McDonald's requires that franchisees provide at least 40 percent of the cost of the franchise with their own funds and work full-time daily in the restaurant. It does this in order to avoid

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McDonald's requirement that franchisees provide at least 40 percent of the cost of the franchise with their own funds and work full-time daily in the restaurant is a measure to avoid moral hazard. This is because it ensures that franchisees have a significant financial stake in the business's success, which incentivizes them to work hard and make sound decisions to ensure profitability.

McDonald's Requires That Franchisees Provide at Least 40 Percent of the Cost