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McDonald’s Adding Greater Clarity, Transparency, & Consistency Into FranchisingProcess – $MCD $DIA

By John F. Heerdink, Jr.

Reportedly, McDonald’s Corporation (MCD) is building new rules for franchisees, including performance reviews every 20 years to bring “greater clarity, transparency, and consistency into our franchising process.”

Joe Erlinger, president of the Chicago-based burger giant announced the changes informing that the new rules include a 20-year performance review and franchise renewal based on performance history. He further informed that the relatives of franchisees will not be given preferential treatment in the awarding of new franchises. The changes will be implemented starting in 2023. 

The fast-food giant is also implementing other franchisee rule changes, including reviewing requests from franchisees to own multiple locations with greater scrutiny, because “when growth discussions are separate and distinct owner/operators have a clearer, more transparent path forward.” he added.

The move comes as McDonald’s has been under pressure to increase the number of minority franchisees. The company is trying to increase the ownership of its franchises by minorities by spending $250 million over five years to provide financial help to candidates. 

McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

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(Read Original Story: McDonald's toughening franchise requirements in The Business Journals)


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