March 16, 2017

Tim Horton's Franchisees Rebel Against Restaurant Brands

Restaurant Brands International taking advantage of franchisees


Anonymous said...

Wow that is a scary article. Every McDonald's franchisee should read it. The difference between 3G and McDonald's is that 3G is just doing that exact same thing as McDonald's but in a quicker time frame. If you have noticed McDonald's has moved that way remember we use to have the purchasing committee now it is the advisory council basically all power has been striped away, many more comparisons the way McDonald's is moving to this article kind of scary.

Richard Adams said...

Actually it's McDonald's imitating 3G and how 3G has handled Burger King - sell off company stores, strip corporate to the bone, eliminate services to franchisees, favor larger franchisees and getting rid of the less capitalized guys, and sucking as much cash out of the business as possible. The financial community loves what 3G has done with Burger King and is demanding that all large restaurant companies follow 3G's lead, and that's exactly what McDonald's management is doing. And so we have the 2020 plan.

Investors in restaurant companies no longer want to be in the restaurant business, they just want the cash flow from the franchisees.

Anonymous said...

fascinating. Although, i think the list of complaints filed could be relevant to any franchising company. Unless there's a court/judge willing to go against a franchising agreement, Franchisees will lose mostly all the time. It's an unfortunate reality in the franchising industry. you sign your life away for -- a chance -- to be successful.

Richard Adams said...

Forming an independent franchisee association isn't just about litigation. There's nothing in this article about lawsuits. Yes, they've hired a law firm but that just makes sense and tells the company's management they are serious. Franchise companies can bully and beat up on individual franchisees. They can't do that in a room full of franchisees who are communicating independently. Litigation should be a possibility but the last option.

And again this shows that corporate-controlled advisory boards accomplish nothing.

Short term this group is doing more by speaking out about the internal problems than they could by filing lawsuits. We can bet that shareholders of Restaurant Brands International will be watching these developments.