- Joined
- Oct 22, 2002
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- 42,039
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- Frozen in Michigan
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- Old Fart
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- Don't be a dick.
Wow. What a dark fantasy world you live in. But then some embrace conspiracy theories.Corporate McDonald's is not a fast food restaurant. It does not hire fry cooks, etc. It is a business that sells franchises and it has huge profits. Each franchise is an independent small business sector restaurant that just 'buys' the name McDonald's and agrees to make the meals as specified under the franchise. Those franchises do not make the huge profits that the corporate McDonald's does.
So you think that McD's corporation can make those kind of profits without their actual restaurants being profitable? They don't just "agree to make the meals as specified under the franchise", those meals must be identical from franchise to franchise, so they require them to purchase those goods from corporate. That is one way they suck the profits from the franchises. They could easily siphon less money from the franchises and require them to pay a living wage. The franchises being small business is just plain bullshit, masked by corporate shenanigans.
Here's what it costs to open a McDonald's restaurant
McDonald's franchisees must make an initial investment of between $1 million and $2.2 million.
McDonald's charges a $45,000 franchisee fee and an ongoing monthly service fee equal to 4% of gross sales.
Franchisees must also pay rent to the company, which is a percentage of monthly sales.
Owning a McDonald's franchise can be a lucrative business, but it requires a lot of cash.
The average McDonald's restaurant generates nearly $2.7 million in annual sales, making it the fourth-highest-grossing chain in the US by sales per unit behind Chick-fil-A, Whataburger, and Panera Bread, according to QSR magazine.
But to open a single restaurant, the company requires that potential franchisees have liquid assets of at least $500,000.
Startup costs, which include construction and equipment expenses, average between $1 million and $2.2 million, according to McDonald's. The total is determined by the geography and size of the restaurant, as well as by the selection of kitchen equipment, signage, style of decor, and landscaping, the company says.
This is a rich people's game, taking advantage of poor people to make buttloads of money.