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franchising

Financing

A lot of McDonald’s franchisees left the system last year

A record 1,700 restaurants changed hands last year and more than a quarter of franchisee units have either closed or been sold since 2019.

Financing

'Mass exodus': McDonald's franchisees are leaving the system

A record 1,700 stores changed hands last year. High valuations and a difficult operating environment are leading many franchisees to sell their restaurants. But some say culture problems, low morale and constant disputes are playing a major role.

The company and its franchisees are planning to spend $500 million to reimage the brands’ restaurants in a “long overdue” program.

The Bottom Line: The different stock price performances between Burger King’s parent company and its largest franchisee provide some lessons for large-scale franchisees.

A Deeper Dive: Jason McGowan, the founder of the fast-growing cookie chain, joins the podcast to talk about the company’s history and how it has so quickly become a massive hit.

The deal is part of an expanded partnership with Maxim’s Caterers, a licensee who already operates 24 of the burger-and-shake locations in greater China.

The Bottom Line: Pinkberry and other chains, which were all the rage a decade ago, continue to close locations as operators move on—just like the first frozen yogurt boom.

The Bottom Line: Companies quickly abandon operations in favor of selling them to franchisees. But keeping some locations can be better in the long run.

Large chains and their franchisees are enjoying strong valuations and record cash flows, according to a new report, and international growth is thriving. But growing in the U.S. could get difficult.

The appointment of David Weil as the Biden administration's wage and hour chief was blocked by a bipartisan vote.

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