Legal Aspects of McDonald's in Australia

0Running head: LEGAL ASPECTS
Legal Aspects

1LEGAL ASPECTS
Table of Contents
Introduction................................................................................................................................2
McDonald’s Incorporation.........................................................................................................3
Industry of the Company........................................................................................................3
Number of Employees in Australia and Globally..................................................................3
Location of global Headquarters............................................................................................3
Regulatory Framework Affecting McDonald’s in Australia.....................................................4
Impact of Treaties, Conventions, and Agreements on McDonald's...........................................5
Conclusion..................................................................................................................................8
References..................................................................................................................................9

2LEGAL ASPECTS
Introduction
Multinational corporations have to comply with various regulatory frameworks and
hindrances that are necessary to be examined in order to achieve customer satisfaction and
enhancing the value of the corporation. The regulatory framework defines a set of regulations
and laws that apply to a corporation which provide various guidelines that are necessary to be
fulfilled by the company. Being global leaders, firms have to properly comply with such
regulations in order to maintain a positive brand image and fulfil their corporate duties.
Government treaties and conventions are legal agreements between two nations that focus on
improving relationships by providing grants or exemptions to corporations. This report will
focus on ‘McDonald’s’ and analyse its regulatory framework in Australia. Further, the report
will focus on the impact of agreements, treaties and conventions over McDonald’s operations
in Australia.

3LEGAL ASPECTS
McDonald’s Incorporation
McDonald's is one of the most prominent organisations that is situated in Australia; the
corporation has a positive reputation which assists in expanding its business overseas. The
company was founded in 1940 in San Bernardino, California, United States. The firm offers a
wide variety of fast food products to its customers and offers other quick options such as
drive-thru, online booking, cashless payments, and other. The revenue of the company in
2016 was US$24.622 billion globally (McDonalds, 2017).
In Australia, McDonald’s is popular as “Macca’s”, and the company has embraced its
nickname, and some of its restaurants have changed its signs as “Macca’s” (The Telegraph,
2013). McDonald's is known for its franchise business in which it allows other small business
to get a franchise and open their McDonald’s restaurants. The company started its operations
in Australia in 1971 by opening its first restaurant in Sydney suburb of Yagoona. McDonald's
is known for their high-quality services, clean restaurants, family facilities, competitive
prices, similar structure and others (Soontiens and Lacroix, 2009).
Industry of the Company
McDonald's operates in fast food restaurants industry, and it is located in more than 35,000
locations in more than 120 countries, and it serves around 68 million customers each day. In
Australia, more than 869 McDonald’s restaurants are situated which serves around 1.7
million customers visiting each day. McDonald’s economic contribution in Australia is
equivalent to 0.2 percent of the GDP in Australia (McDonalds, 2017).
Number of Employees in Australia and Globally
McDonald's has more than 375,000 employees globally who are dedicated to delivering high-
quality food and services. In Australia, the company has more than 90,000 employees
working which are equivalent to 7 percent of the total working population in Australian café,
takeaway food service and restaurants (McDonalds, 2012). The company has 258 franchises
in Australia and 9000 suppliers which provide material to the restaurants. McDonald's is
world’s second largest private sector employer, the first one being Wal-Mart.