Comment on McDonald’s CEO is grappling with a ‘two-tier economy’ as he slashes prices on value meals—and signals backing for a minimum wage increase

• bitjunkie@lemmy.world ⁨16⁩ ⁨hours⁩ ago

  I thought home office made money on franchise fees, not sales. My info is probably outdated, though.

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  • brucethemoose@lemmy.world ⁨15⁩ ⁨hours⁩ ago

    From their website: www.mcdonalds.com/ca/en-ca/…/the-financials.html

    During the term of the franchise, fees paid to McDonald’s for each restaurant, include:

    Royalty: 4%-5% of monthly gross sales

    Rent: a monthly base rent and/or percentage rent that is a percentage of monthly gross sales.

    License Fee: a one time fee of $45,000 is paid for 20-year term.

    thefranchiseking.com/how-much-is-a-mcdonalds-fran…

    But according to other sites:

    www.franchiseba.com/mcdonalds-franchise/

    That doesn’t include marketing fees, so its more like 8%+ of gross sales, not profit, which is a lot! On top of tons of other fees.

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