McDonald's is considering rent deferrals for franchisees
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Re: McDonald's is considering rent deferrals for franchisees
#2Without voluntary deferrals, we'll see cascading defaults.
Re: McDonald's is considering rent deferrals for franchisees
#3If a company like McDonalds can pull it off, that will most likely give them quite an advantage. Once things go back to normal, that would mean McDonalds franchise network is likely to be in omaprativley good shape. When competitor don't implement solutios like this, McDonalds would have quite a head start! Not to speak about the franchise owners, and their employees to a certain extent.
Re: McDonald's is considering rent deferrals for franchisees
#4The actual title is:
"McDonald’s says it can’t estimate coronavirus impact to its business, it will consider rent deferrals for franchisees"
Re: McDonald's is considering rent deferrals for franchisees
#5FORE!
Re: McDonald's is considering rent deferrals for franchisees
#6Now would be a good time for a general rent strike until the government steps in to help small businesses
Re: McDonald's is considering rent deferrals for franchisees
#7This sort of action is what we need across the economy. Cancellation or deferral.
Rent deferral, interest deferral, mortgage deferral... etc.
At the individual level maybe limit it to the lower 50%-70% of income earners. Cancel interest and utility/rent/mortgage payments for lower income population. Do it for 2-3 months.
The upper half will just eat into their savings some but won’t suffer like those living paycheck to paycheck.
I’m fine coming out of this with $15k less savings. Im not ok with my neighbor becoming homeless or permanently in debt because of it.
Re: McDonald's is considering rent deferrals for franchisees
#8If a company like McDonalds can pull it off, that will most likely give them quite an advantage. Once things go back to normal, that would mean McDonalds franchise network is likely to be in omaprativley good shape. When competitor don't implement solutios like this, McDonalds would have quite a head start! Not to speak about the franchise owners, and their employees to a certain extent.
As far as I know, most fast food franchises don't own the land under the restaurants in the way that McDonald's does. I'm not familiar with the numbers, but I've seen quips to the effect that McDonald's is a real estate investment firm that does fast food as a side hustle.
Re: McDonald's is considering rent deferrals for franchisees
#9If a company like McDonalds can pull it off, that will most likely give them quite an advantage. Once things go back to normal, that would mean McDonalds franchise network is likely to be in omaprativley good shape. When competitor don't implement solutios like this, McDonalds would have quite a head start! Not to speak about the franchise owners, and their employees to a certain extent.
As far as I know, most fast food franchises don't own the land under the restaurants in the way that McDonald's does. I'm not familiar with the numbers, but I've seen quips to the effect that McDonald's is a real estate investment firm that does fast food as a side hustle.
I read a similar article once as well. Back then I wondered where the benfit would be, other than it being kind of a company store for franchise owners. Turns out to be a very robust set-up for crisis, doesn't it?
Re: McDonald's is considering rent deferrals for franchisees
#10This is a good move on their part (assuming they go through with it). People tend to think of restaurant owners like this as “the rich”, but if you look at the numbers there’s actually not that much profit in a single restaurant. The only ones who make good money own a bunch of them. Even then, the profit margins are pretty low, and they’re going to struggle to remain profitable.