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just to add to stonehedge's comments, property is an essential part of MD's business. For a lot of properties they operate sale and lease back to the franchisee. In other cases they make the franchisee buy the property. One way or another, their investment in a franchise is typically asset backed.
hugo7-
20 year sale and lease is the standard term offered to a new franchisee now days.
Sorry peeps, I'm a bit of a business management nerd and have been helping a couple of small independent chains prepare for franchising recently. McDonalds, love them or loathe them, are the franchising gold standard. That and I love a Big Mac. Hence my interest in the area.
Stonehedge
I guess a lot of people would eat at a McDonald's because it's there but wouldn't actively do anything to get a new one approved.
Question about franchises - does McDonald's choose a location based on demand and then find a franchisee, or does a franchisee find somewhere and then ask McDonald's to become one?