Help answer this question below.
From an excellent website "FranInfo" by Howard Bassuk:
"...they developed a unique relationship with the franchisees which is based on the fact that McDonald's owns the land and building for all the franchise units. They in essence rent the business to the franchisee for a per cent of the gross sales of the unit. The beauty of this concept is that the interest of the franchisee and McDonald's are absolutely intertwined, the better the franchisee does, the better McDonald's does."
http://www.franinfo.com/whatis.html
I've heard that the McDonald's Corporation is the second largest land holder in the entire world - behind only the Catholic Church. And, they own some of the most valuable pieces of property in the entire world.
Franchise main:
http://www.mcdonalds.com/content/corp/franchise/franchisinghome.html
Franchise Real estate page:
http://www.mcdonalds.com/corp/franchise/realestate.html
MacDonalds owns the land and building. The franchisee only owns the right to trade, I think. But I could be wrong.
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Comments
Excellent answer, thank you.
by Jon the human on July 13th, 2007