Coalition of Franchisee Associations

January 31, 2020

McDonald's Franchisees Are "Wealthy"

“It’s a really good thing when you have wealthy franchisees who are making a lot of money,”  MCD CEO said. “It means their mentality is to be aggressive to invest in the business.”

McDonald’s perplexing traffic problem - Restaurant Business


Howard Penney said...

So I guess the new CEO is going to be asking its "wealthy" franchisees to invest more in the business?

Anonymous said...

Einstein once stated, the definition of INSANITY is to do the same thing over, and over, and over again - expecting a different results. The results have always been the same for operators, except on a worsening scale.

It will not improve in a system where OPERATORS willfully place other OPERATORS in jeopardy. OPNAD, NFLA, SET, TECHNOLOGY committees should not, nor should it ever be allowed to place pricing, financial or investment requirements on the operator.

You got your field brief, you walked the facility and the financials - you made a 20-year investment decision that shouldn't be allowed to be upheaved every 6-12 months.

Field votes need to be handled openly by the operators, with COOP Roll-Calls securely published to the field. Items need to be openly and honestly debated. But MARKETING committees like OPNAD, COOP and the like have no authority to commit financially any franchisee by locking their pricing. For corporate to threaten franchisees over pricing is a another violation.

Anonymous said...

Wealthy=fat, like the hog about to be slaughtered and eaten.
Keep all of those rents and fees coming!
When you are rapped out we have the right to take your restaurant for free (literally) and sell it to another operator and keep that sales price!

And if you have the nerve to object, we send you our legal bills to pay when you try uselessly to fight for your families' lives.

Oh, and if there is a state franchise law proposed to protect you , we will force you to testify against it to save your business,for now.

Anonymous said...

Dude, if a state has a motion to enact franchisee protections, I would pray the NOA is sitting front and center to support those measures.

Anonymous said...

all operators reading this blog would be well served to read up on Wisconsin's Franchising laws.

Read the above link. Check out Chapter 135.03..... It essentially protects a franchisee from undue harm at rewrite.

Richard Adams said...

If there was a broad-based movement among franchisees representing many brands in a particular state there would be little harm in McDonald's Owner/Operators participating. However, if any McDonald's Owner group made legislation their primary initiative it would be a waste of time and resources. And it would lead to the eventual demise of that group.

And, based on my considerable experience in this field, McDonald's franchisees would become a considerable source of funding for the effort, because you are "wealthy".

Proposing franchise legislation takes, lawyers, consultants, lobbyists, and various franchisee association groups. All that takes money and McDonald's franchisees would immediately become fundraising targets, again, because you are "wealthy".

Oh, almost forgot - the "wealthy" would also be asked to make campaign contributions to the
elected officials who would sponsor and support the legislation. Based on history those officials would likely be big-government liberals who are also in bed with organized labor. Suddenly you'll wake up with some really strange bedfellows.

Anonymous said...

I'm not certain operators (in general) are wealthy.... I don't see a McDonald's franchisee on the Forbes 400 list..

Richard Adams said...

No, just former McDonald's CEOs.

Anonymous said...

The answer.. franchisees would be far richer with 50-seconds KVS times..

To ensure this, McDonald's will create a fresh beef program that requires 80-seconds grill time. McDonald's Corproation will continue to focus on minuscule requirements, while making it more difficult for restaurants to comply with those same requirements.

Remember, it was corporate think tanks that demolished the 7 service steps, that included suggeative selling.. before they reinvented the novel idea that suggestive selling builds sales!

Hopefully they'll reinvent the bin, for speedy service and higher quality scores. SMH.

Anonymous said...

Is anyone else worried about going to WWC , a worldwide destination, with the Coronavirus imminent??!

Richard Adams said...

Dr. Mark Segal, who often appears on Fox News, says Americans are vastly overreacting to coronavirus.

Anonymous said...

Over 200,000 infected with a 14 to 1 contact rating, and unforetold number of Chinese dead. Severe enough to have the Chinese Communist Party talking leaderahip changes.. is a real concern.

Its impact to US Worldwide is nominal, as theres no Asian flights occuring.

Theres others things to fear... like CASHFLOW investments.

Anonymous said...

Does anybody know who the final night entertainment will be at WWC? It better be darn good because after hearing the NEW reinvestments (required), sure to be announced at WWC, this "wealthy " franchisee will be broke.

Protect your Equity- JOIN the NOA

Anonymous said...

"Is anyone else worried about going to WWC , a worldwide destination, with the Coronavirus imminent?"

I'm MUCH more worried about the profit destroying "strategies" that Chris K and team will infect the business with.

Frequent hand washing won't keep you clear of that.

Anonymous said...

Just wait- the upcoming BBV2023 plan will firmly place you on the path to insolvency.