The chain is making its ownership policies stricter.
. And while you can bet these updates will likely amount to a better, more consistent customer experience, the news isn't so positive for McDonald's operators.According to the memo, the chain's 20-year franchise agreements will require a whole new application process in order to be renewed, something that was, until now, practically automatic for operators in good standing.
"Moving forward, we will adopt 'new term' across the U.S. market to describe the process of awarding another 20-year franchise agreement based on performance history," McDonald's USA president Joe Erlinger wrote in the memo."The change is in keeping with the principle that receiving a new franchise term is earned, not given.
As an advocate for innovation and growth, Erlinger's goal is to clean house and attract a more diverse pool of franchisees to the McDonald's brand., existing franchisees see these changes as an"overreach," according to. The new policies are likely to prompt a further exodus of long-term operators—last year, the chain saw a record number of its restaurants change ownership as a significant number ofBut the pruning may be just what McDonald's is after.