McDonald’s Franchise Business

McDonald
McDonald’s has often been referred to as the king of the business format franchise. It all started when Roy Kroc, a milkshake machine salesman, discovered a successful drive-in restaurant in San Bernardino, California, run by the McDonald brothers. Kroc bought the rights from these two brothers to sell their method of running a restaurant as a franchise. Today McDonald’s systematization has developed into an idiot-proof system for every aspect of running a fast-food business?from specifying how many seconds fench fries should be cooked to scripting exactly what employees should say when they greet customers. McDonald’s training program teaches every franchise manager how to implement its systems so that each restaurant will be run the same way 100 percent of the time. If the franchisee doesn’t adhere to McDonald’s high standards, McDonald’s has the contractual power to terminate the franchisee.

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