October 17, 2017

Survey Says - Take My Stores, Please

Survey: Some McDonald’s franchisees being pushed out by remodel costs - NRN
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2 comments:

Anonymous said...

With all the stores being sold, does anyone know what is doing to the sales prices? I would bet that the onerous remodel requirements are driving down sales prices and reducing equity for Operators. The partnership is DEAD

Modern & Progressive

Richard Adams said...

Reinvestment requirements have been decreasing Operator equity for twenty years. At first it was modest things (new tabletops, clamshell grills) but it's grown to serious levels over the years.

But the other equity issue is more contemporary because of management's decision to force so many operators out of the system. This is bringing too many stores to market.

It's basic supply and demand and there's too much supply.
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