Big Macs, Bigger Business: Franchising
By Inshirah Zaib
Winter Articles Challenge 2025
Franchising: It's a business model that has taken over the world, one fast food
joint, fitness center, or coffee shop at a time. But what exactly is franchising, and why
has it become one of the most popular ways to grow a business? Let’s dive into the
magic behind franchising, using McDonald’s as a shining example, and see how it
relates to the world of DECA.
What is Franchising?
Imagine you have a winning idea: a business venture so good it has to succeed. But
there’s one problem: you don’t have enough time, money, or resources to open stores
everywhere. Enter franchising: you get to share your successful business model with
others, while they handle the day-to-day operations. In exchange, they pay you for the
right to use your brand, system, and a portion of their profits.
It’s like lending someone your favorite recipe, but instead of just giving it away for free,
they give you a slice of the pie (pun intended) every time they sell a dish using your
recipe.
So, let’s break it down:
● Franchisor: The original owner who starts the business
● Franchisee: The person that buys the rights to run a franchise.
● Franchise Fee: The upfront payment a franchisee gives to the franchisor for the
right to operate a franchise.
Now, if you’re imagining a sea of fast food restaurants, you’re not alone. Fast food
chains have perfected the franchise model, and there’s no better example of this than
McDonald’s.
McDonald’s: The Franchise Giant
When we think of franchising, McDonald’s is probably the first name that comes to mind.
Today, McDonald’s has more than 40,000 locations across 120 countries. But here’s the
thing: only about 3000 (or 7%) of those restaurants are owned by McDonald’s itself. The
rest are owned by franchisees, people who bought into the iconic golden arches for a
chance to sell burgers and fries to the world.
So, how did McDonald’s do it? Here are a few secrets to their success:
● Consistency: McDonald’s doesn’t just sell burgers; it sells the same burger, all
over the world. Whether you’re in Orlando, Tokyo, or Paris, that Big Mac is going
to taste almost the same. This is a huge selling point for both customers and
franchisees.
● Training and Support: If you’re a McDonald’s franchisee, you’re not just handed
the keys to a store and left to figure it out. McDonald’s provides extensive training
to ensure the business runs smoothly.
● Brand Power: Let’s face it. McDonald’s is a retail giant. That’s a powerful thing
when you’re trying to attract customers. The familiar golden M has become a
global symbol, and people know exactly what to expect when they see it.
● Innovation: From adding healthier menu options to expanding delivery services,
McDonald’s is constantly innovating. They’re also embracing technology, with
self-service kiosks and mobile ordering making their way into stores.
So, whether you’re flipping burgers or managing a global empire, McDonald’s has
shown how franchising can be a blueprint for business success.
Franchising and DECA: A Match Made in Heaven
You might be wondering, “Okay, great. But what does this have to do with DECA?” Well,
for students preparing for DECA Provincials, the concept of franchising offers a perfect
opportunity to test your business acumen. Here’s why:
● Strategic Thinking: When you look at any franchise, the company has to make
strategic decisions to ensure its success. DECA students can practice making
similar decisions during competitions.
● Real-World Application: Franchising touches all aspects of business, including
finance, marketing, operations, and management. It’s important for DECA
students to know these concepts and apply them in real-world scenarios.
● Global Business Perspective: Franchising is a global phenomenon, and DECA
has diverse competitors. Understanding how franchising works across borders,
cultures, and markets, gives you a broader perspective that will set you apart.
Conclusion
Franchising is more than just a business model; it’s a global phenomenon that allows
companies to grow faster than they could on their own. McDonald’s has proven that with
consistency, innovation, and support, franchising can take a simple idea and turn it into
a global powerhouse. And the best part? It’s a model that’s evolving with the times.
From digital ordering and delivery to eco-friendly practices, franchising is adapting to
meet new demands. Whether it’s 7-Eleven, Tim Hortons, or Kumon, it’s pretty obvious
that franchising isn’t going anywhere anytime soon.
As for DECA students, understanding this model could set you up for success in the
real world, whether you’re managing a McDonald’s or launching your own franchise
someday. So, as you head into Provincials, remember: business isn’t just about coming
up with ideas; it’s about turning those ideas into something bigger. And franchising? It’s
one of the best ways to do just that.