Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

Advertising and Promotion Watch: McDonald's Monopoly is Back

This month sees the return of a venerated promotional campaign, McDonald’s Monopoly. The promotion first began in 1987, and in the last decade has become an almost yearly tradition. Each year, certain McDonald’s products come with Monopoly game tokens, each with either a space from the Monopoly board or an instant win prize for items such as a small fries. Larger prizes are won by collecting all of a group of Monopoly properties, usually three, but sometimes two (Illinois Avenue, Indiana Avenue and Kentucky Avenue, for example). Each group of properties have one whose piece is much rarer than the others; for most of the groups, it’s the last alphabetically (Kentucky Avenue for the red properties, Ventnor Avenue for the yellow), but for the dark blue, it’s Boardwalk, as it is the last and most expensive property on the board. More recently, McDonalds developed an online counterpart to its in-store Monopoly game in which customers can roll virtual dice, or more recently pick one of three chance cards for various prizes.

In 2000, McDonald’s Monopoly faced charges of a massive fraud operation, after it was uncovered that an employee of Simon Marketing, a firm McDonald’s paid to work on and market the promotion, found a flaw in the game. Jerome P. Jackson, the then chief of security for the company, was able to take out the most rare and valuable pieces and pass them along to others he knew.Jackson was thus able to control who won all of the top prizes from 1995 to 2000, prizes worth a combined total over $24 million. Eventually the fraud was discovered, and although McDonalds was not directly culpable, it attempted to improve its public image by agreeing to grant prize money to the legitimate winners.

A happier unusual case also occurred in 1995, when a hospital, St. Jude’s, in Memphis, Tennessee received in the mail a game piece worth one million dollars anonymously sent from Dallas, Texas. Although the game rules technically banned the transferring of prizes, McDonalds allowed the transfer in this case and paid the hospital. However, it was later discovered that Jacobson, responsible years of fraud, had sent the piece.

This year, the top prizes include one million dollars in cash for collecting Park Place and Boardwalk, a 2012 Nissan Leaf for collecting Pacific Avenue, Pennsylvania Avenue and North Carolina Avenue, and an Electronic Arts Sports Trip for collecting all four railroads.

How to Read the Franchise Disclosure Document and Red Flags to Look For

This webinar is designed to help you learn how to choose a franchise wisely. Your selection process should consist of thorough research, analysis, and focused investigation. Understanding how to properly read and analyze the franchisor's required documentation, the Franchise Disclosure Document (FDD), is one of the most important activities you will perform in your franchise selection process.

What is a Franchise?

Most of you are probably already familiar with franchises. You may even patronize a variety of franchised businesses without realising that they are franchises. These businesses range from car servicing and financial services to yogurt and home repairs. According to the International Franchise Association(IFA) franchises employed nearly 9,000,000 Americans in 2015 and generated nearly $880 billion. Franchising is difficult to escape.

How Do You Pay for a Franchise?

Whether you’re purchasing a whopper from Burger King or joining the Burger King franchise system, the old mantra holds true: there’s no such thing as a free lunch. When you first get started running a franchise you need to pay a fee to allow you to enter into that franchise. These fees are the largest fees that you will normally pay a franchisor and typically range between $5,000 and $1,000,000 depending on the franchise. The franchisor charges this fee as a way to recoup the costs of expanding the franchise and to continue to grow. From a franchisee perspective, this is a major outlay and can take a long time to make back, but is a necessary step. Aspiring business owners must understand how much capital is available to them so they can ascertain how much they can afford. The cash you have at your disposal is known as liquidity, and there are numerous ways to increase your liquidity above the balance in your bank account. As a result, many people don’t realize how much capital they actually can use for investments, like launching a franchise branch. We’ll run through some of those methods below.