The focus of a franchise contract that both parties can earn money while avoiding the risks.
Journalist, writer Eric Schlosser said, becoming the franchise representative is an unusual combination between mastering their business and working for someone else. Here are tips to successful franchise of Ray Kroc – the founder and also the person turning McDonald’s corporation into “giants” in the industry of fast food in the US.
- Focus on selling instead of earning money
While the company focuses on making money by selling exclusive products in the whole territory then sell input products directly to stores which buy franchise. While Ray Kroc has opposite strategy.
He is interested in selling more goods than agreement of financial details. His goal is to expand the chain of McDonald’s instead of make money fast, even the franchise fee’s this brand is originally only 950 USD.
In fact, during the late 1950s, the restaurants McDonald’s franchise often earn more than the founder of the brand.
- Increase the control
Instead of making money by requiring to pay high franchise fees or selling input products, Harry J.Sonneborn – business partner of Kroc has outlined an ingenious strategy to ensure financial success for McDonald’s and give greater control for the representatives. That is turning the Group become “landlords” of almost all restaurants using this brand in America
- Choose representatives.
Principle of choosing the franchise representatives of Ray Kroc is choosing people who want to run their own restaurant, rather than the wealthy businessman, who only consider McDonald’s as one of their other investments.
He said that, to succeed, representatives the franchise of McDonald’s “do not need any talent or other intellectual abnormality.” What the Kroc really wants most is loyalty and maximum dedication of their representatives – and in return, he promised to make them become rich
- Focus on simplicity, uniformity
In the business model of McDonald’s, the financial method to develop a company seems to be less important than other aspects. The company emphasized simplicity, uniformity and the ability to create similar retail environment in various locations.
When the franchised stores and chain of stores sprout up around the country, driving along a retail area is like going shopping along the supermarket aisles.
Architectural features of the chain become a model and are protected by copyright law closely. McDonald’s Corporation is a leader in standardizing retail environment of the US, tightly controlled both inside and outside of the restaurant McDonald’s
Lifestyle introducing you to read the article: TIPS TO CLIMB ON THE CAREER LADDER
(Reference articles from Wikipedia)