Blog #6:McDonalds Corporation

McDonald's...

Is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each day. More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women.

Is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually ever country in which we do business.

Serves the world some of its favorite foods - World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.Our rich history began with our founder, Ray Kroc. The strong foundation that he built continues today with McDonald's vision and the commitment of our talented executives to keep the shine on McDonald's arches for years to come.

International Franchising Information
McDonald's does business in 118 countries around the world. The status of franchising in the markets where we currently do business is described on the country specific pages identified in the selection box below.In many countries around the world we do not have a presence and our current strategy is to focus on the markets where we do business. No firm date has been established for the opening of new markets. Those markets are set forth below and the process that we have in place for such markets is explained on the country specific pages.In certain markets we have a presence but are not seeking franchisees and we have included instructions regarding those markets.

Financial Requirements/Down Payment

An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.

Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $300,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.

Financing

We require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. While McDonald’s does not offer financing, McDonald’s Owner/Operators enjoy the benefits of our established relationships with many national lending institutions. We believe our Owner/Operators enjoy the lowest lending rates in the industry.

Ongoing Fees

During the term of the franchise, you pay McDonald’s the following fees:

• Service fee: a monthly fee based upon the restaurant’s sales performance (currently a service fee of 4.0% of monthly sales).


• Rent: a monthly base rent or percentage rent that is a percentage of monthly sales.