Coalition of Franchisee Associations

September 24, 2023

Royalty Screwed - Part II

Is it a service fee or a royalty? - Jonathan Maze

I guess I need to say it again - The comparison between McDonald's and other chains regarding the amount of "royalty" being charged is absolutely meaningless. Most (almost all) franchise chains leave the real estate responsibilities up to the franchisee. Check out their websites. They tell the prospective franchise they will "assist in the location choice," meaning you find the site or the space, and they'll send someone around to look at the location before you sign your lease. Then, they'll send your contractor a set of building plans. The typical franchisor does not charge rent or control the real estate. Royalty is the only % the franchisee pays and is the franchisor's only income stream.

September 23, 2023

Will Someone Adopt This Orphaned McDonald's?

Closed due to a fire more than two years ago, this store in the town of Ramona, north of San Deigo, appears to be caught up in the corporate and governmental quagmire. Lots of finger-pointing going on.

During one call to corporate, the CBS reporter was told company records showed the location to be open and operating. That's embarrassing!

Could this be a sign that:

* Owner/Operators are getting too many stores and are too spread out geographically? Or,

* McDonald's Corporation has downsized itself into complete incompetency?

Or both?

On location report from CBS8 in San Deigo

Another CBS8 report calling the McDonald's "blighted" - Yikes!

September 21, 2023

Look For The Union Label

For those McDonald's Operators who feel sold out by McDonald's Corporate executives who have been working with organized labor, you should understand...

Being brainwashed by liberal educators at colleges like Harvard and Georgetown, these people are programmed to think of organized labor as blood brothers. This brainwashing is indelible. As long as they are just giving away other people's money, these corporate liberals will invariably roll over for organized labor.
It's in their DNA.

September 20, 2023

Front Page Owner/Operator Comments

Anonymous has left a new comment on your post "Maze on CA Legislation":

 Fellow McDonald's Operators

 Our franchisor, McDonald's Corporation, has committed an egregious travesty against us by sitting down and negotiating an agreement in California with the SEIU, without the participation of the affected California owners.  By sitting down with the Union, McDonald's has done what the SEIU has not been able to achieve so far by itself, that is McDonald's has given legitimacy to the Union and the right to represent McDonald's fast-food workers without a required election or Union organizing process. Why should the SEIU bother to go through the arduous process of organizing and having elections in every store when the company is already collective bargaining with the union without owner operator input? The SEIU now has legitimacy and a seat at the table, without having to spend tens of millions of dollars to organize the stores and hold elections. McDonald's circumvented the normal processes, and the operators are now stuck with this “negotiated” result.  We've been sacrificed by the corporation so that they might avoid joint employer status. And the resulting setup of the wage board, with its union members, guarantees future wage increases on an annual basis without the threat of strikes,  lockouts, or negotiations.

 The SEIU won.  McDonald's Corporation won.  And the operators lose big time!  Yet the company has the gall to call us “partners”.

 With partners like this, you better be watching your back!


From another McDonald's Operator:

Anonymous has left a new comment on your post "Maze on CA Legislation":

Yet another glaring example of how today’s McDonald’s senior leadership works.

Identify a threat to their power, influence or money

Parachute in at the scene of the crime

Take charge

Make an announcement that sounds like it’s supportive of Owner Operators, gain limited O/O support, often a few who have other motivations such as operational difficulties, a next gen who is stuck, or simply who want to grow quickly and who are willing to publicly support, say or do what they’re encouraged/told to say or do

Disappear behind closed doors,, solve the problems that affect them directly

Make sure that every single one of their needs/wants are met or exceeded

Reappear and make a victory announcement, include an obscure statement of tepid, bare-bones support for any negative consequences for Owner Operators that is the smallest $ commitment possible that also directly benefits them

Disappear from the scene of the crime

Every single move that McDonald’s has made in the last number of years has disproportionally benefitted them; any benefit to any other interest- including suppliers or owner-operators has been coincidental, however, the coincidental benefits are the headline that is promoted.

In this case, while owner-operators benefitted by beating back joint employer status, we and only we will pay for it. McDonald’s avoided liability, and to top it off, prices will necessarily skyrocket and what a surprise, McDonald’s wins again with increased top line sales that is absolute incremental income, straight to the bottom line while Owners are left to fend for themselves with our bottom line- they will not help us.

This is absolutely a win/win for the company, perhaps a net loss to every owner-operator in CA. McD’s beat back what threatened us, and they paid for it with our cash flow. There is no other way to see this, this is a clear public example of how they operate today. If they were acting in any other way besides pure self-interest, McDonald’s would give back every dollar in increased price taken to us to pay for the avoidance of joint employer status, allowing us to secure our financial solvency.

By the way, to the owners who made public statements in support with hopes of favors returned- you are about to find out how that works too. They owe you nothing, while you may gain short-term recognition, you will be forgotten. Your use to them is finished, you’ve been wrung out.

This is the benevolent, helpful and altruistic partner who calls us “McFamily.”

Who would do this to their own family and what kind of person does this and actually feels like they have done anyone other than themselves a favor?

I’ll tell you who: a narcissistic predatory sociopath, that’s who.

Posted by Anonymous to . at Sep 20, 2023, 6:16 AM

September 17, 2023

Opinion - Wall Street Journal on California Business

"Restaurants in affluent areas typically pay higher wages and can more easily raise their prices to compensate, but those in lower-income areas will struggle. Will farm workers in Fresno pay $7 for a Big Mac? An analysis by Oxford Economics estimates the $20 minimum wage would lead to a loss of 5,100 fast-food jobs and more than 300 establishments."

How California does business - WS Journal

September 15, 2023

NOA in the News

NOA slams California fast-food law as "draconian"

Does Your Business Depend on Americans Having Cars?

These articles were published on Thursday AM before the strikes actually began. Liz Peek sums up the auto industry. 

The long-term struggle here is with the activists and politicians who want to force citizens out of their cars and into trains and buses. Yes, they want to destroy the industry.

Joe Biden could destroy our auto industry - Fox News

It didn't make it into the article, but in this interview, the Ford CEO said the reason EV sales have slowed and dealer inventories are growing is because they have sold the initial production to "early adaptors." In other words, that hippie neighbor of yours who just had to have an EV has one, and the market isn't really expanding. Meanwhile, standby to give your hippie neighbor a ride to work when his EV isn't charged.

Ford CEO on electric vehicles - Fox News

September 11, 2023

This Week's Chuckle

McDonald’s will begin virtual focus groups with some owners and operators as a part of an ongoing civil rights audit - CNBC

From the article: "The memo said the process is voluntary and identities would not be shared with McDonald’s, and another notice said the groups would have no more than 12 people. An owner told CNBC that some franchisees were expressing concern about the 12-person panels and potential retaliation by the company."

Identities not shared? Yeah, right, a large international law firm retained by McDonald's Corp. and a consulting firm with who knows how many people running around the office who also consider McDonald's Corp. to be the client.

September 10, 2023

California Crime: Coming to a City Near You

It's hard to understand how these high-powered business people do not have enough clout with local officials to at least protect their prime retail. Apparently, the force of liberal government is just too strong.

Beverly Hills high-end retail stores shuttered

CA store owners sound off on retail theft - Fox News

Democrat policies turning Beverly Hills into a ghost town - Opinion

September 8, 2023

Press Coverage of "Crew-Pour"

Springfield State Journal-Register reports

Franchisor Selling Franchisee's Store

If you've ever sold a franchise to another franchisee, you've probably been frustrated by the intrusion of the franchisor into the transaction. Your reaction might have been "Corporate acts as if this is their store". 
That's because that's indeed how they think. It's their store, and they'll decide who buys it and for how much. 
We'll never know who did what in this Dickey's fiasco, but it's not unusual for the corporate folks to overstep their boundaries.