I've been looking at the Mcdonalds franchise for many years, it's the only franchise I would ever consider but always had a few issues.
Firstly the investment isn't difficult, at present you only need £50k the rest is loaned by the banks. To start up an independent restaurant or cafe could cost you a lot more than this initial payment with zero brand recognition. As for the site and planning permission, this is all handled by Mcdonalds. From what I understand, you don't really have a say where the property is located as Mcdonalds handle all this, they already have researched the areas and know where the best locations are. It's in their interest.
The concerns I have always had are:
At present, they reckon an average a Mcdonalds franchise is making around £70k profit per year, so if you just have one, after taxes etc, this is a massive amount of hassle and work for the return. However, once you've proven yourself with one, you can open more.
You are not allowed to run any other business. Mcdonalds want their franchise to be your only source of income. And as it's a 20 year partnership agreement, that seems very limiting. I guess its a way of life.
I asked about ranks in the staff structure because I once heard that long term staff that moved into management have been offered franchises at very attractive discounts, wondered if anyone in the company could clarify that?
And finally, my major issue, I love money, but it's not hard to find out that a lot of Mcdonalds employees absolutely HATE their jobs and the company. I've read so many terrible stories online about poor treatment of staff, very high turnover of staff, very bad attitudes and unethical strategy of management which is necessary to keep the burgers flipping. At the end of the day, I don't want to get involved in a business that has to be run so negatively in order to meet financial goals. Life is too short. Which is why I would really love to hear from any current staff that feel the franchise they work at isn't so bad. I'm hoping the mass of disgruntled current and ex-employees is just general whinging from youngsters that don't have a work ethic. I mean, when I was 16, I would have been happy to work my socks off at Mcdonalds for a year or two.