Reblogged from The Secular Jurist:
There’s trouble under the Golden Arches.
According to Bloomberg News, McDonald’s (MCD -0.31%) is facing a “brewing franchisee revolt” because the burger chain has increased fees and costs that the independent business owners pay, such as rent, software and remodeling. Not surprisingly, rising expenses are discouraging franchisees, who operate about 90% of the chain’s U.S. locations, from opening new restaurants or refurbishing existing ones, the news service says.
The operators say McDonald’s has been squeezing them for a while as its overall business stagnated. Bloomberg noted that the revenue, including rent and fees, McDonald’s took in from franchised stores has risen an average of 8% during the past five years, double the 4% increase in total revenue during the same time.