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I don't think you understood what OP said. He said franchisees do not have the luxury of raising their prices by 10% as their prices are usually out of their co
by pyroinferno 9y ago
I don't think you understood what OP said. He said franchisees do not have the luxury of raising their prices by 10% as their prices are usually out of their control.
- magicalist 9y ago> prices are usually out of their control Is that the case? I wouldn't think large franchises would be viable if they don't already allow for local cost of living in their prices.
- Karunamon 9y agoIt's within a few percentage points. I recall as a teen that McD's corporate came down on my store for running some kind of insane loss leader promotion like selling burgers for 50c one day a week. Apparently they made the money back on volume and addon purchases, but they had to stop it anyways.
- monocasa 9y agoCorporate doesn't like you undercutting and essentially openly competing with the other franchisees in the same general area, but they adjust prices based on local cost of living. The whole idea is if there are two McDonald's near eachother, and one is known locally as "the good McDonald's", the other is therefore "the bad McDonald's". They don't want any "bad Mcdonald's".