McDonald's

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.

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 Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2009	12221	1070	12510	6357
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
2005	11,639	902	9,894	8,135

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Worldwide

Total investment: $950.2K-1.8M Franchise fee: $45K

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: $300K
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

• 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

Franchise 500® rank:
#2 (2009); #5 (2008); #9 (2007); #16 (2006); #13 (2005);

Ranked #1 in category in:
2009; 2008;

Fastest-Growing Franchises:
#13 (2009); #38 (2008); #76 (2006); #33 (2005);

America's Top Global Franchises:
#2 (2009); #3 (2008); #4 (2007); #11 (2006); #14 (2005);