Many of those businesses only exist because of minimum wage laws. Many are closing up or laying off workers in California's due to the new $20/hr. minimum wage law.
It's foolish for people to think a job meant to be part time should provide a living for a family. Many of those fast food franchises can't raise their prices to cover the new wages either, their customers won't pay it.
One group of employees begged the owner to return their pay to the previous level so they could keep their jobs. Sadly, the law wouldn't allow it, he closed the business, and all lost their jobs.
I worked for a Sentry Foods franchise as a meat cutter once. The owner confided that I and the other meat cutters often made more money than he did as the store owner. The grocery clerk's union came in and 'organized' the grocery workers, they went on strike for high pay and more benefits. The owner held out as long as he could but finally relented and signed the union agreement. Six months later he closed the store leaving dozens of full and part time employee without a job. It was a wonderful neighborhood supermarket and was never reopened.
I worked there for five years and didn't observe any large turnover of full or parttime workers. All seemed very satisfied, until the union showed up and 'educated' them about how they were getting screwed by the owner. When the union effectively closed the store, they were really screwed.
Sometimes you have to believe the owners when they say they can't afford to pay their employees more.
The owners can't afford to pay the workers because Head Office syphons off all of their profits. The so-called "owners" aren't making any money either.
During the term of the franchise, fees paid to McDonald’s for each restaurant, include:
Royalty: 4%-5% of monthly gross sales
Rent: a monthly base rent and/or percentage rent that is a percentage of monthly gross sales.
License Fee: a one time fee of $45,000 is paid for 20-year term.
During the term of the franchise, fees paid to McDonald’s for each restaurant, include:
The Financials
www.mcdonalds.com
Note the "include" in the first line of the material quoted. These aren't ALL of the fees charged. There's also an "advertizing fee" of 4% of gross sales. Additionally, all of your food and supplies are purchased through Head Office, for "bulk purchase savings". That includes napkins, tray liners, take out bags, cups, straws - anything with a logo on it.
And last but not least, if Head Office decides your store looks shabby, they can order you "update" it, and of course, the new tables, seating, and store decor has to match branding and is only available through Head Office.
When McDonald's first came to Canada, you could buy a store for $250,000 and make your money back within 2 years. Now, the franchise agreement is set up that the "owners" make nothing. It all goes to Head Office to pay the shareholders and that guy they pay $20,000,000 per year to make McDonald's one of the most profitable companies in America.