The business that I have chosen to investigate is McDonalds which is a franchise

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McDonalds

Kemal Deniz

AVCE Business

Unit 1 Business at work

Candidate Number: 8354

Contents

Introduction

McDonald's is the largest food service company in the world. The company regards itself as the leading global food service retailer. With more than 30,000 restaurants serving more than 47 million people each day in 121 countries. In 1974 McDonald's opened its first restaurant in the UK. As of 31 December 2001, McDonald's and its franchisees operated over 1,184 restaurants in the UK.

Ownership

The business that I have chosen to investigate is McDonalds which is a franchise.

Franchise: A business licensed to use the name, logo and expertise of an existing, well-known business.

The benefits of a franchise are:

The Expertise of the Franchisor

When you buy a franchise, you are purchasing the years of experience and the proven business model of the franchise system, also known as the franchisor. In any new business, much time and money are spent in trial and error. A proven franchise may eliminate many of the start-up problems. A franchise enables you to open a franchise business with little or no previous experience in a given industry.

Instant Brand Recognition

In addition to the franchisor's experience and business model, you are also purchasing the right to license the trademarks of the business. Depending on the size of the franchisor and how long the system has been in place, these trademarks can bring instant goodwill and credibility to your business and the products and services you provide.

Training

A franchise system will provide training for you and possibly some of your employees. This is usually done both at the franchisor's home office and the franchisee's place of business. This training should prepare you in all facets of the business including: purchasing and inventory maintenance, handling customer complaints, dealing with employee matters, etc. The level and length of training will vary from system to system. 

The drawbacks of a franchise are:

Working Within the System

If you have difficulty following directions or dislike working within a system, you may find owning a franchise extremely frustrating. Many people go into business for themselves because they want to be free of constraints and able to do things "their way." You will not have complete flexibility with a franchise. Conformity to the franchise system is critical if consistency among franchises is to be maintained. However, there are areas such as marketing where a franchisee can be creative.

The Risk of Losing Your Business

While it is true that purchasing a franchise has less risk than starting an independent business, there still are risks. One such important risk is that your business can be taken away (even if it is enjoying financial success) because you failed to follow the franchise agreement or the franchisor's operating manual. It is critical that you carefully review each of these documents before purchasing a franchise and that you take care to follow all franchisor requirements after you open your franchise location. Because you own the business, you, to a great extent, determine the success of your venture.

Choosing the Wrong Franchisor or System

There is no specific requirement under federal law that a franchisor has to be of a certain size, financial stability or expertise. Anyone can become a franchisor. The Federal Trade Commission ("FTC") merely requires the franchisor to disclose certain information to prospective franchisees. The FTC does not review or verify this information. This is the franchisee's responsibility. That is why it is critical that you carefully review the Uniform Franchise Offering Circular and the Franchise Agreement before you sign it. Just because the franchisor is an established company and has an official looking "form" agreement does not mean that it is in your best interests or that it is non-negotiable.

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Aims and objectives

Mission statement

McDonald’s vision is to be the UK’s best quick service restaurant experience

Aims and objectives

McDonalds’ aim (‘vision’) is to be the ‘world’s best quick service restaurant experience. This means:

Running and opening great restaurants and providing exceptional quality, service, cleanliness and value. This aims shows that McDonalds wants to keep improving the quality of there products and the cleanliness of their ...

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