Franchising: McDonalds

What is one of the primary advantages of owning a McDonald's franchise in terms of brand?

• Unknown brand recognition

• Limited regional recognition

• Global brand recognition with a loyal customer base

• No established brand recognition

What does McDonald's standardized operations help reduce?

• Customer base

• Guesswork and inconsistency

• Profit margins

• Marketing costs

Which of the following is a form of support provided by McDonald's to its franchisees?

• Training and guidance

• No operational support

• Unlimited financial loans

• Free supply of ingredients

What is a significant disadvantage concerning the financial aspect of owning a McDonald's franchise?

• High initial cost ranging from $1 million to $2.4 million

• No ongoing fees

• Profit sharing with other franchises

• Low initial investment

Which statement best describes a limitation faced by McDonald's franchisees?

• Can choose any location

• Complete freedom in operational decisions

• Must adhere to strict operational guidelines

• Allowed to independently modify the brand logo

What type of ongoing fees do McDonald's franchisees need to pay?

• No fees after initial investment

• Percentage of profits to charity

• Royalties on sales and rent

• One-time setup fee only

What percentage of sales is typically required as a royalty fee by McDonald's from its franchisees?

• 1% of monthly sales

• 5% of monthly sales

• 10% of monthly sales

• 15% of monthly sales

What is a key marketing benefit of owning a McDonald's franchise?

• Personalized local advertising

• National advertising campaigns

• Self-funded marketing only

• No marketing support