How do franchises work?
- Thread starter Mig
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dunno, i'd always thought it made it easier to administer.
McDonalds and Burger King are both franchises as well iirc ??
When you get to that size, where you've got millions of stores world wide, its got to be easier just to sell them their stock, and take a cut of their profits, than try and administer that many stores and that many staff.
McDonalds and Burger King are both franchises as well iirc ??
When you get to that size, where you've got millions of stores world wide, its got to be easier just to sell them their stock, and take a cut of their profits, than try and administer that many stores and that many staff.
Soldato
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I thought McDonalds wasn't a franchise, whereas Burger King, KFC and pretty much every other fast food outlet was.
And to the OP, which would you rather:
Earn 100% of the cash and have to do 100% of the work
Earn 50% of the cash and have to do 10% of the work
And to the OP, which would you rather:
Earn 100% of the cash and have to do 100% of the work
Earn 50% of the cash and have to do 10% of the work
In a lot of business "licensing" is where it's at.
I mean as a company we license much of our IP - and it's money for old rope.
You've already done all of the work - it's the product that just keeps on giving.
Franchise is the same - all the hard work already done by getting your name out there.
Let somebody else have the hassle of managing store and staff and you simply take a cut of the profits for letting them use your brand - profit!
I mean as a company we license much of our IP - and it's money for old rope.
You've already done all of the work - it's the product that just keeps on giving.
Franchise is the same - all the hard work already done by getting your name out there.
Let somebody else have the hassle of managing store and staff and you simply take a cut of the profits for letting them use your brand - profit!
Well here is a link telling you all you need to do to get a McDonald's franchise:
http://franchises.about.com/od/mostpopularfranchises/a/mcdonaldscosts.htm
So I'd say they probably are.
There's some BK owned Burger Kings and there are some franchise Mcdonalds. Mcdonalds force a lot more management onto their franchises though, and I think the majority of stand-alone shops are mcdonalds owned and the majority of BK's are franchises. All food-court type outlets are usually franchises.
i worked for one part time while i was at college
they definately are.
There are 3 mcdonalds in wakefield, all owned by the same bloke. He employs a store manager and a deputy store manager to run the stores, they hire & fire etc. Stock is all bought direct from Mcdonalds and they decide the pricing, quality, provide the cooking equipment etc..
If you look in the kitchen of a mcdonalds its the same at every one in the country.
So as a franchise owner, you buy your land, you build your store, you buy everything from mcdonalds / their approved supplier as appropriate and then hire somebody to run the store for you.
Get the location right and you just have to sit back and let the money come in.
all of the mcdonalds in the UK are franchised i believe.
http://www.telegraph.co.uk/finance/...r-franchise-in-the-UK-as-downturn-bucked.html
170 franchise owners with an average of 3.5 restaurants each.
Thats got to be pretty much all of them in the UK.
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Was always pretty certain a few including the Cambridge city centre one were Mcdonalds owned, there's also two in Manchester (one on the grounds of the Mcdonalds office in Salford) which I'm sure are.