X-Runner wrote:
Yes, a typical McDonald's franchise owner only pulls in about $150k a year.
These are people that put up half a mil cash and borrowed even more to buy into the franchise. They probably have other sources of income as well.
But it’s all the franchise fees they pay to papa McD that puts a big hurt on their margins.
Meanwhile, McDonalds Corp makes an 82% profit on the franchisees.
They might have more for payroll if those fees were throttled back a bit.
McDonald's provides all the recipes. McDonald's does all the market research. McDonald's provides the BRAND that brings people in the doors.
OF COURSE they will profit off the franchisees the the franchisees are only making any money at all by exploiting the brand that McDonald's built.
Entry level fast food jobs are not intended to be jobs you live off of. If you raise the wages of the bottom rung on the ladder every other rung will justifiably want a raise as well.