you pay particular attention to the last
paragraph and the comments of attorney Andrew Selden.
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February 10, 2011
February 9, 2011
How Great Entrepreneurs Think
How Great Entrepreneurs Think
Not all franchisees are entrepreneurs but for those who are - this is why they don't understand the bureaucrats who run the parent company.
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Not all franchisees are entrepreneurs but for those who are - this is why they don't understand the bureaucrats who run the parent company.
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