I recently watched a documentary of McDonald's on CNBC and contrary to what most people think, McDonald's moneymaker is real estate and not the fast food it sells. They make money via real estate in two ways: first, based on extensive research, they buy properties that they feel are in, or will be, prime locations. Also, they sell their under preforming properties, obviously typical things that real estate companies do.
However, like most other franchisers, they charge a franchise fee to use the McDonald's name, which is currently about 8%. The franchisee pays this amount or 5% of their gross sales - whichever is higher. Don't quote me on the percentages but it's close.
Research Franchise Realty Corp., McDonald's real estate subsidiary and this should give you more insight..***:D
If you don't know what business McDonalds is in then may I suggest that your most precious asset is not being exercised enough.
That sounds like a great goal. So what's your question again? McDonalds is in the restaurant business. That can't possibly be the answer you're looking for...
It's a fast food franchise.
fast food franchise
OK, Im only 16 so its not like I'm looking to make money or anything I just want to invest in my most precious asset which is my mind, I want to expand my financial intelligence.
