Union accuses McDonald’s of gouging franchisees on $3 billion rent
In representation of McDonald’s franchisees, SEIU released a written statement demanding that the fast-food corporation be investigated for gouging franchisees on rent costs while not disclosing the details of the rent calculation procedures. It is illegal in California and Illinois for the rent calculation process to be kept secret. SEIU claims that the high rent is keeping wages down. The Attorney Generals for California and Illinois are in the process of reviewing the request. In 2015, McDonald’s received more than $3 billion in rent from franchisees, indicating a 10.5 percent to 19.3 percent return on real estate, while the industry average in 5.9 percent.
See "Union accuses McDonald’s of gouging franchisees on $3 billion rent", Erik Larson, Chicago Tribune, May 4, 2017