McDonald's: Franchise - A Global Brand Business

It is no secret that the most popular and successful fast food enterprise in the world is the American McDonald's. The franchise of this company gives the right to open their own fast food restaurants under the most famous brand around the world. Such popularity, “McDonald's” has sought more than one decade, so they are very demanding on franchising. To get a franchise, you need not only to pay money, you also need to earn the trust and location of this company.

A bit of history
mcdonalds franchise

McDonald's Corporation was established more than 70 years ago, namely in 1940. The first fast food restaurant was opened by the MacDonald brothers - Dick and Mack. Hence the name - "McDonald's". The franchise of this restaurant was already acquired in 1954 by Ray Crock, who after 7 years became the full owner of the fast-growing company. Today, the fast food chain has grown. Worldwide, there are more than 30,000 restaurants in 120 countries. Many of them are located in the USA. Most enterprises are managed by franchising. The hallmark of McDonald's is the hamburger, which is known worldwide as the “Big Mac”.

Franchise "McDonald's" in Russia
franchise mcdonalds in russia

In 1990, the first McDonalds in Russia was opened in Moscow. At that time it was the largest in the world, today it is considered the largest fast food restaurant in Europe. Moscow McDonald’s has become incredibly popular among Russians, only on the opening day more than 30,000 people visited it. It was a record worthy of the Guinness Book of Records. People were ready to wait in line for several hours just to have a bite of American fast food. After that, the whole McDonald's restaurant chain swept all over Russia. The franchise, in turn, contributes to the rapid growth of the company. Today, there are already more than 350 of them, with the opening of new American food services every year.

How to purchase and how much is the McDonald's franchise?
how much is the franchise mcdonalds

Opening a business under the McDonalds brand is not so simple. To do this, you must have huge cash. Moreover, they should be their own, and not borrowed. A potential buyer has several ways. The first way: he can buy a ready-made catering company or even a whole network, but it will cost him a pretty penny. The second option is based on the conclusion of a franchise agreement. That is, a company or an entrepreneur, after concluding a deal on his own, opens a catering company, which must meet the strict requirements of the McDonald's restaurant administration. The franchise will cost a tidy sum of between $ 500,000 and $ 2 million. And this is not counting the costs of acquiring or renting premises, equipment, staff training. After the business has earned, the parent company will have to pay another 4% of the total income on a monthly basis . Thus, in order to open the famous McDonald’s restaurant, you will have to pay at least $ 3 million. But, as the owners of the company assure, this amount can be recouped in a year. In addition, do not forget that the main advantage of franchising is the lack of the need to advertise your business, it has long been done for you.

Source: https://habr.com/ru/post/A8881/


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