• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
McDonald's and Franchising
 

McDonald's and Franchising

on

  • 14,311 views

A look at Franchising and how McDonald's is one of the best companies to benefit from this business model.

A look at Franchising and how McDonald's is one of the best companies to benefit from this business model.

Statistics

Views

Total Views
14,311
Views on SlideShare
14,180
Embed Views
131

Actions

Likes
18
Downloads
0
Comments
1

4 Embeds 131

http://sgbmunit1-1.blogspot.com 57
http://www.slideshare.net 54
http://int2bussoc.blogspot.com 16
http://mrmcgowan.blogspot.co.uk 4

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

11 of 1 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    McDonald's and Franchising McDonald's and Franchising Presentation Transcript

    • McDonald’s
    • A Few Facts About McDonald’s
      • 28,700 restaurants worldwide in over 120 countries
      • $40 billion sales worldwide
      • $1.9 billion net profit
      • First UK restaurant opened in 1974
      • Now over 1,116 restaurants in UK
    • The Menu
      • The Big Mac
      • McChicken Sandwich
      • Chicken McNuggets
      • McMuffin
      • Fillet-o-Fish
      • Vegetable Deluxe
      • McFlurry
    • What is a franchise?
      • A franchise is a license granted by a business to another business to make and sell goods/services
      • A franchisor is the owner of the business who grants the license
      • A franchisee is the person who purchases the business name
    • What is a franchise agreement?
      • The franchise agreement grants to the franchisee the right to operate a specific McDonald's restaurant for a period of 20 years.
    • Franchise Rights Include:
      • McDonald's trademarks
      • restaurant decor designs
      • signage and equipment layout
      • formula and specifications for menu items
      • use of McDonald's method of operation
      • inventory control
      • accounting and marketing.
    • What does the franchisee have to do?
      • In return the franchisee agrees to operate the business in accordance with McDonald's standards of quality, service, cleanliness and value.
      • The franchisee is expected to take a "hands on" role in operating the business and to become involved in local civic and charitable activities.
      • Throughout the franchise term the franchisee must only have one business interest - McDonald's restaurants.
    • Becoming a Franchisee
      • Every McDonald's franchisee must successfully complete a training programme
      • This takes around nine months full-time to complete.
      • Franchise candidates are not charged for the training, but have to fund themselves during this period.
      • Each franchisee has the constant support of a McDonald's Field Consultant who is always available for help and advice
    • Cost/Benefit Analysis of Franchising for Franchisee
      • Benefits
      • Use a well-known name & logo
      • Gains from national advertising
      • Gets an immediate business with national help & support
      • Costs
      • May require large capital outlay
      • Limited freedom
      • Need to pay franchisor royalties
      • Total dependency on skills of franchisor
    • Cost/Benefit Analysis of Franchising for Franchisor
      • Benefits
      • Quick & simple, low risk route to expansion
      • Little capital required for expansion
      • Costs
      • Need to monitor & control franchisee
      • Franchisee may not achieve required standards