Live data from Hacker News

McDonald's Real Estate: How They Really Make Their Money (2015)

blog.wallstreetsurvivor.com

111–120 of 273 posts

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#111

An important point about owning the franchise real estate: a rental agreement is far stronger for the landowner than a franchise agreement is for a franchiser. The McDonald's franchise agreement specifies the address the franchise must be located. In effect, McDonald's can cancel a franchise agreement by ending the rental agreement. This gives them enormous power to enforce company-wide standards on cleanliness and m…

>The McDonald's franchise agreement specifies the address the franchise must be located. In effect, McDonald's can cancel a franchise agreement by ending the rental agreement.

I don't think you are really taking a position, just acknowledging McD has power to enforce Franchise Agreements more than others Franchisors because separately they tend to also be landlord. on first reading though I thought your comment was suggesting more nefarious behavior because the dual relationship landlord/franchisor.

Just in case anyone else read your comment that way, I would just say as a lawyer I would feel pretty confident taking a case on behalf of a Franchisee who paid significant franchise fees to McD and was otherwise in full compliance with the Franchise Agreement, but my client's Franchise Agreement was de facto cancelled (and presumably Franchise fees kept by McD) because McD terminated the lease without cause.

Certainly if the Franchisee gave McD cause under either a Franchise or separate lease Agreement (failure to pay rent; using non McD suppliers; etc...) that is a different story, but legally McD couldn't just engage in the collection of Franchise fees only to evict tenants in a scam like fashion. again I don't think you were suggesting it, that was just my initial interpretation.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#112

An important point about owning the franchise real estate: a rental agreement is far stronger for the landowner than a franchise agreement is for a franchiser. The McDonald's franchise agreement specifies the address the franchise must be located. In effect, McDonald's can cancel a franchise agreement by ending the rental agreement. This gives them enormous power to enforce company-wide standards on cleanliness and m…

> Other chains (ie: Burger King) have had more significant problems with enforcing franchise standards. Why have Burger King in particular had this problem?

ie -> in example. Burger King is the only example I explicitly recall.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#113

It was an eye-opener for me when I was a teen and bought a gallon of soft drink syrup from a McDonald's for use at a party. It worked out to about 5 cents a cup for the drink in a soft drink, which sold for 75 cents (if I remember correctly). McDonald's doesn't make money selling burgers, they make money selling the soft drinks and the fries. The same goes for any restaurant, it's why they ply you for drinks.

I've always assumed the costs surrounding a cup of soda (machine, CO2, ice, cups, lids, straws) are actually much higher then the cost of the syrup itself.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#114

Earlier quoted context omitted.

You might not want to visit a farm, processing plant, warehouse, grocery store, or restaurant. They all throw away enormous amounts of food. Throwing away a Big Mac because it got too cold is a rounding error in perspective. That said, we produce more food than we ever have. Is there a difference to starving people whether a grain of wheat went ungrown or was wasted? What was the author meant to do, walk the hamburge…

Microwave it like the rest of us

What about the energy wasted to cook that food? There are freezing Inuit who could have used it.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#115

Earlier quoted context omitted.

As a kid I quickly learnt to distrust ads, so I'm not sure why you think kids can't do this. They may not be adults, but they're not robots either.

Somehow I don't trust your own judgment of your ability as a child, especially when it is in contrast with the experience of most people and the findings of researchers.

I recall it exactly. When you start to trust theory over reality I'm sure you've taken a bad turn.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#116
post #40

Earlier quoted context omitted.

As a kid I quickly learnt to distrust ads, so I'm not sure why you think kids can't do this. They may not be adults, but they're not robots either.

I remember at that age understanding that ads are not truthful at a deep level and filtering them. I find it's much harder for me now. Everything seems like an ad now a days and I may not believe the message but having the money to pay for so many ads on expensive platforms gives me a different message. If a company can afford a superbowl ad it gives me the impression the product has resources behind it and I can ass…

Im certain you just don't see the value in your new perception.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#117
post #72

Earlier quoted context omitted.

As a kid I quickly learnt to distrust ads, so I'm not sure why you think kids can't do this. They may not be adults, but they're not robots either.

Good ads work on an emotional level. They work regardless of whether you know you can't trust then.

That sounds like nonsense.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#118

An important point about owning the franchise real estate: a rental agreement is far stronger for the landowner than a franchise agreement is for a franchiser. The McDonald's franchise agreement specifies the address the franchise must be located. In effect, McDonald's can cancel a franchise agreement by ending the rental agreement. This gives them enormous power to enforce company-wide standards on cleanliness and m…

> Other chains (ie: Burger King) have had more significant problems with enforcing franchise standards. Why have Burger King in particular had this problem?

[deleted]

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#119

Earlier quoted context omitted.

> Other chains (ie: Burger King) have had more significant problems with enforcing franchise standards. Why have Burger King in particular had this problem?

ie -> in example. Burger King is the only example I explicitly recall.

ie means id est (that is).

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#120

Earlier quoted context omitted.

> Other chains (ie: Burger King) have had more significant problems with enforcing franchise standards. Why have Burger King in particular had this problem?

ie -> in example. Burger King is the only example I explicitly recall.

[deleted]
Post reply on HN