Difference between 2 companies Free Essay Example, 3000 words

McDonald’s Ownership A McDonald’s restaurant can be operated through a number of avenues, these include either by an affiliate, a franchisee or directly by the corporation itself. While most of the company’s operations within the United States are operated by the company directly, the company primarily relies on the use of franchising operations in conducting its operations in its other locations. The term franchising has been used to describe many different forms of business operations, however a franchise is basically an agreement between two parties that comprise of the franchisee and the entrepreneur (franchisor). A franchise agreement grants the franchise the authorization and right to operate a specific McDonald’s restaurant at given location. McDonald’s franchise agreements usually have a time span of 20 years (Gilbert, 2009). The franchise is given a number of rights that include the right to use the McDonald’s trademark and method of operation. On the other h and, McDonald’s is able to obtain its corporate revenue through the collection of royalties, rent and the fees that franchisees are required to pay as well as the sales that the company operated restaurants are able to make. McDonald’s Organizational Structure McDonald’s employs the use of a number of different structures to help it in running its operations at different levels. We will write a custom essay sample on Difference between 2 companies or any topic specifically for you Only $17.96 $11.86/page