Mcdonald’s franchisee

McDonalds Corporation is leading global intellectual nourishmentservice retails with more than 30,000 local restaurants by serving 52 one thousand million people in more than 100 countries per day. Besides more than 70% of McDonalds restaurants worldwide are featureed and operated by independent local workforce and women. The corporation founded by Ray Kroc and it is continued with McDonalds vision with global brand image.McDonalds Corporation is the worlds largest chain of fast food restaurants supply and selling of like hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes and desserts. It also offers salads, fruit, snack wraps and carrot sticks. The company suits American way of life. And it is globally grow and has many international markets. The decision of McDonalds franchises restaurants depends of the selection of candidates and the management in that country where the restaurant is located makes it locally.McDonalds restaur ant it is an best opportunity to own the restaurant. While selecting the organization seeks the individuals who have business experience with capability of undertaking multiple business units. At present that company has more than 2400 Owner/Operators outlets thereby growing the business and making money.Two options available to have the Franchise with McDonalds Corporation. Purchase of EXISTING RESTAURANT from McDonalds Corporation or from a McDonalds Owner/operator OR purchase of NEW RESTAURANT. Initial down payment is necessary to have franchise. 40% of the total cost is required for New Restaurant and 25% of total cost for existing restaurant required. The down payment can be accepted cash, securities, bonds, debentures, vested profit share etc.The total cost varies from restaurant to restaurant. However $250,000 non-borrowed personal resources required. The remaining balance should be payable by the buyer with a term of not more than seven years. During the term of franchise , the buyer has to pay the fees to the McDonalds in the type of service fee i.e. 4% which is based on restaurants gross sales performance and Rent which is also based on monthly sales.Training also provided to the buyers between 9 to 24 months. McDonalds give training to the franchisees and others at Hamburger University in Oak Brook, Illinois. It is also expected that average revenue per store is $633,000. . Recently McDonalds issued circular that the sign franchisee fee is $45,000. it is also estimated that the initial investment required for a traditional restaurant ranges from $730,750 to $1,549,000.UFOCIn the United States, all Franchisee agreements fall under the jurisdiction of a state and federal laws. whence Franchisers are required by the Federal Trade Commission to have a Uniform Franchise Offering Circular (UFOC). While going for franchise, date that it is complied with UFOC i.e. Uniform Franchise Offering Circular. It is a legal document and necessarily to be used i n the United States.The Franchisers must give a UFOC to franchisees at least 10 business days before any contract is signed and before any money transaction between each other. The documents contains all(prenominal) information about a franchiser and includes the following1.The Franchiser, its Predecessors and Affiliates2.Identity and Business Experience of Key persons3. Litigation history4. Bankruptcy5. Initial Franchise Fee6. Other Fees and Expenses7. Franchisees initial investment8. Restrictions on sources of products and services9. Obligations of the Franchiser10. Territory11.Trademarks12.Patents and Copyrights13.Obligation to the Franchisee to participate in the actual operation of the financial business14. Restrictions on goods and services offered by the franchisee.15.Renewal, Termination, Repurchase, qualifying and/transfer of the franchise agreement16. Public figures17. Earnings claims18.List of Franchise outlets19.Financial statements20. ContractsCONCLUSIONMcDonalds allo ws giving the franchises to the US applicants and well as non-U.S. applicants who are outside of the U.S. The McDonalds franchise can be taken by any type of persons like individuals i.e. proprietorship, companies, partnership firms etc. The McDonalds Corporation business model is divergent from other fast food chains. The other fast food corporations will collect only Franchise fees, supplies, and percentage of sales. But the McDonalds Corporation collects stock split also besides others. The Franchise agreement with McDonalds indicates that the corporation owns the properties on which most McDonalds Franchises are located.REFERENCE1.http//www.mcdonalds.com/corp/about/mcd_faq/franchising.html2. http//www.mcfun.com/3. www.entrepreneur.com4.http//www.franchiseprospector.com/franchising-trends/mcdonalds-franchise-profile.php5. http//www.goldlawgroup.com/McDonalds-Franchises.html