VISION

‘To be the best and

leading
fast food provider
around
the globe’
 MISSIO
N
"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."
 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 McDonald’s 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 – McDonald’s
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 –
McDonald’s 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)
 HIGH

STAR
QUESTION MARK

GROWTH RATE

CASH COW
DOG

LOW

HIGH LOW

MARKET SHARE
 McDonald’s 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 décor.
 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