Wednesday, May 6, 2020

Fast Food Franchising Company And Corporation - 1342 Words

McDonald’s is a very well-known fast food franchising company and corporation. The company was first established in 1940 by brothers Richard and Maurice McDonald. Surprisingly the restaurant was not named â€Å"McDonalds† from the beginning, it was actually named â€Å"McDonald’s Bar-B-Q† and it held many menu items, but mostly barbecue. After eight years of selling their menu, the brothers noticed hamburgers were their bestselling item. It was at that time, in 1948, that the McDonald brothers closed down their small car hop to open a burger stand with a streamlined system. They renamed their burger stand â€Å"McDonalds† and that became the start of its journey to become the biggest global fast food chain. In 1955, a man by the name of Ray Kroc†¦show more content†¦In 1967, McDonald’s opened the first international franchise and by 1992 had restaurants on six continents (James p.2). As of 2014, McDonald’s has over 30,000 restaurants globally and they employ over 1 million people. McDonald’s corporate office and global headquarters is located in Oak Brook, Illinois. The company has taken the title of the world’s largest fast food chain and has the profits that show it. In 2012 alone the fast food industry had total revenue of 190.1 billion dollars. In the same year McDonald’s had total revenue of 35,600 million, which is over twice as much as the second most profitable company, subway, which had total revenue of 12,100 million. The reason the company make so much more profit than other chains lies in their business model and the company’s involvement in real estate. In order to understand the company’s involvement in real estate, one must go back to the company’s beginnings. In 1956 Ray Kroc was having a hard time making his franchised restaurants profitable, he was not able to acquire the funds to pay both the bui lding of the restaurant and to pay for the land the restaurants would be built on. It was only after Harry J Sonneborn was hired and approached to Kroc with an idea to bring McDonald’s into the real estate business. Soon after, the Franchise Realty Corporation was established. The purpose was not only to buy and sell properties, but also to

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