McDonald's stipulates the more stringent conditions of the franchise: the franchise applicant to invest not less than 2 million yuan of capital refers to cash or deposits, excluding housing and other fixed assets; the applicant must have enough personal financial resources, and does not allow partnership investment; in the approved application, the franchisee must participate in the comprehensive training for a period of nine to ten months.
The franchisor recommends that you choose McDonald's. The McDonald's Corporation is then responsible for finding a suitable address for the opening of a store on behalf of the franchisee, and either taking a long-term lease or purchasing land and buildings, and then leasing the store to each franchisee for the difference. This is the main source of revenue for McDonald's Corporation. This is essentially McDonald's Real Estate (a company created to implement the real estate strategy) buying the real estate with money from each franchise and then leasing it to the franchisees that paid for it. McDonald's does centralized purchasing of all the beef, flour, potatoes, etc. used by tens of thousands of stores around the world so that its profits come out all at once, but the brilliance of McDonald's supply chain goes much further than that.