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View Diary: Detroit Fast Food Emporium to pay $15/hr, Make Profit, and Expand. (103 comments)

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  •  No doubt the corporation controls the pay at (1+ / 0-)
    Recommended by:
    jpmassar

    company owned stores. However, at restaurants owned by franchisees McDonalds isn't going to change the amount sent to corporate because an individual owner decides to double his labor costs, on his own. There are some cities in the country where the minimum wage is dramatically higher than the national average and it would be interesting to know if any of the major fast food franchisors cut the local owners any slack on their corporate fees so the franchisee's profit margins are about the same as the national average?

    "let's talk about that"

    by VClib on Tue Sep 10, 2013 at 03:10:15 PM PDT

    [ Parent ]

    •  If owners have to raise wages to compete (0+ / 0-)

      for workers, it's going to come out somewhere.

      If Corporate tries to ram it all down the throat of franchisees, then franchises lose value which is of no benefit to Corporate.

      Corporate sets "rents" where they like.  This is not rent in any traditional sense - it's an additional percentage of gross.

      I'm sure that is heavily related to the profitability of a location.

      "But the traitors will pretend / that it's gettin' near the end / when it's beginning" P. Ochs

      by JesseCW on Tue Sep 10, 2013 at 03:46:06 PM PDT

      [ Parent ]

      •  It would be very interesting to know how the (1+ / 0-)
        Recommended by:
        jpmassar

        franchisee/parent economics works and what the franchise agreements actually say on some of these issues. Is any of this available online, or do the franchisors keep this very confidential until they have vetted any potential new franchisees?

        "let's talk about that"

        by VClib on Tue Sep 10, 2013 at 05:19:54 PM PDT

        [ Parent ]

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