"I'm a small business owner!" no, deary, you're just the fall guy for a massive international firm. For a fraction of the profits, you get the privilege of holding all the risk of actually operation a restaurant.

[–] [email protected] 15 points 8 months ago (2 children)

I think they actually get almost all of the profits of the store. The fast food company makes money from the franchise license, rent, and supplying the equipment and food

[–] [email protected] 19 points 8 months ago (2 children)

Correct. The corp gets paid first out of the gross, totally protected. Franchisees only wiggle room to increase their profit is labor costs.

[–] [email protected] 17 points 8 months ago (1 children)

Technically they could also just increase revenue with better marketing and customer service but we all know they would never try that first over slashing employee operating expenses

[–] [email protected] 11 points 8 months ago

Well yeah, that would actually take work and require them to spend money. Fucking with prols is free, and they enjoy it

[–] [email protected] 11 points 8 months ago (1 children)

The franchise sets the food prices on both sides too so they can precisely control profitability.

[–] [email protected] 3 points 8 months ago

I wonder if anyone has ever looked into the idea that labor is the source of all profits curious-marx

[–] [email protected] 7 points 8 months ago

yes, though restaurants are notorious for low profit margins

[–] [email protected] 8 points 8 months ago

Ablative business shielding