SEOUL, KOREA - McDonald's Korea has set out to expand its franchise network in Korea in earnest. The company said on February 10 that it would open up to 50 new franchise stores before the year's end to increase the number to 103. Since 2010 when the world's largest hamburger fast food restaurant chain began enlisting franchisees, it has signed up a total of 53 stores. The current franchise store ratio in the total store numbers of 344 is 15.4 percent.

 

Han Yeon-mi, executive of McDonald's Korea, said, "Adding more franchise stores is consistent with our parent company's global strategy." Worldwide, The McDonald's Corp. is running as much as 80 percent of its 34,000 stores under franchise arrangement.

 

The company also said that it administers several months of intensive training in marketing and product management to prospective store owners so that they could succeed in their business. That's why it wouldn't sign on anyone who does the business as a part-time activity. It will also give an opportunity to open a second location to store owners who are running their first store successfully.

 

According to the company, it takes about 600 to 800 million won to open a franchise store including franchisee fees, interior cost, and goodwill. The estimated rate of profit for the first year of opening is 18-19 percent.

 

In addition to more franchise stores, the company will add more directly owned stores as well this year. It plans to open 50 new locations this year to make the total number including franchise ones to 444.