A Private Franchise The Story of McDonald Table of Contents of the Organization 3 Type of Business 3 Requirements to become a Franchisee 3References 5
Name of the Organization
The organization that is discussed in this report is McDonalds – one of the largest chains of fast food restaurants in the world. McDonalds Corporation along with its franchises and subsidiaries is considered to be a large organization having annual sales of almost $24 billion (Bloomberg Businessweek, McDonald’s Corp.). Thanks to its franchises, this US based company has presence in almost all the important countries in world.
Type of Business
Since 1940, McDonalds is into the business of fast food restaurants. It is mainly famous for hamburgers and related items like fries. The 70 years old company has spread across the world through its large number of outlets. However, most of these outlets are operated through ‘franchise model’.
Requirements to become a Franchisee
Any individual or organization that wants to start a McDonald franchise can do that by buying an existing outlet from McDonald or from one of the existing franchisees. Another way of doing it is to start an entirely new McDonald outlet by fulfilling various criteria which are set by the company. One has to make the initial down payment which is usually found to be almost 40% of the entire cost. This initial payment has to be from personal resources that are not borrowed from anyone else. It can be in the form of either cash or bonds or securities or debentures. The minimum amount that is required to start a McDonald franchise is around $300,000. Individuals who are seeking such an outlet should have enough business sense and experience along with sound management skills and remarkable credit history.
As far as training is concerned, McDonald has developed the famous Hamburger University in Illinois with the purpose of providing training to the franchise managers and other employees. Since its inception in 1961, the company has trained almost
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