• Home
  • News
  • ‘A Devastating Financial Blow’: McDonald’s Franchisee Group Slams California’s Harsh Fast Food Bill
News

‘A Devastating Financial Blow’: McDonald’s Franchisee Group Slams California’s Harsh Fast Food Bill

McDonald’s Franchisee Group Slams California’s Harsh Fast Food Bill

The National Owners Association (NOA), a collective representing over 1,000 McDonald’s franchise proprietors, has vehemently criticized California’s groundbreaking fast-food legislation, dubbing it “draconian” in its regulations.

The Fast Food Franchisor Responsibility Act or AB 1228 –the new legislation – was passed back on September 14 by the California Senate. The bill is poised to introduce fresh standards encompassing wages, working hours, and various aspects tied to the well-being and safety of fast-food restaurant employees.

However, the NOA has expressed deep reservations, contending that the law would entail costs that

“simply cannot be absorbed by the current business model.”

According to their assertion, 95% of California-based McDonald’s restaurants are run by local owners and small business operators. They might grapple with meeting the recent mandates.

In a memo obtained by FOX Business, the NOA remarked,

“The new AB 1228 legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant.”

What exactly does this legislation entail? AB 1228 applies to fast-food chains boasting at least 60 nationwide locations, except those producing and selling their bread. A pivotal change ushered in by this bill is a minimum wage escalation to $20, effective April 1, 2024, a sum almost $5 higher than California’s prevailing minimum wage of $15.50.

Additionally, it entails the formation of a 10-member council tasked with overseeing fast-food chains and establishing guidelines concerning wages and labor conditions. McDonald’s purportedly characterized this counsel as “significantly limited” in an internal message disclosed to FOX Business.

One noteworthy implication of AB 1228 for McDonald’s restaurant proprietors is that it would render them legally responsible for local employment determinations. This development critics fear could spawn “frivolous lawsuits against franchisees,” potentially compelling corporate headquarters to exert greater control over local operations.

As the NOA pointed out when the bill was initially proposed in July,

“These lawsuits would lead to higher food costs for consumers and unsustainably higher operating costs that would result in the shutdown of locally owned restaurants and the loss of local jobs.”

In the long term, franchisees might find themselves relegated to middle managers under the corporation’s purview rather than the independent business owners they currently are, possibly facing the non-renewal of their licenses.

Read Also:

author-img

Shahnawaz Alam

Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Tesla Woes Bolster Appeal Of Top China EV Maker BYD

Tesla Woes Bolster Appeal Of Top China EV Maker BYD: Tech Watch   

BYD Co. is closing rapidly on Tesla Inc. It is the world's biggest seller of electric vehicles. Its pure electric vehicles are surging vehicles, underscoring the sales cloud intensifying the greatest competition at home.    Shares of this vehicle are up by 1%, Outperforming Tesla's 17% growth rate in the past year. It resulted in the decline of the other peers as well in this category. Traders are now snapping the bullish option on BYD. Meanwhile, the analyst has raised their earnings projection for a record high since its preliminary quarterly report for this month. You need to get through the details to have a better understanding of the facts in perfect order. https://twitter.com/business/status/1718819177358909790 Reasons For BYD’s Hike In EV Maker Segment There are several reasons for BYD’s hike that could even surpass Tesla as well. You need to know the reasons for such a hike in the EV maker segment. You need to get through the details of it while making your selection in the correct order.      Traders are snapping the bullish options on BYD that is surpassing Tesla’s shares by a big margin. BYD posted for all-time high sales in the EV segment. It can boast of the EV maker segment to a great extent. BYD’s shares jump on China’s EV maker segment to a great extent. You need to know the reasons well while making your selection in the correct order. Hence, you can make things happen in your favor while you want to get things done in perfect order. You need to get through the complete order so that can make things perfectly well in their way. Develop a better option that can make things easier for you in all possible ways. Tesla needs to pull up their socks to keep things in proper parity while you want to achieve your requirements with complete clarity and ease. They need to increase their sales growth to retain their old position. Read More Business Related News!! Meta’s Q4 Guidance Erases Earnings Beat Gains Intel Earnings: Stock Jumps On Q3 Earnings And Revenue Beats Amazon Beats Earning Estimates, Touts AI As The Future Of The Cloud

Tesla Earnings Q3 Revenue & Profit Misses Estimates Cyber Truck Delivery

Tesla Earnings: Q3 Revenue & Profit Misses Estimates Cyber Truck Delivery Begun In November

Tesla stocks became volatile after the share market opened for the first time. It missed both the top as well as the bottom line. However, the company revealed that the Cyber truck deliveries were on time. On 30th November this year, this delivery will increase. The top-line revenue is $23.4 billion. You need to identify the perfect solution that can make things easier and perfect for your brand. However, the revenue climbed to 13% within a year. In the upcoming years, it will rise as per the prediction of Tesla. You need to get through the complete details to have a better idea of it. You should not make your selection erroneously while attaining your requirements with complete ease and clarity. https://twitter.com/tesla_fix/status/1714820208911630701 Reasons For The Drop In The Profitability Of Tesla There is an important reason for the drop in the profitability of Tesla that you must consider at your end. You must not make your selection and choices at the wrong end while drawing any kind of conclusion to it. The expected downward pressure due to the cost-cutting of Tesla contributed to the fall in its prices and profitability margins. The gross margin of Tesla is 17.9% and is expected to be 18%. You need to take care of these facts while you meet your requirements with complete ease. Tesla delivered 1.3 million vehicles which is less than their estimates of 1.8 million vehicles in the third quarter. Hence, you should get the complete details of it to achieve your requirements with absolute clarity. You cannot make things too complex from your endpoints. Tryout the best solution that can make things easier and perfect for you. It is expected that in the upcoming years, they will raise their revenue margins at a higher rate. You cannot get things done unless things become easier for you. Explore In-Depth Business Updates for Enhanced Insights! Netflix CFO Says Company Has ‘Long Runway Of Margin Growth’ As Streamer Hikes Prices ‘I’ve Never Felt More Optimistic’ About Goldman Sachs: CEO Solomon GM Delays EV Pickup Expansion Due To ‘Evolving EV demand’

Disney Reveals ESPN Financials

Disney Reveals ESPN Financials For The First Time

Disney officially announced its opening for the sports. It includes the operating income and the revenue that is generated by the flagship sports on the ESPN networks. According to the new SEC filing, ESPN has generated $16 billion in revenue. The bulk of the revenue has generated $2.9 billion in operating profit within a particular fiscal year. You need to get through the details of the facts to have a better solution for it. Its fiscal year ended on October 1, 2022. The bulk of that domestic revenue came from the business, $14.6 billion and $2.81 billion, respectively. The result will show how crucial it is to determine the sports strategy. You need to get through the complete details to have a better idea of it. https://twitter.com/YahooFinance/status/1715112555696324950 Reasons For Revealing Financials For First Time There are several reasons for revealing the financials of Disney and ESPN for the first time. You need to get through the details to have a better idea of it. You must avoid making things too complex from your end. The bulk of the sports kits came from the affiliate fees of $10.8 billion. It is followed by advertising, with almost $4.4 billion of subscriptions. You need to get through the complete process that can make things easier. ESPN typically charges the highest carriage fees. Fees paid by the TV providers and all basic network cable owners make the financials of ESPN work in a better way. ESPN charges PayTv $8 to $9 per subscriber. You need to know these facts before you reveal the ESPN financials at your end. Hence, you must go through the mentioned facts to have a better idea of it. You cannot make your choices out of the dark. Disney reveals ESPN's financials to show the market strength of their company. It will encourage investors to invest in their company in the future. Continue Reading Business News Articles Below! Tesla Earnings: Q3 Revenue & Profit Misses Estimates Cyber Truck Delivery Begun In November Netflix CFO Says Company Has ‘Long Runway Of Margin Growth’ As Streamer Hikes Prices GM Delays EV Pickup Expansion Due To ‘Evolving EV demand’

China Saved Billions By Purchasing Oil From Sanctioned Countries

China Saved Billions By Purchasing Oil From Sanctioned Countries

China has saved nearly $10 billion through record purchases of oil from Western-sanctioned countries. Reuters brought in this calculation based on data produced by various ship trackers and traders. To lower the cost of oil imports for refiners in China, which is a top economic rival of the United States, the latter imposed sanctions on the refiners. The consequences of the sanctions are unintended as the United States and other Western countries put sanctions on oil producers like Iran, Russia, and Venezuela. On the other hand, China often criticizes such penalties as “unilateral.” Analysts at Reuters compared the purchase of importers in China from the sanctioned countries to what they would have paid by purchasing similar grades from non-sanctioned countries. Furthermore, China’s oil purchases also act as a revenue lifeline for Russia, Iran, and Venezuela. Various Western sanctions and a lack of investment curtailed the economies of these countries. According to Reuters.com, “China shipped in a record 2.765 million barrels per day (bpd) of crude by sea from Iran, Russia, and Venezuela in the first nine months of 2023, according to an average of data provided by tanker trackers Vortexa and Kpler. The three countries accounted for a quarter of China's imports between January and September, up from about 21% in 2022 and double the 12% share in 2020.” However, compared to China’s bill of oil imports, the savings only amount to a fraction. However, these savings matter for small and independent refiners in China, who want to have the best buy for themselves and are constantly looking for bargains.On questioning, China’s Foreign Affairs Ministry did not respond. Rather, the Ministry repeated its long-standing stance of opposing unilateral sanctions. Find More News: Virgin Australia Achieves First Profit in 11 Years Amidst Travel Demand Recovery Pertama Digital Berhad Investors Have Seen Returns Of 865% Over The Past 5 Years Warner Bros. Discovery’s Max Launches Sports Tier