Once again...

Here's another example of corporate greed, as I see it.  This isn't the first time Burger King franchisees have gone into court with the corporate office over something like this.  Last time was when they established the dollar menu.  I know what you're thinking....franchisees greedy because they want to make money? Nonsense!!!

Naturally.  I'm talking about the corporate office trying to generate sales at the expense of their extremely valuable franchise community.  Even though these people rejected the same promotion TWICE, BK went ahead with it.  I can say that most of the franchise owners I've met were extremely smart and capable, and they got into franchising instead of their own concept for the fact that franchises have an insanely better chance of being around in five years, vs startups.  So to say that they don't know as well as BK is a bum argument.  So why would BK go ahead with it anyway?

My guess is that, like most franchise agreements, BK is probably getting a percentage of franchise sales each period as a franchise fee.  So, the higher the sales, the more BK makes.  Since only 10% of BK is corporate owned and run, the corporate locations don't have to be profitable; the franchise stores will foot the bill.  Something very similar to this happened in the last company I worked for.  That's one of the reasons I looked for a company that doesn't franchise.  Each and every store is accountable for growing sales on the top line and bringing profit all the way to the bottom.  Good luck Burger King Franchise Owners.  Good Luck.
 

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