Product recognition has never been more important than it is now. And this includes the restaurant and food services industries. Statistics show that, come mealtime, fast food is the first choice of hungry people all over the world, and these numbers are only on the rise. In an economy where few markets are growth markets, it only makes sense to buy into one of those showing increased profits. With this in mind, let's take a look at the pros and cons of buying into a McDonald's franchise.

The first, and most obvious, pitfall is the enormous start-up costs of opening your own McDonald's franchise. While the full franchise cost depends on the size of the restaurant, you will need a down payment of 40% of the total cost for a new restaurant. And this down payment must be paid out of ready cash, and not be financed. The minimum down payment is approximately $300,000. Acquiring an existing restaurant requires a smaller, 25% down payment of ready cash. The remainder of the total price may be financed. McDonald's does not offer financing itself, but does have good relations with lenders, and a loan for the remainder can usually be acquired at lower industry rates.

The next consideration is the operation of your McDonald's franchise. While McDonald's does offer limited opportunity for employee advancement to management levels, which may attract a few motivated individuals, most of your work force will be young, inexperienced, and just learning about job responsibility. High employee turnover must be expected, as employees graduate from high school or college or move on to other work. Good management techniques can make a difference in keeping longer term employees motivated and attendance regular. McDonald's has many programs in place to instill employee pride and combat employee fatigue.

The last thing to consider may well be what affect ownership of a McDonald's franchise will have on your personal quality of life. Franchise owners can look forward to long hours, and many management responsibilities, and leisure time may come to seem like a thing of happy memory. The good news is, ownership of a company has its own rewards, beyond the financial ones. Being in a position of authority has been shown to actually be less stressful than being an employee. And you may find yourself in the satisfying position of mentoring employees - some of whom may, with your encouragement, become the sort of valued employees you can trust to look after things when you do have a chance for that hard-earned getaway. So weigh the pros and cons and think about whether franchise ownership is for you!

Another option to consider while you explore brick-and-mortar franchises is the increasingly popular 'online franchises'. Jenn Lawlor is owner of her own 'online franchise' with LifePath Unlimited.

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Author: Jenn Lawlor