Franchising is unique business marketing format.

The franchisor select franchise from applicants who have the necessary financial resources and meet other qualifications. Then, each party to this partnership brings unique skills and resources to the enterprise. Usually, the franchisor lends a brand image, operational expertise, and sitting assistance. The franchise brings capital and intiative. Examples of well-known franchise business models include McDonalds. McDonalds Malaysia is currently expanding at an annual rate of approximately 15 - 20 restaurants. With strong business and marketing plans, McDonalds expects a positive growth trend to continue in years to come. McDonalds wants to extend this opportunity to any individual Malaysian interested in becoming a franchisee, running a quick service restaurant with the most recognised brand in the world, and to be a part of a proven success story. There are two ways to become a McDonald's franchisee - start a new restaurant from scratch or buy an existing McDonald's restaurant. It will all depend on what is available at the time that you complete your training. The costs for starting an entirely new McDonald's restaurant can be anything between RM2.0 million to RM4.5 million. The costs also depend on the restaurant size and type, its location, style of dcor and landscaping. Initial costs is required USD 22,500. Franchise fee paid upon or prior to the commencement of the franchise. RM50,000 to interest-free security deposit for the faithful performance of the franchise, refundable upon the expiration of the franchise. RM200,000 - RM250,000 for pre-opening expenses - staff training and salaries, stock trading, living expenses while training and other normal start-up costs. RM1.7 million RM2.5 million to approximate cost of kitchen equipment, signage, seating, decor and landscaping paid to individual suppliers. RM800,000 to RM3 million is depending on store type (Drive Thru, Mall, Oil Alliance or Shop Front) approximate cost of all civil works, ventilation system and renovations to the premises paid to individual contractors Paid by Golden Arches Restaurants Sdn Bhd. Other Miscellaneous Costs Stamp duty (paid to the government) is assessed on necessary documentation and is paid by the franchisee in addition to the working capital required. Legal fees are paid by the franchisee to cover the preparation of the franchise documentation. The franchisors makes money from royalties. Royalty fee is an ongoing fee that the franchisee pays to the franchisor. This fee is usually paid monthly or quarterly and is typically calculated as a percentage of gross sales, which is currently at 5 %.

Beside that, the franchisors also makes money from rental. It depending on store type, location and performance may vary between 13% to 20%. Marketing contribution that currently at 5% of the restaurant's gross sales also can makes money to franchisors. Safeguarding relationships is a variety of mechanisms can be used to cement strategic relationships. This mechanisms take on particular siqnificance when there is no real chance to test the relationship. This relationship is supplier pledges. The supplier can empathize with prospective buyer that is very reproprietary product. McDonald's Malaysia believe in giving nothing but the best to our customers. All our high quality food is prepared using only the best raw ingredients from selected and approved suppliers. McDonald Company through its core food processing companies MacFood Services Sdn. Ltd to ensure quality and food safety. Thus it chooses only the highest quality ingredients and implement stringent food safety practices. MacFood Services is also the center of the main distributor for McDonald's restaurants throughout Malaysia. Other than that, trading places. Buyers and seller may exchange personnel to provide assurance. Mcdonalds should open their branch at the places which can attract people to eat at there. So, Mcdonalds can maintain their sales and also can increase the target of sales. Lastly, ownership. Vertical integration briging a function or technology within the boundary of the firm, ensure continuity in the relationship because suppliers are now hierarchically connected employees. Goals tend to be shared and overall, control of activities is enchanced. Thats why, the mission of Mcdonalds is to be our customers' favourite place and way to eat with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time. To achieve that mission, they committed to our people, they believe in Mcdonalds system, they operate their business ethically, they grow their business profitably and they strive continually to improve.