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 does the McDonald's franchise differ from others?
McDonald's has one important difference from most other franchises: the company itself purchases real estate, after which it leases it out to its franchisees under the right to manage the location, while in other franchises, franchisees, as a rule, have the responsibility for acquiring or renting the required premises, or for the construction of a new building, or for necessary repairs to the property they have rented..
What formats of cooperation are available?
In addition to all of the above, McDonald’s offers its franchisees two types of restaurants: new and existing. In fact, the only difference between the two lies in the amount of the lump sum required. For new restaurants, the lump-sum fee is 40% of the total cost. For existing ones - about 25% of the total cost.
What type of franchise does McDonald's have?
McDonald’s offers four types of franchises: Traditional Restaurant: This type of franchise is located in freestanding buildings, store fronts, food courts, and other locations. The franchisee operates a full-menu restaurant, offering the public a high standard of quality and uniformity in food and service.
How much does McDonald's require to purchase a restaurant?
McDonald’s also offers two types of restaurant purchase: new or existing. The area where this makes the most difference is the required initial down payment. For new restaurants, the down payment is 40% of the total cost. For existing restaurants, the down payment is 25% of the total cost. The down payment cannot come from borrowed funds. Also, if financing is used for the rest of the initial investment costs in any way, the remaining balance of the restaurant purchase price must be paid off within the first seven years of operation.
How much cash does McDonald's require?
In addition, it takes more than just the initial investment to become a McDonald’s franchisee. The franchisor also has a liquid cash requirement of at least $500,000 (a few exceptions apply). A cash requirement is the amount of money a franchisor requires a franchisee have in savings and be able to access quickly in case of emergencies and unexpected situations when starting the business. It also accounts for regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage.
Why is McDonald's so popular?
Why is McDonald’s so popular? One reason is, while it’s not the biggest operation in the world by total number of units—that distinction belongs to 7-Eleven, it still regularly brings in the most revenue for franchises year-after-year.
What is a BFL franchise?
BFL Franchises: ‘Business Facilities Lease’ franchises grant franchises with leases that include the business facilities.
What is McDonald's franchise?
McDonald's is a franchise concept in the Food and Beverage industry.
When will McDonald's release the franchise disclosure document?
From the Franchise Disclosure Document of McDonald's, that was issued on May 1, 2021.
What is franchise failure?
Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.
What is franchise percentage?
The percentage change of total franchise units from one year to the next.
What does "n/a" mean in McDonald's?
“N/A” or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.
