If you are planning to open a franchise business then McDonald’s Franchise Business can be a good option for you and this is going to be the topic of this blog, you will be given all the information about McDonald’s Franchise Business that how much investment you can take in it How old is the company, how much is its market potential etc.
What is a Franchise
Before taking a franchise of any company, it is important to know that how money can be earned through franchising and What is a Franchise? Actually, when you take a franchise of a company, then you can open its branch by using the name of that company. For doing this you have to pay some fee to that company. After which you can sell the goods or products of that company.
McDonald’s Company History
McDonald’s was founded in 1940 and was founded by Richard and Maurice McDonald. In 1955, Ray Kroc joined the company as a franchise agent, started buying the chain from the McDonald brothers and became its owners.
McDonald’s headquarters are recently in the process of relocating to Chicago. It is expected that this work will be completed by the year 2018. At the same time, McDonald’s started selling its franchisees from the year 1955.
to be sold by McDonald’s products containing
The list of products sold by McDonald’s includes items such as vegetarian burgers, chicken burgers, french fries, soft drinks, milkshakes, salads, desserts, coffee. At the same time, people like the French fries sold by them.
McDonald’s important facts about
- McDonald’s branches are found in about 119 countries. That is, if you go to any other country, then you will definitely see McDonald’s there. From this you can guess that the business of McDonald’s is spread all over the world.
- According to statistics, the food sold by McDonald’s is consumed by about 55 million customers every day. This number is increasing very fast.
- McDonald’s currently has about 36,900 outlets all over the world and not only this, McDonald’s provides employment to more than one million people.
- All the restaurants opened by McDonald’s are same. At the same time, inside and outside seating facilities are also given to its customers in many of its restaurants.
- Where you take a franchise of another company, then you have to choose a place yourself. Whereas McDonald’s company’s rule is completely different. McDonald’s also does the business of real estate. If someone wants to take a McDonald’s franchise, then he can open his franchise at the place purchased by McDonald’s. Whereas McDonald’s charges the rent of that place like a landlord.
How to get McDonald’s Franchise
To take a McDonald’s franchise, first of all you need to read the important document related to its franchise i.e. Franchisee Disclosure Document (FDD). In these documents, the conditions related to taking its franchise and how you will be given profit in it. Information will be given about this. If you want, you can take the help of a lawyer, who will give you good information about the franchise disclosure document. In the Franchisee Disclosure Document, the agreement related to taking the franchise has been explained in detail.
Where to get Franchisee Disclosure Documents
You can find McDonald’s FDD online, credit card usage can buy by. Or you will easily get a free PDF related to it in Google. By downloading this PDF, you can easily read it sitting at home and get important information related to opening its franchise easily.
Procedure to get Franchisee
If you feel that you have the money and experience to take its franchise, then you can apply to take a franchise. At the same time, in the application form, you will have to fill basic information like name, address, phone number, date of birth and e-mail address.
After your initial application is accepted, you will have a phone interview and a test. At the same time, after passing both these exams, you will have to spend a few days in McDonald’s restaurant. During this, you will be told how to do their work. At the same time, in the end a panel will interview you and if you pass that interview, then you will get its franchise. In this interview, how do you run the company and what you learned after working for a few days at McDonald’s will be known.
(M)cdonalds franchise cost in india
To take a McDonald’s franchise, you need 6 to 8 crore rupees. Out of which the franchise fee is 30 lakh rupees. On the other hand, if you do not have that much money, then you can take a loan from any bank. To take a loan, you will have to show any land documents to the bank. And you have to mortgage these papers in the bank.
how to get franchise in india
McDonald’s company does not give its franchise directly in India. Only two companies have the work of giving its franchise in India. Out of which the name of the first company is Hardcastle Restaurants Pvt and its Vice Chairman is Amit Jatia. At the same time, the name of the other company is Vikram Bakshi Connaught Plaza Restaurant Private Limited. If you want to take McDonald’s franchise in West and South India then you have to approach Hardcastle Restaurants Pvt. On the other hand, if you want to open a franchise in North and East India, then you have to contact Vikram Bakshi Connaught Plaza Restaurant Private Limited Company. From there its franchise is given for twenty years.
Can be opened in four types of locationshandjob Restaurant
There are four types of McDonald’s restaurant franchises. About which you have been given information below. On the other hand, by reading the information given below, you will know what kind of franchise you can take.
- traditional Restaurant Inside this type of location comes a place like food court, freestanding building, store front. This franchise is available for 20 years. Even in such franchises, great care is taken on the quality of food and service provided to the people.
- satellite location Places like airport, college, hospital come under this location. That is, the franchises that open at these places are called satellite location franchises. At the same time, non-McDonald’s trademarked products can also be sold in these franchises at these locations.
- STO (STO) AND STAR (STOR) Location In small cities, the stores that are opened in place of filling oil in the car, they come under this location. At the same time, you must have seen many such places in India, where there is a petrol pump on one side and McDonald’s restaurant on the other. Whereas the franchise period for STO and STR locations is 10 years. Meaning you can open your restaurant here only for 10 years. At the end of the period, you will have to apply again to take the franchise.
- business facilities lease (bfl) Franchisees: (Mcdonald’s business facility lease) – This Franchisees are given on lease, which includes business facilities. Whereas BFL type franchise is given for three years.
Land related options
There are two options for acquiring land to open a McDonald’s franchise. According to the first option, if you have any land of your own, then you can start its franchise on it. On the other hand, if you do not have any land, then the operator can take the McDonald’s franchisee on a one-year lease under the lease.
Option to buy existing franchisee
If you want, you can also buy an already running franchise. You get a lot of benefit by doing this. By buying such a franchise, you find it a little cheaper. On the other hand, if you are not getting any of its existing franchisees earlier, then you can open its franchise at a new location.
give to McDonald’s company fees and profits
McDonald’s charges the following fees from its franchisee buyers during the term of the franchise, below are information about these fees, which are as follows.
- Service ChargeAfter taking a franchise, you have to pay a monthly fee to McDonald’s. At present, McDonald’s charges a service fee of 4 percent on the sale of its products. At the same time, after paying 4 percent fee, the money that is left is your profit.
- Rent – McDonald usually owns the property and acts as the landlord. It charges you rent on a monthly basis. Therefore, before taking its franchise, read its documents carefully, so that you do not have any problem going forward.
what should be the place (M)cdonald’s location requirements)
You need at least 50,000 square feet of space to open a McDonald’s restaurant. At least 4,000 square feet should be available for construction. Apart from this, your store should be near two major roads. Also there should be good parking facility there. Apart from this, it is important to have a good atmosphere around that place.
McDonald’s Some important information related to taking a franchise
- After taking any franchise, you have to apply for a permit. Therefore, while opening a franchise in your city, do not forget to take a permit from the local government office there. You also incur some expenses while getting the permit. Apart from this, you also have to submit some documents there.
- You have to buy all the goods only from the seller mentioned by McDonald’s. Because the same food is sold in every McDonald’s restaurant. Therefore, you should only contact the seller mentioned by the company.
- The second most important task is to recruit employees. To run this business, you have to hire kitchen workers and counter workers and get them trained.