Coalition of Franchisee Associations

May 20, 2020

Don't Let The Door Hit You...

McDonald’s Offers Aid and Warns Some Downsizing Needed - Bloomberg


Anonymous said...

USAA Insurance just announced $800 million in premium abatements to its policy holders. We are supposed to be “partners” with MCD yet all we get is a $900 million deferral. Mcd loses NOTHING , only DELAYS income.

Anonymous said...

And President MCD USA states, he is DONE discussing any abatement. So operators can screw off...

I added the final sentence of sentiment... but the point was issued under the same emphasis ..

Anonymous said...

Half of the facility is closed, liability is lower. They dont pay business interuption. Seems the aplroved insurance providers are again raking it in over operators. Three legged stool my butt!

P.S. All my other non-MCD insurances... auto, home, RV... all given rebates.

Anonymous said...

You need to check with your McD. Insurance carrier, mine is giving back 20% on April and May premiums.

Anonymous said...

To the above- who is your carrier/agency?

Anonymous said...

To quote Ray;

"None of us is as good as all of us. You are in business for yourself ,but not by yourself.
Believe in the System"

Unfortunately the Corp today, especially the CEO and US President ,believe we work for them, and they serve the stockholders ONLY.

Rays system is DEAD

Anonymous said...

Not every insurance is rebating, but shouldn't all APPROVED SUPPLIERS be held to equivalent standards? (you know, that 3 legged stool thing..) (NOIT?)

But I digress - still, calculate 20% of 16.66% (2/12th) of your premium (and what PART of the premium hasn't been identified, so that number many even be less) - is an average 3.332% rebate on your premium - which you paid 100% and are still living under the McDonald's directed (the other leg in that stool) restricted facility usage requirement (after those 2 months), that your paying 100% (but deferred) rent.

McDonald's: 1
Supplier: 1
Operator: 0

Now another question, will "cashing that check" - liable you to a general release of claim? Bet most never even thought, let alone asked, that question. Rushed right out and cashed that puppy.. big 'ole smile and all! :'(

Anonymous said...

Another 3 legged stool misnomer. Our sales decline precipitously, yet when corresponding case count at Martin Brower drops (as it has), we get a hike in per case costs.

O/O = No guarantees
MCD = Doesn't care

Pray the NOA is successful in its fight against single source (monopoly) suppliers !
Bring back competition to get cost savings.

Anonymous said...

DA asked- Is this an opportunity for the NFLA or the NOA to step into this void of leadership?

No way the NFLA steps on Corps toes - MCD controls them. And Mark Salebra has been totally neutralized. The NOA is our last best hope!

JOIN the NOA- 55 cents a day is cheap insurance to protect your equity and profits.

Richard Adams said...

I'm uncomfortable with criticism of the NFLA or its leadership. As the corporate approved advisory group they cannot be the junkyard dog. That's been proven over the years whether it was the NOAB, the NLC, or the NFLA. And, it's the pattern in other franchise systems around the world.

Make peace with the reality that the corporate approved advisory group will not go to war with the franchisor. This is why the existence of the NOA is so important. Not that they should always be at war but an independent franchisee group is not constrained by their relationship with corporate.

McDonald's Owner/Operators should support and participate in both groups. Grousing about the NFLA members not falling on their swords is a waste of time.

You guys may have hit on the perfect formula for franchisee representation and advocacy.

Anonymous said...

In response to the Question.

To the above- who is your carrier/agency?

American Family

Anonymous said...

Yes—- to what Mr. Adams said above !!!!!!

Anonymous said...

I think your Corp expereince is speaking out Richard.

What I fail to understand, it the expression 'corporate approved'. Seems that can be just as easily interpreted as Corporate Controlled.

Seems in a free nation, operators have the right to ban together. Now, youll say, but corporate wouldnt have to recognize it. Thats true.. but wast it true for all the organizations? If McDonalds Corporation did the right thing, why did it take until 1972 for the NBMOA to be created. 1989 for Women? While these and many other organzations enjoy recognition today. It wasnt without a fight.

Maybe, not in McDonaldLand directly.. but a fight none the less. Now, I agree we should all want the same thing. Success inside the restaurant equals success outside the restaurant. Whats lacking is commitment, its all one sided on the side of the operator. Nobody in MCD has any real skin in the game. Everything is driven by stock. The NFLA was a renamed drop off of the NOA.

Those antiquated systems dont work. And today, there is no 3 legged stool. Everyone has a real say to the financials except the operator.

Unless your happy having bought a job, I would hope most invested to build portfolio for themself and their family.

Richard Adams said...

My corporate experience? That counts for very little these days. I worked for a different McDonald's. I worked for a growth company where all we did was open new stores and recruit new Owner/Operators. We weren't perfect but our motivations were entirely different than today. There's a big difference between working for a growth company and working for one focused entirely on financial engineering.

I base my observations on what I've learned from franchisees and franchisee groups over the past couple of decades.

"If McDonald's Corporation did the right thing". Never going to happen - not in regards to independent franchisee groups - management will always resist independent group action. I can assure you that if the NOA was, say 50 Owner/Operators, there would be nothing but bad-mouthing from Chicago HQ. Due to the NOA's size and successes McDonald's management must feel a little like General Custer at the Little Big Horn.

Anonymous said...

NOA should not care about being "recognized" by MCD. It is a formality. NOA is and needs to reman independent. In fact my personal opinion is that they shouldn't even talk to MCD unless it is how quickly to implement NOA's own agenda. NOA is operators and we will need people who know the actual restaurant business as we come out of this. We don't need financial engineers. Those days are over for the time being.

Anonymous said...

NOA does not need corporate approval. The less politically correct NOA is the stronger we are.