Mcdonalds Franchise Brochure

8/13/2019 Mcdonalds Franchise Brochure

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McDonaldsFranchising


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Regular? Medium? Large? Just ow ig is your call? 2-3

Lets clear a few tigs up 4-5

Te learig cure 6-7

CASE STUDY Paul Crocker, fracisee sice 1995

Playig a actie role i your commuity 8-9

CASE STUDY Gary Adams, fracisee sice 2000

Te select few 10-11

Our past, te preset ad your potetial future 12-13

Makig a differece 14-17

CASE STUDY Zulfikar Somji, fracisee sice 2001

CASE STUDY Ge Isikgu, fracisee sice 1991

Food for tougt 18-19

Moey matters 20-21

CASE STUDY Kare Walker, fracisee sice 2004

Te rewards are tere for te earig 22-23

CASE STUDY Grat Copper, fracisee sice 2002

Te all is i your court 24

Its whats on the inside

that counts

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nuggets of information


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But to get all of that out, theres a lot you

need to put in. Have you got what it takes?

Youre looking to make a 20year commitment.

You feel you can play an important

role in your local community as an

employer, service provider, and local

business leader.

Youre energetic and take a hands-on

approach to any task that needs doing.

Whatever your career background,

youre a good team leader who can

get the best out of people.

McDonalds will be your only business,

and youre prepared to put in hard

work and possibly long hours to make

it a success.

Youre an individual or husband and

wife team rather than a partnership

or absentee investor.

You can meet the financial criteria

outlined on page 20-21

Youre a large and valuable part of

your local community, as well as

being a small but important partof a renowned global organisation.

Talk to any successful McDonalds

franchisee and its clear theres a lot

you can get from the role personal

fulfilment, leading a successful team

of people, financial reward, fun.

Regular? Medium? Large?

Just how big is your call?

An Agricultural Assurance Programme is in place across Europe which defines the standards and best practice we expect of our suppliers operating throughout our supply chain

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If you want an investment that lets you sit

back and not be involved, this isnt for you.

Its hands on and hard work. The rewards

are certainly there, but theyre for the

earning, not the taking. What were looking

for are people who can outperform the

average. People who can take our proven

system, but make the absolute best of the

opportunities it offers.

Franchising is often misunderstood too.

We give you all the tools and the backing

youll need. So you get extensive training

and ongoing support, not to mention the

power of one of the worlds best known

brands pulling customers in. But in the

end, success is up to you. Thats why

were looking for a certain type of business

partner: one prepared to follow a proven

system the product of 50 years food

service experience. If youre not good

at taking advice, then dont become a

McDonalds franchisee. We dont expect

you to reinvent the wheel, just to make it

turn faster.

Theres also confusion as to who owns

what in franchising. As a McDonalds

franchisee, you rent the restaurant

real estate, but purchase the fittings,

equipment and the right to operate it

for 20 years. You also benefit from the

inherent goodwill of the business, the

right to use our brand, as well as our

proven formulas and systems. At the

end of 20 years, you will own a valuable,

saleable asset. The more energy you put

into it, the greater its value will be.

There are a lot of misconceptions about

McDonalds and about franchising.

McDonalds is a modern, progressive

burger company dedicated to maintaining

the highest ethical standards. People

believe you need a large amount of

capital to take on one of our franchises

you dont. People also think McDonalds

is a licence to print money sorry, it isnt.

Lets clear

a few things up

nuggets of information We are launching a new way of presenting nutritional information on a pan-European basis RMHCs admin costs are paid for


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an annual donation from McDonalds and its Franchisees Over the last three years our menu has changed more than it did in the entire previous 30 years

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Thelearning curve

nuggets of information Two of our former CEOs in the UK started on the shop floor as restaurant managers McDonalds is an equal opportunities employerctive

Youve probably heard the expression,

retail is detail. Well, weve been in the

restaurant business for a long time. So

there are a lot of details to learn with

McDonalds. Well train you to do what

works best. And well be with you all the

way throughout your franchise period

with continued training and support.

To become a successful franchisee, you

need to take on board everything weve

learned in over 50 years of successfully

running restaurants. Thats why our

training programme takes about

nine months full-time. What does the

programme cover? The lot. Youll learn

about all our systems and well train

you to do every role in a McDonalds

restaurant. And we mean every role.

If the idea of cleaning puts you off, youmight want to stop reading now. At the

end of the nine months, you will have

all the skills you need to take over a

restaurant and start to apply your own

talents to making it a success.

This training period is unpaid and

full-time. This is one of the reasons we

require potential franchisees to have

accumulated some capital. You will need

some financial reserves to be able to

afford nine months unpaid training.

You will also need to pay a training

deposit of 5,000 which is returnable

on completion of the training.

Of course, the support we offer doesnt

end with the training. You learn throughout

your time as a franchisee. A Business

Consultant is always on hand to give you

advice and support. If they cant help,

there are the expert teams at Head Office.

We also run regular communications

sessions and meetings. And we distribute

magazines nationally and internationally

to share ideas and keep you up-to-

date with current trends, the effects of

legislation, and future plans. Youll even

get your say in how McDonalds UK is

run through your representative on the

National Leadership Group. Management

is accessible and they really do listen to

franchisees. So in a small way, youll be

able to influence the development of one

of the worlds great brands.


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We have distributed 1.2 million step counters for children with leaflets that give top tips on how to have fun and kee

PaulCrocker had run a number of successful petrol station businesses beforetaking on a McDonalds franchise in 1995. He now operates five restaurants in

Kent, with the help of his wife and has consistently outperformed the national

average for sales growth.

The secret, says Paul, is a combination of fine tuning operational performanceand enticing new customers into the restaurant. He does this by getting out

into the community, and seizing every opportunity there is to sponsor events and

distribute vouchers so that people have an incentive to visit.

McDonalds is great if youre competitive, Paul adds. There are lots of measures

to show you how youre performing regionally and nationally as well as your own

figures for last week and last year. I just like to beat targets. It gives me a buzz.

Paul was on the McMarCo committee for several years. Its made up of

franchisees and senior people from Head Office who jointly decide the Companys

marketing activity and spend for the following year. Its amazing the influence you,

just one individual, can have on the decisions of a big company, says Paul. You

really do have an effect. Youre involved all the way, from coming up with ideas, toapproving campaigns and budgets.

PAUL CROCKER

McDOnALDS FRAnChISEE, KEnT

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You really do have an effect. Youre involved all

the way, from coming up with ideas, to approving

campaigns and budgets.

C A S E

S T U D Y


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Gary and his team also get involved in a

large number of other local community

support projects. For me, its one of the

most rewarding parts of being a franchisee.

You can really make a difference. I think

its great that one of the first places the

community turns to when they need

support is their local McDonalds. I put a

lot of effort into answering that need, as

well as going out proactively to offer our

support. Its fun and I enjoy it, but it also

makes good business sense. After all,

McDonalds depends on the community

for its customers and staff. Whatever

we can do to build that community

helps us too.

GARY ADAmS

McDOnALDS FRAnChISEE, SURREY

You bring your passion to the job

and to helping the community.

GaryAdams runs a number offranchises in South London and sits on the

board of his local Business Improvement

District, helping investment in Kingston

Town Centre.

As a lifelong football fan, he and his

staff are actively involved in the FA

and McDonalds coaching partnership,

dramatically improving the kit and

equipment available for the areas

youngsters, and increasing the number

of children playing.

CA

SESTUDY


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Playing an active rolein your community

We encourage franchisees to put

something back by involving themselves

and their staff as much as possible in

local events, schools and community

groups, and raising funds for local

charities. In most cases, things which

help improve the quality of peoples lives

at a local level work best. So franchisees

tend to support local community

programmes, usually focusing on family

matters or issues related to the local

environment. Do it right and youll

discover that people from local charities

and organisations start writing to you

using your name, rather than addressing

their request to the manager. It means

you have earned a credibility that can

only come from having been seen to be

doing things. Youve earned the trust and

respect of your community.

McDonalds is a constant presence on the

high street, no matter what the economic

conditions. And that dependability issomething the community values in

difficult times when money is short. Its

a great feeling to be able to help out the

local people you rely on. And its one of

the most rewarding aspects of being a

McDonalds franchisee.

The people of the local community

are both your employees and your

customers. So its good business

sense to get involved and support your

community, as well as a very satisfying

part of being a McDonalds franchisee.

nuggets of information We have created over 11,500 coaches in partnership with The FA, working through Charter Standard Clubs and local communities

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nuggets of information Over 550 of our restaurants are franchised Over half our franchisees are former employees We are an international brand, but local

The

select few

There is a certain type of person were

looking for. Theyve already had success

in business or another career, ideally

with experience of people management

and development, sales-building and

marketing. We want you to have achieved

financial stability, as this shows you have

good financial management skills, which

youll need as a franchisee. You will

also need your own funds to invest in

the business, and to cover your living

expenses during training.

Because of the hands-on commitment

required to make a franchise successful,

we require you to have no other business

interests. While many of our franchisees

do run their businesses as husband and

wife teams, we will only offer a franchise

to individuals, not to partnerships,

corporations or absentee investors.

You can only apply for one franchise

initially. When youve demonstrated you

can make a success of that, there will

probably be opportunities to take on,

or open, more restaurants.

This is a people business. So one of the

most important qualities youll need is

the ability to connect with people. Youll

not only be responsible for developing

your staff, youll also be the sort of

person who enjoys meeting customers

and going out into the local community.

The first stage in the selection process

is to complete the enclosed application

form and return it with any relevant

information, such as a CV. If we think

youve got potential, well invite you to

meet us. If were both still interested,

youll be asked to spend five days

working in a McDonalds restaurant,

so you can find out what its like. If you

enjoy the environment and we think

youre right for it, youll then visit

several franchisees. If this goes well,

youll come to a final meeting with the

UK selection panel. If we both feel 100%

sure a McDonalds franchise is right

for you, training can begin as soon as

youre ready. This training period lasts

nine months.

When selecting new franchisees, we take great care to make sure that we

and you feel youre absolutely right for the business. Were going to be

partners for 20 years, so its important we get it right.


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eople run our restaurants

1110

ThIS IS A PEOPLE bUSInESS.

SO OnE OF ThE MOST

IMPORTAnT qUALITIES YOULLnEED IS ThE AbILITY TO

COnnECT WITh PEOPLE.


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nuggets of information In 1976 the first TV advertisement was broadcast


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Over the last 3 years our menu has changed more than it has in the previous 30 years


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In 1983 the 100th restaurant opened In 1986 John King became McDonalds first franchisee in Hayes, Middlesex McDonalds is a major sponsor of Euro 96


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nuggets of information We are one of the biggest sponsors of council-provided litter bins in the UK In 2006, we ran over 130 Just Bin It community clean-up

ZulfikarSomji believes working withthe community and building local contacts

makes a winning difference to McDonalds

image. McDonalds Just Bin It litter-busting

campaign had been a part of his community

activity calendar for four years before he won the

national Just Bin It title. He won the prize for the

many links he forged with local councillors, editors

and community partnerships.

But what stands out for Zulfikar are the links

with the local schools, and the sense of pride his

management and staff get from what they

have achieved within the local community.

He and his managers get involved with education at many levels, talking

to business students about franchising and self-employment, and helping

with interview techniques. They also volunteer as reading partners for local

children with reading difficulties. Their award from the local borough for

their commitment to Work Related Learning takes pride of place in the

restaurant.

In a community with many friends and family affected by the Asian tsunami,

Zulfikars Forest Gate restaurant in east London quickly became a focal

point for fundraising efforts. Says Zulfikar: People were happy to give their

money to McDonalds to forward to this appeal, which I think demonstrates

a great deal of trust in the Company.

ZULfiKAR SOmji

McDOnALDS FRAnChISEE, EAST LOnDOn

People were happy to give their money to McDonaldsto forward to this appeal, which I think demonstratesa great deal of trust in the Company.

CASESTUDY


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Everything we support or do reflects

McDonalds strong social stance and

desire to put something back into thecommunity. In the UK, we set up Ronald

McDonald House Charities in 1989. To

date, the charity has raised over 21

million, and helped to open 10 Ronald

McDonald Houses and 26 Ronald

McDonald Family Rooms near to hospitals

or hospices which allow parents to stay

close to their sick children.

Other recent initiatives have included

promoting energy balance, with top

class athletes touring schools. Thisscheme raises awareness of simple

ways for young people to include exercise

in their daily routines. Weve also made

fast internet connections available free

to everyone by creating Wi-Fi hotspots

in around 550 restaurants.

McDonalds also helps people earn a

living while managing their hectic lives.

Our new flexible working scheme enables

any two people to cover each others

shifts with no prior notice. Its particularly

popular with students, parents of young

children, carers and grandparents who

want to continue to work, but need extra

choice over hours. The scheme has

received a lot of positive feedback from

commentators and the Government,

who are looking for ideas to help people

achieve a healthier work/life balance.

Its not just people we are committed to.Animal welfare is important too. We only

work with suppliers who adhere to our

high standards, so all our meat comes

from clean, safe, hygienic environments

where the highest levels of animal

husbandry exist.

At McDonalds, one of our most

important principles has always been

to support the communities in which we

operate. As a major UK employer, we

can be a force for improving peoples

working conditions. As a major buyer in

the agricultural market we can make a

real impact by encouraging best practice.

Making a

difference

ents across the country Changes to packaging designs and materials reduced our usage of paper by 78,058 kilograms We reuse delivery packaging wherever possible

A COMPAnY OnLY hAS

ThE RIGhT TO OPERATE

In A COMMUnITY WhEn

IT IS PREPARED TO

COnTRIbUTE TO IT

Ray Kroc

McDoalds Fouder


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GenIsikgun has been a franchisee since 1991 when she took on theBasildon restaurant in Essex. Gen focuses on the accounts and involvement

in the community what she calls citizenship. She now has four

restaurants in the county.

The second one was the hardest, says Gen. I couldnt stop myself going

back to the first restaurant. But the support from her Business Consultant

and Head Office allowed her to pull through and make a success of it.

They help you with training in new equipment and new menu items, she

says, and the audits on performance really help too.

For Gen, involvement in the community is key. Your customers come in

and you get to know them. You want to do something for them. Gen

found the best way to help was to get involved. So she joined local

business associations and started helping out in schools. Her staff

took part in reading programmes and Just Bin It campaigns, while

she provided financial support for achievement awards each year.

It was a parent at Gens childs school who gave her the idea for her

biggest community support project. The womans daughter had a bad

hip. When the young girl was admitted to hospital, her

mother had to spend a lot of time there, often sleeping

overnight in a chair which made her stay extremely

uncomfortable. Under the circumstances the idea

of a house was discussed for parents to stay in.

Making a

difference

nuggets of information RMHC has committed to develop andevery night of the year to families

CASE STUDY


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Gen applied successfully to Ronald McDonald House Charities for a grant

of 250,000 to build a Ronald McDonald House in the grounds of Basildon

Hospital. The charity had a condition though: Gen had to raise 50,000

locally. She did this by getting the whole community involved: her staff,

suppliers, local business associations and schools. The House opened

in September 2005 allowing parents to have a break and, if the nurses

approve, stay the night.

Successful citizenship, says Gen, is all about being good with people.

You have to meet them on their own level and listen more than you talk.

It also helps if the projects you are fundraising for are local. People like

to see their money will stay in the local community, thereby helping it.

Gens husband Ayhan helps her run her franchise and their staff range in

age from 16 to 74. She has mums and daughters working for her, and she

encourages families, as it helps build a family atmosphere in the restaurant.

Supporting your employees and helping them develop is also essential togetting good results, she says. We always emphasise the quality of McDonalds

training and the opportunities to work your way up. One mother of six only

took a crew member job for some temporary money. Now, four years later,

shes a floor manager. Gen also has three restaurant managers running

restaurants who started over 10 years ago when they were 16 years old.

If you look after your people, theyll look after your business.

GEn iSiKGUn

McDOnALDS FRAnChISEE, ESSEx

Your customers come in andyou get to know them. You want

to do something for them.

pport an additional 400 bedrooms at a combined cost of 33 million over the next five years, which will give an overall total of over 700 family bedrooms available


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In recent years, we have made every

effort to listen to our customers. We

know they are more interested thanever before in the food we serve in our

restaurants and where it comes from.

Food forthought

Our menu is very simple. We use thesame high quality brand names and

household staples that are a part of most

consumers shopping trolleys each week.

That means meat, fish, potatoes, eggs,

milk, vegetables and grain. Every day in

the UK, 2 million customers enjoy the

high quality food ingredients that make

our menu range taste so great.

Ensuring our foods high quality is a

highly trained team of professionals

working closely with supplier partners.Our raw ingredients have to meet

exacting standards, so we extensively

monitor every detail at our suppliers,

right through to delivery and preparation.

We know consumers in the UK often say

theyre concerned about GM food, so we

dont use any GM ingredients or food.

Similarly, because nuts are a serious

health risk for many, weve excluded

them from our main menu.

The facts speak for themselves. We onlyuse whole cuts of flank and forequarter

in our hamburgers which is bought from

farms accredited by nationally recognised

Farm Assurance schemes. Nothing is

added: all our hamburgers are 100%

beef.

Our chickens come from similarlyaccredited suppliers who use feed

that is free from antibiotic growth

promoters. In 2004, we reduced the salt

content in our all white breast meat

Chicken McNuggets by 30%. All our

eggs are free range and conform to the

Lion Mark code of practice, as well as

an independently audited, free range

Farm Assurance scheme. We only use

fresh dairy milk in our ice creams,

McFlurrys and milkshakes. Our French

fries are made from only the best

quality potatoes and weve reduced the

salt seasoning on serving by 24%.

McDonalds has been leading the way

in the convenience foods industry in

developing new ways to enjoy traditional

healthy foods. Our salads are an

increasingly important part of our menu

offering and weve also introduced a Deli

range, Fruit Bags and Carrot Sticks.

In addition to providing healthy food,we help our consumers make healthy

choices. We make available nutritional

information and advice on achieving

a balanced diet in all our restaurants

and through community programmes.

nuggets of information We have sold over 21 million Fruit Bags since 2003 and are one of the


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ggest sellers of prepared fruit 76 of our Happy Meal combinations have at least one of the recommended five-a-day portions of fruit and vegetables

1918

EvERY DAY In ThE UK, 2 MILLIOn CUSTOMERS

EnJOY ThE hIGh qUALITY FOOD InGREDIEnTS

ThAT MAKE OUR MEnU RAnGE TASTE SO GREAT.


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The cost of a McDonalds franchise varies

according to its potential cashflow, but

they tend to sell for between 150,000 and

500,000. There are two financial routes

to buying one: the Conventional or the

Business Facilities Lease (BFL). With a

Conventional franchise, youll need to put

up at least 25% of the total purchase price

and borrow the remainder. This purchase

price is paid immediately prior to taking

on the restaurant. There is also a one-off

franchise fee of 30,000, and a training

deposit of 5,000, which will be charged

at the start of training and refunded on

completion of the programme.

How much does a franchise cost?

How do you raise the money?

How much of your own money do weexpect you to invest? And what other

costs are there? Find out here

Running a successful McDonalds

franchise is financially rewarding.

But what exactly is the deal?

Moneymatters

nuggets of information

For nearly 20 years, pennies dropped in collection boxes


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The BFL is designed to help exceptional

candidates without sufficient funds

to cover the 25% cost of a franchise.

The cashflow of the restaurant is used

to raise sufficient capital to buy the

franchise at some time within the first

three years of trading. You will still need

enough funds to support yourself through

the training period. And we will look for

evidence that you have some ability to

accumulate capital usually savings of

at least 35,000.

As with any well-run franchise scheme,

there are ongoing fees. Theres a monthly

rent for use of the restaurant premisesto pay throughout the franchise. Its

based on the restaurants sales and

profitability, and averages about 12%. A

Service Fee, set at 5% of sales, for use

of the McDonalds system, is payable

every month. All McDonalds restaurants

also make a contribution to the national

marketing spend. Currently, this is set

at 4.5% of sales.

nd fundraising in restaurants has enabled McDonalds to raise over 30 million for RMHC

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KarenWalker had never worked for McDonalds before when shesecured her franchise in 2004 at Bellshill near Glasgow. She and her

husband, who helps to run her franchise, did have plenty of business

experience in advertising and utility cost management.

Karen feels the big advantage she had was

seeing the business from a consumers

point of view. Shes a mum with three

kids, so she had visited McDonalds

plenty of times. Theres always a

danger that you get caught up in the

processes and overlook the effect on

the customer, she says. I think Im

less likely to do that.

As a result, sales have gone upsubstantially ahead of the market and

employee motivation is high, with a lot

of staff wanting to take training courses

and progress up the career ladder.

People development is really important

in this business, says Karen. Instilling

pride in what you do so that people take

responsibility for their role thats absolutely

key.

KAREn WALKER

McDOnALDS FRAnChISEE, GLASGOW

Sales have gone up substantially ahead of

the market and employee motivation is high.

CASESTUDY


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Apart-time job at McDonalds turned into

a career for Grant Copper, who dreamed of

being master of his own destiny. I could see

the opportunities within the Company when

I was doing my A-levels and decided to stay

on, said Grant, who is the franchisee of a

drive-thru restaurant in Sittingbourne, Kent.

Before he moved into self-employment,

Grant held several positions with McDonalds,

including running Company-owned

restaurants and a two-year stint in Slovenia

as a project manager, growing the number

of restaurants there from two to nine.

In June 2002 Grant became a McDonalds

franchisee. It felt very different operating

my own restaurant it was stuff like writing

your own cheques and making decisions that

directly impact your business, said Grant.

I could see the opportunities within the Company when

I was doing my A-levels and decided to stay on.

CASESTUDY


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Grant agrees that a major requirement

for success with McDonalds is engaging

with the community, and he welcomes the

opportunity to talk to local people and dispel

some of the myths about the business.

As an active member of local community

groups, including the Sittingbourne Retailers

Association and the Town Centre Forum,

Grant sits alongside local councillors

and professionals to comment on local

issues. A lot of people think what we do

is very simple. Its only when they see the

operation in action that they appreciate the

detail of what goes on behind the scenes,

said Grant. Were a lot better than other

businesses out there.

Grant also ensures that his restaurant

teams work with the local councils

environmental department in cleaning up

local areas and has forged strong links

with the local Community College, where

his restaurants support student activities

such as sporting events.

2322

The rewards are therefor the earning

The turnover and profit your franchise

delivers will depend on many factors. As

a guide, you might expect to achieve a

return on investment of more than 20% per

annum. That means you should repay your

initial borrowings within five to seven years.

Average profit margins are in the region

of 6-8%, which generates around 90,000

profit per restaurant per year. However,

these returns are not guaranteed. As a

franchisee, you will need to take a hands-

on approach if you are to build sales and

maximise profitability.

Grants love for his job stems from working

with his restaurant teams. I feel a lot of

responsibility for the people I employ in the

local community. I know Im contributing

towards raising their families, or helping

someone to get through their studies

thats very rewarding.

Grant describes himself as a bit of a

perfectionist and is constantly challenging

himself to improve systems. My main

aim is to try and get it right every time,

and I believe that everyone at McDonaldsshould play their part in bringing about

positive changes. When people collaborate

together they have a better chance of

success, said Grant.

GRAnT COPPER

McDOnALDS FRAnChISEE, KEnT


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Becoming a McDonalds franchisee is

a big step. Its a commitment of time

and money to get started. Then theres

a continuing, 20-year commitment to

hard work as you build and sustain

above average performance. Its not

for everyone and, before applying,

you should feel sure that its

right for you.

The ballis in your court

McDonalds doesnt need your money.

What we do always need, however, are

committed individuals with a proven track

record of success in people development,people management, sales and marketing.

If you think you have those skills and want

to apply, please complete the enclosed

form and send it to:

The Franchising Department

McDoalds Restaurats Ltd

11-59 hig Road

East Ficley

Lodo

n2 8AW


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Mcdonalds Franchise Brochure

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