How To Buy A Franchise And Be A Real Estate Investor. (McDonalds Concept)

McDonald’s does not profit from the sale of hamburgers. Do you think that’s surprising? So, how does McDonald’s make its money?

Many people are unaware that McDonald’s is not a burger-flipping restaurant chain. It is, but not entirely. When you peel back the layers, you’ll discover that the corporate organization is essentially a real estate firm.

McDonald’s generates money on real estate in two ways nowadays. Its real estate subsidiary will buy and sell hot properties as well as collect rentals from its franchised sites. McDonald’s has locations in more than 100 countries and is estimated to have served over 100 billion hamburgers. Only 15% of McDonald’s stores are owned and controlled directly by the company. There are over 36,000 locations globally. The rest are run by franchisees.

So, how can one buy a franchise and become a real estate investor? You can buy a Franchise and use the revenue to pay your mortgage or use your existing business and sell franchises just like McDonalds. This is a great opportunity with huge scalability.

This article contains affiliate links. If you purchase anything through these links, we may earn a commission at no cost to you.

McDonald’s is an excellent example of how diversity can help a company not only increase its revenue but also reduce its financial risks. McDonald’s is a fast food restaurant as well as a real estate company. It operates its own restaurants as well as franchises the brand as a fast food company. They can attain considerably bigger economies of scale by franchising the brand since other companies or entrepreneurs fund the brand’s expansion into many more locations around the world. They can also make larger margins because the cash they receive from their franchisees’ percentage of sales does not require them to spend money on operating those franchised outlets.

Ok, I know what your thinking. I’m no McDonalds but you could be on a smaller scale. Everyone dreams of owning their own business or investing in Real estate. Why not do both?

Buying a franchise is a wonderful choice for entrepreneurs who want to start a business but don’t want to put in the effort of creating their own brand and system. Purchasing a franchise, however, is not as straightforward as it may appear.

What is the definition of a franchise?
A franchise is a business owned by one or more persons who, under that business, deliver a solution in accordance with the corporation’s branding and guidelines. The corporation aids its franchisees as part of ownership and charges a fixed fee as well as fees based on earnings or sales of its franchisees.

Franchising is a terrific method to start a business, but you must do your research before spending the thousands of dollars required to purchase one. Understanding what a franchise is and how it varies from a chain is crucial. Owning a franchise is not the same as owning a business based on your own original idea.

Follow these steps to get started if you’ve determined that owning a franchise is right for you.

1. Be confident in your logic.
   Owning a franchise (or any business, for that matter) can be an emotionally, physically, and financially draining experience. Before you invest in a franchise, be sure you understand why you want to own one. If you believe that operating a franchise is easier than owning any other form of business, keep in mind that all businesses have obstacles.
2. Investigate whatever franchises you might be interested in purchasing.
   A franchise’s popularity does not always imply that it is the best option for you. Don’t skimp on your franchise research.
3. Begin the process of applying for approval
   It’s time to start the application procedure once you’ve settled on a franchise. An attorney could be useful in this situation. You’ll be screened as part of the application process, just as you vetted franchises.
4. Set up a meeting for your “discovery day.”
   This is where franchisees meet with the franchisor’s corporate headquarters for a typical face-to-face meeting. You get to know each other better at this meeting, which is also known as “discovery day,” and you can ask all the questions you want before committing to buy a franchise.
5. Make an application for funding.
   Unfortunately, if you are unable to obtain the necessary finance to launch your business, there is no reason to continue. Apply for financing and wait until you’ve received enough to cover all of your franchise fees and other costs.
6. Carefully review and return your franchise papers.
   Because these contracts are often lengthy and contain ambiguous language, it’s a good idea to hire an attorney to assist you with the procedure.
7. Buy a property that your businesses can pay for.
   You will have already decided on the location for your franchise at this stage. It’s now time to go out and acquire commercial property. Remember, the key to real estate is location, location, location. You want a location where your business can be seen. Remember your business is paying the mortgage so choose wisely.
8. Obtain training and assistance.
   You’ll be working with a well-known business that already has a logo, messaging, guidelines, and products. This is the step that will allow you to fully immerse yourself in the industry and help you succeed.

Not exactly the McDonalds concept to a T but I think you get the point. You can own a business or a franchise and use the income to pay the mortgage. If you ever wanted to own a franchise, be an entrepreneur, or a real estate investor, this is a concept allows you to be everything you ever wanted to be.

See How Kevin Purchased A Teriyaki Madness Franchise.

Thank for reading. Don’t forget to Enter For A Chance To Win!