How does McDonald’s America open a headquarters and chains in places like Europe or Asia? And how do they collect revenue from them? Or does each nation own their own chain?
How do countries share profits and who pays for what? I have so many questions about how these businesses operate internationally.
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They open in much the same way they do in their own original nations. They purchase land, get all the necessary permits and contracts, build the restaurant, hire employees, and open up business. For the actual management/corporate level a lot of times the business will transfer a number of managers already experienced in the business to help establish operations. They will have to take in account translations and cultural/food regulation differences as well where needed.
Currencies can be exchanged before going across borders when needed, so Mcdonalds for example has a combined wealth across numerous countries where its open.
It’s all taxes. I mean it’s not like US based companies are freely sharing profits with the US government, they keep the money. A large corporation with locations in multiple countries just keeps track of where money is earned to pay taxes on it in the appropriate country. Large fast food chains and other huge companies have giant teams of lawyers and tax professionals that handle all of that.
When it comes to fast food franchises, it’s usually just based on licensing. Entrepreneurs start up their own McDonald’s restaurants with their own money, and they merely pay a *franchise fee* to the central McDonald’s corporation based in the US. Doesn’t matter what country they’re in. This is how it works inside and outside the US.
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