Coalition of Franchisee Associations

June 29, 2015

From "Thanks for all the great comments"

To the previous commentor. I'm the guy that wrote the "this is your business" post. Why would you worry about passing on a site and getting sold out. I swear you all (except the person that agreed with me) sounds like we are living in the USSR. Your are giving the company way too much credit and power. Can you imagine the PR right now if they were trying to purge O/Os while also trying to sell us company owned restaurants? I used to blame the company for a lot, but now I am thinking they have chosen a lot of O/Os who aren't entrepreneurs. Because of what you do, you're worth a lot more than you think. This is hard work, and you all could easily find other ventures or opportunities. Yet, I see it so often that you think you would be nothing without them. Again, it sounds like battered wife syndrome. When I mentioned taking back the system, we can do it together. Again, they can't ignore us if we speak up and are prepared for the battle. They will back down; I can say that I, personally, have seen it countless times.

We need to start a group outside of the NLC. I think the company picks these people, anyway. Once we do that, they will listen. Let's stop acting like children and start speaking up and together (instead of in the hallways of a hotel conference room) outside of co-op meeting. You all are better and stronger than this.


Richard Adams said...

* "sounds like we are living in the USSR" - A mature franchise system is a form of socialism, this is why McDonald's Operators are asked to do so much, "for the system".

* "They will back down; I can say that I, personally, have seen it countless times." - Bullys always back down. Because McDonald's Operators most often rollover under corporate pressure McDonald's has developed an entire generation (or two) of executives who have no idea what to do when an Operator stands up for themselves, they've never seen it before and become clueless.

Anonymous said...

MCD franchisees need to form an independent franchisee association, join it and fund it. Until then, you will be the host to temporary management parasites.

Anonymous said...

I am an O/O that has been bullied by McD and the banks, and had the fear of large debt hang over my shoulders. Its time to live as an entrepreneur and not like I owe the world. It would be simple to walk away, leave my whole life investments to them, but then I would have to also live with failure forever.

I rather fight and die, than to live and lose. I am glad to see that many of us are awakening from our nightmares. This is not what I signed up for. And incidentally, I make McD more money year after year.

Anonymous said...

I think it would be a mistake to form an organized effort to go to war with MCD. The main reason is that we couldn't win. Plus, it would not be good for business. The big stick they hold is the threat of "no growth". Well, growth is no longer a slam dunk. The single best thing an operator can do is to make better business decisions about your own organization. Many operators are not eligible for growth simply because they have too much debt and that debt was encouraged by MCD and they gave "landlord wavers" to the banks to provide the loans. For MCD to now say you have too much debt to grow when they played a major role in having you take on that debt tells you what kind of people they are. My opinion is that when asked to take on new debt for another program is to have your CPA do a pro forma on the cash flow once you start servicing that new debt. If it is not good for you simply don't do it and show them why. They will come back with sales projections that will show that the new debt is justified. If those sales projections are not realized after you have assumed new debt they will do nothing and suggest that you assumed the risk like in any business deal. The single best thing an operator can do is to take care of themselves. Get professional advice and do what is best for your organization. Banding together to challenge them you will be isolated and many operators will not go along with it for fear of retalatation. This is not in your best interests, in my opinion. Make better business decisions.

Anonymous said...

"The problem with the "I think it would be a mistake to form an organization....." writer's hypothesis is the "simply don't do it and show them why" scenario has always branded the O/O as uncooperative and put a target for extinction on his back. It is difficult for a smaller O/O organization to exist when all the guns of an enraged franchisor are turned on him. The original premise that the Franchise Equity Group would provide a coherent forum does not work without the ability to leverage the O/O system to offer assistance legally and other forms of aid i.e., the ability to speak as a united group.

Otherwise it just reverts to be a whining post.

Anonymous said...

I'm the person who wrote the original post, and I agree with the last comment. The example I used about my co-op is so relevant here. I speak out and challenge the company. Other than ostracism, I have had no real problems. They talked about my "tone in meetings" and "how to word things" during a business review. I reminded them that I do not work for them and that I pay their service fees. Like Richard said, I got a deer in the headlights look. It was like they hadn't prepared for that. They are so not used to being challenged, as Richard said, that they have assumed the power. It is the same with pricing. Our co-op voted down the continued OPNAD dollar addiction. I had went off of the price point before the vote. I received an unfriendly visit and was told to change the price back to $1. I told them to send a certified letter, demanding me to do that, and I would have the price changed the following day (after getting the letter). That was 3 years ago. Guess what? No letter has arrived, and the issue was no longer discussed. I was rated "expandable" and had no issues with my review other than the conversation I referenced, which also didn't go their way.

Back to my co-op, there are very few like me. That is why I mentioned "they're with you in the hallway." You bring it up and no one says a word other than a couple of O/O's who think like I (we) do. It is not enough for the company to understand how many of us feel that way. That is the complete reason for such a group. As I've mentioned, I'll use my name. I have the right to talk to O/O's and form a group to advise McDonald's. Do you think the NLC, RLC, co-op bozos are doing it for you? As Henry Ford said "whether you think you can or you think you can not, either way you're right.

I really am having a tough time with some of the comments of people being so worried about them. If you feel that way, why are you hanging in here. I'm being critical of McDonald's so that they will change and get better. I know Titanic cliches are trite, but I thought of one anyway. I think some of you are seeing the iceberg but are afraid the captain will get mad at you if you alert him to it. That is no way to run a business. You're supposed to be in this because you are a leader.

Anonymous said...

The above post is an excellent commentary on where we are as O/O's. It is time for us to push back as it relates to our business's. OpNad is wasting millions of dollars monthly. The NLC is fiddling while Rome is burning. And finally there is No leadership left in Oakbrook or the regions. It is time to PUSH Back.