VISION

To be the best and

leading
fast food provider
around
the globe
"McDonald's vision is to be the world's best
quick service restaurant experience. Being the
best means providing outstanding quality,
service, cleanliness, and value, so that we
make every customer in every restaurant
smile."


MISSION
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.

Business Mode l :
Franchise Model Only 15% of the total number of restaurants
are owned by the Company.
The remaining 85% is operated by franchisees. The company
follows 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 Consistency By developing a sophisticated supplier
networked operation and distribution system, the company has
been able to achieve consistent product taste and quality across
geographies.
Act like a retailer and think like a brand McDonalds focuses not
only on delivering sales for the immediate present, but also
protecting its longterm brand reputation.
Cleanliness and Value propositions offered by
the company to its customers.
Product Consistency By developing a
sophisticated supplier networked operation and
distribution system, the company has been able
to achieve consistent product taste and quality
across geographies.
Act like a retailer and think like a brand
McDonalds focuses not only on delivering sales
for the immediate present, but also protecting its
long term brand reputation.

NUMBER OF EMPLOYEES
1.5 million
worldwide
(398,000 company
staff,1.1 million
franchisee staff)


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 is
not 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
The basic requirement of space for its start is
2,500 to 3,000 square feet area for carpet
spreading on the floor
minimum height of the building needs to be
11 feet and it even requires at least 40 feet
frontage space.


The investment made in this joint venture is done by these both
companies.
. McDonalds franchise in India does not work but still the quality of
food available here makes it different from other eating outlets
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
The 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.

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 enable
businesses to decide upon which is the best
McDonalds franchise to buy in order to get
fast foods that are demand driven
What was the profit margin made by the
McDonalds outlet previously
Ownership of the franchise
Location

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 the
cost of setting up the business
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 cash
and the rest of the amount can be forwarded
in a period of 7 years.
The company norms stare that every franchise has to
hire 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 of
its franchise world over and it also remains in touch
with its franchisee through Internet and other source
of information .
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.
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.

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 financial
requirements and are unable to excess all the
other things then Mc Donald's grant the
business facility lease to those people.

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 is
deducted from the amount.



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.
. The money paid in royalty to the franchisor
makes it use the amount for any further
development of the business you take up
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 be
paid in royalty is found to be negotiable.

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 previously
made
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