HOW TO OPEN AND HOW MUCH IS THE MCDONALDS FRANCHISE
McDonald’s restaurant, offering fast food service ,is located around the world. In practice, one person can not build their own restaurant McDonald’s, but the company is constantly looking for places for new restaurants. The entrepreneur can only use the franchise and become an operator of McDonald’s restaurant in the fast food market.
FOR WHOM IS THIS FRANCHISE?
According to the policy of McDonald’s, the franchise is available only to individuals, already operating fully working restaurants network, and not to new facilities. Because the launch of new facilities is engaged in the company itself McDonald’s or already operating in the franchise system experienced franchisees (this is the one who acquires from the franchisor the right to use the brand).
The requirement for entrepreneurs is that the McDonald’s franchisee personally manages his restaurant and does not pursue any other interests that would require constant management and supervision.
Each McDonalds restaurant has a separate franchise agreement for each restaurant, regardless of whether the franchisee cooperates with the brand or not. The contract is usually signed for a fixed term of 20 years.
WHAT FRANCHISEE GETS?
Having decided to sign a franchise agreement with the McDonald’s restaurant, the franchisee is entitled to work under the famous McDonald’s brand and use the premises intended for this purpose, in which the restaurant is located. Has access to training, training materials, regular consultations and assistance in the work of restaurants and in the field of PR-activities. He can use the help of McDonald’s service companies and service providers, as well as reliable sources of supply, which are subject to constant quality control. The franchisee participates in national programs and marketing campaigns and is supported by a specialized marketing Agency.
In return, the franchisee undertakes:
The use of only certain food and beverages in accordance with established recipes McDonalds.
Application of special procedures of production and control and accounting principles.
Use of special equipment, designs, colors, advertising devices, interior items and furniture.
COST FRANCHISE MCDONALDS
Participation in the franchise system McDonald’s is associated with the need to bear certain costs for the entrepreneur. These include the initial payment, which is a one-time expense, and the monthly payments that the franchisee bears for the duration of the contract with McDonald’s. The franchisee does not share with McDonald’s their profits derived from the operation of his restaurant.
The entrepreneur must have:
Own funds in the amount of not less than 320 000$ (depending on the region, the price may be higher).
The lump sum is $ 45,000.
Ability to repay monthly payments (royalties) — from 12.5%.
$ 10,000 for tuition.
Ability to cover the costs of the restaurant.
Part is allocated to pay for services and purchase of restaurant equipment, and part is a financial reserve. The initial license fee is 45 thousand. dollars, and a security Deposit of 15 thousand. dollars’. The Deposit is charged to secure McDonald’s future debts. For the purchase of restaurant equipment should be allocated from 320 000$ to 1 000 000$. To provide restaurants with food, packaging and funds, it is necessary to reserve about 13 000$. Added to this are the costs associated with starting a business and opening a restaurant.
The monthly fee for McDonalds is charged for the use of the restaurant and is a few percent of the total sales. The license fee is 5 percent. the total sales and marketing fee is 4.4 percent.
The costs also create a commitment for the franchisee to reinvest in the restaurant he manages when McDonalds decides to introduce all kinds of innovation. This entails the need to purchase equipment and equipment, or change the production system and customer service in a particular restaurant franchisee.
HOW TO BECOME A FRANCHISEE?
To open your own McDonalds restaurant, you must become a corporate franchisee. This is possible by submitting an application along with a resume and cover letter. Documents should be sent to the McDonalds office by mail or electronically.
official website of McDonald’s in Russia: https://mcdonalds.ru
official website of McDonald’s in Ukraine: https://www.mcdonalds.ua
Then there is a meeting with the franchising Department and the initial verification of the candidate. If he or she successfully passes it, there is a meeting with the Finance Department that checks the funds available to the candidate.
The next step is a three-day practice at McDonalds restaurant and evaluation of candidates. If everything turns out to be in order, he is invited to a meeting with representatives of the McDonald’s management, during which a final interview will be held before the training stage in restaurants. After training, the candidate is given a franchise offer and can contract with McDonalds. After the fees stipulated in the franchise agreement, the franchisee can take over the restaurant. The whole process takes about 15 months, with the most training. Practice and training in the franchisee’s restaurant can be carried out after the conclusion of the relevant contract and receipt from the entrepreneur of the sanitary-epidemiological certificate, allowing to work in the field of gastronomy.