Kym Munro outlines how she went about the due diligence process, and offers those interested in investing in the McDonald’s brand some tips to help them determine whether the business is right for them. 

She and business partner Hamish Munro opened a new McDonald’s restaurant at Chinchilla in Queensland at the end of 2012, and they’d like to eventually expand their network. 

When and why did you decide to buy a franchise? We commenced our investigation in mid-2010. We had experience with other franchises and were familiar with the model’s many benefits.

These include the selling power of a known brand, lower costs of group purchasing, an established business model and networking of peers just to name a few.

The fees involved did not put us off. We believe they provide good value for money if the services are used to their potential.

How did you go about researching the brand? The McDonald’s website was a great start. We got some insight through contacts we had within McDonald’s, however it wasn’t until we initiated our interest that we were supplied with the information required to make the decision to go ahead.

What would you do differently in terms of the due diligence process, if anything? I would have spent more time with licensees on higher level operations and control of the business.

I did have the opportunity but I didn’t focus enough on understanding the P&L statements specific to McDonald’s.

I spent a lot of time getting a handle on the restaurant management side, which assisted me greatly in the first year of opening, however it’s the licensee control level that I am focusing on now that we have a strong management team.

What was the major reason for choosing McDonald’s? McDonald’s persists in an ever-changing commercial environment. It has the ability to stand the test of time as it adapts to provide a product and taste that the world wants. It’s renowned for its quality of product, its service and the cleanliness of its restaurants.

How did you fund your franchise investment? Through hard work and sound real estate investment decisions. I was an environmental scientist and Hamish was a pastoralist, baker and a builder!

What is the biggest lesson you’ve learned as a franchisee? Never underestimate the power of the whole. When all stakeholders in a franchise contribute equally and to the best of their ability, the franchise can achieve anything.

What has been the biggest challenge as a franchisee? Adjusting to fluctuating sales while still maintaining business profitability.

What goals have you achieved since joining McDonald’s? We’ve built a strong team of loyal employees. We are proud of our small but wonderful team of people, who we support and encourage in pursuing their own goals.

We have also created a mechanism that enables us to contribute to our local community. Lastly, the creation of a career that will span our lifetime.

What advice would you offer someone thinking of investing in a franchise business? This is not a passive investment. Be honest when you answer these questions:

• Are you willing to work hard both within and on the business?
• Are you good with people and can you relate with them on any level?
• Do you always strive to improve?
• Are you ethical in your approach to business?

If you answer no to any of these questions, the business might not be for you.

Would you invest in this brand again? Of course, given that the opportunity was a sound business investment. We would like to own additional restaurants in the near future.