What was the start-up cost of purchasing a McDonald's franchise in the 1950's?
Question #63965. Asked by elzhere.
Last updated Sep 30 2016.
Eolena
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Eolena 20 year member
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Answer has 3 votes.
Currently voted the best answer.
According to this .pdf file that I found on the McDonald's Canada website, Ray Kroc travelled around in the 1950s selling franchises for $950.
[http//mcdonalds.ca/pdfs/history_final.pdf -- this link is broken]
Google provides a way to see an HTML version of the contents of the .pdf:
[http/72.14.203.104/search?q=cache:sUhzfM3IC_8Jmcdonalds.ca/pdfs/history_final.Ray+Kroc+franchise+1950s+McDonald%27s&hl=en&gl=us&ct=clnk&cd=9 -- this link is broken]
The last paragraph of the second page reads:
"Kroc’s agreement with the McDonald brothers was to limit the franchise fee to $950 per restaurant and charge a service fee of only 1.9 percent of restaurant sales – with 0.5 percent of that going back to the McDonald brothers. In addition, Kroc decided early on that the McDonald’s system would not be in the business of selling franchise owners their equipment, their supplies, or their food. The company did, however, purchase or lease much of the real estate the restaurants were located on, a program that soon produced a valuable competitive asset in its own right."
Response last updated by Nammage on Sep 30 2016.
Mar 27 2006, 12:39 PM