An April report by Franchise Consulting Group in partnership with VF Franchise Consulting titled “McDonald’s Model in Dying Days – 30% of Franchisees Insolvent” suggests some franchisees are insolvent and the McDonald’s business model of Ray Kroc may be in its end days.
Franchisees generate over 2/3rd of their revenues in the U.S. Franchise owners say the corporation is on a destructive path, and one 8-store franchisee just declared bankruptcy. Some 1,700 stores have changed hands in the last year, and some 2,000 stores are expected to close by the end of this calendar year. Franchisees operate 95% of McDonald’s locations in the U.S. In a financial survey by the Nomura Group, one McDonald’s franchisee stated the company is in the “throes of a deep depression, and nothing is changing” and that “probably 30 percent of operators are insolvent”.
Problems cited include pressure from government regulations, labor tensions, and financial losses […]
Excerpt Sourced From: americafirstreport.com
