November 19, 2018

JIB Franchisees File Complaint Over Restructuring



   Doubtful they have a case since they're just tenants
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1 comment:

Anonymous said...

This is what happens when franchise companies' management teams don't listen to and collaborate with their franchisees. Even if the suit has ne merit, it is more and more noise, making growth impossible.

Franchisees are the largest stakeholders in franchising, not management who can just switch jobs if things go south, not shareholders. Shareholders stand only to lose the purchase price of their stock (typically a fraction of it as they can easily and freely sell at will.) Franchises stand to lose everything, even assets outside the franchised locations due to personal guaranties. They alone have the long term viability of their brands at heart.

Management ignores this reality at its peril. I am not a MCD franchisee but even I can see where this is going if the NOA doesn't get its way. I sold my MCD stock at its recent high. It may go higher but it's not sustainable unless the owners get on board.