21
restaurant. The candidates are trained up to perform
all roles in the restaurant, from the management right
through to the nitty gritty of cleaning. It should be
pointed out that this training period is actually unpaid,
y
and so all candidates will need a signi cant amount of
liquid capital to cover themselves and their  nancial
commitments during this time. A training deposit of
£5,000 is also required, although this is returned to the
franchisee once the training is completed.
The support is also of a very high standard.
c
o
v
e
r

s
t
o
r
Franchisees are assigned a business consultant, who will
offer advice and support. Head of ce teams are also
there for any other help – franchisees can pick up the
phone to ask a question on any problem in any  eld
that they might have, and will receive comprehensive
help. “If you want to pick their brains about anything,
they are there at the end of the phone,” says Mr
Constantinou. “You can do your own thing, but with the
support of a universally regarded brand. McDonald’s is a
brilliant company to work with because of that and the
dedication it shows to its franchisees.”
That dedication is also shown in other forms
of support that it offers its franchisees. Regular
communications meetings and sessions are held for
feedback, news and assistance. Another strong selling
point is that each franchisee gets a say in how the UK
McDonald’s is run via representatives on the National
Leadership Group.
Successful candidates should already have prior
proven success in business or another career – an ideal
background would be in managing and developing
people, marketing and sales building. Because this is
very much a people business, potential franchisees
rather than taken. This is a hands-on business, and must be sociable, polite and must possess the ability to
McDonald’s always says it is looking for people who will develop employees’ skills and talents. They must also
work hard to maintain its current high reputation and enjoy meeting customers and go out into the local
to outperform any competition that comes its way. community, as McDonald’s frequently takes part in
It’s worth clarifying what each franchisee owns. charity and philanthropic initiatives.
McDonald’s franchisees rent the restaurant real estate A crucial element of a McDonald’s franchise is the
but buy the  ttings, equipment and also the right to investment. The cost tends to vary in accordance with
operate it for up to a 20-year period. its potential cash ow. However the average investment
Mr Constantinou’s McDonald’s empire in south-east level is £200,000.
Cos Constantinou
London has spread. As well as his Lewisham restaurant, Many franchisees opt for the Conventional Franchise
he is in charge of four other businesses – Deptford route, which requires 25% of the asking price to be paid
(which boasts a 1950s/1960s style restaurant), Catford upfront with the remainder borrowed. A second option,
(a drive-thru/retail park outlet), an old pub conversion called the Business Facilities Lease, is designed to help
near Bromley and, most recently, an outlet in Greenwich those without the required funds to cover the 25%.
near the Cutty Sark. Under this approach, the franchisee uses the cash ow
Classifi cation:
With 20 years under his wing, his hard work proved of the restaurant to raise enough capital to buy the
Food and Drink
to the franchisor that he was well deserving of a new franchise during the  rst three yyeears of trading.
20-year term, which is part of McDonald’s ongoing Other start-up costs include a £30,000 franchise
commitment to its franchisees. “After my 20 years fee, as well as ongoing fees for rent, service and a Investment level:
came to an end in October 2008, I was very proud contribution to the national marketing spend.
Franchise fee:
of the fact that McDonald’s considered me for a new All things considered, the McDonald’s franchise
20-year lease. has many rewards for its franchisees, with healthy
£30,000
“We are showing strong increases thanks to repeat prospective pro ts, the potential for expansion and
Training deposit:
demand and our new look, which includes brand new opportunities for career growth.
£5,000
refurbishments and new look menus. The re-imaging Mr Constantinou is already making plans to take
and refurbishment of the stores keep them modern and on future outlets. “I am drawing up a business plan for
Average franchise: £200,000
customer-friendly. Our menus allow for a greater variety more franchises,” he says. ”My son is also involved with
of foods. Organic milk, free-range eggs and Rainforest the business. He is managing the pub conversion near Website:
Alliance Certi ed Kenco coffee are all on the menu. Bromley and is doing an exceptional job. We both hope
www.mcdonalds.co.uk/franchising
Our products are among the best that you can  nd.” that after I retire, he will take over my role.
Email:
The training and support are key elements of his “That’s how con dent I feel about the franchise@uk.mcd.com
success. The training is intensive, taking place over a opportunities that McDonald’s has to offer. Becoming a
Phone:
nine-month period. During that time, each candidate McDonald’s franchisee is certainly the smartest move I 020 8271 4424
learns every aspect of successfully running a McDonald’s ever made.” �
www.businessfranchise.com February 2009
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