@Jo they own the land their locations are built on, and they make their money by renting to franchisees. the actual food-selling part is handled by the franchisee, who pays a portion of profits back in return for using the name.

this means that all risk in the food market is assumed by the franchisee, not by mcdonalds. mcdonalds' only involvement in food is helping franchisees connect to a supply chain.

@Jo "mcdonalds has nearly $30 billion in real estate holdings, making it one of the largest commercial real estate owners in the world"

@trwnh Ah. That actually makes sense, because their buildings are usually a specific external design too. :blobnervous:

@Jo @trwnh The franchise owner has very little control over their "business". When they sign the franchise deal, they get a big manual of all of the operating procedures. If they deviate from the manual, they can have their lease revoked and lose the land out from under their business.

@Jo @trwnh Even though all of these policies are set by corporate, they are technically set by the individual franchise owner. I just learned that this is actually part of their anti union defense. Basically, you have to unionize each McDonald's franchise separately because they are technically all separate businesses.

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