Coalition of Franchisee Associations

June 21, 2013

McDonald’s to Spend $1 Billion In Store Facelifts

Oak Brook continues to tell investors that "face lifts" produce a sales
increase of 6% to 7%. And, while the company talks about spending
over a billion $$$ on these face lifts it never gets mentioned that the
Operators spend multiple billions on top of the corporate capex.

Wall Street Cheat Sheet reports HERE

Deep Discounts Offered to Baskin-Robbins Franchisees to Spur Expansion

Baskin-Robbins franchisees can now amortize their required upfront $25,000 fee payment over 10 years, instead of paying for it in one lump sum. 

June 12, 2013

Comment by Attorney Carmen Caruso from Linkedin

Enlightened Franchisors Should Support The Statutory Duty of Good Faith In The Pending California Legislation.

The need for a statutory duty of good faith is to make clear that franchisors cannot attempt to negate the common law duty of good faith and fair dealing that already exists in most jurisdictions. Good faith and fair dealing is a minimal legal duty -- it is not a fiduciary duty, and it does not tie the franchisor's hands unfairly. No one should ever want to do business with someone who reserves to himself the supposed right to act in bad faith. Franchisor attorneys who try to reserve that right for their clients are hurting thefranchising business model and ultimately they are hurting their own clients. Current franchise agreements tend to be so one-sided that they scare away intelligent and well-capitalized individuals who might otherwise be attracted to franchising. Enlightened franchisors should get behind this effort to raise the bar on franchising "best practices."

June 11, 2013

The Problem With McDonald's' New Premium Menu Options

From the article:

The same-store sales figure is fickle at best. For instance, the month of May included an additional Friday, rather than a Tuesday. Jefferies analyst Andy Barish notes the former is a busier time. “That 2.4% growth in the US is more like 1.4% when you compare apples to apples and account for trade day shifts,” he adds.

“The real nirvana for this company is if they can sell premium products but also drive traffic and value. Those two things run incongruously – when you promote value, it’s hard to drive a premium product,” Barish adds.

The Problem With McDonald's' New Premium Menu Options - Forbes

June 1, 2013

McDonald's CEO Presents at the Sanford Bernstein 2013 Strategic Decisions Conference

Presentation Transcript - Seeking Alpha

Can a McDonald's Operator help us understand this McSpeak? 

In his prepared remarks Don Thompson states, 

"it’s important to note that the dollar menu continues to represent about
13% to 14% of our overall sales."

But in response to a later question he says,

"three out of four customers will use that $1 menu in some form or fashion,
whether it’s adding on a product to an extra value meal or making up their
own meal out of it. That’s about 46% of the people to you that actually
make up a meal. So we’ve got to make sure that we have a good balance
of both of those."

I'm not sure how that "three out of four customers" and the 46% relate 
to each each other but in any case how can the usage of the Dollar Menu
be that high and still only represent "13% to 14% of overall sales"?

Wendy's Last Among Big Burger Chains With Hispanics


Advertising Age Reports HERE: