McDonald’s (MCD) and franchisee owners aren’t exactly seeing eye-to-eye on all-day breakfast menu items and one former franchisee says corporate headquarters is costing owners too much.
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During an interview with FOX Business Network’s Stuart Varney, former franchisee owner Kathryn Slater-Carter said: “the problem is the emperor has no clothes. A crew person told me ‘I’m not loving it, this is hell.’ There [are] a lot of problems with what they’re doing and it comes from the fact that the corporation loves to suck the money off the top and leave the operators and the crew to pick up the pieces off the bottom and it’s just not working.”
Slater-Carter blasted McDonald’s for closing her business.
“We left because McDonald’s decided that our $2 million a year very profitable business at Ceremony Mall should be closed because they didn’t like the fact that we were pointing out some of their problems. So they decided not to renew our franchise and not to renew the lease -- so we had no business to sell and we lost our $2 million a year business -- we got nothing."
She also explained how mandates are hurting franchisees bottom line.
“That’s half the story, it costs more money and their discounting is lowering our prices… We are getting fewer dollars in and in the franchise system… the dollars off the top go to the franchisor. So they make the money and then we are left with what’s left to pay our bills and pay our crew,” she said.