It seems extremely difficult for someone to be a franchisee of McDonalds just because of the extreme start up costs and requirements. Saying this, I think if you meet the requirements it would seem ridiculous for someone not to take up the opportunity to start one. Bringing in $2.5 million in sales annually seems like a pretty good incentive for someone to become a franchisee. On a different note, it was kind of surprising to me that Chick-Fil-A is the highest grossing chain.
Big Franchises like McDonalds that are known globally are more likely to be successful than opening a micro franchise, but the requirements and costs of opening them are usually very demanding. Becoming a McDonald's Franchisee seems like a really good idea and something I had never thought about. Even though it requires a huge investment, it generates enough revenue to recover your investment in 2 years. The bad side of it would be the health issues involved with the brand McDonald's, and the fact that I would be advertising unhealthy food and selling it to children.
Mcdonalds is one of the most lucrative fast foods business, and generates loads of money everyday due to the culture we live in today. Something I did not realize was how expensive it is to be a McDonalds franchisee. The start up cost is ridiculously high and is very difficult for an average person to set it up and get it running. Although, as the article states you will get your investment back in two years which is very good. Being a McDonalds franchisee could be something people would like to start looking at if they are not afraid of getting dirty in the fast food industry.
McDonald's, in my mind, is one of the best restaurants to be a franchisee of. It's expensive to start and you pay quite a bit of other fees but, with the average gross sales of 2.5 million, you will have your money back within the first two years of business! Most businesses owners have to wait double that time before they see their money back. Since McDonald's is such a business giant, its not surprising they require their franchisees to have so much liquid assets. Why wouldn't they? They probably have tens of thousands of potential franchisees waiting to join and with so much liquid assets its less likely for them to default and close the restaurant. If I had the money, I wouldn't hesitate to franchise a McDonald's unit.
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. For this reason, it makes sense that it would be expensive for people to open a McDonalds. In my opinion, it probably is a smarter way to cut out the average joe's in order to make sure that the funding will not run out and then they would have to inevitably shutdown the location.
It seems extremely difficult for someone to be a franchisee of McDonalds just because of the extreme start up costs and requirements. Saying this, I think if you meet the requirements it would seem ridiculous for someone not to take up the opportunity to start one. Bringing in $2.5 million in sales annually seems like a pretty good incentive for someone to become a franchisee. On a different note, it was kind of surprising to me that Chick-Fil-A is the highest grossing chain.
ReplyDeleteBig Franchises like McDonalds that are known globally are more likely to be successful than opening a micro franchise, but the requirements and costs of opening them are usually very demanding. Becoming a McDonald's Franchisee seems like a really good idea and something I had never thought about. Even though it requires a huge investment, it generates enough revenue to recover your investment in 2 years. The bad side of it would be the health issues involved with the brand McDonald's, and the fact that I would be advertising unhealthy food and selling it to children.
ReplyDeleteMcdonalds is one of the most lucrative fast foods business, and generates loads of money everyday due to the culture we live in today. Something I did not realize was how expensive it is to be a McDonalds franchisee. The start up cost is ridiculously high and is very difficult for an average person to set it up and get it running. Although, as the article states you will get your investment back in two years which is very good. Being a McDonalds franchisee could be something people would like to start looking at if they are not afraid of getting dirty in the fast food industry.
ReplyDeleteMcDonald's, in my mind, is one of the best restaurants to be a franchisee of. It's expensive to start and you pay quite a bit of other fees but, with the average gross sales of 2.5 million, you will have your money back within the first two years of business! Most businesses owners have to wait double that time before they see their money back. Since McDonald's is such a business giant, its not surprising they require their franchisees to have so much liquid assets. Why wouldn't they? They probably have tens of thousands of potential franchisees waiting to join and with so much liquid assets its less likely for them to default and close the restaurant. If I had the money, I wouldn't hesitate to franchise a McDonald's unit.
ReplyDeleteMcDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. For this reason, it makes sense that it would be expensive for people to open a McDonalds. In my opinion, it probably is a smarter way to cut out the average joe's in order to make sure that the funding will not run out and then they would have to inevitably shutdown the location.
ReplyDelete