Like It or Not, Franchise Agreements Overrule

Have you ever skimmed through your rental agreement or the "Terms and Conditions" on a web page? Well, some Burger King franchisees are very upset over the latest 'hour change' in their late night dining advertisements. It states in their franchise agreement that they are to operate the business from 7am-11pm unless, "unless otherwise authorized or directed." Many restaurant chains have to stay open 24 hours in order to up their sales and profits over other restaurant chains. Because this has been popular, many franchisers tend to put this in order due to competition. The franchisees are having problems keeping employees to work overnight. Some have tried wage increases, but the fact that many people working these types of jobs also have other jobs and are unable to work a late night shift. Many of them are also concerned about security, because robberies have become more and more frequent and heard of. Burger King has set forth advertisements of the new late night menu and while some franchisees are fighting the issue, the issues of fast food chains will never quite be resolved.

York, Emily Bryson. BK franchisees lose sleep over late night rule. 11 August 2008.

Personal Reflection

I feel that this section of the book, Fast Food Nation by Eric Schlosser clearly demonstrates the unstableness and hardships of running a chain restaurant in the eyes of the franchisee. The franchisee puts all of his or her time and effort and money into this restaurant, and doesn't have a guaranteed success. Yes, back when this all hit off, Ray Kroc promised everyone a rich outcome, but with the number of new businesses surrounded in one tiny location, competition is a huge battle. The franchisee may be successful but the franchiser displays the most success. Dave Feamster has to battle competitors by his employees and the service they provide, along with the quality of his products. He has no guarantee that he will thrive in the years to come. To me, it's like gambling because the gambler may lose his or her money, but the casino stays profitable. It's a constant game, a constant hardship, but for those that are successful, may live a very comfortable life. In the beginning of chapter, Schlosser starts the visual scene of a man, ending up being employed at Dave's restaurant, delivering pizzas, and earns a tip of not even $2, stating that it was the biggest tip he had all night. What does that even get us any more? We can't even purchase a gallon of gas with that money. This is what we see all the time. This also ties in with current class discussions about employees that work fast food are generally teenagers who will accept low pay. This is pretty much the same view Schlosser also gives America employment through fast food chains. The unfortunate part of this chapter, in my opinion, is that you have a huge change to be successful when opening your restaurant, for that is what the founders of these restaurant chains guaranteed their franchisees when these businesses kicked off, but now we look around. Take a look at Harbor Town in Manitowoc, we've seen food chain businesses come and go, because their is so much competition in one little area that isn't booming any more. Yet, we continue to expand businesses and close out businesses without realizing all the time and money that one person puts in to develop such a business.

Schlosser, Eric. "Success." Schlosser, Eric. Fast Food Nation. New York: Houghton Mifflin Company, 2001. 104.

Other Views: Internet Publications

Rural Migration News simply discusses the struggles and successes a franchisee is able to experience. This website brings up the fact that a franchisee has to remain obedient because some companies, such as McDonald's are able to cancel the contract at any time, therefore, the franchisee is out a ton of money. The franchiser, however, still remains profitable. Ray Kroc promised to make franchisees rich and they began to see profits, but there are many risks to take when opening or leasing a franchise. The successful part is earning the profit and succeeding beyond the other competition and services that other franchises provide.

Rural Migration News. Schlosser: Fast Food Nation. July 2002. 1 March 2013.

Eric Schlosser: Success

In this Chapter, titled "Success" Eric Schlosser gives a modern example of running a fast food chain from start to finish. He chooses one man, Dave Feamster, as his primary topic of discussion. Dave attended college at the University of Colorado Springs and received a degree in Business. Dave was involved in sports in college and ended up ruining his back, leaving him unable to play his favorite games. He one day, after college, decided to open up a Little Caesars in Pueblo. In order to open up a chain restaurant, the company has to give you a loan to pay for the building of the restaurant and to get the restaurant everything it needs. By the time his first Little Caesars was opened and running, Dave was already over $200,000 in debt with the company. It took him three years to pay that money off. He also has to contribute a certain percentage of his annual revenue to the company every year. Dave did the hiring for his store, hiring all different eligible workers, some in which other companies simply wouldn't hire. Dave opens his store every morning, makes pizzas, and closes up the store every night. He has a family to support now and has opened a total of five Little Caesars food chain restaurants in the neighboring areas of Pueblo. The problem now, is that other chain restaurants, such as Papa Johns, are acting as Little Caesars's competition. The only thing that is going to keep Dave Feamster profitable, is if his employees treat every customer with respect, politeness, and keeps them satisfied. If a competition runs a franchisee out of business, then all profits for that franchisee are lost. This is something that we see every day, with thousands of new restaurants opening up in all areas. Everyday, we go to work for someone else; to see someone else thrive above you. Concluding this chapter, Dave takes his employees to a sold out "Success" workshop. He wants his employees to see, "there's a world out there, a whole world beyond the South side of Pueblo."

Schlosser, Eric. "Success." Schlosser, Eric. Fast Food Nation. New York: Houghton Mifflin Company, 2001. 104.

 

Donating to American Corporations

Source: http://gourmandelle.com/fast-food-fat-profits-obesity-in-america/

In the book Fast Food Nation by Eric Schlosser, the author discusses competition and staying on top while working in the fast food industry. As a franchisee, you pay thousands of dollars to create your own store. You decide to buy the property, build your own store, and run it until it runs out of business. The franchisee has to pay a certain percent of revenue and profit annually, depending on the corporation it is run by, to the corporation.

For example, Eric Schlosser describes a man, Dave Feamster, who opened his own Little Caesers restaurant. He details that Feamster received a loan from the company to open his own store. Before his store was open, he owed $200,000 to the company. He didn't make that money back until three years later. He owns five stores currently and his annual revenues end up being around $2.5 million.

The franchiser comes out ahead over the franchisee, who puts his or her time and effort in creating a chain restaurant. The joy of corporations. This photo, explains that simply. Fast food for everyone, but fat profits for the company.

Schlosser, Eric. "Success." Schlosser, Eric. Fast Food Nation. New York: Houghton Mifflin Company, 2001. 104