The Franchise Owner's most trusted news source

Log In / Register | Jun 29, 2016

How Franchisors Can Short Circuit Independent Franchisee Associations

Benjamin Lawrence
Prof. Benjamin Lawrence

Benjamin Lawrence, assistant professor of food and beverage management at Cornell University's School of Hotel Administration speaks about how franchisors can short circuit independent franchisee associations from fully developing.

5:06 minutes (2.34 MB)

McDonald’s Now Has Bids for Refranchising Plan in China, Hong Kong, Possible $3B Deal

McDonald's on restaurant wallOAK BROOK, Ill. —One day after the Service Employees International Union released a letter to hundreds of global firms about the financial risks of McDonald's refranchising program in selling off 3,000 restaurants across Asia, the world's largest hamburger chain landed more than half a dozen bids for its China and Hong Kong stores. If successful, the auction could lead to a possible $3 billion deal.

McDonald’s Comps Rise Higher in Q1 than Big Burger Competitors

Egg McMuffin
McPick poster on a McDonald's window. (photo by BMM)

OAK BROOK, Ill.—Amidst the burger wars the largest three burger chains continue to show strength. Of the big three, McDonald's same-restaurant sales were up the highest, by a Big Mac-sized 5.4 percent in the United States during the first quarter of 2016.

Faced with European Antitrust, McDonald’s Could Go After US Franchisees

While the Service Employees International Union is pushing hard for higher wages for U.S. fast-food workers, augmenting strikes and protest with legal action, the recent news that a coalition of Italian consumer groups has filed a European Union antitrust action against McDonald's is disturbing, even for franchisees.

Capital Spending Requirements Put Franchisees in a Tight Spot

McDonald's has instituted a turnaround plan involving burger customization that may impose up to $125,000 in new investment costs on already struggling franchisees, according to the Wall Street Journal. The $125,000 price tag for McDonald’s burger customization program follows renovations undertaken by about half of McDonald's restaurants in the past decade, which cost participating franchisees upwards of $650,000.

McDonald’s Stock Buyback Plan Aids Officers, Not Franchisees

Wall Street's BullOAK BROOKS, Ill.—With slumping sales and negative press, McDonald's announced a new "turnaround plan" last month to restore growth and excitement to its brand and to unlock financial value. There is another part to its aggressive agenda.

Down Again in May, McDonald’s Makes Changes

Robert Gibbs, photo from Wikipedia
Robert Gibbs at his last press conference for Pres. Obama.

OAK BROOK, Ill. – McDonald's Corporation announced Monday that its same-restaurant sales for the United States was down 2.2 percent for May, lower than expectations.

McDonald’s Workers Swarm HQ to Demand $15 Wage

McDonald's workers protest at its worldwide headquarters before its stockholder's meeting
Workers march Wednesday at McDonald’s HQ. (photo: Berlin Rosen)

OAK BROOK, Ill.—The Service Employees International Union announced that it had organized the largest protest in history against McDonald's (NYSE:MCD). According to the union, 5,000 cooks, cashiers and workers marched Wednesday afternoon on McDonald's corporate office in Oak Brook, Illiniois.

Woes Worsen for McDonald’s Largest Franchisee Worldwide

Labor protests against McDonald's franchise in Brazil, Arcos Dorados
Workers protest against McDonald's in Sao Paulo, Brazil after unions filed lawsuit. photo/Berlin Rosen

NEW YORK –Arcos Dorados Holdings Inc., McDonald's largest franchise owner worldwide in terms of systemwide sales and number of restaurants, is in a mess of trouble. Not only did the publicly traded company declare this week that its first-quarter loss was widening, it also revealed that it is out of compliance with McDonald's Corporation's franchise agreement covenants.