As you drive up to McDonald’s, point out the following to your child:

·        “Someone owns the land underneath the McDonald’s, and they get paid rent for letting the McDonald’s be on their land.  The owner of the land doesn’t even need to be there.  They just get paid rent every month.”
·        “The same person may also own the building and get paid rent for it.”
·        “Someone owns the company that makes the golden arches for McDonald’s.  Can you imagine a factory filled with golden arches?  Maybe that’s how McDonald’s knows that all the arches will be the same color and look the same.”

 After you order your food and have eaten, point out the following to your child:

·        “See the clerk behind the counter?  She is an employee of McDonald’s.  She gets paid so much per hour to show up and do that job.  As long as she shows up when she is supposed to and does the job she is trained for, she will get paid.  When she gets her paycheck, she will be paid only for the time she has physically been here working.”
·        Then ask:  “What other employees do you see?”
·        The summarize:  “So it takes quite a few employees to make this McDonald’s operate so it can serve its customers well.”

Look around the restaurant and point out some of the following observations:

·        “See the cups they use and the paper they wrap the hamburgers in?  Those are made specifically for McDonald’s by other companies.  Those companies have to make sure the cups and papers look exactly how McDonald’s ordered them, or they may not get paid for them.  Someone, also an employee, probably at a corporate office for McDonald’s located somewhere else, is responsible for ordering those items and making sure they are delivered to each McDonald’s before they run out of their current supplies.”
    ·        Then ask:  “What other items do you see that might be made for McDonald’s by other companies?”
    ·        Then summarize: “So it takes a lot of different companies with different areas of manufacturing expertise to supply products to McDonald’s to make sure it operates efficiently.”

·        “See the man working on the soda machine (or fixing the lights, or washing the windows)?  He is probably self-employed or owns his own small business.  The manager of this McDonald’s hires him to do a specific task, like fix the machine or wash the windows.  It would be too expensive for the store manager to hire an employee with those skills full-time, since he needs his help only when something breaks or the windows get dirty.”
    ·        Then ask:  “What other jobs or tasks do you see that the manager might hire an outside company to do instead of hiring an employee?”
    ·        Then summarize:  “So it takes a lot of different types of services from outside companies to make sure this restaurant operates efficiently.  It is an opportunity for small businesses and self-employed people with particular areas of expertise to work for McDonald’s and help it support its operations.”

 ·        “Have you ever noticed that every McDonald’s is similar?  The food is always the same.  The employees are different but usually say the same things.  The ketchup is always the same.  The reason this happens is that McDonald’s has developed something called ‘systems.’  Every store has policies and procedures and procedures that it must follow if it wants to continue being a McDonald’s.  These policies and procedures describe the systems that must be followed.  There is a system for how they fill or clean the milk shake machine or the French fry fryer.”
    ·        Then ask:  “What other systems can you identify?
    ·        Then summarize:  “The systems in place in this McDonald’s and every other McDonald’s in the world are what make it such a successful franchise.  Wouldn’t it be great to own these systems or help create systems for your own business that could be this successful?”

 ·        “Have you noticed that I have never talked about the owner of McDonald’s being here?  The owner has hired a manager.  The manager is responsible for the day-to-day operations of the restaurant.  The manager hires and fires the employees, makes sure sufficient supplies have been ordered, makes sure the customers are happy, and makes sure everything is running smoothly.  The manager contacts the owner only to report the restaurant’s progress on a regular basis, maybe on a weekly phone call or at a monthly meeting (held at the owner’s office or home).  The owner wants these phone calls or meetings so he or she will know how much money the McDonald’s is making for him or her.  The McDonald’s is an asset owned by the owner.  He or she owns the systems that make the restaurant work.  In fact, the owner could be over on that golf course right now, playing golf.”
    ·        Then ask:  “How much time do you think the owner spends at this McDonald’s?”
    ·        Then summarize:  “So the owner has his or her asset working for him or her instead of the owner working for money!  Because this asset is generating cash flow for the owner, the owner is free to spend his or her time on building more assets, or on the golf course.”

                                                            *Excerpt from the book Rich Kid Smart Kid written by Sharon Lechter and Robert Kiyosaki