McDonald's great success was born through the franchise model of business, and that is definitely undisputed. Millions of people a day from all over the world eat at this fast-food chain. Not only did the franchisor (McDonalds Corporation) benefit from their business, but so did the franchisees (business associates) that expanded the corporate name throughout the countries. How did the franchisees benefit from all this? Well for starters, the name "McDonalds"ÃÂ had a reputation on its own, and this name was known by people all over the world. Starting a McDonalds restaurant up is like opening a business that was routinely known and loved by many people alike. This is a huge advantage because then the franchisees did not have to be in the hamburger business competition, where their company possibly risked the ease of bankruptcy. Like the old saying goes, if you can't beat "ÃÂem, join "ÃÂem! Another advantage for the franchisees would be that it is a lot cheaper to open up a McDonalds rather then opening up your own business.
A McDonalds location in Moncton (mountain road). I...
McDonalds
McDonaldsThe franchisor in this case would provide the franchisee with bulk goods and products for use in the restaurant. Finally, one more advantage would be that the franchisee did not have to deal with the coming up of ideas and making positive changes for the business itself. The franchisor was in charge of that. This is an advantage because it made the work for the franchisees a lot easier, without having to come up with their own ideas in changing the style of the restaurant.
Until his death, Kroc, the owner of McDonalds Corporation, focused much of his own attention on the maintenance of high standards of in-store quality, service, and cleanliness. This was very important compared with other parts of McDonald's marketing strategy.