June 8, 2017

Go Ahead, Change the OPNAD and Co-Op Contribution ... Just Don't Change the Franchise!

The four percent for advertising and promotion continues to be our featured post
because of the great Operator comments we've received.

Over here >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

The most recent breaks down the 2.0% for OPNAD and 1.3% for Co-Op, yada, yada.

McDonald's veterans have seen these contributions move around over the years.

OPNAD started out at 1.0% in 1966, went to 2.0% for a few decades, then back to 1.5/1.6%
for a while. Co-Op contributions have changed constantly, sometimes on an annual basis.

This has been happening since the first days of McDonald's TV advertising. And it was all
acccomplished without messing with the franchise agreement.

Why now, does McDonald's want to open up the franchise agreement for renegotiation?

It's simple - while McDonald's Operators aren't watching there will be other changes to the franchise agreement that won't show up until the last minute. 

Beware of control-freaks bearing "gifts".


Richard Adams said...

Remember, the NLC or your Co-Op BOD does not have the authority to change your franchise agreement.

Anonymous said...

But O/O "leadership" knows what's best for us, NOT!