Some entrepreneurs choose to buy into franchises. In doing so, they acquire the right to adopt a brand’s image and sell that brand’s goods in return for paying fees on a regular basis to the franchiser. One of the most well-recognized franchise companies is the fast-food chain McDonald’s, which has more than 31,000 restaurants worldwide, according to the company’s website. A McDonald’s franchisee has the right to sell McDonald’s products for 20 years, receiving training and the use of the company’s logo and menu.

Less Risk

The reality of starting any business is that it might not succeed, and that's especially true for a restaurant. The Bob Brooke Communications website estimates that 90 percent of new businesses go under in only the first few years. So rather than go it alone, using an untried idea and a name no-one has ever heard of, many business start-ups turn to McDonald's because it is more of a safe business bet. As the Franchise Opportunities website suggests, business owners think of a name like McDonald's and they see success in their future.

Well-Established

McDonald's has been around since 1955, and since the brand's franchises operate all over the world, it's fair to say that you'd be hard-pressed to find many people who haven't heard of McDonald's, or who don't recognize the Golden Arches logo. McDonald's is not only well-established but it already has millions of customers who are loyal to the brand and associate McDonald's with a take-away lunch or a family get-together meal, for instance. So, as the Bob Brooke Communications website suggests, key benefits of this kind of franchise are the ability for the franchisee to tap into brand identification and the loyalty of the customer base.

Well-Tested Operations

Buying into the McDonald’s franchise enables a franchisee access to more than a brand name. The buy also gets a turnkey system of processes and procedures. As the McDonald’s website makes clear, McDonald’s outlets sell from the same menu wherever they are. This means that the same systems can be adopted in each branch, leading to staff quickly and easily being trained in the cooking stages of each product, for instance. Beyond that, this set menu is attractive since it eliminates the need for franchisees to invest time and money into trying out new product ideas. Successful products are already in place.

Use of Marketing

As a huge multinational company, McDonald's has already learned a fair bit about its market, what the public wants and what does and does not work. McDonald's maintains a coordinated marketing policy, as described on its website, and a franchisee buys into this knowledge when they begin trading as a McDonald's outlet. Again, this presents the franchisee with a sense of security, since McDonald's can put plenty of money behind any market research it does, and eliminates the need for a franchisee to do expensive research.