Learn From McDonald's History For Proven Success
The McDonald's franchise opened it doors in 1955. The history of McDonald's started back in the year 1954. A man by the name of Ray Kroc went to a burger placed owned by Dick and Maurice McDonald in San Bernardino, California. People were lined up down the street to buy these 15 cent burgers. Milkshakes and fries were also available for a reasonable price. These meals provided fast and cheap meals for the ever growing American families. Dick and Maurice McDonald had nine other restaurants. Since they didn't want to be driving and spending time away from their family, Ray Kroc was hired to be their franchising agent. Ray Kroc soon grew the business bigger than ever before. Ray realized that the brothers were not going to be an asset to the business so he was able to buy them out. Ray paid $2.7 million to keep the franchise. The cost was very extravagant for that time, but as you can tell it has paid off.
To open a McDonald's franchise in today's day and age would cost nearly $655,750-$1,225,000. The initial franchise fee is approximately $45,000. The initial franchise fee is to secure the business. You must pay the initial franchise fee for the rights and trademark use. The term of agreement is only 20 years.
What exactly is a franchise? A franchise is a business that has permission to sell or use the trademarked items of the mother company. McDonald's has items such a Big Mac ® copy righted so that nobody else can use that name unless they get proper permission from McDonald's. A franchise is a business that is proven to work and has a system that you can easily duplicate. McDonald's is so large and in many countries because it is a system that you can take anywhere around the world. The drive-thru is always in the same spot. The value meals are the same no matter which country you are in. You are guaranteed success if you follow the system that you paid for when you purchased your McDonald's franchise. All the guess work is taken out of the business. Ray Kroc already perfected the franchise for us, which is why it costs a large amount to purchase the McDonald's franchise.
Owning your own franchise business is not for everybody. You must be able to obtain a strict schedule and have a passion for learning. Research will need to be done daily to keep your business up and running. You must always be looking for a way to better yourself and your company. Be prepared to work more hours than an employee would normally work. You are your own boss, but you are also responsible for your employees. Keep in mind that when you are opening your business you might have to put in longer hours than ever before. The start up cost of opening a McDonald's franchise might seem a little extravagant, but you need to remember that McDonald's is a multi-million dollar franchise for a reason. You need to put the money in up front in order to get the results you want. You will see results as promised if you stick to the system, or program, that McDonald's offers. Do not stray from the guidelines and try to make your own changes. The mistakes have already been made and corrected, you just need to stay on the path to success.
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