McDonald's Franchisees Fight Refurbishment Costs. In an issue of considerable interest to franchisors, McDonald's franchisees are using their National Leadership Council, a franchisee advisory council made up of 2,300 franchisees and financed by McDonald's, to contest McDonald's (and most every other franchisor's) policy of requiring franchisees to pay for remodeling older restaurants. The council is negotiating with McDonald's management and consulting with attorneys to determine whether the requirements, which can sometimes require investments of $800,000 to $1,000,000 per store, are legally enforceable. As sponsor of the council, McDonald's assists in paying the council's legal fees.
Posted by franchiselawblog at September 3, 2003 05:25 PM