Food Fight: Franchisees Caught in the Middle

WSJ reports an old story: In an effort to convince consumers to open their wallets wider, franchisors are not only requiring franchisees to officiate (and pay) for new promotions, but they are also requiring franchisees to serve new products, extend operating hours and hand over more profits.

Cited: McDonalds McCafe remodel cost at $125K, and also the Burger King marketing fund reallocation from soda (estimated $25M in 2010 and to $40M in 2012).