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Thread: The cost of a Mc Donald's franchise

  1. #11
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    Default Re: The cost of a Mc Donald's franchise

    Quote Originally Posted by explorerx7 View Post
    I am wondering if it's the expensive franchise cost is the reason why there have never been a McDonald franchise in my country. There are Wendy's, KFC, Dominoes, Pizza Hut, Burger King, Taco Bell here, and I heard Dunkin's is coming also but no McDonalds. In fact, there was a Burger King store here that had set a world record for sales many year's ago. I am thinking that it may well be the franchise cost that is really restricting the establishment of a McDonald's franchise here.
    I suspect it has to do with McDonalds not coming to an agreement with local partners (often influential people) as to the share of the pie. McDonalds have a reputation of being a bit of a bully in these types in negotiations since they know that their franchise is more or less a licence to print money (can't blame them for it), so they are difficult to negotiate with even when you are the most powerful entity in a said country. And the "we'll go with your competitor" tactic doesn't really work with them unless you are a big big economy.

  2. #12
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    Default Re: The cost of a Mc Donald's franchise

    Quote Originally Posted by CarlosTL View Post
    I suspect it has to do with McDonalds not coming to an agreement with local partners (often influential people) as to the share of the pie. McDonalds have a reputation of being a bit of a bully in these types in negotiations since they know that their franchise is more or less a licence to print money (can't blame them for it), so they are difficult to negotiate with even when you are the most powerful entity in a said country. And the "we'll go with your competitor" tactic doesn't really work with them unless you are a big big economy.
    Yes! they not coming to an agreement with local partners

  3. #13
    Diamond Member Corzhens's Avatar
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    Default Re: The cost of a Mc Donald's franchise

    McDonald's is still making good here in terms of outlets. It is the second to the Jollibee, a homegrown fastfood that is a direct competition of McDonald's in terms of products unlike KFC which has a different menu. But I have heard that there are no McDonald's in some provinces here because it is blocked by the local government. That means there is politics in play or maybe the competition is bribing the government official to not to give a business permit? I cannot say so because I have no proof but people have that idea.

  4. #14
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    Default Re: The cost of a Mc Donald's franchise

    More and more recently I think you'll find that politics plays a part in most businesses and especially new start ups. Even here in the UK where corruption at local government level is rare, you'll often find that one businesses starting up is blocked for reasons that aren't at first clear, but delve a little deeper and things start to look a little sinister.

    One time I remember is a well known coffee chain franchise being blocked from opening, even though the local community wanted to see one and it turned out that the councillor in charge of accepting or denying the application just happened to be married to the owner of another coffee shop that was around the corner. Obviously the new franchise would have impacted on the current shops profit so he turned it down purely on personal reasons. That was subsequently reviewed by an independent investigator and the franchise was allowed to open but the original council employee was dismissed.

  5. #15
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    Default Re: The cost of a Mc Donald's franchise

    I don't think it's too expensive. They are almost everywhere in the world. There could be 20+ places in a relatively small town.

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    Default Re: The cost of a Mc Donald's franchise

    I agree that McDonald's franchise fee does not come cheap, and simply because it is McDonald's. There are a lot of people who would love to have their own fast food franchise or food outlets but can't afford to have their own McDonald's franchise or even Jollibee, KFC and Pizza Hut as they are all costly and are very strict in terms of franchising policies. That's why most of small business entrepreneurs in our area settle for food carts for the meantime while preparing for the big venture.

  7. #17
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    Default Re: The cost of a Mc Donald's franchise

    You can see why the franchise costs so much to start off with though, as I don't think that I have ever heard of a McDonald's, Pizza Hut or KFC failing, so if you get the money together then you are almost...guaranteed success. I say almost because in the past no doubt there will have been some that have failed, but I think if you know what you're doing and you are willing to work, having a name such as McDonald's over the door is one of the best ways to virtually write your own wage cheque.

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    Default Re: The cost of a Mc Donald's franchise

    It's not such an expensive franchise (considering others franchises, of course), but I think it's all depends on a fundamental question: "Is it worth investing?".

    McDonald's is a franchise well known worldwide, and depending on where you are planning to open another, it may or may not be a good deal. Then, research is of an essential importance to know if it's worth investing the money so that there is no further regret (particularly, I think the fast food market is one of the most competitive - and in some way, saturated - nowadays).

  9. #19
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    Default Re: The cost of a Mc Donald's franchise

    Could it be the main reason why people are having a really hard time landing a stable position at most McDonald's outlets? In order for them to have a fast ROI, an investor would actually make it a point not to make any employees especially those below the managerial position to achieve a regular position. Or was it just the result of the so called globalization that makes it hard for low earning workers to have a much better chance of landng a more secure job?

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    Default Re: The cost of a Mc Donald's franchise

    Quote Originally Posted by TheOtherSide View Post
    Could it be the main reason why people are having a really hard time landing a stable position at most McDonald's outlets? In order for them to have a fast ROI, an investor would actually make it a point not to make any employees especially those below the managerial position to achieve a regular position. Or was it just the result of the so called globalization that makes it hard for low earning workers to have a much better chance of landng a more secure job?
    I doubt that it could be a reason for why are people are having a hard time landing jobs in MCDonald's outlets but as you stated the visible issue is securing a job for low earning workers.

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