Franchise News

Franchise Information for Successful Business Ownership

McDonald’s Franchise is an international company that has many eating outlets in the world. The company produces and distributes foods like sausages, burgers, chicken, breakfast items, salads, fruits, wraps, desserts, shakes, French fries and soft drinks. The company has expanded recently with more franchises being opened in many countries.

To purchase Macdonald’s franchise, you are expected to make down payment. When purchasing a new restaurant, initial down payment of 40% of the total cost is required. You will pay 20% of the total cost as a down payment when purchasing existing restaurant. All these payments should come from non-borrowed resources. The franchisee is also expected to pay the following ongoing fees:

1.       Rent- Rent is directly paid to the company. It is paid on monthly basis and the amount being paid varies with net profit.

2.       Service fee- The fee covers all the services offered by the company. It is monthly based and equivalent to 4% of monthly sales

You should have ability to develop and outline business plans. Good management and business skills is necessary in running your business. You should also have ability to motivate, manage and train your staff.

MacDonald’s franchise offers the franchisees who meet their criteria of selection by the following:

·         Training: The training is conducted at Hamburger University or at MacDonald’s restaurant for a period of between 9 to 24 months. The training topic includes practical applications, computer applications, and site selection. The training is part-time. You are allowed to open a franchise after completion of training.

·         Traditional restaurant: Franchisor offers the franchisee to open a franchise in existing buildings, food courts and other locations. The franchisee operates the restaurant fully. The term expires after 20 years.

·         Satellite locations: The franchisee is allowed to operate the franchise in hospital, airport, University or any other place. The expiry of the term depends on where the franchise is located.

·         Business Facilities Lease (BFL): The franchisee has freedom to purchase restaurant assets after the first year and extend the business for 20 years after the begging of the term.

McDonald’s franchises are operated by the company itself or franchisees. Franchisee operates the franchise only by agreement or joint ventures with franchisor. The expiry of the agreement depends on the location of business, duration or country of franchisee. The franchisees are informed of new products and technological developments. A series of advertisements and promotion are conducted to sell business brand.

McDonald’s franchise has many qualified individuals who help in designing the franchisee’s restaurant. They design the structure of the franchise and decoration. The franchisee should not take full control of the business and he or she is expected to abide by conditions or policies of the company.