How to Franchise: McDonalds

Who in the world is not a fan of the deep fried potatoes called French fries? Well, two things, you are probably from another planet or you were born before 1949. This is the time when McDonald’s restaurant (the original store in San Bernardino, California) introduced the now classic menu item “French fries”. From then on, French fries made its way as a McDonald’s all-time favourite food. Your meal would not be complete without a large fries to go with it. So, for individuals who are still not sure of the brand of fast-food chain to invest into, try McDonald’s. One can never go wrong; needless to say it is the world’s No. 1 fast food chain. Moreover if you are already a fan, McDonalds will surely be a life changing experience, both as an avid customer and an owner of a McDonalds franchise in the Philippines.

The Philippine Operations

In the Philippines, McDonald’s started opening its doors to Filipino entrepreneurs in 1985. Its thrust is clearly stated in this philosophy “McDonald’s three-legged stool philosophy attributes the success of McDonald’s to the collaboration and synergy of the three legs: employees, suppliers and franchisees.” Hence, joining the McDonald’s family is one great way to hone your skills as you become partners in serving great tasting quality food fast to Filipinos.

The McFranchise Requirements

The following are the essential requirements that McDonald’s Philippines is looking for in their future partners:

• with extensive business expertise and experience;
• strong in their leadership and managerial skills;
• experts in their managed industry;
• A Filipino citizen; and
• are capable to sustain the business financially

Facts You Should Know First

If the above requirements suit you perfectly, then you are ready to become a McFranchisee.   However, here are other facts you need to also know before you go on board.

• McDonald’s only grant franchise to individual on a sole proprietorship basis ONLY, not to partnerships or corporations. Moreover, its grant is on a per store basis and is not territorial or geographical. So, you do not hold exclusivity in certain areas.
• McDonald’s in particular chooses the potential site and even takes its feasibility study. It is also interesting to note that application for the site and the franchise is treated and processed separately and independently from each other
• If approved, the term is only good for ten (10) years or the terms of the lease (whichever is shorter)

Franchise Options

The investment cost that the franchisee will pay is very dependent on the kind of store or the site that McDonald will offer. Thus, there are three (3) ways to McFrancise.

• Franchise for a new site or restaurant
• Franchise for an existing restaurant owned and operated by McDonald’s
• Franchise for an existing restaurant owned and operated by a franchisee who wants to give up his or her ownership

McDonalds Start-up Cost

Initially, the investment cost typically ranges from P30 Million to P50 Million. This range assumes that land is leased. If this is the case, it covers the following:

• Architectural planning and design fees
• Building cost and other relevant site improvement
• Kitchen, air-conditioning and exhaust equipment
• Cash Registers
• Emergency Generators
• Tables and Chairs, Signages and Décor
• Other Furniture and Fixtures

These costs are still dependent on the size of the store, suitability of existing building, site location (in the provinces or Metro Manila). Furthermore, the menu offerings are also specified and approved by the company.

Basic Steps

Now if you are certain that McDonald’s franchise is for you, below are the easy steps to follow that will guide you in becoming a McFranchisee:

1. An application form is required to fill out pertinent information. You may visit  McDonald’s Philippines office personally or email Franchising.admin@ph.mcd.com and ask for a downloadable form.
2. Once completed, the application form, together with a letter of intent and your comprehensive resume should be submitted. (There is a disclaimer that states: “submission of an application does not obligate you or McDonald’s in any way”)
3. After application has been received, it will be reviewed and references will be checked and once partially approved, an interview process will be conducted.
4. If you suffice the interview process, an On-the-Job-Experience or OJE is arranged. This is the part where you will work in a McDonald’s restaurant on a specified number of days.
5. If you performed well and management decides to proceed, formal training with McDonalds will begin.

For more information on other details of becoming part of the McDonald’s network, please keep in touch with:

The Franchising Department
17^th Floor, Citibank Center Bldg., 8741 Paseo de Roxas St., Makati City
8888-500 loc 5000
Or check out its website at www.mcdonalds.com.ph for other instructions.