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January 30, 2019

McDonald's Downplays Franchisee Unrest

McDonald's Downplays Franchisee Unrest, But Expects Costs To Hit Profits - IBD
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8 comments:

Anonymous said...

They are not going to care about anything until the stock price falls.

Anonymous said...

And that's the reason they won't fire Chris K yet. It will have repercussions on wall street.

Anonymous said...

I agree. The only way Clueless Chris and Stock price Steve will ever get a clue is when the stock price falls. Since the stock is trading at near high levels, I urge every operator to sell their MCD stock now! If enough of us do it, the stock WILL decline.

MMGA

Be a DUES Paying member of the NOA!

Anonymous said...

Easterbrook minimizes the importance of the NOA, yet the NOA just had to add MORE ROOMS due to high demand to the April meeting.

Steve and CK- you have awoken a sleeping giant! Get serious or get out!

Anonymous said...

MCD will insist on dealing only with the NLC and OPNAD. That is why the next election needs to purge existing members and elect those who understand the business and are not intimidated by company bureaucrat's. That is our best first move. Take over the NLC. What is the cost of all this future automation?

Anonymous said...

McDonald's is its restaurants .

Over 90% of those restaurants lay in the hands of independent franchise owners.

Franchise Owners don't need to take over the NLC or any other team. They need to ensure the process is fair and consistent. Every member, and I mean every member, of the current NLC, OPNAD ROA, SET has been hand picked by their regional leadership for their willingness to defend the "FED" position - all the way down to the "technology board".

OPNAD votes are a joke. You attend a meeting and EVERYONE, and I mean everyone, is AGAINST a certain promotion - yet - it passed the OPNAD System vote. How? Ever see the tallies? Is there an outside system monitoring the tallies? Your told its passed - and everyone, and I mean EVERYONE - shrugs and says "DAMN" - and moves on.

Have to trust the system they say - and who is that? Why is it only those "selected" to fill these positions, seem to be the PERFERED OPERATOR, that gets all the stores. You then sit in a SEED store with these ASSHATS, and they don't have a clue... about anything...operations, financials, Cost Benefits... anything. They spout out a line fed to them, like 'Ole Faithful at Yellowstone.

Sorry, but the upcoming elections should have only one set of leadership - and those should of been every NOA founder that stuck their neck out on the line for the betterment of the brand. Without that initial level of dedicated leadership - all we can expect is the same 'ole, same 'ole - as the system has many of the same failed leaders REAPPLYING. And you can be damn sure the COOP / REGIONAL / whatever the name is this week LEADERSHIP, will be trolling the vote tallies - and miraculously, your all due a Business Review in the coming months.

Anonymous said...

Is there any legal requirement that obligates MCD to deal with the NLC or OPNAD?

Do the operators own OPNAD?

Anonymous said...

There is no legal requirement for a franchisor to even recognize an independent franchisee association, let alone negotiate with it. All a franchisor is legally required to do is list the association's existence in its FDD upon written request by the association. That's it.

Indeed, franchisor are more than free to retaliate against franchisees who form associations or are active in them. It happens ALL OF THE TIME, year after year. Look at the founders of the Tim Hortons Canadian association. Their stores were plain our confiscated on a few hours notice. A franchisor can easily find franchise agreement/ manual violations in even the best run restaurants and will continually seek to find them and document them. Most states have no protection for franchisees who can lose everything (a shareholder of one share however has thousands of state and fed officials to protect him or her, and while a franchisee ha everything to lose in a battle, a shareholder only has the price paid for that share at stake.) despite this, MCD franchisees routinely show up to testify against franchisee equity protection bills. This system has serious problems. That's clear evidence.

NOA has already gotten susytem-wide recognition and anyone signing an FDD receipt undoubtedly knows that it exists and has seen its website if not already attended a meeting.

All of this said, MCD really has been put in a box on this because OWNERS have joined NOA is droves. That is the only thing protecting Blake, Mark and the other brave founders protecting equity. They need to continue to be protected by large numbers of franchisees joining NOA. Otherwise kiss NOA and your equity goodbye. Just look at history.