Essay: Benefits of Franchises for McDonalds

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Essay: Benefits of Franchises for McDonalds

Sample Essay

There are a number of benefits that the McDonalds benefits from the franchisees, through ensuring that the franchisee follow the standards set by McDonalds, McDonalds enjoys economies of scale due to the large number of franchisee. There is enhanced growth in of the firm in the global arena and as a result, McDonalds is expanding and gaining roots in many parts of the globe. Besides the growth the firm, McDonalds, directly benefits from the rent and service fee paid by the franchises.

Though the franchises operate following strict guidelines from McDonalds, it is the franchises who on occasion times develop new menus in respond to the client demand (Kincheloe 104-128). Taking into consideration that the clients tastes and preferences changes over time, the McDonalds franchises have been changing even though they are originally inelastic to change. Through the innovations that must be approved by the McDonalds, the franchises tap emerging markets or tap the ignored markets. An example of a great innovation is the 1971 introduction of the McDonalds Egg McMuffin that would meet the McDonalds breakfast needs (Upton 119). Other menu products that were developed by the McDonalds franchises include:

  • Playlands
  • Fillet-o- fish
  • Drive-thrus

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