A group of McDonald’s franchisees back a vote of “no confidence” against the brand’s top leaders, according to a CBNC report.
The National Owners Association, an advocacy group of McDonald’s franchisee owners, recently polled its members about recent changes made to lease terms for franchisees. Out of the nearly 1,000 members, almost 700 responded to the poll.
The poll found that 87% of those surveyed support a no confidence vote against the burger chain’s CEO, Chris Kempczinski, and McDonald’s U.S. president, Joe Erlinger.
The poll also found that nearly all of those who responded believe McDonald’s should have worked with franchisees before making franchise system changes. Also, 95% believes that McDonald’s corporate leadership do not have “the best interest of owners in its approach to franchising,” the report said.
The National Owners Association did not respond to CNBC’s request for comment.
In June, McDonald’s notified owners that it would begin considering potential new operators equally rather than focus on spouses and children of current franchisees first. McDonald’s is pushing for more diversity in its ownership.
The brand is also separating the 20-year lease renewal terms from franchisee assessments to open future restaurants, believing that “receiving a new franchise term is earned, not given,” according to a message to owners viewed by CNBC.
“We’ve been doing a lot of thinking about how we continue to attract and retain the industry’s best owner/operators — individuals who represent the diverse communities we serve, bring a growth mindset and focus on executional excellence, while cultivating a positive work environment for restaurant teams,” Erlinger said in a message to franchisees.
The NOA’s survey also found that 83% of franchisees believe the changes are a “veiled attempt to raise rents” at McDonald’s stores and 95% of those polled believe brand leadership did not value their contributions.
The National Owners Association did not respond to CNBC’s request for comment.
The changes take effect in 2023.
