The group said the costs “simply cannot be absorbed by the business model.”
They can do business, just not be as profitable if they can’t pay slave wages. The problem here is in the quote… they don’t want to change the model where the franchisee’s earn a little less and their crews can actually afford rent.
Why the heck should the franchisee be footing the bill? Make corporate McDonald’s pay for it. Surely they’ve made enough money off ice cream machines by now to afford it…
That’s not how franchises work. Only 7% of McDonald’s are corporate owned. For those, corporate will foot the bill.
In McDonald’s case, corporate McDonald’s is basically a giant landlord. They lease the land to the franchise owner, and give them the model, tools, and standards to run a restaurant to make paying they rent worth it to them (hopefully).
They can do business, just not be as profitable if they can’t pay slave wages. The problem here is in the quote… they don’t want to change the model where the franchisee’s earn a little less and their crews can actually afford rent.
Why the heck should the franchisee be footing the bill? Make corporate McDonald’s pay for it. Surely they’ve made enough money off ice cream machines by now to afford it…
That’s not how franchises work. Only 7% of McDonald’s are corporate owned. For those, corporate will foot the bill.
In McDonald’s case, corporate McDonald’s is basically a giant landlord. They lease the land to the franchise owner, and give them the model, tools, and standards to run a restaurant to make paying they rent worth it to them (hopefully).
https://www.investopedia.com/articles/insights/072516/cost-buying-mcdonalds-franchise-mcd.asp