Entering the world of franchising can be a scary decision. For many entrepreneurs, it involves a leap of faith – whether financially, personally, or professionally.
The good news is that many people have walked this path before. In this article we speak to some successful franchisees at one of the world’s most recognizable brands, McDonald’s. If you’re thinking about becoming a franchisee, their stories and experience can give you a head start on the competition.
How to Become a Successful Franchise Owner
BusinessesForSale.com spoke to two McDonald’s franchisees who own and operate multiple franchise locations in Canada: Kathie Gilmour and Pierre-Charles Tardif. They shared with us their tips for any budding entrepreneurs thinking about investing in a franchise – and their advice is just as applicable for a McDonald’s franchise as any other.
If you’d like to learn more about becoming a McDonald’s franchisee in Canada, you can enquire through their franchise page on BusinessesForSale.com.
1.) Take the leap of faith – but do your due diligence
Starting a franchise, or purchasing an existing location, requires a leap of faith. First, there is the up-front investment, which can often be significant, and then there is the possibility of entering an industry you may not have experience in or the need to move to a new city.
Pierre-Charles Tardif is a McDonald’s franchisee who went from working as a CPA in Quebec City to purchasing several McDonald’s restaurants in Montreal. He says the change was a challenging one, but also “one of the most fulfilling decisions of my life, both personally and professionally.”
It was not a decision taken lightly, though, and only came after “a few months of research and reflection.” During that time, Pierre-Charles spoke to several existing McDonald’s franchisees, who gave him advice and shared their experiences. These conversations eventually persuaded him that McDonald’s was the right brand and fit for him.
The challenges of beginning your franchise journey become much more manageable if you do your research and know what to expect. “I have learned that when you pursue your dreams with determination, the rewards far outweigh the risks,” says Pierre-Charles.
2.) Make the most of training opportunities
The training process for becoming a McDonald’s franchisee is quite an extensive one: potential future franchisees are expected to train for at least nine months to learn every aspect of the business. That starts with cleaning equipment, working shifts at the front counter, taking orders at the drive-thru, making french fries, and shadowing other franchisees.
“It’s such a comprehensive training plan,” says franchisee Kathie Gilmour. “The best part of it is that now when I walk into my restaurants and I see new employees struggling with any aspect of their work, I have this level of empathy because I’ve done it all.” That level of experience can help McDonald’s franchisees earn the respect of their employees and provides a crucial base of knowledge to help them run the business.
Any new franchisee, regardless of the brand they are investing in, should maximise the training opportunities offered by their franchisor. They help set you up for success and ensure you are prepared for any roadblocks and challenges that might appear down the line.
3.) Don’t do it all alone – reach out to your franchise network
Challenges are inevitable in any business. When they do arrive, one of the best things you can do as a franchisee is to reach out to your franchise network. Kathie says that the other McDonald’s franchisees she got to know during her research and training later proved to be invaluable resources during difficult times.
“The franchisee community is so aligned and so collaborative, and we get such great support from the Corporation, that it really feels like we can mitigate anything that is thrown our way,” she says. This proved to be the case during Covid, and the staffing shortages experienced by many businesses in the aftermath.
If you are investing in a franchise that does not have an existing network of franchisees to learn from, don’t worry. Trade shows and conferences can be a perfect opportunity to grow your network and meet other people who may share the same problems you have.
4.) Invest in your people, and build a strong culture
If you are purchasing an existing franchise location, in most cases you will be acquiring the current employees. These individuals are the most important aspect of your business, and so taking the time to get to know all of your staff, their struggles and their day to day tasks, is a crucial step to franchising success.
When Pierre-Charles became the franchisee of several McDonald’s restaurants in Montreal, each one had a management team and staff already in place. “The first challenge,” he says, “was to build confidence in each other – and it has to go both ways.”
“When I’m in my restaurants I always want to create that culture and to encourage people to have fun with their work, even when it is challenging. You have to take the time to learn about their lives – what do they do in their free time, do they have kids? Then you can create a culture where everyone is welcome.”
This is a sentiment echoed by Kathie, who reiterates the importance of taking the time to build connections with staff at all levels of your franchise business. “You have to earn their trust because in the long run, your people are your greatest asset. If you treat them like they make a difference, they will.”
5.) Stay adaptable
The world is always changing, and franchise owners need to be able to stay on top of any economic, social, or technological shifts that could impact their business. The best way to do this is to work in close collaboration with your franchisor, and plan ahead.
McDonald’s is a business that has evolved a lot in the last ten years, as the rise of delivery apps and ordering through in-store screens has changed the customer experience significantly. Pierre-Charles says: “Nowadays, you may not even see your customer when they order from McDonald’s. We must make sure we deliver a high standard all the time, even when we are working with a third party.”
Pierre-Charles and his team were supported by McDonald’s as their business model evolved with a greater emphasis on digital ordering. Likewise, Kathie says that the Corporation’s support was crucial when, shortly after she took over her restaurants, the minimum wage in Canada was increased by a dollar an hour: “That was one of my first big challenges as a franchisee, but the Corporation provided so much support to help mitigate that rise in labor, and the knock-on effect it had for all our staffing.”
The common theme from the McDonald’s franchisees we spoke to, and the real secret to franchising success, is collaboration. By working closely with and getting to know your employees, other franchisees and the franchisor, you will be better prepared to face any challenge head-on.