FRANCHISE

GENERAL FACTS
FRANCHISE AGREEMENT


GENERAL FACTS
[]Worldwide, McDonald's is the largest franchised food service
organisation.


[]In the US, 84% of the restaurants are operated by franchisees.

[]In the UK, franchisees operate 119 restaurants; over 20% of
McDonald's 577 restaurants.


[]lt is McDonald's intention that by the year 2000 franchised
restaurants will represent over 30% of the total UK business.


[]The UK's first franchised restaurant opened in 1986.

[]The financial investment required to become a McDonald's
franchisee ranges from E40,000 to C500,000 depending on the
size and location of the restaurant.


[]McDonald's only offers franchises to individuals, not absentee
investors or partnerships.


FRANCHISE AGREEMENT
[]The Franchise Agreement grants to the franchisee the right and
authorisation to operate a specific McDonald's restaurant,
usually for a period of 20 years. These rights include the use of
McDonald's trademarks, restaurant decor designs, signage and
equipment layout, the formula and specifications for menu items,
use of McDonald's method of operation, inventory control, book-
keeping, accounting and marketing and the right to occupy the
restaurant premises.


In return, the franchisee agrees to operate the business in
accordance with McDonald's standards of quality, service,
cleanliness and value. The franchisee is expected to become
involved in local civic and charitable activities. Training is a top
priority to ensure the uniformity of the operation and the
consistent quality of the staff.


Each franchisee has constant support through a McDonald's
consultant who is always available for help and advice, visiting
the restaurant on a regular basis, Training facilities are free and
available to the franchisees and their management teams.

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