Franchising Corporation

Franchising is a method of business wherein a store owner or franchisor shares his / her rights or license of the company to another person or called franchisee in exchange for returning fees and payments and percentage of profits. This gives the franchisee to start the business at a fast rate using the name or brand and its corresponding trademark and quality services. International franchising is a very effective tool for a particular brand to expand and enter the international market. An example of a company or firm that uses this process to expand internationally is McDonald’s Corporation.

McDonald’s Corporation is the leading and biggest fast-food chain around the world. It has more than 30,000 stores world-wide and has international franchises in more than 120 countries. Some of these countries include Australia, Japan, China, Hong Kong, and Philippines. So the level of internationalization is very high covering most of North and South Americas, Europe, Oceania, and Asia. It sells Hamburgers, French Fries, Spaghetti, Fried Chicken, Drinks, and Breakfast meals.

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It also offers side dishes like pies and ice cream sundaes.

The main approach of this company is to offer a fast reliable service of food for people who are always “on the go”. This is actually based on modern principles and ideology of fast-food restaurants. The problem with ordinary restaurants is that the preparation of food is quite slow, so slow that a person who has a very limited time to eat a meal would never eat on that restaurant. McDonald’s restaurants solved this by offering faster services like over the counter service and drive-thru service.

These services gave McDonald’s a very distinct advantage over other restaurants and thus made the company very successful indeed. Because of this, McDonald’s easily invaded the international market using international franchising method of business. McDonald’s has fast-food chains deployed around the world, virtually in every place where there are a lot of people who are always in a rush.

References: McDonald’s Canada. Retrieved November 13, 2007, from http://www. mcdonalds. ca/en/aboutus/faq. aspx McDonald’s Corporation. Retrieved November 13, 2007, from http://www. mcdonalds. com/corp/about. html