The McDonald’s franchise agreement model should be a model for any business that wants to make it big in the world of franchising.
October 3, 2011 by Fran
Filed under Franchise Articles
You really cannot go wrong looking at the McDonald’s franchise agreement as a model for how to get it right when it comes to franchising your company. The McDonald’s people have had such an explosion of success that when you say the word, “franchising”, you almost automatically think of McDonald’s. So when you begin to get serious about starting your own very successful company out on the exciting adventure of franchising, you do not have to look too far past the McDonald’s franchise agreement as a model for how to grow a business to the empire level and run it like a well oiled machine.
You don’t get to where you are running thousands of franchise outlets and keeping them all profitable and happy overnight. That is why the McDonald’s franchise agreement that they set up with their franchise owners is an evidence of how to do it right. It is a tricky balance to make sure there is conformity in all of your franchise outlets and still give each franchise owner plenty of room to make that franchise outlet his or her own. But when it comes to a franchise that is a rock solid choice for fast food for millions of customers because they know they will get the same quality of food, service and dining experience from Boston to Seattle to Hong King, McDonald’s pulls it off.
Every aspect of how this massive franchise chain grew up from one store to tens of thousands deserves attention. From the McDonald’s franchise agreement to their operations manual and their army of field managers, knowing how they got it right over and over again would be pure gold in terms of franchising wisdom. If you are just starting out in planning now to launch your first franchise outlet, it is not too early to think of yourself as a massive franchising success like McDonald’s. Even if you are not franchising inexpensive fast food and Happy Meals, the principles of running a big chain that are represented by the McDonald’s franchise agreement deserve respect and study.
To say that McDonald’s wrote the book on how to hit it big in franchising is an understatement.
There is an art to running a highly successful franchise chain and the relationship between McDonald’s and their thousands of franchise owners is a modern marvel. Much of that success is in the structure of the documents such as the McDonald’s franchise agreement that set up the franchise to succeed. But there is no question that McDonald’s has set up a field operation to keep that vast army of spread out small business people operating at peak performance. It is a network that is so efficient that any modern army would be jealous.
The documents that are the backbone of the stunning success of this massive fast food chain include the McDonald’s franchise agreement along with the franchise operating manual and their system of communications that keeps their thousands of loyal franchise owners all marching to the same tune.
The lesson is clear. To launch a franchise operation that targets phenomenal success, the McDonald’s model has plenty to teach any new franchising operation. That means learning the nuts and bolts of how the McDonald’s franchise agreement helps to set their franchise owners on a path of success. It also means picking the brains of those in the know about how McDonald’s runs this amazing operation day in and day out. This is the kind of field research that will pay off big time because even if you are not setting out to become a billion dollar multinational franchise chain, the people at McDonald’s have plenty to teach us other than what is in their secret sauce.
A McDonald’s franchise agreement may be the gold standard in franchise opportunities because the chances for making big money are so great.
June 23, 2011 by Fran
Filed under Franchise Articles
For a franchise opportunity, the McDonald’s franchise agreement is one that dominates the fast food landscape. So the idea of getting a McDonald’s franchise agreement and becoming part of one of the most successful chains in the world is appealing to say the least.
Even if you are not out to land your own McDonald’s to own and manage, the McDonald’s franchise agreement is a model that sets the standard for all of the franchising industry. With thousands of successful franchises, the McDonald’s operating manual is one that is well thought out with contents to cover every possible franchise issue that has come up in the operation of such huge franchise network.
Part of the appeal of winning a McDonald’s franchise agreement is the knock-your-socks-off name recognition of the McDonalds brand. That means that once you open your own McDonalds will inherit an amazing customer base that will flood your fast food store from the minute you open the doors on the first day. The profits that a very busy McDonalds can generate are nothing short of astounding. Any small business person who is temped about that kind of big money operation would look at the possibility of owning a McDonald’s franchise agreement as a dream come true.
It pays to consider the investment before jumping into a McDonald’s franchise agreement.
With any business opportunity, there are costs that balance out the big time profits to be had. That is certainly true of a McDonalds franchise agreement. A franchise agreement with McDonalds is going to come with a pretty hefty price tag. The costs of buying any franchise is going to based on the existing success and appeal of the franchise chain. And since McDonalds is one of the most successful franchise chains of all time, the costs of getting into a McDonalds franchise agreement and then starting up operations is going to be out of this world compared to many other smaller franchises for sell on the market.
The work of running a fast food chain and living up to your McDonald’s franchise agreement are demanding. Most franchise owners and managers find themselves working virtually day in and day out to maintain those standards not only to satisfy the franchisee but to keep the customers rolling in. McDonald’s customers are notoriously spoiled by clean restaurants, McDonalds that are consistently stocked and ready to serve those familiar menu items hot and tasting exactly the way they expect them to taste no matter which McDonalds franchise they are in.
That is a high standard to hit. In addition, because it takes such an army of low cost workers to keep a McDonalds running like a top around the clock, to staff a McDonalds is going to mean high turn over and some serious management challenges. These are some of the issues that any small business owner who is the proud holder of a McDonalds franchise agreement will have as part of his life every week.
None of these issues should be s show stopper from keeping you from being the owner of a McDonalds franchise agreement. But as is true of any big business move, knowing what you are getting yourself into is the first big step on that road to success and wealth owning your own McDonalds franchise.