McDonald's uses a franchise model for its marketing. In this model, each franchise is a separate legal entity, belonging to its respective private owner. Their relationship with McDonald's is simply to utilize the McDonald's brand and to produce fast food according to McDonald's technical standards, while paying McDonald's brand royalties.
So if you want to have a McDonald's fast-food restaurant in your mall, then you have to look for someone in the community or among your friends who would be happy to invest in and run a McDonald's store, and convince him to open a store in your mall. If all this work is done, then you find this person, to McDonald's Corporation to submit an application to open a store - you need to do a basic introduction to the store and planning, as well as customer traffic analysis, and then mailed to the headquarters of McDonald's in Hong Kong, and wait for them to send someone to evaluate. After the evaluation, he can build his own McDonald's in your mall.
So far, you have realized the desire to let McDonald's come to your own shopping mall.
That's the only way to do it, too.
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At the just-concluded Chain Store Management Conference, McDonald's announced for the first time to the outside world its preliminary conditions for franchising -- McDonald's may carry out franchising in China next year, with an investment of no less than $300,000 by franchisees. McDonald's executives further revealed that McDonald's franchise form will be similar to KFC, the first to open their own directly-managed stores, and then allow franchisees to enter, that is, under the McDonald's restaurant directly-managed stores in the form of franchises transformed into franchises. Sources said the first choice for McDonald's franchising could be Guangzhou or Beijing.
McDonald's big "M" debut this China's largest chain management conference, has become the focus of the majority of the franchisee scramble, McDonald's speeches are crowded. According to reports, if McDonald's in China to carry out the business of franchising, McDonald's hope to find the following conditions of the franchisee: high integrity; has worked in the market; knowledge of the culture of the market, as well as customs; willing to accept a period of about 12 months of time to be trained; have management experience; can be competent in the franchising organization; the amount of investment in the amount of not less than $ 300,000 U.S. dollars.
-Small and medium-sized investors will have no access to McDonald's?
According to Ms. Chen from McDonald's China headquarters, the US$300,000 component includes the cost of restaurant renovation, equipment and signboards, but excludes the rent of the business premises and staff costs. The number of years McDonald's will be franchised has not yet been determined, but KFC, which is already in the franchise business, requires franchisees to sign up for no less than 10 years.
Relative to KFC's 8 million yuan upfront investment, McDonald's 300,000 U.S. dollars in investment seems to be more tempting, but industry insiders believe that the gap between the two franchise investment will not be too large. McDonald's headquarters, McDonald's franchise matters are still under study, so McDonald's investment will be exactly how much is not yet known, it is certain that it will be a considerable amount. If McDonald's also requires long-term franchise years, small and medium-sized investors will not have access to McDonald's.
It is understood that most of the European and American fast-food brands, at least 80% of its system of outlets belong to the franchise, while McDonald's currently has more than 30,000 restaurants in 126 countries around the world, 460 McDonald's restaurants in China, 84 McDonald's restaurants in Beijing, none of the restaurants in China is currently taken in the form of franchising.
McDonald's move is intended to throw stones. For this McDonald's in the chain management conference for the first time large-scale to the outside world to announce its franchise conditions, the industry analysts, McDonald's to test the Chinese market investor's ability to bear and demand, but also to the maturing of the Chinese market, a new strategy.
McDonald's:
If you are eligible, you can apply to join McDonald's today. Yesterday, James Kulmar, vice president of franchising for McDonald's International, came to Tianjin to break down the conditions for becoming a McDonald's franchisee.
Yesterday, Kulmar added, McDonald's franchisees invest mainly in kitchen equipment, signs, tables and chairs, and store decorations, and franchisees need to recruit their own staff and control the costs of the restaurant, which includes food, wrappers, man hours, insurance, equipment and advertising. Franchisees are required to pay 17-23% of their turnover to McDonald's Corporation, while the investors themselves make a profit from the operation of the restaurant.
McDonald's will not offer investors franchises from scratch, but will select the better-run stores from its existing directly operated stores to give to the franchisees, with the addresses of the stores specified by McDonald's Corp. Kurma said that if any store is better managed using the franchise model than the company's directly operated model, then the company will consider that store as a franchise first.
Kurma set conditions for franchisees, including that in addition to a minimum entry threshold of 2.5 million yuan, the franchisee cannot be a staff member working for the company, must undergo about one year of training and must live in the community where the restaurant is located.
Any investment is risky, and McDonald's is no exception. As a rule of thumb, the payback period for investing in a McDonald's is about five years, but it's impossible to predict how well a franchised restaurant will do, Kulma said. So Kulma reminded interested franchisees still need to be careful investment!