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franchising

Financing

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

 By Jonathan Maze on Sep. 25, 2023

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.

Financing

Is it a service fee or a royalty? To McDonald's franchisees, the difference is huge

 By Jonathan Maze on Sep. 24, 2023

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.

Financing

McDonald's plans to increase its U.S. royalty fees by 25%

By Jonathan Maze on Sep. 22, 2023

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%.

Operations

Taco/Social to debut in LA with seasoned investors from Blaze Pizza, Dog Haus and Gus's BBQ

By Lisa Jennings on Sep. 21, 2023

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

Technology

To convince franchisees to adopt new technology, think like a marketer

By Jonathan Maze on Sep. 18, 2023

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.

Emerging Brands

The Future 50 gets a shot of caffeine

By Lisa Jennings on Sep. 18, 2023

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.

Financing

McDonald's franchisees are angry over the California compromise

By Jonathan Maze on Sep. 15, 2023

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.

Financing

Why more franchise executives should become franchisees

By Jonathan Maze on Sep. 15, 2023

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

Financing

Inside the chaotic world of the owner of Boston Market

By Jonathan Maze on Sep. 11, 2023

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.

Financing

Struggling Clean Juice franchisees beg out of the system

By Jonathan Maze on Sep. 11, 2023

Nearly 40% of the chain’s locations are taking the company to arbitration in a bid to get out of their franchise agreement, saying they’re losing hundreds of thousands of dollars.

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