McDonald's faces destruction of its business model under new labor rule

McDonald's said a revision to employment law being considered by the National Labor Relations Board would destroy the franchise model it has operated on for decades.

At present, 95 percent of McDonald's restaurants in the U.S. are owned and operated by a local store owner, who buys into the franchise in exchange for a share of their store's profits. While workers have to abide by corporate policies—such as on food preparation—day-to-day running of the restaurants is largely left to local management.

, instead of individual franchisees, McDonald's said it would undermine a system that"has improved the lives of McDonald's franchisees, the employees who work in their restaurants, and the local communities they serve." However, a week after the letter was sent, Richard Eiker, a McDonald's maintenance worker of 30 years and local labor group leader, wrote in favor of the proposed change.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

McDonald’s and Others Face New Rule That Could “Destroy the Franchise Model,” Company SaysThe NLRB’s proposed joint-employer rule threatens to hold big brands accountable for work conditions at their franchise locations.
Source: MarketWatch - 🏆 3. / 97 Read more »

Dow down 267 points on losses in 3M, McDonald's stocksThe Dow Jones Industrial Average is down Monday afternoon with shares of 3M and McDonald's delivering the stiffest headwinds for the index. Shares of 3M and...
Source: MarketWatch - 🏆 3. / 97 Read more »