State CFO to pull $2 billion of assets away from Blackrock
On a different not, when does this madness stop with these promo costs? At what point in time does somebody with a spine step up? It is completely out of control and getting worse by the day.
To the above poster...it will not stop with McDonald's new franchising architecture, bringing franchisees in with absolutely no restaurant experience, never owning a business BFLing them several restaurants most knowing no better.
And when they BFL them McDonald’s minimum ROI is 15%.I know nothing about the BFL process but I have NO doubt that it’s far better for the corporation than it is for the operator and as the above poster said, “most knowing no better.” I am sure that there are Owner-Operators who started with a BFL and now own whatever they have, if so- that’s fantastic, probably couldn’t have done it without the offer. I’d be interested in knowing the details of today’s “deals”. McDonald’s pledged $250m to help traditionally underserved community members but I’d bet a lot that they aren’t giving anyone anything. I suspect that the $250m is NOT a gift as the “pledge” implies, they’ll get a 15% annual return back to them at a minimum and I’ll bet it’s more.I’d love to see a transparent accounting of these funds that were “pledged” or whatever verbiage was used to imply that it’s a gift.
In my humble opinion, the BFL has been a positive for the McDonald's system. Hundreds of successful McDonald's Owners got into the business through a BFL. Of course, this management team can prostitute anything. But remember it's a lease, you don't own anything. The percentage that McDonald's charges the Owner should not be the focus because the idea is to get the Owner to buy the business and assets. If McDonald's charges an exorbitant percentage that option exercise never takes place. Historically the BFL has been a positive for McDonald's Owners/Operators, but the pajama boys can come up with any concoction and call it a BFL.As for a transparent accounting? Forget about it..
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