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McDonald's franchisees furious: Operating costs too high

McDonald's franchisees furious: Operating costs too high
McDonald's franchisees furious: Operating costs too high
Justin Sullivan/Getty Images

Several McDonald's franchisees furious about the costs to operate a restaurant are taking on corporate. As many as 90 prcent of McDonald's locations are owned by franchisees. According to Business Insider on August 6, 2013, the costs of and fees for training, remodeling, and rent are just too high.

"Franchisees have reportedly been holding rogue meetings to discuss ways to get the company to bring costs down."

The McDonald's franchisees furious all but guarantees that no new restaurants will be opened, which is the lifeblood of growth for the company. Higher costs also keep existing locations from being refurbished. Rent is a leading problem with owners paying 12 percent of store sales where historically they were paying only 8.5 percent.

Corporate does not want to keep the McDonald's franchisees furious and claim to be working with them. Just opening a franchise is out of reach fro most Americans with the dream of running their own business. Although McDonald's requires $750,000 of personal resources that are not borrowed, competitors Burger King and Taco bell insist on much more.

The problems don't end there. Employees are striking for higher wages and consumers are expected to reign in spending over the next few months.

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