“Evaluating the Growth of McDonald’s Franchise Model and Modicare MLM Model in Urban India”
SUBMITTED BY
Mr. Boddupalli Shiva Kumar shivaboddupalliak47@gmail.com
Mr. Gattu Shravan Kumar Shravankumarviru3@gmail.com
Mr. Challa Yashwanth yashwanthchalla61@gmail.com
Mr. Nagapuri Praneeth praneethgoud2003@gmail.com
Master of Business Administration
I. Abstract
This study explores and compares the growth of franchise and multi-level marketing (MLM) models in urban India, focusing on two well-known examples: McDonald’s and Modicare. Over the past decade, urban India has become a key market for both franchise-based businesses and MLM companies, driven by rising incomes, digital adoption, and changing consumer behavior. The project examines detailed data from 2018 to 2025, highlighting trends in outlet and consultant growth, revenue patterns, strategies, and the challenges faced by each model.
McDonald’s represents the franchise model, which requires high investment but benefits from strong brand trust, standardized operations, and a loyal urban customer base. By 2024, McDonald’s India operated around 665 outlets nationwide, with about 532 in urban areas, contributing over ₹2,100 crore to its revenue. Its growth strategy focuses on menu localization, digital ordering through apps, loyalty programs, and selecting high-traffic urban locations like malls and metro stations. Despite stable growth, McDonald’s faces challenges such as high real estate costs, competition from other QSR brands, and limited profitability due to operational expenses.
On the other hand, Modicare illustrates the MLM model, which relies on direct selling and low entry barriers. With nearly 60 lakh consultants by 2024, including about 40 lakh in urban areas, Modicare’s model scales quickly by attracting youth and women interested in flexible income. The company’s revenue grew from about ₹500 crore in 2021 to around ₹900–930 crore by 2024, driven largely by health and wellness products and digital sales platforms. However, the model also struggles with high consultant turnover, consumer skepticism due to confusion with pyramid schemes, and relatively low average earnings per consultant.
The comparative analysis reveals that while McDonald’s has fewer outlets, each generates significantly higher revenue, backed by strong brand positioning and consumer trust. Modicare, with a much larger urban network, shows faster growth in numbers but lower per-unit revenue and higher churn. Both models rely heavily on digital tools and localized strategies to stay relevant in urban markets.
