McDonald’s

For over 50 years, McDonald’s has been giving opportunities to people who share the same vision of serving great tasting quality food fast through franchising. More than 80% of McDonald’s restaurants all over the world are owned by franchisees.

In the Philippines, McDonald’s opened its doors to franchising to Filipino entrepreneurs in 1985, and has since expanded its network to over 150 franchised restaurants with more than 65 franchisees (most have been part of the McDonald’s Family for around 10 to 15 years!).

McDonald’s franchisees, also called Owner/Operators, play a major role in the System’s success. Choosing McDonald’s means joining the force behind one of the world’s most successful and most loved brands and becoming part of a global network of successful and motivated entrepreneurs.

Franchise Details of McDonald’s

As a McDonald’s Philippines Owner/Operator, you gain the following advantages:

• World class training to deliver world class service and business success
• Extensive support system to cover all aspects of the business, which includes operations, supply chain, and marketing support throughout the entire franchise term
• Access to world class suppliers that provide the necessary goods and services that go into great-tasting food and excellent services that customers enjoy
• 100 percent customer awareness of the world’s leading fast food restaurant
• A peer network of over 65 franchisees locally, and the McDonald’s network of over 27,000 employees nationwide

McDonald’s continues to be recognized as a premier franchising company around the world. The fact that McDonald’s management listens so carefully to and collaborates with our Owner/Operators has a lot to do with that success.

Our Owner/Operators devote full time and best efforts to their restaurant business. Their focus and passion is what makes McDonald’s the number one food service organization in the world.

Owning a Franchise

We grant franchise to an individual on a sole proprietorship basis.

We award the franchise on a per restaurant basis. We don’t offer it on a territorial or geographical basis.

Site Selection

McDonald’s chooses the site and does feasibility study on the potential site. The sites are thoroughly studied, evaluated and we do traffic counts systematically. Application for the site and the franchise is treated and processed separately and independently from each other.

Franchise Terms

The term of the franchise is good for ten (10) years or the term of the lease whichever is shorter.

Kinds of Franchise

The required investment cost on the part of the franchisee will depend on the kind of store or site that will be offered to him by the Company. In relation to this, we basically franchise in three (3) ways:

• The Company awards franchises for a new site or restaurant.
• The Company awards franchises for an existing restaurant owned and operated by the Company.
• The Company awards franchises for an existing restaurant owned and operated by a franchisee who would want to sell his or her McDonald’s restaurant.

Cost of Investment

Investment typically ranges from Php30 to Php50 million with the assumption that the land is leased. This covers the following costs:

• Architectural Planning and Design Fees
• Building and leasehold improvements and other relevant site works necessary
• Kitchen, air-conditioning and exhaust equipment
• Cash registers
• Emergency generators
• Seating, signages and décor
• Other furniture and fixtures

The above costs depend on the following factors for consideration:

• Restaurant size
• Suitability of existing building
• Site location whether provincial or within Metro Manila
• Equipment specifications involved based on the kind of menu offering (regular or limited menu line). In all cases, however McDonald’s specifies and approves the menu offerings.

Contact Details of McDonald’s:

Basics of Franchising McDonald’s

Franchising benefits

Franchisees gain access to a proven business model, established brand reputation, and ongoing support from McDonald’s, reducing the risks associated with starting a new business. They benefit from collective advertising and marketing efforts conducted by the franchisor, which can result in increased customer traffic and sales. Franchisees also have the opportunity to tap into the training and operational resources provided by the franchisor, enhancing their chances of success and profitability. Below are just a few pointers why franchising McDonald’s is beneficial for the inverstors:

High success rate due to its business model rather than starting from scratch.

Franchising McDonald’s offers the advantage of tapping into an established reputation and customer base, which can significantly reduce the time and effort required to build brand recognition. Additionally, franchisors typically provide comprehensive training, ongoing support, and proven business models, mitigating many of the risks associated with starting a new venture.

Franchisees benefit from economies of scale in purchasing, marketing, and operational support, which can lead to cost efficiencies and improved profitability.

Overall, franchising offers a structured pathway to entrepreneurship with a higher likelihood of success compared to launching a new brand independently.

McDonald’s is a recognized brand or trademark that can bring you success.

Success is achievable for franchising recognized brands like McDonald’s due to their established reputation, which can attract customers more readily and build trust faster than starting a new brand. Franchisees benefit from proven business models, operational support, and marketing strategies provided by McDonald’s, reducing the risks associated with independent entrepreneurship.

Additionally, being part of a well-known brand network offers access to economies of scale, collective marketing efforts, and a support system among fellow franchisees, enhancing the likelihood of success.

Availing financing from various sectors is highly likely due to a good brand reputation.

Financing is often more readily available when franchising a reputable brand due to several factors. Banks and lenders are typically more willing to provide loans to franchisees of established brands because they have a proven track record of success and lower risk compared to new, unproven businesses.

Additionally, franchisors may have relationships with financial institutions or offer financing options themselves, making it easier for franchisees to secure funding. The recognizable brand name and business model of McDonald’s also provide a level of security for lenders, increasing the likelihood of loan approval and favorable terms for franchisees.

Formula for success that a franchisor may provide.

Low-cost supplies and efficient supply chain management contribute to higher profit margins for franchisees by reducing the cost of goods sold. Effective marketing increases brand visibility and customer traffic, leading to increased sales and revenue. A prime location maximizes foot traffic and accessibility, further enhancing the franchisee's revenue potential and profitability.

5 things to consider when franchising McDonald’s

1 Make sure that you really want to own this franchise and this will best fit your venture among other offered business opportunities.

2 Be certain that you can work harmoniously with McDonald’s franchise and it is within your interest. A visit to one of the franchise store will help you be more aware of operation and proceedings.

3 Carefully study the Terms and Condition, Franchise Agreement, and what are included in franchising McDonald’s.

4 Check if McDonald’s franchise will be compatible with the rules and regulation, as well as existing laws on chosen location.

5 Best location is one key aspect to have a successful McDonald’s franchise. Study the environment and see if your business suits the surroundings.

Successful frachising 101

Becoming a successful McDonald’s franchisee requires a combination of strategic planning, dedication, and hard work. Here are some steps you can take to increase your chances of success:

Research

Start by researching various franchise opportunities to find one that aligns with your interests, skills, and financial resources. Look for franchises with a proven track record of success, strong brand recognition, and a supportive franchisor.

Understand the Franchise Agreement

Carefully review the franchise agreement, including all terms, fees, and obligations. Make sure you fully understand the expectations and requirements of being a franchisee.

Financial Planning

Evaluate your financial situation and determine how much capital you have available for investment. Consider not only the initial franchise fee but also ongoing expenses such as royalties, marketing fees, and operational costs.

Training and Support

Choose a franchise that offers comprehensive training and ongoing support to franchisees. Take advantage of all training programs provided by the franchisor to learn the ins and outs of the business.

Location Selection

If the franchise involves a physical location, carefully choose the location for your business. Consider factors such as foot traffic, demographics, competition, and lease terms.

Follow the System

One of the benefits of franchising is that you're buying into a proven business model. Follow the franchisor's system and guidelines closely to increase your chances of success.

Provide Excellent Customer Service

Focus on providing excellent customer service to build a loyal customer base. Happy customers are more likely to return and recommend your business to others.

Marketing and Promotion

Take advantage of the marketing support provided by the franchisor, but also be proactive in promoting your business locally. Utilize social media, local advertising, and community events to attract customers.

Manage Finances Wisely

Keep track of your finances closely and manage expenses efficiently. Monitor your cash flow, budget carefully, and seek professional advice if needed.

Adapt and Innovate

Be willing to adapt to changing market conditions and customer preferences. Look for opportunities to innovate and differentiate your business from competitors.

Network with Other Franchisees

Connect with other franchisees within the same system or industry to share insights, experiences, and best practices. Networking with fellow franchisees can provide valuable support and advice.

Stay Committed

Building a successful franchise takes time and effort. Stay committed to your business, remain focused on your goals, and be prepared to overcome challenges along the way.

By following these methods and staying dedicated to your business, you can increase your chances of becoming a successful McDonald’s franchisee.