Quote:
Originally Posted by dferch
Didnt he say that we likely wont see that for a long time because the McDonalds just renovated? I mean even if they do, it'll be at least 6 years if they submitted an application today.
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Is the restaurant a franchise location?
If it's a franchise, McDonald's doesn't care if franchisees have renovated or not.
Typically the building is owned by McDonald's and franchisee leases the space and pays the rent.
On paper, it's up to the franchisee to renovate the restaurant or not, just like any commercial leases.
If franchisee decides to go with renovations, they are financially responsible for the renovation as they are 'voluntarily' renovating the commercial space they are leasing.
...and if they don't renovate, the corporate will kindly remind them that franchise agreement can be terminated for failing to keep up with the brand image.
McDonald's may offer some incentives/subsidies to encourage franchisees to renovate, but they are not covering most of the costs associated with renovations.
Even when the restaurants are closed for renovations, franchisees still have to pay rents for space.
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