Tonina and Keith Hoang are successful entrepreneurs who owned the rights to three franchised Chinese takeaway restaurants in London and Essex. So what made this husband and wife team want to give up their businesses and risk buying a McDonald’s franchise?
McDonald’s, the world’s largest fast food restaurant chain, has more than 12,000 outlets, with around 65% of them being franchised. A franchise is a form of business ownership whereby a person or business buys a licence to trade using another firm’s name, including use of its logos, brands and trademarks. In return for this benefit, the purchaser of a franchise (called the franchisee) pays a licence fee to the parent company of the business (known as the franchisor). The franchisee is also required to pay a royalty payment (a percentage paid according to the value of sales made by the franchisee).
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