Mcdonald's Case Study

5585 Words23 Pages
A Case Study on McDonalds


A Project in Entrepreneurship

Submitted To: Ms. Kishori Ravi Shankar

Submitted By: Mansi Chanana & Udit Bhatia

4455 & 4447


Shaheed Sukhdev College of Business Studies


Perseverance, inspiration and motivation have always played a key role in the success of any venture.
It has been a privilege that Shaheed Sukhdev College of Business Studies has given us the opportunity to work on business projects as part of the course curriculum. These projects serve as a stepping stone into the corporate world and to know it inside out.

At this level of understanding it is often difficult to understand the spectrum of knowledge without proper guidance
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Today, franchising is a highly regulated industry which offers a great opportunity to those individuals who truly want to realize their dream and go into business for themselves.

3.0 Types of Franchising Agreements

There are two different types of franchise arrangements:

❖ Product distribution arrangements in which the dealer is to some degree but not entirely identified with the manufacture/supplier, and

❖ Business format franchises in which there is complete identification of the dealer with the buyer. Business format franchises offer the franchisee not only a trademark and logo but a complete system of doing business. Indeed, the word system is key to the concept of franchising. A franchisee receives assistance with site selection for the business. Personnel training, business set-up advertising, and product supply. For these services the franchisee pays an upfront franchise fee and on-going royalty which enables the franchise to provide training, research and development, and support for the entire business. In a nutshell, the franchisee purchases someone else’s expertise, experience and method of doing business.

4.0 working of a franchise

The Rules: Fees

There are two groups involved in a franchise, the franchisor (the person or company leasing the rights to the business name and system) and the franchisee (the person who

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