McDonald's

At a Glance

Products & Services: Hamburgers, chicken, salads

Number of Locations: 34,480

Total Investment: $1.07M - 1.89M

Founded: 1955

Began Franchising: 1955

About McDonald's

Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955. McDonald's and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads and milkshakes.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	12,605	1,152	14,125	6,598
2011	12,546	1,125	13,407	6,439
2010	12,477	1,097	12,764	6,399
2009	12,221	1,070	12,510	6,357

Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing

Total Investment: $1,068,850 - $1,892,400
Franchise Fee: $45,000
Term of Franchise Agreement: 20 years, renewable

Financial Requirements

Liquid Cash Available: $750,000

Operations

88% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 1 week. At local McDonald's restaurant : 12-24 months.

Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives, Lease Negotiation

Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising,

Other marketing support: Restaurant-specific support