Begin by perusing the latest annual report and see how well the company is doing both domestically
Question:
Begin by perusing the latest annual report and see how well the company is doing both domestically and internationally. Then turn to the franchise information that is provided, and find out how much it would cost to set up a franchise in the following countries: Belgium: This investment must be financed with at least 25% personal, non-borrowed funds. The balance may be financed externally using a bank loan. On average, this personal contribution amounts to between 250,000 and 350,000 euros. Brazil: The necessary initial investment to open a McDonald's franchise is BRL 2,5 million. South Korea: Most McDonald's owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald's franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000. Mexico: McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise operations can cost upwards of $1 million. Slovenia: This investment must be financed with at least 25% personal, non-borrowed funds. The balance may be financed externally using a bank loan. On average, this personal contribution amounts to between 250,000 and 350,000 euros. Turkey: In Indian currency, the investment comes around Rs 7.5 crores to Rs 15.8 crores. Then respond to the following questions:
1. Which country seems to be the most attractive international investment? Which would seem particularly attractive to you as an investor?
2. Will the fact that the euro has become the standard currency in the EU help or hinder a new McDonald's franchisee in Europe?
3. What is the logic in McDonald’s expansion strategy?
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille