how do i buy a mcdonalds franchise

How to Buy a McDonald's Franchise

Full Answer

How much does it cost to buy a McDonalds franchise?

Most McDonald’s owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald’s franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000. Owning a McDonald’s franchise is an easy sell.

What do you need to own a McDonald's franchise?

If you want to open a McDonald's franchise, you will need a least $750,000 in personal funds . Unfortunately, loans and credit do not count toward that figure. You will need an additional 1 or 2 million dollars to cover the pre-opening costs for equipment and supplies, but you can get a loan for that.

Can I make money with a franchise?

When it comes to making money franchising, and if your franchise program is built right (hint, hint), you may have additional sources of revenue built into your franchise program.

Can you make money starting a franchise?

The franchisor doesn’t actually make much money if any at all from the upfront fee that a franchisee pays to purchase a franchise business. The investment cost of a franchise opportunity is simply there to cover the cost for the franchisor in terms of bringing a new franchisee on board. Making strong investments in new franchisees will ensure they get off to a great start. The following fees are usually covered:

How much does a McDonald's franchise owner make a year?

With an average initial investment of about $1.8 million, it would take you 8.5 years or less to recoup the McDonald's franchise cost with a 10% or more profit margin. These figures are calculated from the 2020 average median net sales from a McDonald's franchise in the US, which is about $2.9 million.

How much does it cost to buy 1 McDonald's franchise?

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.

Can you buy an existing McDonald's franchise?

McDonald's sites, both new and existing, are offered either to our existing McDonald's franchisees or to franchisee applicants who have already completed our extensive, 6 to 18 month McDonald's franchise training program.

What is the most profitable franchise to own in 2022?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

What franchise makes the most money?

What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.

Are McDonald's franchises profitable?

To the franchisor, McDonald's is a very profitable business with an average annual net income of over 2 billion dollars.

How much is a KFC franchise?

For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.

How do you purchase a franchise?

How to buy a franchise, step by stepBe sure about your reasoning. ... Research which franchises you may want to own. ... Begin the application process. ... Set up your “discovery day” meeting. ... Apply for financing. ... Review and return your franchise paperwork very carefully. ... Buy or rent a location. ... Get training and support.

How much to buy a chick fil a franchise?

Despite its success, Chick-fil-A charges franchisees only $10,000 to open a new restaurant, and it doesn't require candidates meet a threshold for net worth or liquid assets, the company told Business Insider. That's cheaper than every major fast-food chain in the US.

Are McDonald's franchises profitable?

To the franchisor, McDonald's is a very profitable business with an average annual net income of over 2 billion dollars.

What is Starbucks franchise fee?

What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.

How much is a Wendy's franchise?

What does the initial franchisee fee cover? Does it include start-up supplies and training? The standard franchise fee is $50,000 for a franchise agreement with a term of 20 years.

What it takes

Most new franchisees enter the McDonald’s system through the purchase of an existing restaurant from either one of our franchisees or McDonald’s USA, LLC.

What you bring to the table

If you’re ready to bring your passion and commitment to our system, McDonald’s provides an amazing opportunity to realize substantial personal rewards.

Our selection process

After you successfully complete the training program, McDonald’s, in its sole and absolute discretion, will grant a qualified candidate a McDonald’s franchise opportunity. There may be a time delay between completion of training and the offer of a franchise, depending on availability of a suitable restaurant (s).

How much does it cost to franchise a McDonald's?

While the initial franchise fee is $60,000 plus GST, you will generally need at least $1 million in order to purchase a McDonald's franchise, and may need more if you plan on opening a new location.

What do I need to become a McDonald's franchisee?

McDonald's has strict requirements when it comes to approving franchisees, and there are a number of criteria that you will need to meet to be considered as a McDonald's franchisee. These include:

How much does it cost?

Purchasing a McDonald's franchise, either from an existing franchisee or by opening a new restaurant, requires a large investment.

How much does it cost to start a restaurant?

Your initial costs will vary depending on if you are purchasing an existing franchise or starting a new restaurant, as well as the location of your franchise. However, you will need to cover the following costs as part of your investment: 1 $60,000 licence fee. 2 $5,000 documentation fee. 3 Staff training and other start-up costs (approximately $160,000-$200,000). 4 Equipment and restaurant fit-out (approximately $1.6 million).

How many McDonald's are there in Australia?

McDonald's is a global, fast food icon, with locations in over 100 countries – and more than 970 around Australia. So it makes sense that the popular golden arches attract people interested in franchise options, as well as hungry customers. If you want to open a new McDonald's location in Australia, you need to meet the company's strict set ...

How many stages does McDonald's have?

McDonald's has a six-stage selection process for choosing potential franchisees. These stages are:

How much royalty does McDonald's charge?

McDonald's charges a 5% monthly royalty fee on your restaurant's gross sales, and you must also pay monthly rent and advertising fees, which are calculated as a percentage of your gross sales.

Why does McDonald's make the decision to develop a location?

We make the decision to develop a location because we believe it will be a success. McDonald’s manages all the site evaluation, acquires the property and constructs the building. After making the decision to develop a site, McDonald’s awards the franchise to the most qualified candidate.

How many McDonald's are there in the world?

McDonald’s is the world’s leading global foodservice retailer with over 38,000 locations in over 100 countries. Approximately 93% Of McDonald’s restaurants worldwide are owned and operated by independent local business owners.

Does McDonald's predict restaurants?

The availability of restaurants in specific areas will be discussed during your initial interview. McDonald’s can not predict which restaurants will be available when your training is complete. Flexibility to relocate for a restaurant opportunity may be required.

Is McDonald's an equal opportunity franchise?

McDonald's is an equal opportunity franchisor by choice. McDonald’s is seeking individuals who are capable of operating multiple locations. Candidates who have successfully operated multiple businesses may be suited to operating several McDonald’s franchises.

Does McDonald's have international franchises?

McDonald’s franchises restaurants in many international markets, and decisions relating to the selection of candidates are made locally by the management in the country where the restaurant is located. For interest in specific markets regarding international franchising, please see the list of contacts and franchising information on the Global Franchising page of this web site. Links to individual market web sites are provided where available.

How much does it cost to buy a McDonald's franchise?

While the minimum down payment can vary, it's usually at least $500,000. The total cost of buying a franchise is usually $1 million to $2 million, including the $45,000 franchise fee. Before you can discuss buying a franchise, you'll have ...

When did McDonald's lose its appeal?

Back in 1999, it looked like McDonald's was losing its appeal to customers and franchise owners alike. Its menu seemed dated and unhealthy compared to other restaurants. However, the company has continued to respond, modifying its menu and, most recently, adapting new technologies like self-serve kiosks to keep customers, investors and franchise owners coming back for more.

Does McDonald's have to approve a franchise deal?

You will negotiate directly with the franchise owner, but McDonald's must approve the deal before it's finalized.

Is McDonald's a franchise?

McDonald's is perhaps the most successful and most popular franchise opportunity in history. In 2019, it was once again ranked first in Entrepreneur's list of the top 500 franchises. It's been at the top of the list more than any other company except Subway, which has slid down to #125 this year. However, success wasn't always a sure thing.

How long does it take to become a McDonald's franchisee?

The program consists of a week at "Hamburger University" at McDonald's headquarters in Elk Grove Village, Illinois. Training is also available for 12 to 24 months at a McDonald's restaurant. McDonald's selects the sites for its restaurants, so the fact that you have land of your own does not automatically mean that McDonald's will award you a franchise.

How much does it cost to open a McDonald's?

The costs of opening the store, which you pay to contractors and suppliers, will run from $995,703 to $2,290,145, depending on factors such as the restaurant size and location. According to Entrepreneur.com, your total investment could run between $1,000,708 and $2,335,146. McDonald's caps what you can borrow for a new franchise at 60 percent of the costs. Thus, four of every 10 dollars you spend must come from your own cash, stocks, bonds or your equity in property other than your home.

How long is the McDonald's Land of Your Own training?

The program consists of a week at "Hamburger University" at McDonald's headquarters in Elk Grove Village, Illinois. Training is also available for 12 to 24 months at a McDonald's restaurant. McDonald's selects the sites for its restaurants, so the fact that you have land of your own does not automatically mean that McDonald's will award you ...

Background

McDonald's is the world's largest restaurant chain by revenue. The company serves tens of millions of customers daily across the world. They rechristened their business as a hamburger stand. Later they then turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.

Support and Training Offered By McDonald's

On-The-Job Training: 500 hours (average) Classroom Training: 72 hours Additional Training: At local McDonald's restaurant

Franchises Similar to McDonald's

The International Franchise Professionals Group (IFPG) is an internationally recognized membership-based franchise organization. IFPG Franchise Consultants guide aspiring business owners through the process of identifying and investing in franchise businesses. The IFPG represents more than 550 franchises.

How much does McDonald's franchise cost?

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee.

How much cash do you need to own a McDonald's franchise?

However, all applicants are required to have a minimum of $500,000 available in liquid assets, which is essentially cash to be used for investing in a McDonald’s restaurant.

How many McDonald's are there in the world?

McDonald’s Corporation has 38,000 restaurants located in over 100 countries and 93% of them are franchise operations. In other words, many entrepreneurs have chosen to make a living under the shadow of the ubiquitous golden arches. McDonald’s is a powerful brand, with many stores earning well over $2 million in sales annually. As a result, owning a franchise can be profitable for both the owner and McDonald’s when properly managed.

Does McDonald's offer financing?

McDonald's does not offer any financing or lending. Also, the new owner must pay down the debt over seven years. In rare cases, McDonald's adjusts prospective owner qualifying standards for franchises in urban and rural areas.

Do owners pay rent to McDonald's?

Owners also pay the monthly rent to McDonald’s based on a percentage of sales. Whether buying an existing McDonald’s franchise or building a new one, buyers can shop around to get the best interest rates on loans.

Does McDonald's approve new franchises?

New Franchise. In some cases, McDonald’s approves the opening of new franchises in regions where the company wishes to enter the market, which is also considered "buying" a franchise. Typically, candidates that are approved to open new locations are existing franchisees with experience owning and operating a McDonald’s restaurant.

How much does it cost to open a McDonald's franchise?

To open a McDonald’s franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.

Who bought McDonald's?

Kroc eventually bought the company from Dick and Mac McDonald and oversaw McDonald’s worldwide growth to more than 30,000 restaurants today with more than $22 billion in annual revenues. McDonald’s is one of the great American success stories.

What is the McDonald's Golden Arches logo?

The McDonald’s Golden Arches logo has become one of the most ubiquitous marketing symbols ever. Happy Meals, McDonald’s French fries, chicken McNuggets, the Big Mac. McDonald’s has led the way in the innovation of fast-food trends one after another.

When did McDonald's open?

The first McDonald’s restaurant was an unassuming hamburger stand owned by Richard and Maurice McDonald in California, opened in 1940.

Is McDonald's a good franchise?

Owning a Mc Donald’s franchise is an easy sell. Once up and running, the company’s international marketing model does the heavy lifting, and provides training support and materials to help its franchisees succeed. The company wants successful restaurants and seeks individuals with significant business experience, who have owned or managed businesses before. A McDonald’s franchise is a golden (arches) opportunity for the serious, energetic, business-focused entrepreneur.

Is HealthyYOU a franchise?

The proven HealthyYOU model requires no employees and allows you to monitor your machines from home or from mobile devices. There are no franchise fees, royalties, marketing fees or post-investment required purchases.

Is Honey Baked Ham a franchise?

The Honey Baked Ham Company, America's first and favorite ham franchise, has been serving high quality products for over 60 years. As a retail food franchise, HoneyBaked stands out with its multiple revenue streams and simple operating requirements.