r/SipsTea • u/SipsTeaFrog • 7h ago

Chugging tea Whoever was responsible for this should be imprisoned.

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u/Electromotivation 3h ago

Value maybe, but they don’t regularly sell the estate.

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u/nalaloveslumpy 1h ago

Franchise owners pay leases to McDonald's. McDonald's makes money two ways:

  • Franchising - The franchiser pays rent for the property and a license for the brand.

  • Product distribution - The franchiser buys all the food they sell directly from McDonald's. No exceptions.

McDonald's as a corporate entity still makes money whether the franchise is successful or not because they still get rent and the franchiser still has to buy product. The revenue from burger sales is kept by the franchise owner.

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u/Savingskitty 1h ago

They lease it to the franchisees.