What promotes the high turnover rate of McDonald's franchises?

The high turnover rate of McDonald's franchises is primarily influenced by the strong brand recognition of the company. This brand recognition offers a unique opportunity for new franchisees to tap into a well-established market presence, making it easier to attract customers right from the start. Franchisees are often drawn to the McDonald's name due to its global reputation, which implies a reliable customer base and significant marketing support.

Additionally, the allure of joining a brand recognized worldwide can lead to a surge of interest among potential franchisees. While the initial investment, real estate accessibility, and training programs are important factors, the strong brand recognition fundamentally enhances the franchise's appeal, leading to a quicker turnover as new entrepreneurs see the potential for success and profitability under such an established name.