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.
8 comments:
* Of course, some franchises charge a markup on products, supplies, etc., but that's usually problematic, and most stick with just royalties.
* Some franchisees lump required advertising fees in with their royalties. A McDonald's Owner/Operator might say, "I pay 5%, plus OPNAD, plus Co-Op, plus my rent. Then with the remaining 75% I pay my bills."
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Plus tech fees. Plus excessive mandatory mobile app promos
Joe E. still selling off his stock!
https://finance.yahoo.com/news/insider-sell-mcdonalds-usa-president-012154619.html
The headline on Restaurant Business' daily E-mail, at the top of the page, says in bold font:
"McDonald's franchisees question the worth of opening new units"
Pajama Boys everywhere are squirming.
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They will be looking for more “uber drivers” (as per chris k) to replace us shortly. Time to SELL MCD stock.
WHY is the USELESS NFLA silent on this???????
BOYCOTT NATIONAL FIELD OFFICE MEETING in Vegas. TAKE A STAND!!!
I yearn for the days that we had a brave, courageous, real leader like Reggie Webb in operator leadership!!!
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