Monday , October 18 2021

McDonald's wants to sell its operations in Slovakia, you can also buy them by that amount



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In Slovakia, McDonald's currently has 30 restaurants, of which 10 are in the hands of franchisees. In the coming years, the company plans to gradually sell its existing restaurants to a new franchisee, it said in a press release.

"The plan is also to open restaurants in new locations, depending on the market development strategy. The new location strategy takes into account, among other things, the important aspect that McDonald's is trying to make each restaurant profitable " he hurried Director of the McDonald's franchise network for Slovakia and the Czech Republic Radim Foltýn. The basis for the new McDonald's franchise is the entry capital.

Source: unsplash.com

"Anyone who wants to manage our franchise must be a strong capital," he said. "An applicant must have funds or assets of at least EUR 400,000." The better the financial condition, the greater the opportunities for faster development " say R. Foltýn.

Source: McDonald's

However, according to the company, new entrants can not discourage funding. NFor example, the franchisee has the option of covering a larger portion of the initial investment with a credit form. It is a 60% share, which is not common in this segment. The return on investment in the franchise is between 15 and 20 percent, and in practice it is 5 to 7 years.

source: archive Startitup

The McDonald's franchise is a long-term investment. The contract is concluded for 20 years and can be transferred to children of the second generation.

"We already have a second generation franchise in Bohemia. In the Ostrava franchise, the son bought a license from his father five years ago and continues his successful business in three " he added.

Virtually anyone can apply for a franchise. Radim Foltyn explains that experience in the gastro segment is not necessary.

"The point is that the franchisee must be mature in personality or character. He must have a business spirit, be customer-oriented, be fit for communication and financial affairs, be interested in the day-to-day of the restaurant and lead his team well " he says.

source: archive Startitup

The condition to obtain the license is that the candidate has completed the call. operational training. It takes about 9 to 12 months to get all the information and skills you need to run your own restaurant. Candidates do not pay for training. However, he receives a regular salary as a regular restaurant employee.

Only after training, McDonald's offers a potential franchisee a specific restaurant and purchase terms. The whole process until the end of the selection process lasts from 12 to 14 months.

Source: unsplash.com

According to Foltýn, investing in the McDonald's franchise is "safe." "Each franchisee has enormous experience in our brand. For business matters, he has our consultant at his disposal, who helps him in the day-to-day operational problems. The franchisee does not have to deal with any marketing or brand promotion. All this is provided by the parent company " States.

During the term of the license agreement, the franchisee pays McDonald's monthly fees, which represent approximately 10-20% of the total restaurant revenue (based on site attractiveness and restaurant potential), 5% of brand use rate and 5% to 6% off marketing services revenue.

source: Mcdonalds.sk

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Linda Cebr

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