In 2018 disaffected franchisees operating McDonald’s restaurants formed the National Owners Association representing a bargaining bloc to interact with corporate management.

McDonald’s Corporation has progressively increased standards and rules to ensure consistency in service and presentation across the nation creating conflicts with franchisees. It is apparent that the National Owners Association represents a minority proportion of franchisees with the remainder supporting corporate efforts to upgrade the appearance of restaurants and standards of service.  A group of ten prominent franchisee leaders noted “We are disappointed that a small but vocal group is pushing this counterproductive agenda.”  Joe Erlinger, U.S. president for McDonald’s was reported by the Wall Street Journal as stating, “You see attacks happening and those attacks are coming from within.”

In their efforts to be recognized, the National Owners Association has lobbied legislators for legal protection.  The state of Arkansas has enacted a law to prevent “unreasonable practices of franchisors” with similar legislation under review in Arizona.

Conflict between franchisees and McDonald’s corporate is inevitable and possibly healthy since grievances and issues are aired and corrective action implemented. This will ultimately contribute to more satisfied customers and more profitable locations.

Observers of interactions between franchisees and franchisors in the QSR sector would be well advised to review the policies of Chick-fil-A that may have had conflicts with some consumer groups but appears to have a mutually beneficial and harmonious relationship with franchisees.  The differences between the McDonald’s and Chick-fil-A models include selection of operators, renumeration and support provided by corporate management. This might be instructive for McDonald’s corporate and other franchisors.