In its simplest form, the word franchise refers to the authorisation given by a company to another company or an individual to sell its unique products and services.  Franchising is a marketing or distribution system: the franchisor grants an individual or company the right to conduct business according to the franchisor’s guidelines, for a specified time and in a specified place, for a fee.

“McDonald’s doesn’t confer success on anyone. It takes guts and staying power to make it with one of our restaurants. A total commitment of personal time and energy is the most important thing. You must be willing to work hard and concentrate exclusively on the challenge of operating that restaurant.” -Ray Kroc

1.1 Assuming you want to buy a McDonald’s franchise, briefly describe the process of how you would go about this, and what would be expected of you. (10 marks)

1.2 What are some of the advantages and disadvantages of owning and operating a McDonald’s franchise? (6 marks)