28029342 franchise of mcdonald

8/10/2019 28029342 Franchise of Mcdonald

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VISION

To be the best and

leadingfast food provider

around

the globe


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"McDonald's vision is to be the world's bestquick service restaurant experience. Being the

best means providing outstanding quality,

service, cleanliness, and value, so that we

make every customer in every restaurantsmile."

MISSION


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NUMBER OF STORES

McDonald's Corporation is the world's largest

chain of fast food restaurants, serving nearly 47

million customers daily through more than

31,000 restaurants in 119 countries worldwide.

Of the 31377 McDonalds restaurants around the

world, 20505 (65%) are operated by franchisees,

3966 (13%) are operated by affiliates, and 6906(22%) are company-operated.


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Business Mode l :

Franchise ModelOnly 15% of the total number of restaurantsare owned by the Company.

The remaining 85% is operated by franchisees. The companyfollows a comprehensive framework of training and monitoring of

its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its

customers.

Product ConsistencyBy developing a sophisticated suppliernetworked operation and distribution system, the company has

been able to achieve consistent product taste and quality acrossgeographies.

Act like a retailer and think like a brandMcDonalds focuses notonly on delivering sales for the immediate present, but alsoprotecting its longterm brand reputation.


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Cleanliness and Value propositions offered bythe company to its customers.

Product ConsistencyBy developing asophisticated supplier networked operation anddistribution system, the company has been ableto achieve consistent product taste and qualityacross geographies.

Act like a retailer and think like a brandMcDonalds focuses not only on delivering salesfor the immediate present, but also protecting itslong term brand reputation.


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NUMBER OF EMPLOYEES

1.5 millionworldwide

(398,000 companystaff,1.1 million

franchisee staff)


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STAR QUESTION MARK

CASH COW DOG

GROWTH RATE

MARKET SHARE

HIGH

LOW

HIGH LOW


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McDonalds franchisee in India

Since the year 1996 McDonalds was opened through

out India

McDonalds franchise in India is an organization that

is managed in form of joint venture by Indians and isnot in a franchise form

The western part of India is managed by Hardcastle

Restaurants Private Limited of Amit Jatia. In the

northern side it is managed by Connaught Plaza

Restaurants Private Limited of Vikram Bakshi. These

two companies take building for its running on a long

term basis


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The basic requirement of space for its start is

2,500 to 3,000 square feet area for carpetspreading on the floor

minimum height of the building needs to be

11 feet and it even requires at least 40 feetfrontage space.


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The investment made in this joint venture is done by these bothcompanies.. McDonalds franchise in India does not work but still the quality offood available here makes it different from other eating outletsMcDonalds has been he foremost company to have started thebusiness of franchising in the world. Its total investment has beenaround $506K to $1.6MThe fee of franchising is $45K. The Annual McDonalds franchise revenue for the year 2005 was$633,000 and Annual revenue for the complete chain of McDonalds is

$20.46 billion.

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How to buy a old McDonalds

franchise?

Before buying any McDonalds franchise outlet

it is crucial for businesses to have information

regarding the location, accessibility, demand

and other relevant factors which enablebusinesses to decide upon which is the best

McDonalds franchise to buy in order to get

fast foods that are demand driven


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What was the profit margin made by the

McDonalds outlet previously

Ownership of the franchise

Location


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How to open a new franchise with

McDonalds

In order to fill up the online form of the

company

. Apart from this, the individual is also

required to have a $ 1,00,000 as cash. One

should remember that the franchisee has to

pay around $5,00,000 to 10,00,000 to get

started with the business which includes thecost of setting up the business


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The company gets an annual fee of $ 45,000

on yearly basis including a royalty of 12.5%

which includes the McDonalds franchise

application

If the franchisee is not comfortable in paying

the whole amount in one go, then he has the

option of paying 25% of the amount on cashand the rest of the amount can be forwarded

in a period of 7 years.


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The company norms stare that every franchise has tohire at least 20 who fully trained with the processing

of the McDonalds fast food.

In order to equip the training program, the company

also facilitates an in-house training program which

enables the franchise in managing the business in a

suitable manner

McDonalds also provides full support in publicity ofits franchise world over and it also remains in touch

with its franchisee through Internet and other source

of information .


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As famous mc donalds system will support in

various areas like training, marketing, and

operating.

Before an owner makes a franchise successful

it completes it training programme. This is for

nine months.

The franchise of mc donalds are purchased by

combining personal finance along with bank

finance.


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it is stated that an individual should have

minimum 25% of total purchased price in the

form non borrowed funds

The agreement of mc donalds franchise is for

20 years in this agreement the property is

owned by mc donalds and the equipments of

restaurant kitchen are owned by the owner

. Franchises have the responsibility to

maintain the standard of restaurant and dcor.


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Mcdonalds franchise information

on finance model

1-Conventional Franchise :- This includes the

price based on the profitability of restaurant

i.e. a candidate should have at least 25% of

the price in non borrowed funds.

2:-Business facilities lease:-This is provided

rarely by Mc Donald's in this all the people

who are unable to meet financialrequirements and are unable to excess all the

other things then Mc Donald's grant the

business facility lease to those people.


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McDonalds Franchise Information on ongoing

fees For the use of property mc donalds

charge monthly rent. And this is based on

various levels of monthly sales and vat isdeducted from the amount.


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3:-McDonalds royalty

In this method the franchisor makes his cash

payment at the end of each month and the

amount to be paid is fixed and does not

depend on the daily income of the franchisee.

. The monthly charge paid by the franchisee

helps him updating his business strategy in

daily basis.

This money paid is regarded to be security

against the franchise you buy.


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. The money paid in royalty to the franchisor

makes it use the amount for any further

development of the business you take up


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There are many structures that are followed

by the franchisor to take payments from

franchisee

Some of the ways by which the payments can

be made are flat fee, percentage on the sale of

the franchisee and percentage of gross sale

made by the franchisee. The amount to bepaid in royalty is found to be negotiable.


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McDonalds has been he foremost company to

have started the business of franchising in the

world. Its total investment has been around

$506K to $1.6M

Before investing on any McDonalds Franchise

it is necessary that you study the profit

maximisation that the outlet has previouslymade


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if you are starting a new franchise with

McDonalds it is necessary to know the

amount of profit made for the annual year

- Franchise fees, marketing, and royalties-

$45k, +12.5% & 4%

- Annual sales-1.3m

- Gross profit- $916k


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28029342 franchise of mcdonald

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