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McDonald's Corporation- is the world's largest chain of hamburger fast food restaurants, Serving around 64 million customers daily in 119 countries McDonald's operates over 31,000 restaurants worldwide, Employing more than 1.5 million people. Headquartered in Oak Brook, Illinois, the United States The company began in 1940 by two brothers Richard and Maurice McDonald in San Bernardino, California.
Franchise Idea
Ray Kroc joined the company as a franchise agent in 1955, he purchased the chain from the McDonald brothers and oversaw its worldwide growth
Ray Kroc realised that the key to success was rapid expansion. The best way to achieve this was through offering franchises. Today, over 70 percent of McDonald's restaurants are run on this basis.
In the UK, the first franchised restaurant opened in 1986 - there are now over 1,200 restaurants, employing more than 70,000 people, of which 34 percent are operated by franchisees.
McDonalds Franchise
McDonald's, the franchisor, grants the right to sell McDonald's branded goods to someone wishing to set up their own business, the franchisee. The licence agreement allows McDonald's to insist on manufacturing or operating methods and the quality of the product.
McDonalds India
In India, McDonald's is managed by two Indian entrepreneurs. Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd. operations in West & South India Vikram Bakshi, MD and Joint Venture Partner, Connaught Plaza Restaurants Private Limited, owns and operates McDonald's in North and East India It has a network of over 235 restaurants across the country. McDonald's has developed a menu especially for India with vegetarian selections It was the only restaurant to have separate kitchen for veg and nonveg. All vegetable products are prepared separately, using dedicated equipment and utensils. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants
Conclusion
Ray Kroc recognised the need very early on for franchisees that would dedicate themselves to their restaurants. McDonald's will not offer franchises to partnerships, consortia or absentee investors They want people who can give up another job to take on the franchise venture, relying on their franchise as their sole source of income and would therefore be highly motivated and dedicated. The initial capital has to come from the franchisee as a guarantee of their commitment. The selection process is rigorous to ensure that McDonald's only recruits the right people.