franchising

Financing

Subway pushes its franchisees to accept digital offers

The sandwich giant, which is being sold to Roark Capital, told franchisees that they must accept mobile app discounts by Dec. 28. A lot of the brand’s operators were not pleased.

Financing

Executives' franchisee profitability comments are pointless until they report the data

The Bottom Line: McDonald’s and its franchisees differ on the profitability of restaurants, but we can’t judge for ourselves because the company doesn’t release the data, like most franchise businesses.

The burger chain's operators say their cash flow has not kept pace with inflation and the higher royalty on new units and acquisitions will make matters worse. But they say a term change is the bigger problem.

The burger giant plans to start charging its franchisees 5% of revenue on new locations or acquisitions of corporate restaurants starting next year in the U.S. and Canada, up from 4%.

This is what happens when a great location presents itself and a group of friends, who are also restaurant operators, pool their talents.

Coffee and "dirty soda" take center stage on this year’s ranking of up-and-coming restaurant chains, but midscale breakfast brands see plenty of room to expand and casual dining makes a comeback.

At FSTEC, franchisors say getting system buy-in on tech means making them part of the decision process. But sometimes you have to say no to new tech, too.

The Bottom Line: Some executives of franchise chains are also franchisees. “I feel the pain when I make a decision to bring something in.”

Some operators say they were left out of discussions on a matter that could hurt per-store cash flow by $250,000 in the state. But the company said the deal will protect the franchise model without a costly fight.

Jay Pandya has long portrayed himself as a “business tycoon,” with restaurant and real estate holdings along the East Coast, before he bought Boston Market and Corner Bakery. But that history is filled with lawsuits, unpaid bills and allegations that he bilked investors.

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