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I'm not sure that's quite accurate. Yes, they are a landlord to franchisees, and their profits show up as rent. But those franchisees are all earning money to p
by jldugger 6y ago
I'm not sure that's quite accurate. Yes, they are a landlord to franchisees, and their profits show up as rent. But those franchisees are all earning money to pay rent the same way: selling hamburgers the McDonald's way. They don't have a lot of leeway to change practices or sell something different, because if they do, the landlord will literally kick them out.
It's basically a REIT for tax purposes, but that doesn't mean they don't profit from selling hamburgers.
- chii 6y agoI think you might find that the franchisee's profit margin isn't as high as macdonald's margins on the fees paid by the franchisees.