McDonald’s franchisees furious: Operation costs too high, McDonald’s franchisees are furious and claim operation costs are too high. Yahoo! Finance reports on August 6 that franchisees believe the company is charging too much and being greedy. One of the biggest complaints is being forced to pay 12 percent of the store sales in rent. They would prefer for the old 8.5 percent rate to return.
McDonald’s franchisees are having secret meetings and plotting to demand lower operation costs. After the recent employee strikes demanding living wages, McDonald’s is now dealing with angry franchise owners who believe the company is asking for too much money.
It is clear that franchisees are banding together and trying to think of a way to make corporate listen to their demands. They believe the rent costs are too high, training is too expensive and other issues exist. As corporate focuses on profit, McDonald’s franchisees are feeling the strain of increasing expenses and lower returns.
Franchisees explain the high costs are preventing them from doing necessary renovations and upgrades to existing stores. They are also stopping them from investing in new stores. It can cost $800,000 to remodel a store, and $1 million to open a new one.
Owners have met with the company in the past to discuss the rent and other issues. However, franchisees claim corporate has not made any changes or shown an interest in discussing different terms. Instead, one store owner is complaining about new charges appearing such as being forced to invest in software that costs $10,000 and being forced to provide different training to employees.Tycoon's 10-year crusade to get a Big Mac in Vietnam</div>
McDonald’s franchisees are having secret meetings and plotting to demand lower operation costs. After the recent employee strikes demanding living wages, McDonald’s is now dealing with angry franchise owners who believe the company is asking for too much money.
It is clear that franchisees are banding together and trying to think of a way to make corporate listen to their demands. They believe the rent costs are too high, training is too expensive and other issues exist. As corporate focuses on profit, McDonald’s franchisees are feeling the strain of increasing expenses and lower returns.
Franchisees explain the high costs are preventing them from doing necessary renovations and upgrades to existing stores. They are also stopping them from investing in new stores. It can cost $800,000 to remodel a store, and $1 million to open a new one.
Owners have met with the company in the past to discuss the rent and other issues. However, franchisees claim corporate has not made any changes or shown an interest in discussing different terms. Instead, one store owner is complaining about new charges appearing such as being forced to invest in software that costs $10,000 and being forced to provide different training to employees.Tycoon's 10-year crusade to get a Big Mac in Vietnam</div>
