19
cover story
committee for the Yorkhill Ronald McDonald House annual
ball, as well as carrying out other charity work in her
local community each month. McDonald’s recognised her
relentless energy and enthusiasm in the business in 2008
by awarding her the prestigious Three Legged Stool award.
Only three franchisees a year are recognised in this way so
it is a notable achievement and one Kate is very proud of.
McDonald’s is a high level investment franchise, however
the banks are confi dent of its successful formula and
are willing to lend, as Derek explains: “To be successful,
franchisees need to make sure they have enough
working capital. We work to a ratio of 3:1, so 75 per cent
borrowing to 25 per cent capital. Since we work very
closely with several banks, which understand our system,
they offer us favourable rates.”
It is also a business opportunity that can develop
into a family business, Derek continues: ”Involve family
in the business – their support is vital. As well as
“Franchisees can join our planning arm, which likewise involving spouses, we also have a second generation
utilises their skills. But don’t try to re-invent the wheel programme, which includes siblings, and encourages
in an individual restaurant – we have a very successful longevity for the business.”
business model, and our customers value consistency.” McDonald’s is an ideal business opportunity for
In addition, employee motivation is high with a lot of entrepreneurial types. Derek says: “Think long term – our
staff wanting to take training courses and progress up the standard franchise term is 20 years, so a franchisee should
career ladder. In fact, Kate’s business was shortlisted for be in a good position to build the business and plan an exit
the People In Excellence award at the 2009 Lanarkshire strategy too.”
Business Excellence Awards for her commitment to the And some fi nal sound advice from Derek: “Don’t rush
learning and development of her workforce.“People into anything: never underestimate just how much hard
development is really important in this business,” says work goes into making a success of a restaurant – it’s
Kate. “Instilling pride in what you do so that people take not like buying a job. We always encourage prospective
responsibility for their role – that’s absolutely key.” franchisees to talk to our competitors too, and think hard
Kate is a dedicated supporter of the Ronald McDonald about whether franchising is really for them – that way, we
House Charites (RMHC), serving on the fund-raising cut the risk of failure.” Derek Rogers■
Classifi cation:
Restaurant/
food and drink
Investment level:
£85,000 free capital
Website:
www.mcdonalds.co.uk/franchising
Email:
franchise@uk.mcd.com
Phone:
020 8271 4424
www.businessfranchise.com November 2009
BF018-019_cover story_Nov09.indd 2 15/10/2009 09:08
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