1851

95% of all McDonald's U.S. operators voted to halt nonessential meetings with the corporate team on Monday, according to a memo from the National Franchisee Leadership Alliance <a href="https://www.businessinsider.com/mcdonalds-franchisees-vote-to-give-corporate-silent-treatment-protest-costs-2020-12?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-us-operators-vote-to-snub-corporate-over-millions-in-fees-2714524" target="_blank" rel="nofollow">obtained by Business Insider</a>,&nbsp;The decision sends a message to the McDonald's corporate team to expect the silent treatment until they address several franchisee concerns over new operator fees, the memo states.&nbsp;Despite giving just 48 hours of notice, a whopping 1,800 McDonald’s operators joined the call. Operators told Business Insider that it is rare for franchisees to come together and rally against corporate practices in such an organized manner.&nbsp;Of course, this decision didn’t come out of nowhere. It has been <a href="https://1851franchise.com/big-brand-franchisors-franchisees-publicly-fight-as-covid-19-creates-industry-chaos-2714393#editorials">a particularly tumultuous month</a> when it comes to the McDonald’s franchisee-corporate relationship. Recently, franchisees expressed their concern as <a href="https://1851franchise.com/unhappy-with-happy-meals-pricing-mcdonalds-franchisees-butt-heads-with-corporate-2714453#stories">McDonald's prepared to end a monthly Happy Meal subsidy it pays to franchisees</a>, collect monthly fees for<a href="https://www.wsj.com/articles/the-franchise-relationship-that-powers-small-business-is-fraying-11606750990?mod=hp_lead_pos5&utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-us-operators-vote-to-snub-corporate-over-millions-in-fees-2714524" target="_blank" rel="nofollow"> technology investments</a> and offload employee development costs to franchisees. <a href="https://www.restaurantbusinessonline.com/financing/mcdonalds-franchisees-blindsided-new-charges-2021?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-us-operators-vote-to-snub-corporate-over-millions-in-fees-2714524" target="_blank" rel="nofollow">Franchisees told Restaurant Business</a> that these changes could cost operators $170 million in 2021, or roughly $12,000 per location. Even prior to that, McDonald’s was in hot water amid reports of <a href="https://1851franchise.com/mcdonalds-faces-1-billion-discrimination-lawsuit-from-52-black-ex-franchise-owners-2713798">discrimination by franchisees</a> and the <a href="https://1851franchise.com/mcdonalds-sues-former-ceo-steve-easterbrook-2713692#franbuzz">former CEO’s sexual misconduct lawsuits.</a>"The company acknowledges the situation and will continue to make every effort to engage franchisees so that together we can effectively operate our business," the chain told Business Insider.On the consumer side of things, McDonald’s franchisees have actually seen significant sales gains in 2020 as opposed to <a href="https://1851franchise.com/1-in-6-restaurants-expected-to-close-in-2020-2713874">the massive losses seen by many other foodservice brands</a>. This is largely thanks to the brand’s robust drive-thru, digital and delivery business and <a href="https://1851franchise.com/the-travis-scott-meal-by-mcdonalds-is-the-franchises-first-celebrity-branded-meal-since-the-mcjordan-2713824">viral celebrity-branded meals</a>. Plus, the corporate team invested $100 million in marketing efforts.&nbsp;Still, this unprecedented decision to temporarily end all nonessential communication with the corporate team shows that operators have bigger concerns than just sales. In the world of franchising, especially with a brand as big as McDonald’s and in an industry as fragile as the pandemic-plagued restaurant segment, franchisees will not accept feeling as though they are being ignored.&nbsp;&nbsp;

McDonald’s U.S. Operators Vote to Snub Corporate Over Millions in Fees

1851 Franchise

After a rollercoaster of a year for the legacy burger brand, McDonald’s U.S. franchisees are taking a stand over several new operator fees by giving a cold shoulder to the corporate team. 

mcdonalds-us-operators-vote-to-snub-corporate-over-millions-in-fees

Children's Lighthouse

Children’s Lighthouse Wraps Up Q1 With Two New Openings and Continued Industry Recognition

childrens-lighthouse-wraps-up-q1-with-two-new-openings-and-continued-industry-recognition

Happy Joe’s Franchising

Why Texas Is the Perfect State To Open a Happy Joe’s Franchise

why-texas-is-the-perfect-state-to-open-a-happy-joes-franchise

Seniors Helping Seniors®

Photo of two people, with white hair, sitting on couch, smiling at each other

Seniors Helping Seniors® In-Home Care Services Expands in Manassas and Fredericksburg, Virginia

seniors-helping-seniors-in-home-care-services-expands-in-manassas-and-fredericksburg-virginia

BooXkeeping

Tech-Driven Bookkeeping: How BooXkeeping Franchisees Are Embracing the Future

tech-driven-bookkeeping-how-booxkeeping-franchisees-are-embracing-the-future

Fitness Premier

Fitness Premier's State-of-the-Art Facilities and Multi-Discipline Approach Fuels Franchise Owner Success

fitness-premiers-state-of-the-art-facilities-and-multi-discipline-approach-fuels-franchise-owner-success

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

FAT Brands Becomes First Restaurant Franchise To Accept Bitcoin for Royalty Payments

fat-brands-becomes-first-restaurant-franchise-to-accept-bitcoin-for-royalty-payments

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Hooters Bankruptcy - Chapter 11 - April 2025 - 1851 Franchise

Hooters Files for Bankruptcy, Sells Restaurants to Franchisee Group

hooters-bankruptcy-chapter-11-april-2025

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Design with hundred dollar bill and orange "recession" banner across the middle

ABC News: Recession Risks Are Rising, Economists Say. Here’s What to Know.

recession-risks-impact-economy-franchise-world

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Franchise Deep Dive: Studio Pilates Franchise Costs, Fees, Profit and Data

franchise-deep-dive-studio-pilates-franchise-costs-fees-profit-and-data

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

McDonald’s U.S. Operators Vote to Snub Corporate Over Millions in Fees

MORE STORIES LIKE THIS