How to fight competition? Collaborate.


Most of the McDonalds Franchises in the US use accountants to assist them with maintaining their back office functions. However a new online technology startup threatened to take all this work away by offering an integrated online solution.

In response the accountants that previously individually assisted their franchise clients was forced to consider collaborating. In response to tis new threat they decided to collaborate. According to Accountingtoday the group formed an organisation that served up invaluable services that technology just could not duplicate, giving rise to National Franchise Consultants and Accountants -a network of nine accounting firms working side by side to offer business strategies to the franchisee owners and operators of fast-food giant McDonald’s.

NFCA serves about 1,200 McDonald’s franchises in the U.S. and has a reach to more than 5,000 restaurants, out of the roughly 14,000 throughout the country. Prior to the creation of NFCA, the nine firms were in direct competition with each other, until a bigger competitor arose.

In 2000, McDonald’s partnered with the technology-focused private equity firm Accel-KKR, and invested in an Internet procurement site called eMac Digital. The site was set up to offer McDonald’s owner/operators supplies at a discounted price, as well as automated accounting services such as bill pay and monthly financials. “EMac Digital’s automated accounting services directly competed with the monthly accounting services provided by the individual NFCA firms,” explained Martin Magida, who is vice president of NFCA and a partner at Lincolnshire, Ill.-based member firm Chunowitz, Teitelbaum & Mandel Ltd.

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