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McDonald's Rejects Owners Plea To Delay Changes In Franchise Policy

Shivani Kumaresan
September 29, 2022
  • The National Franchisee Leadership Alliance representing McDonald's Corp (NYSE:MCD) restaurant owners said the company had rejected their proposal to delay franchising policy change.
  • In a letter to the owners of the alliance, McDonald's denied the request to make changes in June 2023 instead of January 1, 2023, CNBC reported.
  • As of 2021, there were more than 2,400 franchise owners running about 95% of McDonald's locations.
  • Also ReadMcDonald's To Raise Menu Prices 2nd Time This Year In Japan: Here's Why
  • The new franchise policy changes left several owners unhappy, expressing their lack of confidence in CEO Chris Kempczinski.
  • Some of the proposed changes concern lease renewal, preferential treatment to the spouses and children of current franchisees, and recruitment of diverse owners.
  • Also SeeMcDonald's Facing Byron Allen's $10B Racial Discrimination Lawsuit
  • "Several of these internal changes in my opinion may further limit the marketplace, reduce demand and strain the financial capability for sales between owners beyond the external factors that presently exist today," the report cited NFLA chair Mark Salebra.
  • Price Action: MCD shares closed higher by 0.10% at $236.94 on Wednesday.
  • Photo Via Company

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