June 2, 2021: McDonald’s Fighting With Franchisees Over Tech Fees
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While big chains have been recovering better than independent restaurants, not everything is smooth sailing. McDonald’s could have a fight on their hands as franchisees are pushing back against the fast-food corporation trying to collect technology fees. With stores closed due to the coronavirus pandemic and millions on the line, this battle might not be quick to end. Join restaurateur Philip Camino and chef Nyesha Arrington as they discuss the rising franchise fees from restaurants like McDonald’s and Subway, and what could be coming next in the battle with franchisees. Listen to Philip and Nyesha discuss McDonald’s franchise fees: McDonald’s sales were up 9% in the first quarter compared to the same time in 2019 Same-store sales in March increased 13.6% from the previous year McDonald’s has ordered franchisees to pay $423 a month on uncollected past technology fees, which total $70 million Franchisees are saying McDonald’s has not proven the fee is owed and have experienced previous fee increases without a reason why The National Owners Association saw almost 75% of the 225 members surveyed support owner leadership filing an injunction to stop the collection of the fees While KPMG is conducting an independent audit to settle the matter, the conflict has been going on since December Subway has also raised fees franchisees must pay, increasing the royalty payment by 25% Links: Happy Mouth Podcast Instagram Restaurant Business - Subway wants to increase franchisees’ payments by 25% CNBC - McDonald’s franchisee fight over tech fees could wind up in court Restaurant Business - McDonald’s chairman gets re-elected despite shareholder opposition We have a lot more content coming your way! Be sure to check out our other shows: Full Comp  The Happy Mouth Morning Show Restaurant Marketing School The Playbook  
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