Franchisees at McDonald's getting testy


McDonald's (MCD -0.7%) faces accusations from franchisees that it's shifting too many new fees onto their backs and charging too much for remodels of run-down stores.

What started as loose chatter, has now escalated to organized communication between franchisees.

The beef of the group might hold some weight. McDonald's franchisee income rose 8% on average over the last five years, double the growth rate of total revenue for the restaurant operator.

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Comments (5)
  • Richard Adams
    , contributor
    Comments (259) | Send Message
     
    There are few, if any, run-down stores in McDonald's USA. Franchisees are being forced to tear down or remodel perfectly good buildings with a good chance there will be no sales increase. And,
    after that expense, McDonald's still controls the building and land.
    6 Aug 2013, 04:17 PM Reply Like
  • slam stocks
    , contributor
    Comments (1452) | Send Message
     
    Love McDonalds...long term the renovations will only improve their images. Compared to Burger King (some are really bad) or bland YUM Brand (Taco Bell, KFC & Pizza Hut), this is still a winner, especially with the 3.5% dividend yield as a cushion.
    6 Aug 2013, 04:57 PM Reply Like
  • tampabay
    , contributor
    Comments (439) | Send Message
     
    Last remolded Mc Donalds I was in... was as nice as ANY medium priced Restaurant in town, Perkins, Bob Evans, Pizza Hut any of them ......and a dollar menu too.....come on... were in....
    6 Aug 2013, 05:44 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6915) | Send Message
     
    Love (MCD) stock. Good for Roth IRA. Slow constant growth with a nice dividend.

     

    (WEN) franchise is remodeling where I live. New look looks good.

     

    (BKW) remodeled, but I still wonder why. Doesn't look any different. But I think its Whopper is much tastier than a (MCD) burger.
    6 Aug 2013, 11:01 PM Reply Like
  • Copious28
    , contributor
    Comments (444) | Send Message
     
    I liked the beef pun ;)
    6 Aug 2013, 11:37 PM Reply Like
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