Final answer:
In examining McDonald's franchising policies, franchisees must pay an initial franchise fee, ongoing royalty fees, and adhere to strict operational standards, while also covering equipment and real estate costs. They are also provided with training and support.
Step-by-step explanation:
Franchising is a prominent business strategy where a franchisee purchases the rights to operate a business using the franchisor's brand and model. When looking at a popular franchise such as McDonald's, several franchising policies and requirements become evident. Firstly, franchisees must pay an initial franchise fee as well as ongoing royalty fees. There are also costs associated with leasing or purchasing the necessary equipment, real estate, and for implementing the standardized company decor and design. Another requirement includes adhering to the operational standards set by the franchisor to maintain brand consistency. This ensures a uniform customer experience across all franchise locations. Lastly, franchisees typically receive training and support for running the business, which aids in maintaining the quality of the service and products offered.