By expanding its franchisee of locations by one more, McDonald's Corporation gains. McDonald's will undoubtedly make alot of money at the new location. Since franchisee offer finance choices, building and training support, marketing assistance, and specific techniques that have been proved successful on the front line for years, they significantly reduce the risk that most small business owners confront.
Franchisees' chances of success are further increased by strict upfront requirements for capital investments and managerial experience. Business makes money by leveraging its fast food product to franchisees who must lease facilities that are owned by McDonald's, frequently at significant markups.
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