McDonald's

Hamburgers, chicken, salads

Background

Founded: 1955 Franchising since: 1955
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.
Address:
Kroc Dr.
Oak Brook, Illinois 60523
Phone:
(630)623-6196

Franchisee Association
National Operator Leadership Council

Franchisor is a publicly-held company with 885 employee(s); 20 employee(s) in franchise department.

Franchise Units
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 12,221 1,070 12,510 6,357
2008 12,136 1,046 12,283 6,502
2007 11,674 927 10,498 8,078
2006 11,608 890 10,056 8,269

Where Seeking Franchisees
Nationwide
Worldwide

Costs and Fees

Total investment: $995,900 - $1,842,700
Franchise fee: $45,000
Term of agreement: 20 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No Yes
Payroll No Yes

Qualifications
Cash liquidity requirement: $300,000
Business Experience:
  • Industry experience
  • General business experience
  • Marketing skills

Operations
  • 83% of all franchisees own more than one unit
  • Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Training and Support

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

Marketing Support
  • Co-op advertising
  • Ad slicks
  • National media
  • Regional advertising

Other marketing support
  • Restaurant-specific support

Rankings

Franchise 500® rank:
#2 (2010); #2 (2009); #5 (2008); #9 (2007); #16 (2006);

Fastest-Growing Franchises:
#6 (2010); #13 (2009); #38 (2008); #76 (2006);

America's Top Global Franchises:
#2 (2010); #2 (2009); #3 (2008); #4 (2007); #11 (2006);


Related Franchises

Franchises, get reprints of your rankings »



Marketplace

Learn how to distribute a press release
Try online printing from The UPS Store®
The Latest
The Outlook for 2010
Find out which franchises will thrive in 2010.
The Top 10 Franchises
Up close and personal with the top companies on our list.
How I Did It
Find out how these franchisees survived a bankruptcy and got financing without a loan.
Are You Suited to Be a Franchisee?
100 questions you should ask or answer before you buy a franchise.
Alternative Financing Sources
Here's a look at some creative ways to find startup funds for would-be franchisees.