Coalition of Franchisee Associations

August 8, 2015

Changing OPNAD

So the chairman says "OPNAD is changing"? Yes, the communications world is changing
and OPNAD must change with it.

But, if things are changing why does OPNAD still have to charge Operators the full 1.6%?

If decisions are being moved to the field why is the OPNAD rate still 1.6%?

A sure sign that OPNAD has too much money is their ability to fund digital menu boards -
or said another way - they have so much money they can fund any Oak Brook driven initiatives.

OPNAD is like most government agencies. They can never accept a decrease in their
budgets and they live on forever.

A few suggestions for McDonald's Operators:

* Pull out your franchise agreement(s) and look for the language that specifically requires
   you to belong to OPNAD.

* Pull out your P&Ls and total up the percentage of sales spent on all advertising and    promotion of the McDonald's business including billboards, sports teams, Ronald visits,
in store materials, - everything. Radical Operators would even include signage, uniforms  (anything with a logo) and the expense of the Dollar Menu and other discounting.

* Reflect on the above when considering the next OPNAD pledge.


Richard Adams said...

OPNAD was formed in 1966 when Lyndon Johnson was POTUS, man had not yet walked on the moon, and McDonald's hamburgers were still 15 cents. OPNAD originally charged Operators 1% of sales.

Anonymous said...

I would be willing to pay into OpNad at 1%. If they would focus on Brand and image marketing. Instead of everything that looks like PC marketing. That would leave .60% for me to spend on Local things that would truly build my sales.

There are WAY to many people wandering around calling themselves Marketing Experts at McD. And the Ad agency's. The title of Expert means they are PAID way to much.

Time to go to a Smaller more nimble Agency and a Smaller more nimble Marketing Dept. If a company can use Cows, another one can use Bubba Watson and a company can use every southern person like; (A Boxer, Football Great, Country Muisc Great and Duck Dynasty person). Where is the Creative Spark. We act like we are Champagne and everyone else is Manure. However everyone else is kicking the manure out of us. OH, wait I am only an Operator what do I know!!!!

Anonymous said...

I once, long ago, knew an operator that pulled out of OPNAD, refused to sign the pledge card and saved thousands of dollars in advertising on several stores. The Co-Op and region came down on him like 10,000 suns. He was escorted out the the Co-op meetings when the agenda turned to OPNAD. He was considered a pariah, demonized and treated with disdain by not only the region, but by his fellow operators. He was out of the system in two years. Finally, I don't care what the franchise agreement says about required advertising expenditures, you will not be eligible for growth or rewrite if you fail to sign the pledge card. Trust me, you will sleep a lot better knowing that card sits in a file cabinet somewhere in Oakbrook. The truth is the truth, whether we like it or not.

Anonymous said...

Like you said, that was long ago. Sounds like it was back when O/Os were afraid of the corporate pukes.

Anonymous said...

It's good to hear that McDonald's Operators in the USA are taking a hard look at opnad in light of Oak Brook's plan to place decision making closer to the customer but it doesn't make sense that we still pay the same amount to opnad. The co/ops would spend that money smarter.

Richard Adams said...

Occasionally we get an anonymous comment that was obviously written by
someone from McDonald's Corp. I can tell because they most often criticize
McDonald's Operators, this website, or contain vulgarities.

The comment that begins "I once, long ago, knew an operator" obviously came
out of the bowels of Oak Brook and is a corporate fantasy.

I've known many Operators who didn't belong to OPNAD and they lived long and
prospered as Operators. I'd never heard they were treated poorly by the other
Operators in their Co-Op.

If they were treated poorly they might also question their Co-Op membership.

Anonymous said...

Richard: Since there's no way to prove that I am/was an operator, and stay anonymous, all I can say is that this issue happened to a fellow operator in my Co-Op in the early 90's.I was there and saw it happen. I also don't believe your assertion that you knew many operators that didn't belong to OPNAD AND they got more stores and/or renewals. Prove're not anonymous. It's one thing to want a lower rate..another to drop out. Occasionally we get bad advice from our clairvoyant blog author.

Richard Adams said...

OK, let's take your word for it. That must have been one of the Co-Ops where
the regional staff called all the shots and could get some of the Operators to do
anything to their fellow Operators.

I did not claim that those Operators not in OPNAD were expandable. I doubt they
were but I don't keep track of every Operator's standing. But with so many
Operators not meeting the financial criteria is expandability the issue?
I'd agree that being out of OPNAD is not for the faint of heart.

I have known a number of people who left OPNAD as part of their exit strategy
during their last years as Operators.

And, I've known many Operators who lost everything in McDonald's and were
still paying into OPNAD in their last days in the business. That's just

I don't see how suggesting people examine their contracts and P&Ls could be
bad advice.

Clairvoyant? I've been called a lot of things but that's a new one.

Anonymous said...

Folks, the franchise agreement says you must spend at least 4% combined on advertising. 1.6% is NOTHING compared to the 3% some of us have to kick down for local advertising. It's a twisted system - fight at the CoOp level, or not fight at all - it don't matter peeps cuz there is really nothing you can change or do, except raise your prices!!!

Anonymous said...

you called opnad a dinosaur previously and thats even more true today, should be extinct.

Anonymous said...

Here we go again ! In order to qualify for the McD 50% "partnering " credit, you now not only have to agree to All Day Breakfast, Taste Crafted, Digital Menu Boards and Dual Point 1.0, but also you must agree to re-up participation with Opnad at 1.6% to qualify for McD funding. !!!!!!!


Anonymous said...

Operator says: "I've had it with OPNAD. I will not sign the pledge card!"

McDonald's response: "Go ahead, make my day!"

Richard Adams said...

That's how they'll treat the first and the second person, what about the 100th or 200th?

Anonymous said...

OPNAD wants more of your money; Deborah Wahl said it at least three times on the call that competitors are out spending us on value messaging nationally, that OPNAD needs more money to advertise a national value message. They will try to get it from us or our CoOp's. Once ADB does not work they will say they need to advertise BOGO Egg McMuffin to bring awareness of ADB. OPNAD is like the government the more money you give them they become irresponsible with it and want more.

Anonymous said...

when I quit paying opnad but stayed in my local coop corp came down on the coop president and told him he could not take my money in other words back then they tried to and did get the operators to look at you as a traitor they told me that if I was not in opnad then I could not be in the local coop I sent them a check every month anyway

Richard Adams said...

If that story is true it's just Management By Bulling. Is there ANY legal or contractual connections between OPNAD and the Co-Ops?