McDonald's Could Get Sued By Three Quarters of Its Franchisees For This

Mura Dominko
·2 min read

The battle between McDonald's and its operators over tech fee payments could end with legal action against the fast-food giant, according to the latest reports. The chain, which operates 95% of its locations through franchisees, may soon be taken to court by as many as three quarters of them, according to a survey from an independent franchisee organization.

The dispute over past tech fees totaling $70 million started when McDonald's sent an unexpected email to its operators last December, which stated the company would begin collecting $423-per-month technology fee payments to recoup what it called a lag from its previous payment structure, according to Restaurant Dive. Operators in turn pushed back against the unilateral implementation of monthly payments by McDonald's and temporarily ceased all communication with the company.

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Now, a survey by the National Owners Association of 225 of its members, shows that as many as three quarters of the chain's franchisees would support the filing of an injunction against McDonald's collecting the fees, according to Restaurant Business.

One anonymous operator quoted by the publication says the blame for a $70 million lag lies squarely with McDonald's due to a mistake in accounting or communication. "Either way, they need to drop this and eat it," the operator wrote in the survey.

KPMG has been appointed as an independent auditor looking into the matter, and results of the audit are expected later this month.

McDonald's did not immediately respond to our request for comment. And for more on current happenings at McDonald's, check out:

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Read the original article on Eat This, Not That!

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