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Below is an in-depth analysis and side-by-side comparison of McDonald's vs Philly Connection including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,314,500 - $2,306,500 | $154,000 - $261,500 |
Franchise Fee | $45,000 | $20,000 |
Royalty Fee | 4% | 6% |
Advertising Fee | 4%+ | - |
Year Founded | 1955 | 1980 |
Year Franchised | 1955 | 1987 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | $45K | $5000 |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant | - |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software | - |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | - |
Operations |
82% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
Advantages of Philly Connection:
1. Quality ingredients.
2. Focus on
hot food, but we also offer cold
hoagies. Hot food sells in the evening/dinner time. The cold sandwich sells more at lunch.
3. Unique steak product.
4. Philly Connection offers french fries, onion rings, and chicken tenders.
5. Philly Connection grills orders in front of the customer.
6.
Franchisee receives cooking equipment with its investment. When product offerings change, the franchisee already has this
equipment.