I heard that McDonalds has bought a land and is in the process to start its first restaurant in sahiwal. Does any one have any information which area/neighborhood in the district sahiwal has they decided. If its true then, is it wise to buy a commercial land on the same street for investment purpose?
I have no idea about Mcdonalds opening its branch in Sahiwal or not. If it is, then opening a restaurant near to the residential area is a good idea as it would be easier for the people to take their kids to the fun area nearby their homes.
McDonalds does not buy land to open a branch in Sahiwal or anywhere in Pakistan for that matter.
Most of the McDonalds restaurant around the world are franchises. This means that McDonalds has no share in the ownership of the building or even in the restaurant business.
If you enter into a franchise agreement with McDonalds, the restaurant will belong to you. McDonalds will only charge you a number of different fees for providing: i (License to Use their trade name and logos), ii (provision of know-how and systems), iii (trainings to staff) iv (global advertising) v (periodic inspections) vi (guidance on interior decoration and furnishing of the restaurant) etc.
Some of these fees are fixed fees and others are percentage of sales. They will also force you to buy toys and packings etc from their suppliers; so they will also make some commission there from the international suppliers.
You have to meet certain sales targets and if you fail McDonalds has the right to terminate the contract.
So if someone is developing land for McDonalds in Sahiwal then most likely it is not McDonalds it is some Pakistani businessman who will own the restaurant and the land. But McDonalds will get its fees.
Very nice paki bhaee.
Paki-1 is right… However, they have really heavy fees for franchises…
Where is mcdonalds branch in sahiwal city?
Thanks everyone for the timely response. Agree with Paki-1. Actually , I should have mentioned in the question about “leasing” or opening franchising rather than buying a land. Certainly, Most of the Fast food franchise do not buy or own the store but yes, in certain parts of the world they do own several stores for several reasons. Surely, they just do long term leasing/franchise commitment, documentation or MOU with the restaurant owners. My original thought was if in a big city like sahiwal some big fast food brand put their feet in and most of the elite will be attracted to that direction. If I would know the specifics of that area, may be I could manage to bring some other franchise on same ‘‘street’’ as telemarketing will be already done by big one.