ibute to McDonald's revenues through payment of rent and service fees based upon a percentage of sales, with specified minimum payments. Generally, the conventional franchise arrangement lasts 20 years. Franchising practices are consistent throughout the world.
Another key area of McDonald's operation is its training program. Training begins at the restaurant with one-on-one instruction and videotapes. Aspiring restaurant managers progress through a development program of classes in basic and intermediate operations, management and equipment. Assistant managers are eligible to attend advanced operations and management class at one of the five Hamburger University campuses in the United States, Germany, England, Japan or Australia. The curriculum at Hamburger University concentrates on skills and practices essential to delivering customer satisfaction and running a restaurant business.
McDonald's brand is well known throughout the world. Marketing and promotional activities are designed to nurture this brand image and differentiate the company from its competitors by focusing on value, taste and customer satisfaction. Funding for promotions is handled at the local restaurant level; funding for regional and national efforts is handled through advertising cooperatives. Franchised, company-operated and affiliated restaurants throughout the world make voluntary contributions to cooperatives which purchase media. Production costs for certain advertising efforts are borne by McDonald's.
International operations are key to McDonald's success. McDonald's, combined with Kentucky Fried Chicken (KFC), brought the concept of franchising to many of the countries around the world where both have stores. Since the expansion of both of these organizations during the 1960s, the export of American fast food operations, including franchise operations, has become one of the most significant ways in which American stockholders realize re...