Franchise Equity Group

February 15, 2026

A Good Business Requires Good Government

Even the finiest of journalists can be a little short-sighted now and then. This article by Jonathan Maze and Lisa Jennings appears to blame the turmoil in the Minnesota restaurant business on Homeland Security law enforcement activities. 

The problem in Minnesota goes back decades and has been exacerbated by decisions made by the current Minnesota Governor and Minneapolis Mayor. The world seems to have forgotten the riots of 2020 (The Summer of Love). There were riots in many blue cities, but Minneapolis was the hot spot. It was easy for Minnesota elected officials to cause the rabble to rise up again.

It's difficult, if not impossible, to run a small business in a city or state governed by incompetent and corrupt officials. We believe it's best that businesses stay at arm's length from the government. But sometimes, businesspeople have to get involved to ensure the community's survival.

The civil unrest in Minneapolis is the symptom. The disease is the worst state government of the fifty.

For Minnesota's restaurants, another economic nightmare - Restaurant Business


Wendy's Sales Plunged in Fourth Qaurter

The worst quarter in at least 20 years - Maze

February 4, 2026

McDonald's Marketing Wizard, Paul Schrage Passes

For those who haven't heard, Paul Schrage passed away on January 28th

         Paul's obituary is HERE       


February 2, 2026

The Bigger They Are ...

43-store Subway franchisee files for bankruptcy - Maze

From the Recent Kalinowski Operator Survey

Stolen from Mark's Winter 2026 survey:

"We asked our franchisee contacts “Regarding the changes to the National Franchising Standards, effective January 1, 2026, are you in favor of them or not?” As it turns out, every single one of the franchisees who responded to this question said “No.” This is the first time in the 20+ year history of our McDonald’s Franchisee Survey that all respondents to a Yes-or-No question have all provided the exact same answer. As one franchisee put it: “I see a lot of civil disobedience and conflict in the future.”

January 21, 2026

QSR Magazine Drive-Thru Study

Somehow, every year, the annual QSR drive-thru study gets further and further away from reality. To claim that Taco Bell does a better job in drive-thru than McDonald's is silly. It's not a reasonable comparison. Taco Bell's AUV is $1.2 million. It's like comparing an Ace Hardware store to a Home Depot.

Maybe even sillier is comparing a KFC to a Chick-fil-A.

QSRmag drive-thru report - 2025

8000 New McDonald's

This kind of press release/article is generated ahead of the regular earnings announcements. In this case, McDonald's will release Fourth Quarter 2025 and year-end results on February Eleventh.

Will they make the 8,000-store goal? No one knows, given McDonald's global scope. We do know one thing: stakeholders in McDonald's don't care. Stakeholders want earnings, not the number of locations. If PJB delivers the expected earnings, stakeholders will not fuss over whether he expanded the system by 8,000 stores or 2,000 stores.

This is just part of the ongoing corporate charade that McDonald's Corporation is still a growth company.

A company focused on the number of global locations is not concerned with the profitability of the individual unit.

McDonald's is opening 8000 new restaurants - Geekspin

January 13, 2026

And So It Begins

McDonald's Canada freezes price of small coffee and McValue meals

"And will they be willing to sacrifice? I think McDonald's is very clearly saying we will sacrifice profits and future earnings over foot traffic."  Jo-Ann McArthur- Nourish Food Marketing,

January 12, 2026

Anonymous Seeking Attorneys

Anonymous asks:

"In prior years, you used to have links or contact info for Franchise Attorneys. In light of current circumstances, it would be very helpful if you were to start posting them again, IMO"

I found that, in doing so, people expect it to be an endorsement of certain law firms. To endorse a firm, I would need to know its track record of success and it's client base. I don't.

If attorneys had something like baseball trading cards, there would be no stats on the back. So much of what they do is confidential.

By listing attorneys, I end up getting questions I have no answers to, nor should I.  

Having said all that, I will offer that the NOA has retained the services of Robert Zarco in Miami.

Also, one of the top-rated "franchisee only" firms is Dady and Gardner in Minneapolis (the safe part of Minneapolis).

A good source for franchise attorneys is the AAFD. Their listing is at 

https://www.aafd.org/franchisee-legaline/

Also. there are a few firms that try to represent both franchisors and franchisees. I don't see how that works. How can a legal team go into a courtroom and argue passionately for the welfare of a franchisee and then go to the courtroom down the hall and argue passionately for the welfare of a huge franchisor?

January 9, 2026

Have You Guys Seen This?

Needless to say, I don't see everything a McDonald's franchisee receives. But while researching, the AI search engines found an interesting page on the McDonald's corporate website. McDonald's Operators may have already seen this, but let's take another look.

It appears to be a supplemental page for inclusion in the franchise disclosure package provided to prospective franchisees or operators getting a new store or a franchise renewal. The exact content of this page doesn't seem appear anywhere else (that I've seen). 

The last sentence caught my eye. The language doesn't seem to be included in other documents. It states:

"McDonald’s will holistically assess the outcomes of those decisions in relation to providing great value to our customers."

I'm not trying to play lawyer here, but in my layman's opinion, this closing sentence negates all other corporate statements on the matter.  I think it says, regardless of all other rhetoric, that McDonald's will do whatever it wants and implement this policy arbitrarily.

Here's a link to the page on the corporate website

When Corporate Managment is Staffed by Ivy League Liberals This is What You Get

Minneapolis McDonald's location tries to refuse service to ICE

January 7, 2026

The Land of 10,000 Communists

(This appears off-topic, but I'll get to the business issue.)

Minnesota was once a pretty normal place. The Twin Cities were
always liberal, but they were balanced politically by the small towns and the farming community. But, as agriculture changed and the cities grew, the state became more liberal. When that happens, voters tend to elect people with room temperature IQs. The stupid people take over, and we are seeing the result.

One of the contributors to this trend is the dominant newspaper, the Minneapolis Star-Tribune. Working in concert with the dominant talk radio station, WCCO, the news that Minnesotans get is very slanted and hides most negative news about democrats.

But there's a funny free enterprise side to this story. The Star-Tribune has helped turn Minnesota into an anti-business, high-tax state, and now they have to take their business elsewhere. The newspaper is closing its Minneapolis printing plant and moving its printing operationacross the border to Iowa, laying off 125 people in Minneapolis.

Good job, Star-Tribune, you helped destroy a perfectly good economy, and now you're trying to sneak out the back door.

.

January 5, 2026

Anonymous Says:

 Anonymous

Happy New Year! Thank you for this blog. When will the FTC look at the price fixing that is currently in place. The new Value Standards that will require following Deloitte pricing or not be able to obtain and or keep your restaurants. NFLA and NOA why are you all sitting quiet. It is the year of the horse, not the horse's ass. Wake up or go broke.
1/02/2026
Richard Adams
I don't see the NOA sitting quietly. They had a call-to-action memo out to their members almost immediately. But keep in mind, PJB timed this so it would be difficult for Operators to react, given that the Operators who are involved with their stores were dealing with their highest-volume month. And others were on vacation or enjoying family time. Even if someone figured out a way to raise hell, nobody in Chicago or in the media would have been around to listen.
So the criticism is unfair, but if nothing happens over the next few weeks, it will be justified.
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