While it might seem sad to see a business that is handed passed on from generation to generation like the Caspers Company walk away from its long-time franchising business, the move comes at what can only be described at an awkward time for the Golden Arches.
Restaurant Business reports that the value of a restaurant is at a record high — its sale price is seen at “ten times EBITDA” — which stands for “earnings before interest, taxes, depreciation, and amortization,” yet, franchisees don’t appear to thrilled to be a part of the McDonald’s family.
In April, a survey of franchisee sentiment conducted by Kalinowski Equity Research showed that on a scale of 1 to 5 with 1 being poor, and 5 being excellent, franchisees felt that their relationship with McDonald’s was ranked at 1.19. This is the worst ranking on the survey in the past decade (per 1851 Franchise).
