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McDonald's: no immediate plans to start franchising in China

According to a report on Dow Jones Newswires, McDonald's has decided not to grant franchise licences in China at the moment. The reason: the company believes that the profits would be too low for the franchisees. However, it is intending to grant franchise licences in the next few years. The fast-food chain already runs just under 800 company-owned branches in China and is looking to further expand its network there.

The report reveals that McDonald's and other company chains are being pressured by investors to hand over as many locations as possible to franchisees. The advantages for the investors: the shareholders would benefit from the profits made through higher dividends and franchising ensures that money is received without there being any operative costs.

McDonald's (USA)

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