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by dforrestwilson 1747 days ago
The traditionally strong MCD franchiser <> franchisee relationship has actually been fraying for the past couple of years.

“Shareholder value” imperatives are driving short-term thinking at the corporate HQ.

1 comments

Ok, so how does the franchisee paying high fees to Taylors for "support" help McD's bottom line? Are they getting a kickback of some kind? Maybe. I'm not sure I've seen any evidence of that.
Best guess: Taylors made a generous bid to McD corporate to become the exclusive provider of ice cream machines. This bid gives a chunk of money to McD corporate and promises maximum machine costs and maintenance call-out costs for franchisees. However it has no guarantees for call-out frequency, so as per a razor-and-blades business model this is how Taylors is now getting all their profits and the KPI they are maximising.
I don't understand this.

Why would mcdonald's take a bid from a company saying, essentially:

"Our package includes unnecessary maintenance costs and ill-perceived customer opinions of service. But we will pay you for that, and force the maintenece cost on your business partner, the franchise."

WHy wouldn't mcdonalds just choose s supplier that has a machine that works? And why would taylor pay them so that they can charge the franchisee...?