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Oct, 01 2006

McDonald’s - To franchise or not to franchise

In the country for over a decade, McDonald\'s, one of the world\'s major franchisors, has, curiously, not franchised in India. Until now, that is. The company, which currently has two joint venture partners in India, is, according to industry sources, toy

McDonald's is studying the potential market, which it had avoided so far due to it being a sensitive one. Also, questions like, will the franchisee be able to maintain the brand's quality standards in food preparation and service, have been the impediments. Add to that the country's infrastructure situation such as shortage of power. Franchising would also be a big cost-incurring venture, involving setting up and maintaining an efficient centralized distribution system, amongst other requirements of franchising.

So eager investors can do nothing but wait and watch company developments for the next 3 to 4 months.

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