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I know of Walgreens locations that have been profitable for 50 years or more. MacDonalds is similar. If they have a franchise that is doing badly, they will p
by JJMcJ 7y ago
I know of Walgreens locations that have been profitable for 50 years or more.
MacDonalds is similar. If they have a franchise that is doing badly, they will pay to move the franchise to a new location. A suburban McD closing is rare, usually only the oldest ones on lots that are too small for contemporary usage patterns.
- the_watcher 7y agoChipotle's former CEO (and I believe founder) often mentions that Chipotle's time under McD's ownership hammered home that the single most important element of the company's success was excellence in real estate. It's also why getting a McDonald's franchise is generally very expensive - they'll give you as de-risked a location as possible and a proven operational playbook. It's not easy to run a franchise at all (you have to be available on days your manager calls in sick, deal with vendors, inventory, etc), but you don't need to figure out the business model at all.
- JJMcJ 7y agoMcD requires franchise holders to be involved in day to day operation, and the investment is quite large, well north of 1 million.