McDonald's Joint Partnerships - Ask us, we can help.

The Joint Partnership (JP) is a business organization owned by two parties; one is an individual and the other a subsidiary of McDonald’s Corporation. The purpose of the JP is to own and operate one or more McDonald’s restaurants. The partners share in the investment and the return from the business. The ownership proportion generally ranges from 50/50 to 75/25 with McDonald’s being the controlling interest. The Franchise Agreement and Operator’s Lease for the JP are generally the same as those issued to other franchisees. Accordingly, rents and fees are the same as for all franchisees. In addition, the partners enter into a Partnership Agreement that defines the responsibilities of each partner.

Concannon, Miller & Company, P.C. has a number of Joint Partnership clients (see list of clients for details). We have analyzed a number of proposals by McDonald’s Corporation to owner/operators for forming joint partnership arrangements, and are familiar with the financial and tax issues that should be considered in the decision to form a partnership.

We have worked with the accounting and tax guidelines issued by McDonald’s Corporation for the preparation of monthly financial statements and partnership tax returns.

The following are some of the topics and issues for which we have developed expertise:

• Valuation of each partner’s restaurants
• G & A guidelines
• Impact analysis
• Market development
• McOpCo menu pricing
• Estate planning issues
• Cash flow distributions
• Buy-up provisions
• Depreciation & amortization - book, tax & AMT
• Fringe benefits