Essay on Investigating McDonald's

1275 Words 6 Pages
Investigating McDonald's

The purpose of this report is to show my understanding of why McDonald's adopted franchising.

In the report I am going to explain franchise and explain its legal framework. Also the amount of control McDonalds actually has over the McDonald's outlets and where the outlets should be located. I will also evaluate if original decision to franchise was the correct one.

My report will include:

v where my information comes from and why;

v an introduction that will give a brief history of McDonalds and some of the characteristics of the company i.e. aims and objectives;

v I will explain what a franchise is and their advantages and disadvantages as well as how
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By asking my teacher and looking in books the disadvantages are is that the information given may be outdated but the advantages are is that they are not biased in any kind of way and will compare it to different companies. When using the Mcdonalds student handbook for information disadvantages are that the information will not be in great detail but the advantages are is that it is written for this purpose. I am still going to use all these different sources of information so I get the widest range.

Franchising and the Legal Framework.

A franchise organisation is a Business that allows other businesses to trade under its name and sell its products. The business granting the Franchise is called the franchiser and the business taking the business out is called the franchisee. Businesses like McDonalds and K.F.C are franchisees with business all over the country.

Advantages to the Franchisee.

If the franchisee is operating its business under an already well-established name then they are more likely to succeed than one under a new name.

Franchisees are actually a small business but operate as if they were part of a larger one. In doing so banks are prepared to franchisees on because they believe they carry a low-risk factor.

Franchisees also have the advantage of being able to buy their products in bulk, which works out, cheaper for the whole

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