Presentation for International Marketing class Discussing Franchising on the examples of McDonals and Subway in US and Poland Created by: Aleksey Narko Natalia Swierczek

1. Kurczaki, ziemniaki
i kanapki…
Natalja Swierczek
Aleksey Narko

2. How it all began…
• It began in 1958.
• Franchising took it's roots in early 1800's in
Munich Germany Hans Best Munich Ale
• The first franchise in the US was Singer
Sewing Machine in the 1800s.

3. When it was founded?
Who are the Founders?
How many locations?
Revenue?
How many employees?

4. Some interesting facts:
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McDonald's brand is in 122 countries around the
world.
Every 4 hours the new restaurant is being opened.
McDonald's feeds more than 46 million people a day more than the entire population of Spain.
McDonald's has sold well over 100 billion
hamburgers.
Antarctica is the only continent that does not have a
McDonald's restaurant - yet.
The busiest international McDonald's restaurant is
located on Pushkin Square in Moscow
McDonald's restaurants in India are our only
restaurants in the world where you cannot buy beef.
McDonalds in the Germany and Spain sell beer.
In the Phillippines they have spaghetti on the menu
and
In Hong Kong they have rice burgers.

5. Now questions to you:
• What do you think about
McDonalds?
• When and how often do you go
there?
• Why not?

6. Funny Commercial.

7. The Development of a brand.
• Speedee
• Golden Arches
• Ronald McDonalds

8. Basic Statistics

9. McDonalds USA
• 26 million customers every day
• Nearly 90 percent of McDonald’s U.S.
restaurants are independently owned.
• McDonald's represents 43% of total U.S. fast
food market.
• McDonald's distributes more toys per year than
Toys-R-Us

10. McDonalds Polska
• First Opened on 17th June
1992
• The Biggest network of
restaurants
• More than 15500
employees

11. Costs
•
The total cost of franchise fees, equipment and other startup
costs will be at least $500,000 and could be as much as $1.5
million or more.
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McDonald's requires a minimum 40 percent down payment.
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McDonald's requires franchise owners to have substantial
financial resources, including $100,000 in liquidable assets.
•
Be prepared to commit to a 20-year franchise agreement
with McDonald's.
•
Actual cost of a restaurant in Poland is 6-7 million zl.

13. Who has been to Subway?
• When?
• What do you think about the
prices?
• Do you remember what you
bought?
• Where did you go?
IF YOU HAVEN’T BEEN
THEN ONLY 1 QUESTION
• Why not????

14. A little background info
• It is owned and operated by
Doctor's Associates, Inc.
• Subway is one of the fastest
growing franchises in the world
with approximately 34,187
restaurants in 97
countries/territories as of March
2011
• It is the largest single-brand
restaurant chain globally

15. Who recognizes this man?

16. This is Jared Fogle
• Also known as the ‘Subway Guy’
• He was used in their advertising
campaigns
• Used to be very VERY fat
• Switched to eating at Subway (and
walking) and lost so much weight his
own friends didn’t recognize him
• Supposedly Subway made around 8.2
billion dollars (double what they used
to make) after cooperating with Jared

17. Before and After

18. 37 Restaurants in POLAND
• Subways in Poland are very
clean to those compared to
America
• They are quite expensive (both
to franchise and eat at)
• Most restaurants have a lot of
foot traffic, but people usually
order the smaller subs (unlike
America)

19. Basic Costs of Opening a
SUBWAY
• First franchising license is 7,500
euros
• The following licenses are 3,500
euros each
• The number of these licenses
varies
• The cost of the place where the
restaurant is located is not
included

20. Subway in America
• Subway restaurants have been
consistently ranked in
Entrepreneur Magazine's Top
500 Franchises
• Subway was selected as the #2
overall franchise in 2008
• Was ranked as the #3 "Fastest
Growing Franchise", and the #1
"Global Franchise"

21. Subway in America
• Subway restaurants have been
consistently ranked in
Entrepreneur Magazine's Top
500 Franchises
• Subway was selected as the #2
overall franchise in 2008
• Was ranked as the #3 "Fastest
Growing Franchise", and the #1
"Global Franchise"

22. Costs in America
The initial franchise fee to own a Subway
location is $15,000, which one must pay at
the time the franchise agreement is
signed. The parent company estimates
that one’s initial investment will run
between $80,000 and $240,000, plus there
is an annual royalty fee of eight percent,
which is figured on each store’s gross
sales volume. The total investment
mentioned above also happens include
what the company estimates it would cost
the average operator to run the business
for its first 90 days.

23. In Conclusion…
• Subway plans to open 9,000
more stores in Europe by 2020
• They planned to open 4,000
stores 2010
• As of right now they have
opened 1,000 stores in Europe,
most of which are in the UK and
Ireland