McDonald's: A Franchising Company

Paper Summary:

The paper describes McDonald's as a multi-faceted company run by many different franchisees all over the world. The paper discusses whether it would be more profitable for the parent company to run its other businesses under their own ownership, rather than offering them to independent franchisees. The paper offers a number of reasons to operate by means of franchises as well as the possible disadvantages. The paper concludes that the global nature of the business requires a diversity of owners and managers and this is done optimally by the franchising system.

From the Paper:

"McDonald's is a name that is globally associated with fast food and particularly hamburgers. What makes the company unusual is that it is not run by a single entity or person, but that it has many different managers and owners worldwide. This is made possible by McDonald's franchising system. The company has therefore expanded worldwide to become one of the largest and most successful companies in the world."

Sample of Sources Used:

• British Franchise Association. "McDonald's UK Franchise". 2006. http://www.whichfranchise.com/franchisorPage.cfm?companyID=255
• Hadzima, Joe. "Subchapter S: Some Myths, Realities and Practical Considerations". 1994-2005. http://web.mit.edu/e-club/hadzima/subchapter-s.html
• McDonald's Corporation. "Company Info". 2007. http://www.mcdonalds.co.uk/pages/companyinfo/franchiseinfo.html

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