Coalition of Franchisee Associations

May 31, 2012

Judge Allows Racketeering Claims against Moe's Southwest

"In the lawsuit, franchisees allege that the franchisor has been stealing money from them through a convoluted deceptive kickback scheme connected to its supply chain."

Judge Allows Racketeering Claims against Moe's Southwest | BlueMauMau:


May 22, 2012

We're Gonna Need a Bigger Crew

NRN on analyst's visit to innovation center:
"Back-of-the-house upgrades could expand capacity 
in McDonald’s restaurants up to an  estimated 30 
percent ..... Those improvements include a high-density
prep line in the kitchen that would allow for increasing 
menu complexity while reducing overall energy costs."

Increasing menu complexity? Oh, goody.
I'm thinking a "high density prep line" means more crew people shoulder to shoulder
creating "high density crew labor" ?

NRN reports HERE

May 21, 2012

We Quote an Analyst After Visiting McDonald's

Last week McDonald's held their annual Investor Day and took analysts on a tour of the
Innovation Center. An analyst wrote:

"The company also touched on margins as its deep value message has been more important 
than ever in certain markets given the European crisis. CFO Pete Bensen commented that in 
markets where deep value is necessary the company will focus on traffic over margins
as typically initial margin pressure eases as you retain traffic. The company commented that 
its product pipeline is as robust as ever, and promotional food events continue to be key."

May 18, 2012

WSJ on Franchising - The Big Get Bigger

>>>>> The Quandary of Large Multiples vs. the "Hands On" Operator

There's a slight difference between the ratio of McDonald's stores
per Operator in the USA as stated by McDonald's Corporation and
by Franchise Equity Group. While I don't keep an inventory of the
names on every franchise agreement I know enough to identify

I believe Oak Brook would count every person approved as an
Operator and divide that number into the total number of stores
in the country.

In other words, a twelve store operation with the original Operator 
and their two children (who are approved Operators) all functioning
as one entity would be counted as three operators by Oak Brook.
I'd count that as one operator. But there's no winning this numeric
argument because there are variations all over the board.

The fact is, the ratio of stores per Operator is higher and will keep
growing into the future.

I continue to hear the small Operators described as a "liability""
to the corporate side.